90
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS Rick Perry GOVERNOR Michael Gerber EXECUTIVE DIRECtOR wlUw.tdhca.state. fx.Us BOARD MEMBERS C. Kent Conine, Chait' Gloria Ray, Vice Chair Leslie Bingham Escarefio Tom H. Gallo Lowel1 A. Kcig Juan S. Munoz, Ph.D. August 12, 2010 Mark Lisheron Texas Watchdog 8303 Forest Heights Lane Austin, TX 78749 Re: Open Records Request Dear Mark: This letter is in response to your August 2, 2010, request under the Texas Public Information Act, Chapter 552, Texas Government Code, in which you request the following information: Copies of all audits and evaluations done by your department of work done between June 1 and the current date, Aug. 2., in Texas through the Weatherization Assistance Program funded through the American Recovery and Reinvestment Act. The Texas Department of Housing and Community Affairs has reviewed its files and located the enclosed documents responsive to your request. I am in hope that you will accept these files with certain entries redacted. If you do not accept these redacted files, the Department must request a determination by the Office of the Attorney General whether it can release these files without the redactions. While Texas Government Code §552.267 allows a governmental body to charge for copying documents, these documents are being provided to you at no charge. The Department reserves the right to charge for document copies in the case of future requests. If you wish to discuss this matter further, please contact me at 512/475-4743. Sincerely, TDHCA Public Information Officer 221 EAST 11''' P. O. Box 13941 AUSTIN, TEXAS 78711-3941 (800) 525-0657 (512) 475-3800 () Primed 011 recJehd paper

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Page 1: WAP Monitoring_Part 1

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

Rick PerryGOVERNOR

Michael GerberEXECUTIVE DIRECtOR

wlUw.tdhca.state. fx.Us

BOARD MEMBERS

C. Kent Conine, Chait'Gloria Ray, Vice Chair

Leslie Bingham EscarefioTom H. Gallo

Lowel1 A. KcigJuan S. Munoz, Ph.D.

August 12, 2010

Mark LisheronTexas Watchdog8303 Forest Heights LaneAustin, TX 78749

Re: Open Records Request

Dear Mark:

This letter is in response to your August 2, 2010, request under the Texas Public Information Act,Chapter 552, Texas Government Code, in which you request the following information:

Copies of all audits and evaluations done by your department of work done betweenJune 1 and the current date, Aug. 2., in Texas through the Weatherization Assistance Programfunded through the American Recovery and Reinvestment Act.

The Texas Department of Housing and Community Affairs has reviewed its files and located theenclosed documents responsive to your request. I am in hope that you will accept these files withcertain entries redacted. If you do not accept these redacted files, the Department must request adetermination by the Office of the Attorney General whether it can release these files without theredactions.

While Texas Government Code §552.267 allows a governmental body to charge for copyingdocuments, these documents are being provided to you at no charge. The Department reserves theright to charge for document copies in the case of future requests.

If you wish to discuss this matter further, please contact me at 512/475-4743.

Sincerely,

~.~:n-TDHCA Public Information Officer

221 EAST 11''' • P. O. Box 13941 • AUSTIN, TEXAS 78711-3941 • (800) 525-0657 • (512) 475-3800

() Primed 011 recJehd paper

Page 2: WAP Monitoring_Part 1

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

wtllw.tdlJca.state.tx.usRkkPerryGOVERNOR

Michael GerberExecUTlVB DIRECTOR

June 7, 2010

Mr. David ZappasodiExecutive DirectorArlington Housing Authority501 W. Sanford, Suite 20Arlington, Texas 76011

BOARD MnMBBRsC. Kent Cl;tnlnc, ChairGlotla Ray. Vice Chah'

Lealie Bingham EscarefloTom H. Gahh

Lowell' A. KeigJuan S. Munoz. Ph.D.

Reo: ARRA Weatherization Assistance Program Contract #16090000746

Dear Mr. Zappasodi:

Enclosed is a report that details the monitoring review of your Weatherization AssistanceProgram contract with the Texas Department of Housing and Community Affairs. ThisinfOrmation is provided to ensure that compliance with the contract(s) is maintained and thatservices to the poor, elderly, and disabled are offered in the most expeditious and economicalmanner.

The Department has identified seven (7) findings and one (1) recommendation .for theWeatherization Assistance Program. Please submit a response to this report to this office withinthirty (30) days of the date of this letter.

If we can be of any assistance, please contact Jason A. Seale, Program Officer, at (512) 463­0172. The assistance provided to the Program Officer by City of Arlington is greatlyappreciated.

Sincerely,

Sharon GambleManagerEnergy Assistance Section

221 EAST 11'" • P. O. Box 13941 • AUSTIN, TBXAS 78711·~941 • (800) 525-0657 • (512) 475·3800

(J P,lm,J DlI rtlJdttl pnl"

Page 3: WAP Monitoring_Part 1

PY09 WEATHERIZATION MONITORING REPORTOF

CITY OF ARLINGTON

Directory of Monitoring Sections

Section I. Financial Review

Section II. Travel and Timesheets

Section III. General Liability and Pollution Occurrence Insurance

Section IV. Property Management

Section V. Procurement

Section VI. Audit

Section VII. Personnel Policies and Procedures

Section VIII. Performance Review/Onsite Inspections

Section IX. Administrative

Section X. Client FilelMultifamily Review

Section XI. Denied Files

2

Page 4: WAP Monitoring_Part 1

Dates of Review:

PY09 WEATHERIZATION MONITORING REPORTOF

CITY OF ARLINGTON

April 26, 2010 - April 29, 2010

Focus ofReview

"

CONTRACT NAME CONTRACT CONTRACT CONTRACT DATESNUMBER AMOUNT

ARRA 16090000746 $1,091,787.00 9/1/2009 to 8/31/2011

On-site review of City of Arlington's implementation of the American Recovery andReinvestment Act of 2009 Weatherization Assistance Program (WAP). Specific areas of reviewincluded Financial Reporting, Contract Agreements, Procurement, Personnel and theManagement of the American Recovery and Reinvestment Act of 2009 contract.

Program Evaluation

The evaluation of the program consisted of: Interviews with the City of Arlington personnel,analysis of the fiscal system, review of programmatic records, on-site inspections, client filereviews and inventory review.

The following was noted during the review:

• Lack'ofDocumentation for LSW Practices• Missing Material Specification Sheets• Low Expenditures for ARRA WAP Contract• Incomplete Client File Documentation• Contl'actor HVAC Pricing Discrepancies• Missing Contract Provisions

3

Page 5: WAP Monitoring_Part 1

PY09 WEATHERIZATION MONITORING REPORTOF

CITY OF ARLINGTON

Section I. Financial Review

EXPENDITURES AS OF MARCH 2010

CONTRACT YEAR-TO-DATE % OF ORIGINAL # UNITS # UNITS INNAME EXPENDITURES CONTRACT COMPLETED PROGRESS

AMOUNT

ARRA $95,796.81 8.77% 35 35

Recommended Improvement #1 Review of the March 2010 expenditure report for the ARRAcontract revealed Administrative expenditures were above the maximum allowable of 5%.Current Administrative expenditures for the ARRA contract are 12.15%. The Departmentreminds City of Arlington that Administrative expenditures must be at 01' below the maximum bycontract closeout 01' be subject to disallowed cost.

Finding #1

ActionRequired

Finding #2

Low Expenditures As of the March 2010 monthly expenditure reports,City of Arlington had expended 8.77% of ARRA WAP Contract#16090000746. The ARRA WAP Contract requires the development andimplementation of equitable WAP services throughout the entire servicearea.

The Department requires City of Arlington to submit a detailed plan ofaction to include increased production and adherence to the DOEProduction Schedule in the response to this report. Failure to submit aplan to the Department may result in suspension of the ARRA WAPcontract. Reference: ARRA Contract Section 4

Section V. Procurement

Missing Contract Provisions Review of the current vendor contractrevealed foul' (4) provisions that are required to be included in thecontractor agreement. The four (4) provisions that weren't included in thecurrent agreement are:

A) For contracts in excess of $10,000, compliance with Executive Order11375 Amending Executive Order 11246 "Equal EmploymentOpportunity"

B) Utilizing ARRA funds for use in political activity and lobbying

C) Assuring legal authority to sign the contract

D) For contracts in excess of $100,000, compliance with Clean Ail' andClean Water Acts

4

Page 6: WAP Monitoring_Part 1

ActionRequired

Finding #3

ActiouRequired

Finding #4

ActionRequired

PY09 WEATHERIZATION MONITORING REPORTOF

CITY OF ARLINGTON

City of Arlington is currently in the process of procuring an additionalcontractor for the ARRA WAP program. Once the preceding provisionshave been added to amend existing contracts, City of Arlington mustsubmit a copy to the Department in the response to this report.Reference: OMB Circular A-110 - Appendix A, ARRA ContractSection 30, 10 TAC §5.10

Section VIII. Onsite Inspections

Inadequate Final Inspections On-site review revealed that the City ofArlington was not conducting thorough final inspections of unitsweatherized. The units require a return to 7 out of the 10 units inspectedfor additional work to assure compliance with current programrequirements. City ofArlington installed 1/2" sheetrock in the garage of09WAP102 under health & safety. This installation Is not an allowablecost under this category.

In order to ensure program compliance, the City of Arlington must returnand address units as indicated in Attachment A of this report. As part ofthe response to this report, the City of Arlington must submit a writtenplan that outlines how final inspections will be more thorough andcomprehensive. City of Arlington must transfer the cost of the sheetrock(09WAPI02) to unrestricted funds and submit supporting documentationor reimburse the Department $384.00 from unrestricted funds for thesheetrock that was installed under Health & Safety. Reference:Weatherization Field Guide, Chapter 1

Inadequate Lead Work Practice Documentation On-site unitinspections revealed a deficiency in minimum. documentation standardsfor Lead Safe Work Practices. Review of client file documentationaffirmed t1).e potential of lead hazards in pre-1978 units that wererecipients of weatherization services provided by City of Arlington.

The City of Arlington is reminded of EPA's LRRPP (Lead; Renovation,Repair and Painting Program) Final Rule effective April 22, 2010. Thelisted reference will provide Minimum Standards for LSW, found in WPN08-6, Attachment A. Failure to follow EPA guidelines for LSW couldresult in fines administered by the EPA as well as disallowed costsadministered by the Department. Reference: WPN 08-6, WPN 08-6,Attachment A - Minimum Standards for LSW, WPN 09·6

5

Page 7: WAP Monitoring_Part 1

Finding #5

ActionRequired

Finding #6

ActionRequired

PY09 WEATHERIZATION MONITORING REPORTOF

CITY OF ARLINGTON

Missing Material Specifications Documentation At the time ofmonitoring, City of Arlington could not provide Material Specificationsfor air conditioning equipment, gas water heaters, electric water heaters,gas furnaces, electric furnaces, weatherstripping and replacement windowsbeing utilized in the ARRA WAP program by its current contractor.

The City of Arlington must submit as a response to this report the materialspecifications of the preceding equipment in accordance with Departmentof· Energy (DOE) specifications. Any materials not meeting DOEspecifications will be considered disallowed costs. Reference: 10 CFR440, Appendix A - Standards For Weatherization Materials

Section X. Client File Review

Incomplete Client File Forms A review of the client files revealed thatthe· City of Arlington is not completing the forms as required by thecontract.

All Files - Start date on Building Weatherization Report were from theassessment date and must be from the work start date.09WAPI02" Income documentation is not current for PVSH1504. Fileis missing income documentation or the Declaration of Income Statementfor PUSHI504.09WAP78 - Failed to obtain complete 30 days of income for HAL6205and JMI6205. Failed to obtain 30 days of income for YMI6205 fromFuente de Sodas Letty's.09WAPI02 • Sheetrock was installed in the garage under the Health &Safety line item. .09WAP24 • Priority sheet shows the water heater under the Health &Safety category but the Building Weatherization Report indicates it waspaid under the Other Measures category.09WAP44 • Building Weatherization Report is missing agency and clientsignatures with dates.09WAP62· Contractor invoiced agency $1,200.00 to replace a 13 SEERNC. The material price list indicates that the price is $900.00.09WAP4 - Contractor invoiced the agency $2,075.00 to replace a 75 BTUFurnace. The material price list indicates that the price is $900.00.

The City ofArlington must provide the Department a written procedure

6

Page 8: WAP Monitoring_Part 1

Finding #7

ActionRequired

PY09 WEATHERIZATION MONITORING REPORTOF

CITY OF ARLINGTON

indicating how the agency will adhere to complying with the requirementof filling out the forms as required by the contract. The written proceduremust be submitted in response to this report. The City of Arlington mustobtain current income documentation from PVSH1504 and for PUSH1504(09WAP102). The agency must obtain current income documentation orDeclaration of Income Statement from HAL6205 and JMI6205(09WAP78). A copy of the income documentation for HAL6205,PUSH1504 and PVSH1504 must be submitted with the response to thisreport. Failure to provide the required income verification documentationwill result in disallowed costs for all weatherization measures performedand all materials installed.The City of Arlington must request from the contractor an adjustedinvoice in the amount of $1,475.00 for files 09WAP62 and 09WAP4.Reference: 10 TAC §5.20 (c), ARRA Contract Section 13, RecordKeeping Requirements

City of Arlington must review the above noted client files, and completethe required BWR certification of final inspection page. A copy of theproperly completed BWR certification of final inspection page must besubmitted with the response to this report. Failure to provide the BWRceltification of final inspection page will result in disallowed costs. TheCity of Arlington must also assure the Department in its response to thisrepolt that better quality control measures will be implemented to preventfuture instances of BWR certification of final· inspection page forms notbeing properly reviewed and/or completed. Reference: Contract Section13, (B), (4)

09WAP22 received a 75,000 Btu Energy Star Furnace charged to theHealth and Safety line item. The pricing revealed in the BuildingWeatherization Report was not the stated price as submitted in the BidModification submitted by E3 Solutions. Material cost for the furnace isshown at $2,425.00 with a labor cost of $2,075.00 on the completeBuilding Weatherization Report. The current price, according to theagreed Bid Modification is $2,250.00 for materials and $900.00 for theassociated labor.

In order to ensure program compliance, the City of Arlington must requestimmediate reimbursement from E3 Solutions for the difference in pricingas stated in the Bid Modification in the amount of$1,350.00 ($175.00 for

.materials and $1,175.00 for labor). As part of the response to this report,the City ofArlington must submit support documentation that outlines thereimbursement to the City of Arlington from E3 Solutions. Reference:10 TAC §5.10, 10 CFR 440.21

7

Page 9: WAP Monitoring_Part 1

PY09 WEATHERIZATION MONITORING REPORTOF

CITY OF ARLINGTON

Program Officers Jason A. Seale and Walter Griner conducted an exit interview with thefollowing staff members from City of Arlington:

Mindy Cochran, Housing Operations ManagerDonna Wall, Weatherization SpecialistAmy Trevino, Financial ManagerMedria Browhow, Account AnalystJuan Serrano, Project CoordinatorDavid Zappasodi, Executive DirectorBrett Clark, Project CoordinatorNicolette Arceneaux, Urban Development Specialist, LSOTahseen Khan, Rehabilitation Specialist

s~:=:.---..::::.---~ ~:04-C_'-'----Jason A. SealeEnergy Assistance Program Officer

SignatureWalter GrinerEnergy Assistance Program Officer

8

Date

Page 10: WAP Monitoring_Part 1

ATTACHMENT A

PY09 WEATHERIZATION MONITORING REPORTOF

CITY OF ARLINGTON

Units Reviewed CommentslO units reviewed lODOEARRA Returns noted below

Units Fund Source Return CommentsInspected

09WAP4 DOEARRA No No Return

09WAPlO2 DOEARRA Yes Return to adjust kitchen exterior door to close correctly.Adjust water heater vent pipe. Block central heat source inattic.

0

Texas Weatherization Field Guide Pg.68 2.4 Water-Heating Measures Pg. 32 Texas Meehanical SystemsField Guide 3.2 Venting Combustion Gases Pg.31

09WAP44 DOEARRA Yes Return to clean inside the return that was sealed upstairsand downstairs. Install masonite siding on the west side upby the roof.

09WAP78 DOEARRA Yes Return to repair the pressure and temperature relief valveline.Texas Weatherization Field Guide Water-HeatingMeasures Pg. 32

09WAP24 DOEARRA Yes Return to seal five central registers correctly. Replace 4defective bulbs.Texas Weatherization Field Guide

09WAPlO DOEARRA Yes Return to address additional air infiltration in the backdining room. Seal around the return and tighten register inbathroom.Texas Weatherization Field Guide Attic Ventilation Pg.52

09WAP92 DOEARRA Yes Return to attach board behind washer to wall. Addressadditional air infiltration by caulkiug all pipe penetrationsand around the French doors.Texas Weatherization Field Guide Sealing major airleaks and bypasses Pg. 43

9

Page 11: WAP Monitoring_Part 1

PY09 WEATHERIZATION MONITORING REPORTOF

CITY OF ARLINGTON

09WAP62 DOEARRA Yes Return to add ventilation to attic. Address additional airinfiltration by caulking all pipe penetrations, by the beamon ihe ceiling of the living room. Seal around the plenum inthe Ale closet.Texas Weatherization Field Gutde Attic Ventilation Pg.52 Sealing major air leaks and bypasses Pg. 43

09WAP53 DOEARRA No No return.

09WAP3 DOEARRA No No return.

Action Required: Retu1'll and address. Upon completion, verification of returns must besubmitted to the Department within thirty (30) days of this report.

10

Page 12: WAP Monitoring_Part 1

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

www.tdhca.state.tx.usR1ckPe,ryGOVJ!JtNOR

Michael GerberExnCUTIVB DIRECTOR

June 28, 2010

Mr. Karl R. RabagoVP for Distributed Energy ServicesAustin Energy721 Barton Springs Rd.Austin, Texas 78704

Re: DOE/ARRA Weatherization Assistance Program Contract #16090000753

Dear Mr. Rabago:

BOARD MEMBERSC. Kent Conine, ChairGloria Ray, Vice Chair

Leslie Bingham EBcarefioTom H, Gann

Lowell A. Kel8Juan S. Mulioz, Ph,D.

Enclosed is II report that details the monitoring of the City of Austin (COA) WeatherizationAssistance Program contract with the Texas Department of Housing and Community Affairs(The Department). This information is provided to ensure that compliance with the contract ismaintained and that services to the poor, elderly, and disabled are offered in the most expeditiousand economical manner.

The monitoring report includes four (4) findings resulting in questioned costs and one (I)recommended improvement. Please submit a response to this report to this office within thirty(30) days of the date ofthis letter.

If we can be of any assistance, please feel free to contact J.R. Mendoza, Senior Program Officer,at (512) 936-7811. The assistance provided to the Program Officers by the agency is greatlyappreciated.

Sincerely,

-Sharon D. GambleManagerEnergy Assistance Section

Cc: Mr. Marc A. Ott, City Manager

221 EAST liT" • 1'. O. Box 13941 • AUSTIN, TEXAS 78711-3941 • (800) 525-0657 • (512) 475-3800

Page 13: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTCITY OF AUSTIN

Directory of Monitoring Sections

Section I. Financial RepOlting

Section II. Travel and Timesheets

Section III. General Liability and Pollution Occurrence Insurance

Section IV. Property Management

Section V. Procurement

Section VI. Audit

Section VII. Personnel Policies and Practices

,Section VIII. Perfolmance Review

Section IX. .Administration

Section X. Multifamily

Section XI. Denied Files

PAGE 2 OF 7

Page 14: WAP Monitoring_Part 1

Dates of Review:

2009 WEATHERIZATION MONITORING REPORTCITY OF AUSTIN

May 17-20,2010

Focus OF REVIEW

CONTRACT NAME CONTRACT CONTRACT CONTRACT DATESNUMBER AMOUNT

DOEARRA 16090000753 $5,964,892.00 9/1/2009 to 8/31/2011

PROGRAM EVALUATIONThe May 17-20, 2010 on-site monitoring consisted of a review of the City of Austin (COA)implementation of the Department of Energy's ARRA Weatherization Assistance Program.Specific areas of review included Financial Reporting, Contract Agreements, Procurement,Personnel, and the Management of the Department of Energy and Low Income Home EnergyAssistance Program contracts.

The evaluation of the program consisted of: interviews with the COA personnel, analysis of thefiscal system, review of programmatic records, on-site inspections, client interviews, andinventory review. This is the first year that COA has operated a Weatherization Program fromTDHCA. The process to obtain the weatherization contract was lengthy as there were protocolsthat requited review by several City Departments and ultimately the City Council approval.Shortly after the contract was approved and signed by the council, Austin Energy commencedthe procurement process to acquire sub contractors to complete unit assessments, finalinspections and to install the weatherization measures. This process was completed in March2010 and contracts were approved in the subsequent month. At the time of monitoring, COA hadweatherized five (5) units, but had not reported them to the Department since the contractors hadnot provided invoices; therefore no Building Weatherization Report had been completed. As aresult, there were no expenditures reported to the Department.

The following was noted dnring the review:

• Lack of production of weatherized units

• Lack ofdocumentation of compliance with Weatherization Material Standards

• Work Orders did not detail where ail' infiltration measures were to be completed.

• Income documentation was missing on two of five client files

• Files contained excess forms

PAGE 3 OF 7

Page 15: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTCITY OF AUSTIN

Section I. Financial Reporting

EXPENDITURES AS OF MARCH 2010

CONTRACT YEAR-TO-DATE % OF ORIGINAL # UNITS # UNITS INNAME EXPENDITURES CONTRACT COMPLETED PROGRESS

AMOUNT

DOEARRRA $0 0% 0 5

Finding #1:

ActionRequired:

Finding #2:

RequiredAction:

At the time of monitoring, COA had not reported any completed units. Whereas,the contract period ends August 31, 2011, COA faces deobligation of funds ifminimum completion benchmarks are not met tln'oughout the program year. Twobenchmarks include COA reporting 100 (cumulative) completed units, at an

.average unit expenditure rate of $5,380.00, by June 30, 2010 and 371 (cumulative)units by August 31, 2010. In addition, COA must have expended at least 20%($538,000) of its original contract by June 30, 2010 and 35% ($1,995,980) byAugust 31, 2010.

As part of the response to this report, COA must document a plan of action thatwill detail how it will assure units will be weatherized and how it anticipatesmeeting the production schedule that was submitted to the Department (June 10,2010 production schedule). At a minimum, specifics of the plan of action shouldinclude Outreach, Intake, Assessments, Contractors, Final Inspections; Financialpayments and Reporting. COA must understand that providing the requiredresponse does not guarantee its DOE ARRA contracted funds will not bedeobligated.Reference: DOE ARRA contract section 4

At the time of monitoring, COA did not have documentation that allweatherization materials installed by its contractors met the minimum standards asrequired by DOE. Failure to ensure each product meets DOE requirements mayresult in questioned or disallowed costs.

A copy of data sheets for all material products used by each of contractor must bemaintained. In addition, each product must conform to the DOE minimumstandards. As part of the response to this report, COA must provide a copy of thematerials specifications· from each contractor. In addition COA must provide anassurance that a file will be maintained to ensure all materials installed meet DOErequirements.Reference: DOE 10 CFR 440 Appendix A

PAGE40F7

Page 16: WAP Monitoring_Part 1

Finding #3:

RequiredAction:

Finding #4:

ActionRequired:

2009 WEATHERIZATION MONITORING REPORTCITY OF AUSTIN

A review of work orders for the weatherized units· revealed generic details onwhich air infiltration measures should be taken. Having a generic work order maylead to work that may not be required and may result in over expenditure of airinfiltration measure funds. A thorough unit assessment must detail what airinfiltration measures will be required. In turn, this detail will allow COA todetermine which measures are most cost effective and if the cost is over themaximum allowable expenditure. Any costs over the maximum allowableexpenditure will be disallowed.

As part of the response to this report, COA must provide an assurance and detailwhat steps will be taken to guarantee all future work orders will be detailed as tothe specific need for any weatherization measure.Reference: DOE ARRA Contract Section 11

A review of five (5) client files revealed two (2) files mIssmg incomedocumentation for certain individuals within the household. Client fileEVILL4402 was missing income documentation for the wife and file LRIBB0408had two (2) individuals within the household missing income documentation. Allencumbered weatherization expenses ($2,896.00) for these two units areconsidered questioned until the income documentation is obtained.

As part of the response to this report, COA must obtain and provide the missingincome documentation for each file noted above. COA must also provide theexisting client income information on file and verify if the household is stilleligible to receive DOE ARRA weatherization services. COA must provide anassurance on how it will ensure all weatherization client files will have incomedocumentation for each household member over eighteen (18) years of age.Reference: DOE ARRA Contract Section 13

RecommendedImprovement: A review of the client files revealed excess documents in each file. COA had

copies of the Priority Rating Sheet Instructions and the Blower Door StandardInstructions in each client file. Whereas these instructions are important to ensurethe priority rating sheet and the Blower Door Standard are followed correctly,copies are not required to be in each file. It is recommended that each assessor,final inspector and quality assurance staff member have a central file containing acopy ofthese instructions.

PAGE 5 OF 7

Page 17: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTCITY OF AUSTIN

Texas Department of Housing and Community Affairs representative, J.R. Mendoza participatedin an exit conference with Mr. Steven Saenz and Joseph Guerrero.

~F?'-- _

Celedonio Mendoza Jr.Seniol' Program Officer

PAGE60F7

Date

~/Z8/ZCJID

,

Page 18: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTCITY OF AUSTIN

ATTACHMENT A

JAMAD3409

LRlBB0408

SBR004905

EVILLA4402

ARRA

ARRA

ARRA

ARRA

Clean fan in the Central System'air handler

Insulate the attic hatch

No Return

No Return

PAGE70F7

Page 19: WAP Monitoring_Part 1

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

www.tdhca.state.tx.1UR1,kr.,ryGOVBRNOR

MIchael GerberExECOTIVE DumCTOR

June 7, 2010

Ms. Anna SimoExecutive DirectorBee Community Action AgencyPOBox 1540Beeville, TX 78104

Re: DOE Weatherization Assistance Prograin Contract # 56090000446LIHEAP Weatherization Assistance Program Contract #81090000480DOE/ARRA Weatherization Assistance Program Contract #16090000650

Dear Ms. Simo:

BOARD MI!MimRSC. Kent Conine, Ch"b'Glor!ft Ray, Vice Chait,

Leslie BJngblllU BscarefioTom H, Gann

Low.1I A.. K.lgJuan S. Multoz. Ph.D.

Enclosed is a report that details the monitoring and desk review of Bee Community Action AgencyWeatherization Assistance Program contracts with the Texas Department of Housing and CommunityAffairs (The Department). This information is provided to ensure that compliance with the contracts ismaintained and that services to the poor, eldel'ly, and disabled are offered in the most expeditious andeconomical manner.

The monitoring report includes fonr (5) findings, two (2) recommended improvements, and one (1) note.Please submit a response to this report to this office within thirty (30) days of the date of this letter..

If we can be of any assistance, please feel fi'ee to contact Kevin Glienke, Program Officer, at (512) 475­3852. The assistance provided to the Program Officers by the agency is greatly appreciated.

Sincerely,

-Sharon GambleProgram ManagerEnergy Assistance Section

Cc: Randy Kopplin, Community Services DirectorReverend Bill Duke, BCAA Board Chair

221 EAST BTH • P. 0, Box 13941 • AUS'I'IN, TEXAS 78711-3941 • (800) 525·0657 • (512) 475·3800

Page 20: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTBEE COMMUNITY ACTION AGENCY

Directory of Monitoring Sections

Section 1. Financial Reporting

Section II. Travel and Timesheets

Section III. General Liability and Pollution Occurrence Insurance

Section IV. Property Management

Section V. Procurement

Section VI. Audit

Section VII. Personnel Policies and Practices

Section VIII. Performance Review

Section IX. Administration

Section X. Multifamily

Section XI. Denied Files

PAGE20F7

Page 21: WAP Monitoring_Part 1

Dates of Review:

2009 WEA1'HERIZATJON MONITORING REPORTBEE COMMUNITY ACT JON AGENCY

May 3 - May 7, 2010

Focus OF REVIEW

CONTRACT NAME CONTRACT CONTRACT CONTRACT DATESNUMBER AMOUNT

DOE 56090000446 $131,208,00 4/1/2009 to 3/31/2010

LIHEAP 81090000480 $134,768,00 4/1/2009 to 3/31/20 I0

DOE/ARRA 16090000650 $568,597,00 9/1/2009 to 8/31/2011

On-site review of Bee Community Action Agency (BCAA) implementation of the Department ofEnergy's and Low Income Home Energy Assistance Program's Weatherization AssistanceProgram (WAP). Specific areas of review included Financial Reporting, Contract Agreements,Procurement, Personnel, and the Management of the Department of Energy and Low IncomeHome Energy Assistance Program contracts.

PROGRAM EVALUATION

The evaluation of the program consisted of: interviews with the BCAA personnel, analysis of thefiscal system, review of programmatic records, on-site inspections, client interviews, andinventory review.

The following was noted during the review:. .

• DOE and LIHEAP administrative expenditures were high.• Contractor contracts lacked the "Rights to Inventions Made Under a Contract 01'

Agreement" clause,• Subcontractor workmanship deficiencies on foul' (4) client units inspected• Questioned costs for energy audits in client files reviewed• Incorrect income verification for one (1) client file

PAGE30F7

Page 22: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORT.BEE COMMUNITY ACTION AGENCY

Section I. Financial Reporting

Recommended Improvemcnt #1: At the time of monitoring, BCAA had DOE administrativeexpenditures of 6.07 percent and LIHEAP administrative expenditures of 9.84 percent. BCAA isreminded that DOE administrative expenditures must be at 5.0 percent and LIHEAPadministrative expenditures must be at 7.22 percent by the end of the contract period.Reference: DOE lind LIHEAP Contract Attachment A

Finding #1: As of the February 2010 monthly expenditure reports. BCCA hadexpended 2.5% of ARRA WAP Contract #16090000650. The ARRAWAP Contract requires the development and implementation of equitableWAP setvices thtoughout the eome setvice area.

Action Reqnlred: The Depmtment requires BCCA to submit a detailed plan ofaction toinclude increased production and adherence to the DOE ProductionSchedule in the response to this report. Failure to submit a plan to theDepmtment may result in suspension of ARRA WAP contl'llcts.Reference: ARRA Contract Section 4

Section V. Procurement

Finding #2: A review of BCANs procurement contracts revealed the lack of theprovision for "Rights to Inventions Made Under a Contract or Agreement"clause within the subcontractor contracts,

Action Required: BCAA must amend their current subcontractor contacts to provide for theinclusion of the above mentioned contract clause.Reference: OMB A·1l0 Appendix A

Section VIII. Performance Review

Note #1: At the time of monitoring, BCAA had not serviced Refugio county with their DOE orLIHEAP contracts. The Department recognizes that BCAA was servicing Refugio cOlUlty withDOE/ARRA funds.

Recommended Improveme"t #2: At the time of monitoring, BCAA did not have materialspecifications for all materials installed readily available. Upon further review, it was found thatmaterials being installed were acceptable. BCAA is reminded that any materials that do not meetthe DOE specifications are subject to disallowed costs, BCAA is reminded that evidence ofmaterial specifications m'e needed for all weatherization materials installed, including, but notlimited to: insulation (attic, walls, floor), replacement windows, storm windows, replacementdoors, caulking(sealants/glazing, weather-stripping, electric and gas furnaces, electric and gaswater heaters, air conditioners, window screens, and refrigel'lltors.Reference: 10 CFR 440 Attachment A Material Specifications

PAGE40F7

Page 23: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTBEE COMMUNITY ACTION AGENCY

Finding #3: Onsite home inspection of weatherized units revealed that foul' (4) of theten (10) units inspected would require a retuI'D to address deficiencies insubcontractor workmanship.

Action Required: BCAA must retuI'D to the client units listed in Attachment A, and addressthe deficiencies noted on each unit. BCAA must also assure the

.Depaliment in its response to this report that proactive measures will betaken to prevent future instances of poor workmanship from itssubcontractors and ensure that the quality of work that is being performedmeets BCAA's requirements, and the Department's expectations.Reference: 10 CFR Part 440; §440.16 (g)

Finding #4: $73,056.78 Questioned Costs on energy audits reviewed duringmonitoring visit.

(A) $49,001.35 questioned costs: review of NEAT energy audits inclient files revealed that weatherization measures were beinginst!llled despite the savings-to-investment ratio (SIR) being belowthe required minimum value of 1.0. Additional measures were alsobeing installed in homes with the household's cumulative SIRbelow the required minimum value of 1.0.

a. Client 9B-006 - questioned cost $8,462.14b. Client 9B-007 - questioned cost $8,861.51c. Client 9B-OIO - questioned cost $9,006.46d. Client 9R-DA-002 - questioned cost $4,489.52e. Client 9R·DA-005 - questioned cost $4,490.51f. Client 9R·DA·006 - questioned cost $4,096.96g. Client 9R·DA·007 - questioned cost $5,364.07h. Client 9R·DA-008 - questioned cost $4,230.18

(B) $24,055.43 questioned costs: review of the EZ3 energy auditsrevealed deficiencies in every audit. There were substantialdifferences between the amount of money estimated for thehousehold from the audit and the actual amount of money spent onthe household. The measures listed in the audit were installed, butthe additional measures and costs installed in the home were notsupported by the audit. The questioned costs listed below representthe difference between the total audit price and the total amountspent on the household.

a. Client 9B-00 I - questioned cost $905.40b. Client 9B-004 - questioned cost $2,548.56c. Client 9LO-001 - questioned cost $2,008.22d. Client 9LO·002 - questioned cost $13,846.78e. Client 9M-00I - questioned cost $4,746.47

Action Required:· As part of the response to this report, BCAA must return to the energyaudits for the files inspected, and run the audits properly, with all the

PAGE 5 OF 7

Page 24: WAP Monitoring_Part 1

Finding #5:

2009 WEATHERIZATION MONITORING REPORTBEE COMMUNITY ACTION AGENCY

information and measures listed. Copies of these audits must be providedto the Department in the response to this report. Any measures installed inhomes that do not rank on properly run audits are subject to disallowed

.costs. BCAA must also assure the Department that proper procedures arefollowed to ensure the proper inputting of information into the EnergyAudit system. Reference: ARRA Contr!lCt Section 11 (B); DOE andLIHEAP Contract Section 9 (B); 10 CFR 440; §440.21 (d)

Section X: Client File Review

A review of BCAA client files revealed insufficient incomedocumentation in file 9R-DA-007.

Action Required: BCAA must submit to the Department sufficient income documentationfor the above mentioned file to complete the income documentation forthe household. Reference: Texas Administrative Code; Title 10; Part 1;Chapter 5; Subchapter E; Rule §5.507 (d)(t)

Texas Department of Housing and Community Affairs representative, Kevin Glienke,participated in an exit conference with Bee Community Action Agency representatives Ms. AnnaSimo, Ms. Julie Hernandez, and Mr. Randy Kopplin.

Signature: • (J '~ j ~ "'/"///1)t:1f .'

KevinGlienke,HJHt;A Proll.ram Officer Date:

PAGE 6 OF 7

Page 25: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTBEE COMMUNITY ACTION AGENCY

ATTACHMENT A

Units Fund Source Return CommentsInspected

9RDA002 ARRA Yes Return to completely seal AC supply plenum.**Deficiency addressed while still on monitoring visit

9LO-001 DOE/LIHEAP Yes Return to re-align vent pipe for domestic water heaterand install missing CO detector.

9B·007 DOE/LIHEAP Yes Return to address home below BTL with mechanicalventilation.

9B·010 DOE/LIHEAP Yes Return to address home below BTL with mechanicalventilation.

Bee Community Action Agency must return and address all units as indicated and include in it"sresponse to this repOlt a summary of all actions and measures taken to address the units indicatedabove.

PAGB70F7

Page 26: WAP Monitoring_Part 1

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

WWlu,tdhca.state,tx.usRick PerryGOVERNOR

Michael GerberExncUTrVll DIRECTOR

July 16,2010

Ms. Emma VasquezExecutive DirectorBig Bend Community Action Committee, Inc.200 West San Antonio St.Marfa Texas 79843

Re: Monitoring Report for Weatherization ContractsDOE Weatherization Assistance Program Contract #56090000448LIHEAP Weatherizatio.n Assistance Program Contract #81090000481DOE AREA Weatherization Assistance Program Contract #16090000651

Dear Ms. Vasquez:

BOAI\D MBMBBRSC. Kent Conlne , CIJ"Jp·Gloria Ray, Vice Gllah'

Leslie Bln·gham EscarefioTom H, Gann

Lowell A, KcigJuan S. MUtiO?:1 Ph.D.

Enclosed is a report that details the monitoring review of Big Bend Community Action Committee,Inc., (BBCAC) Weatherization Assistance Program contracts with the Texas Department ofHousing and Community Affairs (The Department). This information is provided to ensure thatcompliance with the contracts is maintained and that services to the poor, elderly, and disabled areoffered in the most expeditious and economical mauner.

The monitoring report includes five (5) findings, five (5) recommended improvements and three(3) notes. Please submit a response to this repOit to this office within thirty (30) days of the date ofthis letter.

If we can be of any assistance, please feel free to contact Enrique H. Trejo, Program Offiqer, at(512) 475·2299. The assistance provided to the Program Officer by the agency is greatlyappreciated.

Sincerely,

7}J-Sharon D. GambleManagerEnergy Assistance Section

cc: Johnny Calderon, Board Chair

221 EAST liTH. P. O. Box 13941 • AUSTIN, TBxAS 78711-3941 • (800) 525-0657 • (512) 475-3800

Page 27: WAP Monitoring_Part 1

Section I.

Section II.

Section III.

.Section IV.

Section V.

Section VI.

Section VII.

Section VIII.

Section IX.

Section X.

Section XI.

Section XII.

Section XIII.

Directory of Monitoring Sections

Financial Review

Travel and Timesheets

General Liability and Pollution Occurrence Insurance

Property Management

Procurement

Audit

Personnel Policies and Practices

Performance Review

Administrative

Client File Review Worksheet

Multi-Family Review

Denied Files

Summary

Page 28: WAP Monitoring_Part 1

Dates of Review:

2009 WEATHERIZATION MONITORING REPORTOF

BIG BEND COMMUNITY ACTION COMMITTEE, INC.

April 26 - 30, 2010

Foeus of Review

CONTRACT NAMECONTRACT CONTRACT CONTRACT

NUMBER AMOUNT DATES

DOE 56090000448 *$256,429,00 4/1/09 to 3/31/10

LIHEAP 81090000485 *$299,638,00 4/1/09 to 3/31110

DOEARRA 16090000651 **$1,188,461.00 9/1/09 to 8/31/11

• Latest contract amendments •• 50% of proposed total allocation

TDHCA staff conducted an on-site review of the Big Bend Community Action Committee,\ Inc.,(BBCAC) implementation of the Department of Energy and the Low Income Home EnergyAssistance Program Weatherization Assistance Programs (WAP). Specific areas of reviewincluded Financial Reporting, Contract Agreements, Procurement, Personnel, and theManagement of the Department of Energy and Low Income Home Energy Assistance Programcontracts.

Program Evaluation

The evaluation ofthe program consisted of: interviews with BBCAC personnel; analysis of thefiscal system; review of programmatic records; on-site inspections; client interviews; andinventory review,

The following was noted during the review:

• High Administrative and Health Safety Expenditures

• Lack of a Contl'act Provision to Prevent and Correct Waste, Fraud and Abuse

• Lack of a Written Policy on Client Education

• On-Site Inspections Requiring Returns

• Lack of Weatherization Measures - Not Insulating Walls

• Lack of Weatherization Measures - Not Installing CFLs

• Inadequate Record Keeping in Client Files

• Development of a Quality Assurance Plan

Page 2 of9

Page 29: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTOF

BIG BEND COMMUNITY ACTION COMMITTEE, INC.

SECTION I. FINANCIAL REVIEW

EXPENDITURES AS OF THE TIME OF MONITORING

CONTRACT YEAR-TO-DATE %OFAMENDED #UNlTS # UNITS INNAME . EXPENDITURES CONTRACT COMPLETED PROGRESS

AMOUNT*OOE $169,038.46 65,92% 36 0

..*LIHEAP $220,474.89 73.58% 45 0

*DOEARRA $126,553.12 10,65% 21 4

*Expendltul'es as of March 2010

Recommended Improvement #1: At the time of monitoring, BBCAC's Administrativeexpenditure ratio was above the maximum allowable of 5.0% for DOE Contract #56090000448.The Administrative expenditure ratio was 9.88% for DOE. The Department reminds BBCAC'sthat the Administrative expenditure ratio must be at 01' below the maximum allowed percentageby the end of the cOntract period. Expenditures above the allowable percentage will bedisallowed. See DOE ARRA Contract Attachment A,

Recommended Improvement #2: At the time of monitoring, BBCAC's Health and Safetyexpenditure ratio was above the maximum allowable of 20,0% for LIHEAP Contract#81090000485. The Administrative expenditure ratio was 23.8% for LIHEAP. The Departmentreminds BBCAC's that the Health and Safety expenditure ratio must be at 01' below themaximum allowed percentage by the end of the contract period. Expenditures above theallowable percentage will be disallowed. See DOE ARRA Contract Attachment A.

Note #1: The March closeout Expenditures Report for DOE WAP has an Administrativeexpenditure ratio of 9,88%. The March closeout Expenditure Report for LIHEAP WAP has aHealth and Safety expenditure ratio of 23.67%. The Department will send a separate letterindicating the amount that BBCAC must reimburse TDHCA.

SECTION II. TRAVEL AND TIMESHEETS

Note #2: At the request of BBCAC. the Program Officer provided a model time sheet used byother community action agencies,

Page 3 of9

Page 30: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTOF

BIG BEND COMMUNITY ACTION COMMITTEE, INC.

SECTION IV. PROPERTY MANAGEMENT

Recommended Improvement #3: BBCAC uses vehicles from the Transportation Division toassess and inspect units in the service area. The vehicles BBCAC uses are not always availablenor are they practical for the Weatherization Assistance Program. It is highly recommended thatBBCAC purchase a vehicle for each Weatherization Assessor.

SECTION VII. PERSONNEL POLICIES AND PRACTICES

Finding #1: Lack of Contract Provision to Prevent and COl'I'ect Waste. Fraud andAbuseBBCAC lacks a required provision in the Personnel Policies manual. ThePersonal Policies manual lacks a provision to establish, maintain, and utilizeinternal control systems and procedures sufficient to prevent, detect, andcorrect incidents of waste, fraud and abuse. BBCAC is not in compliancewith applicable regulations.

Action Required: BBCAC must amend the Personal Policies manual by establishing intel'llaicontrol systems sufficient to prevent, detect, and correct incidents of waste,fraud and abuse. Specifically, include a statement in Chapter 14 EmployeeConduct that it is the responsibility of each employee to prevent and correctincidents of waste, fraud and abuse. BBCAC must submit a revised PersonalPolicies manual with the required provision as part of the response to themonitoring report.Reference: DOE ARRA Contract Section 26 Prevention of Fraud &Abuse, DOE & LIHEAP Contracts Section 22 Prevention of Fraud &Abuse

SECTION VIII. PERFORMANCE REVIEW

Recommended Improvement "4: BBCAC provides client education in the form of printedenergy conservation tips that are discussed with individual clients. It is highly recommendedthat BBCAC develop a written policy on client education. The policy will include identifyingthe documents to be used and when conservation and/or energy tips are discussed with clients.

Page 4 of9

Page 31: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTOF

BIG BEND COMMUNITY ACTION COMMITTEE, INC.

Recommended Imllrovement #5: The Program Officer recommends that BBCAC develop apolicy/procedure to verify compliance with the EPA Lead Renovator Rule. The policy shouldinclude how, when and how often subcontractors will be inspected. Contractors performingweatherization work must be certified and follow specific work practices to prevent leadcontamination. Failure to follow EPA Lead Renovator Rule guidelines may result in fines up to$37,500.00 for each violation. The EPA Lead Renovator Rule went into effect on Allril22, 2010.

Finding #2: On-Site Inspections Requiring ReturnsProgram Officer inspected foul' (4) DOE ARRA units on April 28, 2010 andfive (5) DOE ARRA units on April 29, 2010. Department on-siteinspections of weatherized units require foUl' (4) returns out of the nine (9)units inspected. Returns are necessary to address the insufficient installationof weatherization measures and/or the lack of weatherization measures.

Action Required: BBCAC. must establish a Quality Assurance Plan that includes assurancethat subcontractors will install weatherization measures to Department ofEnergy, International Residential Code and Texas Department of Housingand Community Affairs standards. Please provide the Quality AssurancePlan as part of the response to the monitoring report. Specifically,BBCACmust correct the following issues and provide documentation that the issueswere resolved:

a. 09Martl 021: Conduct additional air sealing around a leaky window inthe kitchen. Provide a blower door reading as part of the response tothis monitoring report.

b. 09Hern304: Weatherstrip a closet door that leads to room that is opento the attic. Conduct additional ail' sealing in the hallway and kitchen.Provide a blower door reading as part of the response to thismonitoring report.

c., 09Silv1202: Mising CO readings for combustion appliances. Returnto take CO readings.

d. 09Espu308: There is R-II batts in some portions of the attic whileother areas have no insulation. Install R-30 insulation in the attic,

Reference: DOE ARRA, DOE and LIHEAP Contracts and 10 CFR 440Final Rule

Page 5 of9

Page 32: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTOF

BIG BEND COMMUNITY ACTION COMMITTEE, INC.

Finding #3: Lack of Weatherization Measures - Not Insulating WallsDepartment review of client files and on-site inspection of weatherized unitsindicate a lack of certain weatherization measures. Weatherized units are notreceiving wall insulation. The main contractor for weatherization services,D.W. Construction professes an inability to install wall insulation. A lack ofwall insulation creates a weakness in the thermal boundary that moderatestemperature differences between the inside and outside of a house resultingin energy waste due to excessive heating and cooling usage.

Action Required: BBCAC must ensure that clients in need of wall insulation will be providedthat weatherization measure. One option available to BBCAC is to procurefor an insulation provider that can install wall insulation. Another option isto ensure that D.W. Construction receives training in installing wallinsulation. BBCAC must provide a plan of action to address the avoidanceof insulating walls as part of the response to this monitoring report.Reference: DOE ARRA Contract Section 11: Allowable Expendituresand DOE and LIHEAP Contracts Section 9: Allowable Expenditures

Finding #4: Lack of Weatherization Measures- Not Installing CFLsDepartment review of client files and on-site inspection of weatherized unitsindicate a lack of certain weatherization measures. Weatherized units are notreceiving compact fluorescent light bulbs as a base load measure. Compactfluorescent light bulbs are not being installed due to a lack of understandingthat CFLs are an acceptable weatherization measure. Compact fluorescentlight bulbs use 70% less energy than standard incandescent light bulbsresulting in less energy usage for lighting.

Action Required: As part of a whole house assessment, BBCAC must make CFLs available asa base load measure to reduce energy consumption. BBCAC must developcriteria to determine how many CFLs could be replaced in a home whenusing the EZ Audit and/or Priority List. The NEAT and MHEA has anassessment tool for recommending CFLs. Piease provide the criteria forselecting CFLs as part of the response to the monitoring report.Reference: DOE ARRA Contract Section 11: Allowable Expendituresand DOE and LIHEAP Contracts Section 9: Allowable Expenditures

Page6of9

Page 33: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTOF

BIG BEND COMMUNITY ACTION COMMITTEE, INC,

Finding #5: Inadequate Record Keeping in Client FliesDepartment review of client files indicates inadequate record keeping.Examples of inadequate record keeping include incomplete and missingBlower Door Forms; incomplete and missing Refl'igerator Forms· andincomplete Attic and Wall Inspection Forms, Inadequate record keepingmay lead to questioned costs and poor program performance, Subrecipientsare required to have all necessary assessment forms indicated in the WAPcontracts. In addition, subrecipients are expected to completely fill out allassessment forms. .

Action Required: BBCCA must provide wl'itten assurance that client files will have therequired assessments forms that are completely fill out. In addition,BBCAC must provide a Quality Assurance Plan that includes a policy 01' aprotocol for client file review.Reference: DOE ARRA Contract Section 13: Record KeepingRequirements and DOE and LIREAP Contl'acts Section II: recordKeeping Requirements

Note #3: A Quality Assurance Plan is a set of internal policies and pl'Ocedures to assurecompliance with Weatherization Assistance Program Contracts, the Texas Administrative Codeand the International Residential Code, Specifically, the Quality Assurance Plan includes awritten policy or standard opel'llting protocol for I) Unit Assessment; 2) Energy Audits; 3) FinalInspections; 4) Client File review; 4) compliance with Interagency Agreement regarding historicproperties; and 5) compliance with EPA Lead Renovator Rule.

Page 7 of9

Page 34: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTOF

BIG BEND COMMUNITY ACTION COMMITTEE, INC.

Texas Department of Housing and Community Affairs representative, Enrique H. Trejo, ProgramOfficer patticipated in an Exit Conference with Emma Vasquez, Executive Director; LucyPolanco, Bookkeeper II; Katie Sanchez, Bookkeeper; and William Gonzales, AssistantWeatherization Director and Labor Standards Officer.

Signature:

Page 8of9

() 7)??/~()/ODate

Page 35: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTOF

BIG BEND COMMUNITY ACTION COMMITTEE, INC.

ATTACHMENT A

UnitsFund Source Return CommentsInspected

09Esto416 ARRA No Installed CO and smoke detector; 8 windows; 2 space heaters and oneroom air conditioner. Caulking and weatherstripping was ptovided.

Installed CO and smoke detector. Installed R-19 insulation. Replaced09Martl021 ARRA Yes domestic water heater. Leaky window around a toom air conditioner in

the kitchen. Return to conduct air sealing around room air conditioner.No Blower Door Form.

09Silv1202 ARRA Yes Installed CO and smoke detector; R-30 attic; and a new refrigerator.Caulking provided. Missing CO readings.

09Hern304 ARRA& Installed CO and smoke detector; refrigerator; and domestic water heater.LIHEAP Yes Vented primary space heater. Blower door 3.520 CFM. Return for more

alr sealing.

09Ramil02 ARRA No Installed CO and smoke detector; R-19 insulation; solar screens; and newrefrigerator. Fixed two window panes.

09Espu308 ARRA Yes Installed CO and smoke detector; 123 VI windows; and solar 'creens.Caulking and weatherstripping provided. Some R-ll in the attic but notcompletely covercd. Return to en'ure R-30 installed in the attic.

09Rive305 ARRA No Installed CO and smoke detecto1'j gas range; R-19 attic insulation) solarscreens; and a new refrigerator. Caulking was provided.

09Vasq304 ARRA No Installed CO and smoke detector; R-19 attic insulation; solar screens; androom air conditioner. Caulking and weatherstripping was provided.

09Corrl0l ARRA No Installed CO and smoke detcctor; gas stove; R-30 atlic insulation; solarscteens: new teftigeratof; and room air conditionet. Caulking andweatherstripping wa, provided.

Page 9 of9

Page 36: WAP Monitoring_Part 1

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

www.tdhca.state.1X,tlsRick PertyGOVBRNOR

Michael GerberExEClITlVE DJRECI'OR

June 7, 2010

Ms. Karen GarberExecutive DirectorBrazos Valley Community Action Agency1500 University Drive E, Suite 100College Station, Texas 77840

Re: DOE Weatherization Assistance Program Contract #56090000449LIHEAP Weatherization Assistance Program Contract #81090000482ARRA Weatherization Assistance Program Contract #16090000652ARRA Weatherization Assistance Program Contract #16090000780

Dear Ms. Garber:

BOARD MSMBBRSC. Kent Conine, Clu#rGloria Ray, Vic, ChflJr

Leslie Bingham Ellcaref\oTom H. Gann

Lowen A. KelgJuan S. Munoz, Ph.D.

Enclosed is a report that details the monitoring review of your Weatherization AssistanceProgram contracts with the Texas Department of Housing and Community Affairs. Thisinformation is provided to ensure that compliance with the contract(s) is maintained and thatservices to the poor, elderly, and disabled are offered in the most expeditious and economicalmanner.

The Department has identified four (4) findings and three (3) recommendations for theWeatherization Assistance Program. Please submit a response to this report to this office withinthitty (30) days of the date of this letter.

If we can be of any assistance, please contact Jason A. Seale, Program Officer, at (512) 463­0172. The assistance provided to the Program Officer by Community Action Program, Inc. isgreatly appreciated. '

Sincerely,

~O-'Sharon GambleManagerEnergy Assistance Section

221 EAST nTH • P. O. Box 13941 • AUSTIN, TEXAS 78711-3941 • (800) 5:.15-0657 • (512) 475-3800

() I'rlll1,;/ 6/1 ruyd,dlapu

Page 37: WAP Monitoring_Part 1

Section I.

Directory of Monitoring Sections

Financial Review

Section II. Travel and Timesheets

Section III. General Liability and Pollution Occurrence Insurance

Section IV. Property Management

Section V. Procurement

Section VI. Audit

Section VII. Personnel Policies and Procedures

Section VIII. Performance Review/Onsite Inspections

Section IX. Administrative

Section X. Client File/Multifamily Review

Section XI. Denied Files

2

Page 38: WAP Monitoring_Part 1

I

Dates of Review:

PY09 WEATHERIZATION MONITORING REPORTOF

BRAZOS VALLEY COMMUNITY ACTION AGENCY

March 22, 2010 - March 26, 2010

Focus ofReview

CONTRACT NAME CONTRACT CONTRACT CONTRACT DATESNUMBER AMOUNT

DOE 56090000449 $623,604.00 4/1/2009 to 3/31/2010

LIHEAP 81090000482 $783,072.00 4/1/2009 to 3/31/2010

.

ARRA 16090000652 $3,006,045.00 911/2009 to 8131/2011

ARRA - City of Huntsville 16090000780 $250,000.00 9/1/2009 to 8/31/2011

On-site review of the Brazos Valley Community Action Agency (BVCAA) implementation ofthe Department of Energy, Low Income Home Energy Assistance Program and AmericanRecovery and Reinvestment Act of 2009 Weatherization Assistance Program (WAP).· Specificareas of review included Financial Reporting, Contract Agreements, Procurement, Personnel andthe Management of the Department of Energy, Low Income Home Energy Assistance Programand American Recovery and Reinvestment Act of 2009 contracts.

Program Evaluation

The evaluation of the program consisted of: Interviews with the BVCAA personnel, analysis ofthe fiscal system, review of programmatic records, on-site inspections, client file reviews andinventory review.

The following was noted during the review:

• Low expenditures for ARRA contracts• Late Submittal ofDOE, LIHEAP and ARRA Expenditure Reports• Lack of Documentation for Lead Safe Work Practices• Incomplete Energy Audits• Incorpplete Blower Door Data Sheets• Incomplete Wall Inspection Forms• Incomplete Rental Homeowner Agreement

3

Page 39: WAP Monitoring_Part 1

PY09 WEATHERIZATION MONITORING REPORTOF

BRAZOS VALLEY COMMUNITY ACTION AGENCY

Section I. Financial Review

EXPENDITURES AS OF FEBRUARY 2010

CONTRACT YEAR-TO-DATE % OF ORIGINAL # UNITS # UNITS INNAME EXPENDITURES CONTRACT COMPLETED PROGRESS

AMOUNT

DOE $481,639.56 77.23% 84 8

LIHEAP $413,061.57 52.75% 83 32

ARRA $17,535.72 .58% 3 32

ARRA- $5,118.12 2.05% 1 5Huntsville

Recommended Improvement #1 Review of client file data showed adequate supportdocumentation in relation to current contractor pricing and submitted invoices. However, someofBVCAA's contractors are providing invoices that detail a flat fee for services rendered insteadof a pricing allocation for material and labor costs. Throughout the client file review process, itwas unclear per the Building Weatherization Repolt which costs were being allocated andieveraged to the appropriate weatherization program. The Department recommends thatBVCAA's current contractors implement an invoicing system with material and labor pricingbreakdown in order to better distinguish how costs are being allocated and charged to the variousweatherization contracts.

Recommended Improvement #2 Review of the Febl'Uary 2010 expenditure reports for DOE,DOE ARRA and LIHEAP contracts revealed Administrative expenditures were above themaximum allowable of 5%. Current Administrative expenditures for the DOE contract are6.46%. Current Administrative expenditures for the DOE ARRA contract are 21.26%. CurrentAdministrative expenditures for the LIHEAP contract are 13.33%. The Department remindsBVCAA that Administrative expenditures are required to be below the maximum allowable bycontract end. Any costs above the maximum allowable will be subject to disallowed cost.

4

Page 40: WAP Monitoring_Part 1

Finding #1

ActionRequired

Findiog#2

ActionRequired

Finding #3

ActionRequired

PY09 WEATHERIZATION MONITORING REPORTOF

BRAZOS VALLEY COMMUNITY ACTION AGENCY

As of the February 2010 monthly expenditure reports, BVCAA hadexpended .58% Of ARRA WAP Contract #16090000652 and 2.05% ofARRA WAP Contract #16090000780. The ARRA WAP Contractrequires the development and implementation of equitable WAP servicesthroughout the entire service area.

The Department requires BVCAA to submit a detailed plan of action toinclude increased production and adherence to the DOE ProductionSchedule in the response to this report. Failure to submit a plan to theDepartment may result in suspension of ARRA WAP contracts.Reference: ARRA Contract Section 4

At the time of monitoring, BVCAA was responsible for submitting DOE,LIHEAP and ARRA expenditure reports late for PY09. DOE andLIHEAP expenditure reports for July 2009 were submitted past thecontract deadline. ARRA expenditure reports for December 2009 andJanuary 20 I0 were submitted past the contract deadline.

The Department reminds BVCAA that DOE and LIHEAP programmaticand expenditure reports are to be submitted to the Department no laterthan fifteen (15) days after the end of each month of the Contract term,ARRA programmatic and expenditure reports are to be submitted to theDepaltment no later than five (5) days after the end of each month of theContract term. Reference: DOE Contract Section 11 (A), LIREAPContract Section 11 (A)

Section VIII. Onsite Inspections

On-site unit inspections revealed a documentation deficiency in minimumstandards for Lead Safe Work Practices as outlined by DOE. Review ofclient file documentation affirmed the potential of lead hazards in pre­1978 units that were recipients of weatherization services provided byBVCAA.

BVCAA is reminded of EPA's LRRPP (Lead; Renovation, Repair andPainting Program) Final Rule effective April 22, 2010, The listedreference will provide Minimum Standards for LSW, found in WPN 08-6,Attachment A. Failure to follow EPA guidelines for LSW could result infines administered by the EPA as well as disallowed costs administered bythe Depaltment. Reference: WPN 08-6, WPN 08-6, Attachment A ­Minimum Standards for LSW

5

Page 41: WAP Monitoring_Part 1

PY09 WEATHERIZATION MONITORING REPORTOF

BRAZOS VALLEY COMMUNITY ACTION AGENCY

Section X. Client File/Multifamily Review

Recommended Improvement #3 The cul':t:ent unit assessment form being utilized by BVCAAlacks substantial information in regards to the whole house approach. By not having a detailedand organized unit assessment form for BVCAA staff to conduct a thorough assessment, theclient could potentially not benefit from substantial energy-efficient measures. A unitassessment template will be provided to BVCAA weatherization staff in order to provide anadequate document to conduct a detailed unit assessment.

Finding #4

ActionRequired

At the time of monitoring, a review of PY09 WAP client files noted five(5) deficiencies. One (1) client file oontained an incomplete blower doordata sheet, one (I) client file contained an incomplete Wall InspectionForm, two (2) client files contained inoomplete energy audits and one (I)client file oontained an incomplete Rental Homeowner Agreement.

BVCAA is reminded that all client files must contain, at minimum, thelist of record-keeping requirements found in all WAP contracts. BVCAAmust also develop procedures for quality assurance to ensure adequatesupport dooumentation is retained in all client files. These prooeduresmust be submitted in the response to this report. Reference: ARRAContract Section 13, DOE Contract Section 10, LIHEAP ContractSection 10.

SignatureJason A. SealeProgram OfficerEnergy Assistanoe

6

6MbDate'

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PY09 WEATHERIZATION MONITORING REPORTOF

BRAZOS VALLEY COMMUNITY ACTION AGENCY

ATTACHMENT A

Units Reviewed9 units reviewed

Comments7 DOE/LIHEAP, 2 ARRA/LIHEAP - Returns noted below

Client Return(s) To AddressNMC3003 Return to address TPV discharge pipe on hot

water heater.THE7006 Return to address incomplete weather-

stripping at attic access.CBE401 Return to address weather-stripping at attic

access.MMI5418 Return to address collar installation at ceiling

penetration for hot water heater.Return to address weather-stripping at atticaccess.

DNEIIOO Return to address collar replacement atceiling penetration for hot water heater.Return to address window infiltration measureson Wall 2 and Room 5 (see client energy auditdiagram)

ER01703 Return to address weather-stripping at atticaccess.Return to damn and block 2 sides of exposedattic access. Also install batt insulation ontop ofattic access.

Action Required: Return and address. Upon completion, verification of returns must besubmitted to the Department within thirty (30) days of this repOli.

7

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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

www.tdhca,state.ex.ul1Uck PerryGOVERNOR

Michael GerberExecuTIVB DIRECTOR

July 19,2010

Ms. Karen GarberExecutive DirectorBrazos Valley Community Action Agency1500 University Dr, E, Ste 100College Station, TX 77840

Re: DOE/ARRA Weatherization Assistance Program Contract #16090000652

Deal' Ms. Garber:

BOARD MEMBERSC. Kent Conine, ChairGloria Ray, Vict' CIJair

Le8lie Bingham EscarefioTom H. Gann

Lowell A. KeigJuan S. Munoz, Ph.D.

Enclosed is a report that details the unit inspection review of Brazos Valley Community Action Agency(BVCAA) Weatherization Assistance Program contracts with the Texas Department of Housing andCommunity Affairs (the Department), This information is provided to ensure that compliance with thecontracts is maintained and that services to the poor, elderly, and disabled are offered in the mostexpeditious and economical manner.

The repOlt includes three (3) fillllillgs. Please submit a response to this repOlt to this office within thirty(30) days ofthe date of this letter.

Ifwe can be of any assistance, please feel free to contact Jason A. Seale, Program Officer, at (512) 463·0172. The assistance provided to the Program Officer by BVCAA is greatly appreciated.

Sincerely,

--Sharon GambleManagerEnergy Assistance Section

Cc: Bryan Jones; Housing Coordinator

2il EAST IP" • p, O. Box 13941 • AUSTIN, TnXAs 78711·3941 • (800) 525-0657 • (512) 475-3800

() Prlllltd "" Nt/elrd pllp"

Page 44: WAP Monitoring_Part 1

PY09 ARRA WAP Unit Inspection ReportBrazos Valley Community Action Agency

WEATHERIZATION ASSISTANCE PROGRAM (WAP)CORRECTIVE ACTIONS REQUIRED

Dates of Review: June 17-18, 2010

Focus OF REVIEW

CONTRACT NAME CONTRACT. CONTRACT CONTRACT DATESNUMBER AMOUNT

DOE/ARRA 16090000652 $4,889,348.00 9/1/2009 to 8/31/2011

PROGRAM EVAIJUATION

The evaluation of the program consisted of twenty-four (24) client file reviews, twenty-four (24)on-site inspections (Willow Oaks Apartments), interviews with clients, and analysis of bothquality of subcontractor workmanship and final inspection techniques.

The following was noted during the review:• Incomplete BWR documentation for twenty-four (24) client files.• No Attic Inspection Form for twenty-four (24) client files.• No Wall Inspection Form for twenty-four (24) client files.• No Whole House Assessment completed for all twenty-four (24) units inspected.• Incomplete HVAC Assessment for all twenty-four (24) units inspected.• Subcontractor workmanship deficiencies on all twenty-four (24) units inspected.• No billing history in three (3) client files.

I

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Finding #1:

ActionRequired:

Finding #2:

ActionRequired:

PY09 ARRA WAP Unit Inspection ReportBrazos Valley Community Action Agency

Client File Review

Inadequate Client File Documentation A review of BVCAA client filesrevealed a lack of required client file documentation. Of the twenty-four(24) client files reviewed, none contained a Wall Inspection Form or AtticInspection Form. All twenty-four (24) flies contained an incompleteBuilding Weatherization Report (BWR), due to the final certification formnot filled out completely. Three (3) of the twenty-four (24) files weremissing the consumer billing history

The Department reminds BVCAA that all WAP client flies must adhere tothe minimum record keeping requirements as defined by the ARRAcontracts. In order to maintain compliance with WAP regulations, theDepartment is requiring BVCAA to submit a Quality Control Procedure aspart of the monitoring response. These procedures should entail, at aminimum, the necessary steps taken by BVCAA to ensure the recordkeeping requirements are adhered to. Reference: ARRA ContractSection 13

Performance Review

Whole House Asessments During the client file review process, it wasnoted that, in addition to the deficiencies noted in Finding #1 that a wholehouse assessment was not conducted'on any unit in the multifamilycomplex. By not completing an assessment, all clients were unable toreceive the maximum benefit allowed under the WAP. In addition, it wasnoted that an incomplete HVAC assessment was utilized to justifyreplacement of all twenty-four (24) central systems in the multifamilycomplex. By not completing an HVAC assessment, an accurate andcomplete list of weatherization measures to be installed into each unit wasunattainable. Proper documentation was not on file to supportreplacement of all twenty-foul' (24) central systems. Therefore, theDepartment is questioning costs for all twenty-four (24) systems in theamount of $91,920.00.

Prior to completing the returns noted in Attachment A of this report,BVCAA must return to each unit and complete a whole house assessment.This assessment should include items that were not addressed and couldpotentially provide a greater amount of savings and benefit for the client.Upon completion of all assessments, BVCAA must submit to theDepartment all assessments for review before being allowed to conduct anew audit on each unit. A plan of action to ensure that all future WAP

2

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PY09 ARRA WAP Unit Inspection ReportBrazos Valley Community Action Agency

clients of BVCAA receive a complete and accurate HVAC assessment tojustify proper sizing and specifications of all replaced systems is requiredin the response to this report. Reference: TAC §5.529, 10 CFR §440.21

Finding #3: On-Site inspections On-site inspection of weatherized units revealed thatall twenty-four (24) of the units inspected would require a return "toaddress deficiencies in subcontractor workmanship. Deficiencies include,but are not limited to, additional patching/sealing to furnace closets,sealing plumbing penetrations under kitchen and bathroom sinks,adjustment or replacement of weatherstripping on front door entrances andattic access insulation and weatherstripping.

Action Required: BVCAA must return to the client units listed in Attachment A, andaddress the deficiencies noted on each unit. BVCAA must also assure theDepartment in its response to this report that proactive measures will betaken to prevent future instances of poor workmanship from itssubcontractors. Those measures at a minimum should include periodicvisits to client units while work is in progress, to ensure that the quality ofwork that is being performed meets BVCAA's requirements, and theDepartment's expectations. The Department will also require BVCAA tosubmit a Quality Control Procedure to ensure compliance with WAPregulatio1;ls. These procedures should entail, at a minimum, the necessarysteps taken by BVCAA to ensure all weatherization measures completedon the eligible unit are verified at the time of final inspection. Reference:10 CFR Part 440; §440.16 (g)

Jason A. SealeProgram Officer, Energy Assistance Section

3

Date

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PY09 ARRA WAP Unit Inspection ReportBrazos Valley Community Action Agency

ATTACHMENT A-Page 1 of4

Units Inspected - 24 ARRA Unit Returns - 24 ARRA

Unit # Program Materials Installed CommentsCorrectlv

- ARRA NO Return to sealpenetrations In furnace

closet ceiling.

- ARRA NO Return to installadditional ventilation tobring unit above BTL

(780 @ 50F'a during unitInspection)

- . Unable to run BD, unitARRA NO vacant during Inspection

and no electricity. FinalBD reading from

BVCAA final Inspectionappears Inaccurate.Open ceiling fromplenum to allie,

therefore return toseal/patch ceiling Infurnace closet then

rerun 80 to determineaccurate final BO

reading.

- ARRA NO Return to seal/patchceiling In furnace closet.Return to adjusllreplace

weatherstripping andadjust striker plate at

front door.

Return to seal

til ARRA NO penetrations In furnacecloset. Return toadjusliinstall new

weatherstripping at frontdoor.

- ARRA NO Retu rn to sealpenetrations In furnace

closet. Return toInstall missing AlC

filter.

4

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PY09 ARRA WAP Unit Inspection ReportBrazos Valley Community Action Agency

ATTACHMENT A-Page2 of4

Unit # Program Materials Installed CommentsCorrectlv

- ARRA NO No returns necessary(materials noted as notInstalled correctly due

to lack of HVACassessment showingproper sizing of newheat pump installed)... ARRA NO Return to replace attic

access (noted ascracked and unstable

during Inspection).Install missing AlC

filter.- ARRA NO Return to adjust/Installnew weatherstripping

at front door.

- ARRA NO Return to sealpenetrations In furnace

closet.I

- ARRA NO No returns necessary(materials noted as notInstalled correctly due

to lack of HVACassessment showingproper sizing of newheat pump Installed).

- ARRA NO Return to patch holebeneath kitchen sink.

ARRA NO Return to sealpenetrations and airInfiltration In furnace

closet. Return toInstall Ale filter

(missing)... ARRA NO Return to seal/patchceiling In furnace

closet. Install missingAlC filter.

5

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PY09 ARRA WAP Unit Inspection ReportBrazos Valley Community Action Agency

ATTACHMENT A - Page 3 of 4

Unit # Program Materials Installed CommentsCorrectlv

- ARRA NO Return to patch/sealplumbing penetrationsin kitchen. Return toseal/patch open air toattic in furnace closet.

- ARRA NO Return to seal/patchce1l1ng In furnace

closet. Return to sealplumbing penetrationsunder bathroom sink.

- ARRA NO Return to seal/patchceiling in furnace

closet. Return to sealplumbing penetrations

under kitchen sink.Install missing AlC

filter. Replaceweatherstripping at

front entrance.

~ ARRA NO Return to seal/patchceiling In furnace

closet. Return to sealplumbing penetrationsunder bathroom sink.

Install missing AlCfilter.- ARRA NO Return to seal/patch

ceiling In furnacecloset. Return to sealplumbing penetrationsunder bathroom andkitchen sink. Installmissing AlC filter.

Insulate attic accessand weatherstrip attic

access. Replaceweatherstripping at

front entrance.

6

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PY09 ARRA WAP Unit Inspection ReportBrazos Valley Community Action Agency

ATTACHMENT A - Page 4 of 4

Unit # Program Materials Installed CommentsCorrectlv

- ARRA NO Return to patch/sealceiling at plenum in

furnace closet, patch 2holes in wall near floorIn hallway, patch hole

In wall near floor inbedroom... ARRA NO Return to seal

plumbing penetrationsIn bathroom sink.

Return to seal atticaccess and insulate

hatch. Return toreplace

weatherstripping atfront door... ARRA NO Return to seal

plumbing penetrationsbeneath kitchen and

bathroom sink. Returnto seal/patch ceiling at

plenum in furnacecloset.

- ARRA NO Return to seal/patchplumbing penetrationsbeneath kitchen andbath sinks. Return toseallpalch open air at

plenum In furnacecloset. Install missing

AlC filter... ARRA NO Return to seallpatchplumbing penetrationsbeneath kitchen sink.Return to seal/patchceiling at plenum In

fu rl1ace closet. Installmissing AlC filter.

BVCAA must retllrn and address all units as indicated (lIId include in its respollse to tllis report withintltlrty (30) days a summary ofall actions andmeasures taken to addre~s the IInits indicated above.

7

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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

tUIlItO. tdhca.Jtate. IX. usRick PerryGOVERNOR

Michael GerberExECUTIVE DIRECTOR

July 26, 2010

Mr. Ben MedinaDirector of Planning and Community DevelopmentCity of Brownsville1150 E. Adams St.Brownsville Texas 78520

Re: Monitoring Report for Weatherization ContractDOE ARRA WAP Contract #16090000755

Deal' MI'. Medina:

BOARD MBMDRRSC. Kent Conine. ChairGloria Ray, Vice GIMh'

Leslie BIngham EscarefioTom H. Cann

Lowell A. KeigJuan S. Mufioz, Ph.D.

Enclosed is a report that details the monitoring review of the City of Brownsville's WeatherizationAssistance Program contract with the Texas Department of Housing and Community Affairs (TheDepartment). This information is provided to ensure that compliance with the contract ismaintained and that services to the poor, elderly, and disabled are offered in the most expeditiousand economical manner.

The monitoring report includes eight (8) findings, six (6) recommended improvements and one (l)note. Please submit a response to this report to this office within thirty (30) days of the date of thisletter.

If we can be of any assistance, please feel free to contact Enrique H. Trejo, Program Officer, at(512) 475-2299. The assistance provided to the Program Officer by the agency is greatlyappreciated.

Sincerely,

'61j~Sharon D. GambleManagerEnergy Assistance Section

cc: Charlie Cabler, City Manager'

~~1 EAST 11 TH • P. O. Box 13941 • AUSTIN, TBXAS 78711-3941 • (800) 5~5-0657 • (51~) 475·3800

Page 52: WAP Monitoring_Part 1

Section I.

Section II.

Section III.

Section IV.

Section V.

Section VI.

Section VII.

Section VIII.

Section IX.

Section X.

Section XI.

Section XII.

Section XIII.

Directory of Monitoring Sections

Financial Review

Travel and Timesheets

General Liability and Pollution Occurrence Insurance

Property Management

Procurement

Audit

Personnel Policies and Practices

Performance Review

Administrative

Client File Review Worksheet

Multi-Family Review

Denied Files

Summary

" '

"

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2009 WEATHERIZATION MONITORING REPORT

OF

CITY OF BROWNSVILLE

Dates of Review: May 24 - 28, 2010

Focus of Review

CONTRACT NAMECONTRACT CONTRACT CONTRACT

NUMBER AMOUNT DATES

DOEARRA WAP 16090000755 **$1,638,351.00 9/1/09 to 8/31/11

* 50% ofpl'oposed total allocatIOn

TDHCA staff conducted an on-site review of the City of Brownsville's implementation of theDepartment of Energy (DOE) Weatherization Assistance Program (WAP). Specific .areas ofreview included Financial Reporting, Contract Agreements, Procurement, Personnel, and theManagement of the Department of Energy contract.

Program Evaluation

The evaluation of the program consisted of: interviews with City of Brownsville personnel;analysis of the fiscal system; review of programmatic records; on-site inspections; clientinterviews; and inventory review.

The following was noted dul'ing the review:

I) Low DOE ARRA WAP Contract Expenditures

2) Not Following Procurement Reporting Requirement

3) Lack of Materials Standards Documentation

4) Lack of Attic Tags and Attic Rulers

5) Units Weatherized with a Primary Unvented Space Heater

6) Not Metering Refrigerators

7) On-Site Inspections Requiring Returns

8) Inadequate Record Keeping in Client Files

9) Development of a Quality Assurance Plan

1

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2009 WEATHERIZATION MONITORING REPORT

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CITY OF BROWNSVILLE

SECTION I. FINANCIAL REVIEW

EXPENDITURES AS OF THE TIME OF MONITORING

CONTRACT YEAR-TO-DATE % OF AMENDED # UNITS # UNITS INNAME EXPENDITURES CONTRACT COMPLETED PROGRESS

AMOUNT

·DOEARRA WAP $71,223.87 4.35% 15 11

·Expendltures as ofAprIl 2010

Finding #1: Low DOE ARRA WAP Contract ExuemllturesAt the time of monitoring, the City of Brownsville had expended $71,223.8701' 4.35% of the DOE ARRA contract #16090000755 according to submittedExpenditure Reports to TDHCA. The City of Brownsville was asked toproduce a Plan of Action to Implement DOE ARRA WAP as a result of thePreliminary Monitoring held on January 5, 20 IO. The City of Brownsvillereceived a Notice of Possible Deobligation letter on May 26, 2010 with therequirement to submit a Mitigation Action Plan. The Mitigation ActionPlan submitted to TbHCA on June 11,2010 includes hiring additional staffand requiring subcontractors to add additional crews.

Action Required: City of Brownsville must provide assurance that that they will adhere to theMitigation Action Plan and revise as needed. TDHCA will provide continualmonitoring of the DOE ARRA WAP contract including weekly calls, DeskReviews of Monthly Expenditure and Performance Reports and review ofProduction Schedules.Reference: DOE ARRA WAP Contl'act Section 4. SubrecipientPerformance

Recommended Improvement #1: At the time of monitoring, City of Brownsville'sAdministrative expenditure ratio was above the maximum allowable of 5.0% for DOE ARRRAWAP Contract #16090000755. The Administrative expenditure ratio was 13.3%. TheDepartment reminds the City of Brownsville that the Administrative expenditure ratio must be ator below the maximum allowed percentage by the end of the contract period. Expenditures abovethe allowable percentage will be disallowed. See DOE ARRA WAP Contract Attachment A.

Recommended Improvement #2: A review of financial expenditures indicates that the City ofBrownsville does not have a separate chart of accounts for Travel and Training expenditures inthe· General Ledger. Although the Program Officer was able to track expenditures charged toTravel and Training on Expenditures RepOlts submitted to TDHCA, the Program Officerrecommends creating a sub account for Travel and Training expenditures associated with DOEARRA WAP. Expenditures in the Travel and Training subaccount in the General Ledger shouldcOl'I'espond to the Travel and Training line item in the Monthly Expenditure Reports submitted toTDHCA.

2

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2009 WEATHERIZATION MONITORING REPORT

OFI

. CITY OF BROWNSVILLE

Recommended Improvement #3: At the time of monitoring, Health and Safety expenditureswere included in the Material/Labor/Program Support category in the Monthly ExpenditureReports, Subsequent Monthly Expenditure Reports have expenditures charged to the Health andSafety budget line item. The Program Officer recommends. creating a subaccount for Health andSafety expenditures associated with DOE ARRA WAP in the General Ledger. Expenditures inthe Health and Safety subaccount in the General Ledger should correspond to the Health andSafety line item in the Monthly Expenditure Reports submitted to TDHCA.

SECTION V. PROCUREMENT

Finding #2: Not Following Procurement Reporting RequirementsThe City of Brownsville did not post contract related job opportunities onWorkintexas.com. In addition, the City of Brownsville did not provide theDepartment with an electronic version of a notice of procurementopportunity on the Department website. City of Brownsville staff was madeaware of these requirements during the monitoring review.

Action Required: The City of Brownsville must provide written assurance that future contractrelated job opportunities will be posted in Workintexas.com, The City ofBrownsville recently hired additional Weatherization staff. Please provide.verification that the DOE ARRA contract related job opportunities wereposted in Workintexascom. Also, provide written assurance that the City ofBrownsville will post any future procurement opportunity on the Depaltmentwebsite.Refel'cnce: DOE ARRA Contract Section 33. Job Postings onWOI'klntexas.com . and Section 19. P,'ocurement Standards &Subcontracts

SECTION VII. PERSONNEL POLICIES AND PRACTICES

Recommended Improvement #5: A review of the City of Brownsville Personnel Policy Manualstates in the narrative on page 2 that "political affiliation" is a protected category for non­discrimination. The Program Officer recommends strengthening the Equal Employment sectionby adding "political affiliation" and "political belief' as a protected category for non­discrimination in Section 104 Equal Employment Policy on page 4.

3

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CITY OF BROWNSVILLE

SECTION VIII. PERFORMANCE REVIEW

Finding #3: Lack of Materials Standards DocumentlltionAt the time of monitoring, the City of Brownsville did not have materialsstandards documentation for material used in weatherization. Any materialsnot meeting DOE specifications will be disallowed. Material standardsdocumentation for weatherization materials purchased with DOE WAPprogram funds must be maintained by the Subrecipient and comply withAttachment A of 10 CFR 440 Final Rule.

Action Required: The City of Brownsville must provide material standards documentation forall weatherization materials supplied from each subcontractor. The ProgramOfficer provided technical assistance to City of Brownsville stafr" bysupplying an example of material standards documentation for Cocoon GreenFiber cellulose insulation. Please provide material standards documentationfor all weatherization m.aterials as part of the response to the MonitoringRepOit.Reference: DOE ARRA WAP Contract Section 13 Record Keeping

Finding #4: Lack of Attic Tags and Attic RulersDepartment on-site inspections of weatherized units indicated that allweatherized units receiving attic insulation did not have attic tags and atticl'ulers. Weatherized units receiving attic insulation are not in compliancewith International Residential Code standards. According to Section 102.1.1BuIlding thermal envelope Insulation, the insulation installer shall providea celtification listing the type, manufacturer and R-value of ,insulationinstalled in each element of the building thermal envelope. For blow-in 01'

sprayed insulation (fiberglass and cellulose), the initial installed thickness,settled thickness, settled R-value, instaIled density, coverage area and thenumber of bags installed shall be listed on the certification. The insulationinstaller shall sign, date and post the certification in a conspicuous locationon the job site. In addition, insulation markers (attic rulers) shall beprovided fol' every 300 square feet of attic area, attached to the trusses,rafters 01' joists, and indicate in I inch high numbers the installed thicknessof the insulation.

Action Required: The City of Brownsville must provide wl'itten assurance that units receivingattic insulation will have attic tags and attic rulers. In addition, submit asample cel'tification with the required information from each subcontractorthat installs attic insulation as pmt of the response to this Monitoring Report.Reference: International Residential Code (2006) Section 11: EnergyEfficiency & DOE ARRA Contract Section 4 Subrecipient Performance

4

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2009 WEATHERIZATION MONITORING REPORT

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CITY OF BROWNSVILLE

Finding #5: Units Weatherized with Il Primllrv Unvented Space HeaterOn-site Inspection of weatherized units Indicated that units were weatherizedwith a primary unvented space heater. The City of Brownsville Is not Incompliance with the applicable T.A.C. rule and DOE WeatherizationProgram Notice. According to Weatherization Program Notice 08-4, DOEwill not allow weatherization to be conducted on a house with an unventedprimary space heater. All units with a primary unvented space heater must bevented If weatherization is to occur.

Action Required: The City of Brownsville must vent 01' provide a vented space heater to: I)2010-06; 2) 2010-22; and 2010-23. In addition, the City of Brownsville mustprovide written assurance that the City of Brownsville understands and willcomply with T.A.C. §5.607 Space Heater Requirements and WeatherizationProgram Notice 08-4. Please provide this assurance as part of the response tothe Monitoring Report.Reference: T.A.C. §5.607 Space Heater Requirements andWeatherlzlltion Progrllm Notice 08-4 Space Hellter Policy

Finding #6: Not Metering RefrigeratorsDepartment review of client files indicates that refrigerators are not beingmetered. Refrigerator replacement Is a baseload measure that is beinginadequately addressed due to the lack of metering. According to TexasAdministrative Code Rule §5.606, refrigerators must be metered for aminimum of two hours under DOE WAp·rules.

Action Required: The City of Brownsville must provide written assurance that refrigeratorswill be metered for a minimum of two (2) hours as part of a whole houseassessment. Please provide this assurance as part of the response to theMonitoring Report.

.Reference: Texas Administrative Code Rule §5.606 Electric BaseloadMeasures

5

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2009 WEATHERIZATION MONITORING REPORT

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CITY OF BROWNSVILLE

Finding #7: On-Site Inspections Requiring RetumsThe Program Officer inspected ten (10) DOE ARRA units on May 26 andMay 27, 2010. Department on-site inspections of weatherized units requireeight (8) returns out of ten (10) units inspected. Returns are necessary toaddress the insufficient installation of weatherization measures and/or thelack of weatherization measures. All units were weatherized using thePriority List.

Action Required: The City of Brownsville must establish a Quality Assurance Plan thatincludes assurance that subcontractors will install weatherization measuresto Department of Energy, International Residential Code and TexasDepartment of Housing and Community Affairs standards. Please providethe Quality Assurance Plan as part of the response to the monitoring report.Specifically, the City of Brownsville must address and/correct the followingissues and provide documentation that the issues were resolved:

a. 20I0-06: I) Replace the unvented space heater with a vented spaceheater. 2) Seal the accordion wings of the room ail' conditioner. 3)Install a vent in the bathroom.

b. 20 I0-17: I) Replace cOl'l'oded electric water heater with a gas waterheater. 2) Attach insulation to the attic hatch.

c. 2010-22: I) Replace the.unvented space heater with a vented spaceheater.

d. 2010-23: I) Replace the unvented space heater with a vented spaceheater.

e. 2010-27: I) Add a vent above the stove and one in the bathroom. Unitbelow the BTL.

f. 2010-16: I) Add a vent above the stove and one in the bathroom. Unitbelow the BTL. 2) Replace water heater door.

g. 20 I0-19: I) Clean and service ail' handler 2) Replace condenser

h. 20 I0-24: I) Install insulation on the attic hatch 2) Install R-7(approximately 2 inches) attic insulation.

Reference: DOE ARRA WAP ContI'act and 10 CFR 440 Final Rule

6

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2009 WEATHERIZATION MONITORING REPORT

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CITY OF BROWNSVU,LE

SECTION X. CLIENT FILE REVIEW

Finding #8: Inadequate RecOl'd Keeping in Client FilesDepartment review of client files indicates inadequate record keeping.Examples of inadequate record keeping include incomplete Blower DoorForms; missing Refrigerator Forms; and missing Lead OccupantConfirmation Form. Inadequate record keeping may lead to questioned costsand poor program performance, Subrecipients are required to have allnecessary assessment forms indicated in the DOE ARRA WAP contract. Inaddition, subrecipients are expected to completely fill out aU assessmentforms.

Action Requh'ed: The City of Brownsville must provide written assurance that client files willhave the required assessments forms that are completely fill out. Inaddition, the City of Brownsville must provide a Quality Assurance Planthat includes a policy or a protocol for client file review.

Recommended Improvement #6: In regards to the Weatherization Assistance Program, theProgram Officer recommends that the City of Brownsvllle develop a policy/procedure to verifycompliance with th~ EPA Lead Renovator Rule. The policy should include how, when and howoften subcontractors will be inspected by City of Brownsville Weatherization staff. Contractorsperforming weatherization work must be certified and follow specific work practices to preventlead contamination. Failure to follow EPA Lead Renovator Rule guidelines may result in finesup to $37,500.00 for each violation. The EPA Lead Renovator Rule went into eff\1ct on April 22,2010.

Note #1: A Quality Assurance Plan for the City of Brownsville Weatherization AssistanceProgram is a set of internal policies and procedures to assure compliance with the WeatherizationAssistance Program Contract, the Texas Administrative Code and the International ResidentialCode. SpecificaUy, the Quality Assurance Plan includes a written policy or standard operatingpl'otocol for I) Unit Assessments; 2) Energy Audits; 3) Final Inspections; 4) Client File review;4) compliance with Interagency Agreement regarding historic properties; and 5) compliance withEPA Lead Renovator Rule. Please contact TDHCA if you have questions Or comments.

7

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CITY OF BROWNSVILLE

Texas Department of Housing and Community Affairs representative, Enrique H. Trejo, ProgramOfficer participated in an Exit Conference with Ben Medina, Director of Planning andCommunity Development; Lucy Garza, Community Development Manager; and Jose Mendez,Economic Development Specialist.

07P#d/()Date

8

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2009 WEATHERIZATION MONITORING REPORT

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CITY OF BROWNSVILLE

ATTACHMENT A

UnitsInspected

2010-06

2010-17

20iO-22

2010·23

2010-27

2010-16

2010-21

2010-28

2010-19

2010-24

FundSource

ARRA

ARRA

ARRA

ARRA

ARRA

ARRA

ARRA

ARRA

ARRA

ARRA

Return

Yes

Yes

Yes

Yes

Yes

Yes

No

No

Yes

Yes

Comments

Installed 8 tubes of caulk; 2 door sweeps; weatheristripping; 20 CFLs; andR-30 attic insulation. Did not tneter refrigerator. Did not take COmeasurement of stove,.No attic tag or attic tulets.

Installed caulkl R-30 attic insulation; and 16 CFLs. No attic tag or atticrulers, No attic dam. No insulation attached to the attic hatch,

Installed caulk; door sweep; weatherstripping; R-30 attic insulation; R-13wall insulation; 25 CFL,; and minor AC repair. No CO detector. No attictag. No attic ruler. No attic dam. Unvented gas space heater. No COmeasurement of stove.

Installed caulk; weathersl'1pping; R-30 attic insulation; R-13 wallinsulation; solar screens; and 10 CFLs, No attic tags Of rulers. UnventedprithS11 space heater.

Installed caulk; weatherstrippingi R-30 attic insulation; and air conditionerand rUinace. No attic tags or attic rulers. No attic dam. House belowBTL.

Installed caulk; weatherstripping; R-30 attic insulation; 10 CFL.; andminor roof repair. No CO measurements. No attic tags or attic rulers.Ho",e below BTL.

Installed ,caulk; weathecistripping; R-30 attic insulation; exhaust fans; and28 CFL•. No attic tag or attic rulers,

In.talled caulk; spray foam; R-l1 attic insulation; R-l1 belly in.ulation;and 22CFL,. .

Installed caulk; weatherst11pping; R-30 attic insulation; and 15 CFL•.

Installed caulk; weatherstripping; CFLs; and solar screens. Assessment ofattic indicates less than R~30,

Units Inspected: ARRA ......llL Unit Returns: ARRA -L

9

Page 62: WAP Monitoring_Part 1

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

tlJWw. tdlJca. state. ex. ItS

RickPe,ryGOVERNOR

Michael GerberEXECUTiVE DIIU!CTOR

July 23, 2010

Ms. Amalia C. GarzaExecutive DirectorCameron and Willacy Counties Community Projects, Inc.3302 Boca Chica, Suite 209Brownsville, Texas 78521-5705

Re: DOE ARRA Weatherization Assistance Program Contract #16090000653

BOARD MnMDBRS

C. Kent Conine, Chai,'Gloria Ray, Vice CIJlth'

Leslie Binghaln EscarenoTom H. Gann

Lowell A. KeigJuan S. Mufioz, Ph.D.

Dear Ms. Garza:

Enclosed is a report that details the monitoring review of your Weatherization AssistanceProgram contracts with the Texas Department of Housing and Community Affairs. Thisinformation is provided to ensure that compliance with the contract(s) is maintained and thatservices to the poor, elderly, and disabled are offered in the most expeditious and economicalmanner.

The Department has identified ten (10) findings and two (2) recommendations for theWeatherization Assistance Program. Please submit a response to this repolt to this office withinforty-five (45) days of the date ofthis letter.

If we can be ofany assistance, please contact Enrique Trejo, Program Officer, at (512) 475-2299.The assistance provided to the Program Officer by Cameron and Willacy Counties CommunityProjects, Inc. is greatly appreciated.

~,---Sharon GambleManagerEnergy Assistance Section

Cc: Enrique Trejo, TDHCA Program OfficerHonorable Sallie Gonzalez, CWCCP Board Chair

221 EAST 11 TH • P. O. Box 13941 • AUSTIN, TBXAs·7B7t1·3941 • (800) 525·0657 • (512) 475·3800

-() Prh",d (111 T{(Jdtd pllp"

Page 63: WAP Monitoring_Part 1

2009-11 WAP UNIT INSPECTION REPORTCAMERON AND WILLACY COUNTISS COMMUNITY PROJECTS

WEATHERIZATION ASSISTANCE PROGRAM (WAP)CORRECTIVE ACTION REQUIRED AND RECOMMENDED IMPROVEMENTS

Dates of Review: June 21-24,2010

Focus OF REVIEW

CONTRACT NAME CONTRACT CONTRACT CONTRACT DATESNUMBER AMOUNT

DOE/ARRA 16090000653 $2,626,732.00 9/112009 to 8/3112011

PROGRAM EVALUATION

The evaluation of the program consisted of client file reviews, on-site inspections, interviews withclients, and analysis of both quality of subcontractor workmanship and final inspection techniques.

The following was noted during the review:• Final Blower Door readings were not being performed.• No Central HVAC assessments on file.• Window air conditioning units were not being metered.• Refrigerators were not being metered.• Incomplete BWR forms.• Labor charges were not noted in the NEAT/EASY audit or BWR.• Improper use of Blower Door Rings.• Units below the Building Tightness Limit (BTL).• The Priority List was not being performed properly.• Installation of 13 SEER HVAC units.• Staff members have not attended Department approved trainings.• Blow-in insulation is not considered as a weatherlzation measure.

Client File Review(WAP Only)

Finding #1: Incomplete Blower Door FormsA review of fifteen (IS) client files revealed nine (9) files where the Final Inspectordid not complete a final blower door reading. CWCCP staff copied the initial blowerdoor reading and documented the number on the Final Inspection data entry location.CWCCP must perform a separate final blower door reading on each unit that itweatherizes and document this reading on the Blowel' Door Data Sheet. The abilityto obtain a final reading will assist in determining if the infiltration reduction

Page 1 of6

Page 64: WAP Monitoring_Part 1

ActionRequh'ed:

Finding #2:

ActionRequired:

Finding #3:

ActionRequired:

Finding #4:

ActionRequired:

2009-11 WAP UNIT INSPECTION REPORTCAMERON AND WILLACV COUNTIES COM MUNITV PROJECTS

measures were effective and if the unit is not below the BTL.

As part of the response to this report, CWCCP must assure the Department that allweatherized units will have a final blower door reading performed when the unit isfinal inspected. Q.eference: Blower Door Standards

Lacl' of HVAC AssessmentsA review of fifteen (15) client files revealed six (6) files not containing documentedassessments of Central HVAC systems. CWCCP paid contractors for an assessmentof the central HVAC system, .however the file did not contain the assessment thatwas performed.

Due to the fact that assessments are mlssmg from the client files, the HVACassessment charges associated with units 41, 42, 46, 51, 61 and 96 are consideredquestioned. As part of the response to this report, CWCCP must provide a copy ofthe missing assessments for the noted files. Failure to provide a copy for each ofthese units will result in disallowed costs. In addition, CWCCP must provide anassurance that copies of all assessments and invoices will be maintained in the clientfile. Reference: OMB Ch'cular A-110

Missing Window Unit AssessmentsA review of fifteen (15) client files revealed two (2) files where the window ail'conditioning units were not assessed. Assessors did not meter the unit to obtain theexisting efficiency. Assessments contained efficiencies of the unit at the time it wasmanufactured. Obtaining efficiencies from the date the unit was manufactured mayresult in unreliable SIR readings in the NEATIEASY audit and disallowed costs.

CWCCP must assure the Department that all window air conditioning units will bemetered to obtain the existing efficiency and that these efficiencies will bedocumented in the assessment. CWCCP must also provide documentation of whattools 01' equipment (watt meters) was purchased to obtain the required readings.Reference: DOE ARRA Contract Section 13. 10 CFR 440.21

Missing Refrigerator AssessmentsA review of fifteen (IS) client files revealed eleven (II) files where documentationof refrigel'fttor assessments were missing. Interviews with weatherization staff foundrefrigerator metering not being performed on all weatherized units.

To' ensure that all potential weatherization measures are addressed, CWCCP wholehouse assessments must include refrigerators. As part of the response to this reportCWCCP must return to units 10, 11,37,41,42,46,51,81,86,90 and 96 and assessthe refrigerators. CWCCP should replace eligible refrigerators according to TDHCA

Page 20f6

Page 65: WAP Monitoring_Part 1

2009-11 WAP UNIT INSPECTION REPORTCAMERON AND WILLACY COUNTIES COMMUNITY PROJECTS

and DOE requirements. Documentation of the assessment and any measures takenmust be provided as part of the response to this report. In addition, CWCCP mustprovide an assurance that all refrigerators will be assessed. Reference: ARRAContract Section 13 B

Finding #5:

ActionRequired:

Finding #6:

ActionRequired:

Missing BWR PagesA review of fifteen (15) client files revealed two (2) files where page two of theBWR form, that contains information on the repair and health and safety charges,was missing in files #10 and #42.

As part of the response to this report, CWCCP must locate or reconstruct the BWRfor units 10 and 42. CWCCP must pmvide a copy of the completed BWR's in theresponse. In addition, CWCCP must provide an assurance that each file will containa complete BWR. Reference: 10 CFR 600.121

Exclusion of Labor Charge From Energy Audit and Priority ListA review of fifteen (15) client files revealed seven (7) files where the labor chargewas not considered in the Priority List or NEATIEASY audit when using CWCCPstaff members to complete the installation of weatherization measures. Not includingthe labor charge in the Priority List of NEAT/EASY audit, may result in certainweatherization measures being disallowed. Therefore, units 03, 10, 37, 38, 61, 86and 96 have questioned costs.

CWCCP must include all associated labor costs in the NEAT/EASY audit or whenusing the Priority List. As part of the response to this report, CWCCP must addressthe labor costs on units 03,10,37,38,61,86 and 96. If the NEAT/EASY audit wasperformed 011 these units CWCCP must make the adjustment to include the laborcost for the specific measures. CWCCP must then rerun the audit and provide a copyof the audit, as part of the response to this report. In addition, CWCCP must includelabor cost in the measures when utilizing the Priority List. CWCCP must provide thenew cost of the Priority list measure when including labor (to include the BWR).Finally, CWCCP must provide an assurance that it will include and account for laborcharges in the energy audit 01' Priority list when using CWCCP to installweatherization measures. Reference: 10 CFR 440.21

Performance Review (WAP Only)

Finding #7: Improper Blower Door ProceduresIt was noted that CWCCP conducted final inspections using an open fan. CWCCPfailed to utilize the rings on the fan to create a baseline reading before performing theblower door test. In performing a baseline reading CWCCP will obtain an averagepressure baseline when inconsistent and varying pressures exist. The use oftheblower door rings during the actual blower test will enable more accurate readingsbuilding envelopes with lower special volume.

Page 3 of6

Page 66: WAP Monitoring_Part 1

ActionRequired:

Finding #8;

ActionRequired:

Finding #9:

ActionRequired:

2009-11 WAP UNIT INSPECTION REPORTCAMERON AND WI~~ACY COUNTIES COMMUNITY PROJECTS

As palt of the response to this report, CWCCP must provide an aSSUl'ance that abaseline reading will be obtained. The assurance should detail the use of the blowerdoor readings to obtain a baseline reading, while conducting unit assessments andfinal inspections. In addition, if CWCCP personnel require training on the use of theblower door rings, a training request should be documented in the response to thisrepOlt. Reference: Reference: Texas Blower Door Standards; Blower DoorManufacturel' Instructions

Final CFM Reading Below BTLWhile conducting onsite inspections of weatherized units, foul' (4) units (10,46,81and 96) CFM readings were below the allowable BTL. The final CFM reading mustnot fall below the BTL. Falling below the BTL may result in potential health hazardsto the client and/or disallowed cost. It was noted that CWCCP conducted all finalinspections using an open fan. CWCCP was not knowledgeable on the use of theBlower Door rings that may have better assisted the final inspector ofobtaining moreaccurate readings.

CWCCP must return to units to, 46, 81 and 96 to address the BTL reading. Failureto address and bring the CFM readings above theBTL may result in disallowed costsof all measures for each unit below the BTL. As prot of the response to this report,CWCCP must document what meaSUl'es were taken to bring the CFM reading abovethe BTL. In addition, CWCCP must aSSUl'e the Department that all weatherizedhomes will not fall below the BTL and that proper use of the Blower Door and itsaccessories will be performed. Reference: Blower Door Standards

Improper Prioritv List ProceduresCWCCP's implementation of the Priority List, revealed weatherization measures notbeing addressed in the order that it is required. Notably, duct work was not beingconsidered on units that were conditioned by a central HVAC system. Whenutilizing the Priority List, the assessor must address each item, in order, beginningwith the first item-Infiltration Reduction. When each item is addressed, theweatherizatiqn measure must be performed, unless there is a justifiable anddocumented reason for not performing the measUl'e. Should a future monitoringdocument that certain Pl'iority List items are not being performed, CWCCP will facequestioned and/or disallowed costs.

As part of the response to this report, CWCCP must assure the Department that itwill address each item on the Priority List, in the order that it is listed. In additionCWCCP must assure that any measures not performed will have a justifiable reasonthat is documented in the client file. Reference: Texas Priority List

Page 4 of6

Page 67: WAP Monitoring_Part 1

Finding #10:

ActionRequired:

2009-11 WAP UNIT INSPECnON REPORTCAMERON AND WILLACY COUNTIES COMMUNITY PROJECTS

Lack of Documentation for Installing 13 SEER HVAC SystemsDuring the final inspection, it was noted that CWCCP replaced new HVAC systemswith 13 SEER systems and not 14.5 SEER as required by the Department andEnergy Star.

The Department is questioning the costs related to the installation of the centralHVAC systems where the SEER l'ating was 13. As part of the response to this report,CWCCP must provide the reason 13 SEER HVAC systems were installed into theunits. In addition, CWCCP must document what measures have been put in place toensure the minimum SEER requirement is being installed in the weatherized units.Reference: ARRA Contract Section 13 B (13)

RecommendedImprovement #1: Interviews with CWCCP staff revealed that the majority of its' weatherization

employees have not attended Depaltment approved trainings. Many of thesetrainings have free registration and CWCCP weatherization contracts containtraining and technical assistance dollars to supplement additional training relatedcosts. Attending the Depaltment approved trainings may reduce future findings andmay result in an efficient and effective Weatherization program. The Departmentstrongly recommends that CWCCP provide. opportunities for its weatherization staffto attend Department approved trainings.

RecommendedImprovement #2: An assessment of CWCCP's requirement on attic and wall installation, revealed

a labor intensive method. CU1'l'ently, CWCCP installs batt insulation in attics and inexterior walls. The method of "stuffing" batt insulation into the exterior wallsrequires a large opening, new sheet rock and joint compound on the interior of theweatherization unit. FUlthermore, there is a high probability that parts of the battinsulation will be compressed in the "stuffing" prohibiting the full effectiveness ofthe heat resistance value (R-value). The Depaltment strongly recommends a lesslabor intensive method of insulating attics and walls. The Department recommendsthe use of blown-in insulation (fiberglass or cellulose). Utilizing these products inthe walls, may provide the opportunity for a higher 01' more consistent R-Value andcoverage.

Texas Department of Housing and Community Affairs representatives J.R. Mendoza, participated inan exit conference with CWCCP representatives Amalia Garza, Krishna Iyer and Noe Hernandez

I ]!Si~gl1ailiitul~'e:+1~.g\~'~H~Ql~~~~'S;;;;:.L~=====__ 1 7/t"l/toC'eledonio M6ndoza~ . Date

Page 5 of6

Page 68: WAP Monitoring_Part 1

----._._---

2009-11 WAP UNIT INSPECTION REPORTCAMERON ANO WILLACV COUNTIES COMMUNITV PROJECTS

.------ATTACHMENT A

ARRA UNITS INSPECTED

-_._.--- ----

ARRA UNITS RETURNS 11~

Units Fund Return CommentsInspected Source ,

96 ARRA YES Final Blower Door reading is below the BTL. Must bring unitabove the BTL. Address duct leakage. Meter the refrigerator.

86 ARRA YES Seal Furnace Door. Meter the reft·igerator. Seal sides ofwindowair conditioner.

61 ARRA NO03 ARRA YES Final Blower Door reading is below the BTL. Must bring unit

above the BTL. No Cabron Monoxide detector Installed.Address duct leakage. Meter the refrlllCerator.

10 ARRA YES Finai Blower Door reading is below the BTL. Must bring unitabove the BTL.

37 ARRA YES Meter the refrigerator38 ARRA NO11 ARRA YES Repair holes in the hallway. Insulate the attic hatch. Address

wall inSUlation. Meter refrigerator. Assess Duct svstem.5 ARRA YES Meter the refrigerator. Seal duct leaks. Seal door to central

svstem.42 ARRA YES Contractor dama.ed door bell. RefrillCerator not metered.41 ARRA NOS-l ARRA YES Final Blower Door reading is below the BTL. Must bring unit

above the BTL. Meter refrilzerator.51 ARRA YES Meter the refrigerator46 ARRA YES Final Blower Door reading is below the BTL. Must bring unit

above the BTL.

CWCCP must return and address all units as indicated and include in it's response to this report asummary of all actions and measures taken to address the units indicated above.

Page 6 of6

Page 69: WAP Monitoring_Part 1

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

WWlv,tdhca,state.tx.us

Rick PerryGOVBRNOR

Michael GerberExBCUTlVE DIIWC1'OR

June 29, 2010

Ms. Rhoda M, GerschExecutive DirectorCombined Community Action, Inc.165 W. Austin StreetGiddings, Texas 78942

Re: Monitoring Report for Weatherization ContractsDOE Weatherization Assistance Program Contract #56090000452LIHEAP Weatherization Assistance Program Contract #81090000485DOE ARRA Weatherization Assistance Program Contract #16090000654 &#16090000777

Dear Ms. Gersch:

BOARD MOMBBRSC. Kent Conine, ChairGloria Ray, Vic, Chair

Leslie Bingham EscarefioTom H. Gaon

Lowell A. KeigJuan S. Mulioz., Ph.D.

.Enclosed is a report that details the monitoring review of Combined Community Action, Inc.,(CCA) Weatherization Assistance Program contracts with the Texas Department of Housing andCommunity Affairs (The Department). This information is provided to ensure that compliancewith the contracts is maintained and that services to the poor, elderly, and disabled are offered inthe most expeditious and economical manner.

The monitoring report includes three (3) findings, three (3) recommended improvements and one(I) note. Please submit a response to this report to this office within thirty (30) days of the date ofthis letter.

If we can be of any assistance, please feel free to contact Enrique H. Trejo, Program Officer, at(512) 475·2299. The assistance provided to the Program Officer by the agency is greatlyappreciated.

Sincerely,

Sharon D. GambleManagerEnergy Assistance Section

cc: Nick Tirey, Board Chair221 EAST 11 TH • P. O. Box 13941 • AUSTIN, TnXAs 78711-3941 • (800) 525-0657 • (512) 475-3800

Page 70: WAP Monitoring_Part 1

Section I.

Section II.

Section III.

Section IV.

Section V.

Sec.tion VI.

Section VII.

Section VIII.

Section IX.

Section X.

Section XI.

Section XII.

Section XIII.

Directory of Monitoring Sections

Financial Review

Travel and Timesheets

General Liability and Pollution Occurrence Insurance

Property Management

Procurement

Audit

Personnel Policies and Practices

Performance Review

Administrative

Client File Review Worksheet

Multi-Family Review

Denied Files

Summary

Page 71: WAP Monitoring_Part 1

Dates of Review:

2009 WEATHERIZATION MONITORING REPORTOF

COMBINED COMMUNITY ACTION, INC.

l;\.prill2 - 16,2010

Focus OF REVIEW

CONTRACT NAMECONTRACT CONTRACT CONTRACT

NUMBER AMOUNT DATES

DOE 56090000452 +$366,020.00 4/1/09 to 3/31/10

LIHEAP 81090000485 +$443,929.00 4/1/09 to 3/31/10

DOEARRA 16090000654 ++$1,730,958.00 9/1/09 to 8/31/11

DOEARRA 16090000777 *+$500,000.00 9/1/09 to 8/31/11

• Latesl contract amendments •• 500/0 ofproposed total allocatIon

TDHCA staff conducted an on-site review of the Combined Community Action, Inc., (CCA)implementation of the Depatiment of Energy and the Low Income Home Energy AssistanceProgram Weatherization Assistance Programs (WAP). Specific areas of review includedFinancial Reporting. Specific areas of review included Financial Reporting, ContractAgreements, Procurement, Personnel, and the Management of the Department of Energy andLow Income Home Energy Assistance Program contracts.

PROGRAM EVALUATION

The evaluation of the program consisted of: interviews with CCA personnel, analysis of thefiscal system, review of programmatic records, on-site inspections, client interviews, andinventory review.

The following WlIS noted during the review:

• Missing Contract Provision - Compliance with Executive Order 11375

• On-Site Inspections Requiring Return for Additional Ail' Sealing

• Refrigerator Metering Less than Two (2) hours under DOE WAP

PAGE20F8

Page 72: WAP Monitoring_Part 1

2009 WEATHEnIZATION MONITORING REPORTOF

COMBINED COMMUNITY ACTION, INC,

SECTION I. FINANCIAL REVIEW

EXPENDITURES AS OF THE TIME OF MONITORING

CONTRACT YEAR·TO·DATE %OFAMENDED # UNITS # UNITS INNAME EXPENDITURES CONTRACT COMPLETED PROGRESS

AMOUNT*DOE $304,076,88 83.08% 40 2

*LIHEAP $715,762.22 63.31% 51 6

*DOEARRA $25,302,19 36.83% 91 2216090000654

**DOEARRA $0.00 0,0% NA NA16090000777 r

*Expendltures as of February 20I0 **Contracts signed in January 2010

SECTION II. TRAVEL AND TIMESHEETS

Recommended Improvement #1: At the conclusion of the monitoring review, it wasrecommended that CCA add a category for DOE ARRA for those employees who are paid withDOE ARRA funds. Note: l\.t the conclusion of the Exit Conference, Darlene Stange Myersinserted a column for DOE ARRA on the timesheet.

SECTION V, PROCUREMENT

Finding #1: Missing Contl'act Provision· Compli!!l1ee with Executive Order 11375Department review of the weatherization services contract with All·TexBUilding and Restoration indicated a missing contract provision. CCA isnot in compliance with all applicable regulations regarding theWeatherization Assistance Program. Contracts with subcontractors in excessof $10,000.00 must be in compliance with Executive Order 11375Amending Executive Order 11245 "Equal Employment Opportunity,"

Action Required: CCA must include language affirming compliance with Executive Order11375 in the contract with All·Tex Building and Restoration, The ProgramOfficer recommends inserting the affirmation of compliance in Section 12Special Compliance Provisjons, Note: At the conclusion of the ExitConference, Kelly Franke, Weatherization Coordinator added compliance toExecutive Order 11375 in Section 12 Special Compliance Provisions.Lance Meyer, Owner of All·Tex Building and Restoration Inc., initialed thechanges and kept a copy for his records. No further action is required.Reference: OMB A·110 Uniform Administr!!tive Requirements,Appendix A

PAGE 3 OF 8

Page 73: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTOF

COMBINED COMMUNITY ACTION, INC.

SECTION VI. AUDIT

Note #1: CCA conducted a Request for Proposal for audit services for Fiscal Year 2006. CCAmust procure for audit services for Fiscal Year 2010.

SECTION VII. PERSONNEL POLICIES AND PRACTICES.

Recommended Improvement #2: After Department review of CCA personnel policies, it isrecommended that CCA add "political affiliation 01' belief' as a protected -categol'y for non­discrimination. The Program Officer recommends inserting the new language in Section C.Agency Policies C.l Equal Opportunity Employer 1.1. CCA includes a provision in Section C.Agency Policies 1.8 stating that any employee who feels he or she has been discriminated on thebasis of race, color, sex, national origin, age, religion, politicill affiliation or disability shallnotify the EEO Officer in writing. The Program Officer recommends that language in C.l EqualEmployer 1.1 be consistent with C.l Equal Employer 1.8.

SECTION VIII. PERFORMANCE REVIEW

Finding #2: On-Site Inspections Requiring ReturnProgram Officer inspected twenty (20) DOE ARRA Wlits on Apri113, 2010and six (6) DOE and LIHEAP unlts on Apri114, 2010. Department on-siteinspections of weatherized units require one (1) return out of the twenty six(26)Wlits inspected. Returns are necessary to address the insufficientinstallation of weatherization measures and/or the lack of weatherizationmeasures.

Action Required: CCA must return to 09FY06 to conduct additional air sealing. The on-siteinspection blower door reading was 5030 CFM while the target blower dooris 3018 CFM. Note: Lance Meyer, All-Tex Building and Restoration Inc.,provided pictures at the Exit Conference that additional air sealing measureswere conducted in the kitchen, batm'oom and a utility room. CCA mustprovide a blower door reading as part of the response to this monitoringreport.Reference: DOE ARRA, DOE and LIHEAP Contracts and 10 CFR 440

Final Rule

PAGE40F8

Page 74: WAP Monitoring_Part 1

2009 WEA THERIZATION MONITORING REPORTOF

COMBINED COMMUNITY ACTION, INC.

Finding #3: Refrigerator Metering Less than 2110urs under DOE WAPDepartment review of seven (7) client files indicates that refrigerators werenot metered the minimum time of two (2) hours under the DOE WAP.Seven Refrigerator Assessment Forms indicate that refrigerators weremetered between 30 and 70 minutes. According to Texas AdministrativeCode Rule §5.606, refrigerators must be metered for a minimum of twohOUl'S tinder DOE WAP.

Action Required: CCA must provide written assurance that refrigerators will be metered for aminimum of two (2) hours if using DOE weatherization grant funds. Pleaseprovide this assurance as part of the response to the Monitoring RepOlt.Reference: Texas Administrative Code Rule §5.606 Electric Baseload

Measures

Recommended Improvement #3: The Program Officer recommends the development of aQuality Assurance Plan that assures compliance with Weatherization Contracts, the TexasAdministrative Code and the International Residential Code. The Quality Assurance Planincludes a written policy 01' standard operating protocol for 1) Unit Assessment; 2) EnergyAudits; 3) Final Inspections; client file review; and 4) compliance with EPA Lead RenovatorRule.

PAGE50F8

Page 75: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTOF

COMBINED COMMUNITY ACTION, INC.

Texas Department of Housing and Community Affairs representative, Enrique H. Trejo, ProgramOfficer participated in an Exit Conference with Rhoda Gersch, Executive Director; KellyFranke, Weatherization Director; Darlene Stange Myers, Chief Financial Officer and; LanceMeyer, Owner of All Tex Building and Restoration Inc. .

Signature: M::::iiC~~~,-- _~e, TD1ICAProgram Officer

PAGE 6 OF 8

cr~.hzMvoDate

~(2-7./IODate

Page 76: WAP Monitoring_Part 1

2009 WEATHERIZATION MONITORING REPORTOF

COMBINED COMMUNITY ACTION, INC.

ATTACHMENT A------,,------------,------------------

Units Fund Source Return CommentsInspected

09A47-1 ARRA No Installed R-19 attic insulauon; CO monito,; 1.5 ton 13 SEER condense'and air handler. Duct work replacement.

09A47-3 ARRA No Installed R-19 attic jnsulation; CO monitor and; 1.5 ton 13 SEERcondenser and air handler. Duct work replacement.

09A47-6 ARRA No Installed R-19 auk insulation; CO monito,; the'mostat and; 1.5 ton 13SEER condenser and air handler. Duct work repiacement.

09A47-5 ARRA No Installed R-19 attic insulation; CO monitor; !hetroostat and; 1.5 ton 13SEER condenser and air handier. Duct work replacement.

09A47-9 AlUtA No Installed R-19 attic insulation; CO monitor; thermostat, water heater; and1.5 ton 13 SEER condenser and air handier. Duct wo'k replacement.

09A47-11 ARRA NoInstalled R-19 attic insulation; CO monitor; thermostat, refrigerator; and1.5 ton 13 SEER condenser and air handler. Duct work replacement.

09A47-14 ARRA No Installed R-19 attic insulation; CO monitor; thermostat, water heater; and1.5 ton 13 SEER condenser and air handle,. Duct work replacement.

09A47-12 ARRA No Installed R-19 attic insulation; CO monitor; thelmostat,. refrigerator; and1.5 'ton 13 SEER condenser and ai, handle,. Duct wo,k replacement.

09A47-25 ARRA No Installed R-19 attic insulationj CO monitor; thermostat, water heater; and1.5 ton 13 SEER condense' and air handler. Dllct wo,k replacement.

09A47-27 ARRA No InstaUed R-19 attic insulation; CO morutofj thermostat, water heaterjreftigerato,; and 1.5 ton 13 SEER condense' and air handle,. Duct workreplacement.

09A47-29 ARRA No Installed R-19 attic insulationj CO monitor; thermostat, water heater; gasstove; and 1.5 ton 13 SEER condense, and air handler. Duct workreplacement.

09A47-31 AlUV\ No lnstaUed R-19 attic insulation; CO monitor; thermostat) water heater; gasstove; and 1.5 ton 13 SEER condenser and air handler. DUCI wo,kreplacement.

09A47-33 ARRA No Installed R-19 attic insulation; CO monitor; thermostat, water heater;refrlgerato,; and 1.5 ton 13 SEER condenser and air.handler. Duct workreplacement.

PAGE 7 OF 8

Page 77: WAP Monitoring_Part 1

--~"----

2009 WEATHERIZATION MONITORING REPORTOF

COMBINED COMMUNITY ACTION.!.,:..IN=C~. _

ATTACHMENT A

UnitsInspected

09A47-35

09A47-44

09A47-46

09A47-42

09A47.43

09A47-17

09A47-19

09COl13

09FYll1

09FY104

09FY117

09FY106

09FY109

Fund Source

ARRA

ARRA

ARRA

ARRA

ARM

ARRA

ARRA

ARRA

ARRA/LIHEAP

DOE/LIHEAP

ARRA/LIHEAP

DOE

DOE/LIHEAP

Return

No

No

No

No

No

No

No

No

No

No

No

Yes

No

Comments

Installed R-19 attk insulation; CO monitor; thermostatl water heater;refrigerator and: 1.5 ton 13 SEER conc)enser and air handler. Duct workreplacement.

Installed R-19 attic insulation; CO monitor; water heater; stovcj,and 1.5ton 13 SEER condenser and ai, handler. Duct work replacement,

Installed R~19 attic insulation; CO monitor; thermostat; refrigerator;'stove; and 1.5 ton 13 SEER condense, and ai, handler. Duct workreplacement.

Installed R-19 attic insulatiotli CO monitor; thermostat; water heater; gasstove; and 1.5 ton 13 SEER condenser and ai, handler. Duct workreplacement.

Installed It-19 attic insulation; CO monitor; thermostat) rcftigcl'ator;stove; and 1.5 ton 13 SEER condenser and ai, handler, Duct workreplacement.

Installed R~19 attic insulation; CO monitor; water heater; and 1.5 ton 13SEER condenser and air handler. Duct work replacement.

Installed R-19 attic insulation: CO monitor; refrigerator; and 1.5 IOn 13SEER condenser and air handler, Duct work replacement,

Installed thermostat; 30 gal water heater; and smoke detector. Windowpane replacement.

Installed R-11 attic insulation; smoke detector; and 2,5 ton 14 SEER,

Installed R-19 attic insulation; CO monito!; thermostat; stove; solarscreens~ smoke detector; and 3 ton 14 SEER condenser and air handle!',

Installed refdgerator; smoke detectorj CFLs; thermometer; and 2 ton 14SEER condenser and air handle,.

Installed solar screens and roof AC. Inspection blower door wasapp,oximately 700 CFM above the target, Return for additional ai,sealing.

Installed R-19 attic insulation; smoke detectot; solar scteenSj and 4 ton 14SEER condense, and air handler. Inspection blower door was high.Contractor conducted additional ait sealing around chimney. House wasbrought down 200 CFM. No obvious ai, leaks,

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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

www.tdhca.state.tx.usRick PerryGOVIJRNOR

Mlclu\el GerberEXECUTIVE DIRECTOR

June 21, 2010

Ms. Mary Jane RiosExecutive DirectorCoinmunity Council of Reeves County700 Daggett Street, Suite FPecos, rx 79772"4524

BOARD MEMBERSC. Kent Conine. CIJaJrGloria Ray, VIti Chair

Leslie Bingham Escarefi9TOM H. Gann

Lowell A. KeigJuan S. Mufio~, Ph.D.

Re: Department of Energy Weatherization Assistance Program Contract #56090000456Department of Energy ARRA Weatherization Assistance Program COiltract #16090000659LIHEAP Weatherization Assistance Program Contract #81090000489

Dear Ms. Rios:

Enclosed is a report that details the monitoring review of Community Council of Reeves County'sWeatherization Assistance Program contracts with the Texas Department of Housing andCOlfl\llunity Affairs (The' Department). This information is provided to ensure that compliancewith the contracts is maintained and that services to the poor, elderly, and disabled are offered inthe most expeditious and economical maffiler.

The monitoring report includes five (5) recommended improvements and ten (l0) findings. Pleasesubmit a response to this repOlt to this office within thirty (30) days of the date ofthis letter.

If we can be of any assistance, please feel free to contact Rosy 1. Falcon, Program Officer, at(512) 936-7810. The assistance provided to the Program Officer by the agency is greatlyappreciated.

Sincerely,

rtJ--Sharon GambleManagerCommunity Affairs

cc: Mr. Rogelio Alvarado

221 BAST liT" • P. O. Box 13941 • AUSTIN, TBXAS 78711-3941 • (800) 525-0657 • (512) 475-3800

(} PrJnud 0'1 rtryrl,J p"p"

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Directory of Monitoring Sections

Section I. Financial Review

Section II. Travel and Timesheets

Section III. General Liability and Pollution Occurrence Insurance"

Section IV. Property Management

Section V. Procurement

Section VI. Audit

Section VII. Personnel Policies and Practices

Section VIII. Performance Review and Onsite Inspections

Section IX. Administrative

Section X. Client File Review Work Sheet and Multi-FamilyReview

Section XI. Denied Files.'

Section XII. Summary

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Dates of Review:

2009 WEATHERIZATION MONITORING REPORTOF

COMMUNITY COUNCIL OF REEVES COUNTY

May 17-20,2010

FOCUs OF REVIEW

CONTRACT NAME CONTRACT * CONTRACT CONTRACT DATESNUMBER AMOUNT

DOE ~6090000456 $87,193.00 411/2009 to. 3/3112010

LIHEAP 81090000489 $89,974.00 4/112009 to 3/31/2010

DOEARRA 16090000659 $400,181.00 9/112009 - 8/3112011

lie Latest contract amendments

Oli-site review of the Community Council of Reeves County's, (CC Reeves) implementation ofthe Department of Energy's and Low Income Home Energy Assistance Program'sWeatherization Assistance Program (WAP). Specific areas of review included FinancialReporting, Contract Agreements, Procurement, Personnel, and the Management of theDepartment of Energy and Low Income Home Energy Assistance Program contracts.

PROGRAM EVALUATION

The evaluation of the program consisted of: interviews with the CC Reeves personnel, analysisof the fiscal system, review of programmatic records, on-site inspections, client interviews, andinventory review.

The following was noted during the review:

• Monthly general ledger did not reconcile with the expenditure reports submitted.

• DOE ARRA Administrative expenditures are above the maximum allowed.

• DOE and LIHEAP expenditures were insufficient to fulfill their contract,

• Lack of Procurement documentation.

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Section I. Financial Review

EXPENDITURES AS OF MARCH 2010

CONTRACT YEAR-TO·DATE % OF ORIGINAL # UNITS # UNITS INNAME EXPENDITURES CONTRACT COMPLETED PROGRESS

AMOUNT *DOE $76,601.76 87.85% 12 0

DOEARRA $153,429.81 38.34% 21 2

LIHEAP $85,974.00 95.55% 19 0

• At the time of monitormg, ARRA amounts are as ofApr1l2010

Recommended Improvement #1: A review of the January 2010 Monthly Expenditure Reportfor DOE ARRA revealed an inconsistency between the reporting and the general ledger. CCReeves over reported their Training and Technical Assistance funds by $2,760.76. The item wasfor a training that was postponed and for an employee that was terminated. The Agency voidedthe check and the funds are shown as available for future training and technical assistance needs.CC Reeves needs to keep all working papers as they pertain to variances between the generalledger and the monthly expenditure reports in order to account for the variance. Reference:OMB Circular A-llO, Subpart C_.21

Recommended Improvement #2: As of April 2010 the ratio of the Administrativeexpenditure for DOE ARRA was at 9.20%, well above the maximum allowable expenditure. CCReeves is reminded that expenditure for Administration must be at or below 5% for DOE ARRAby the end of the contact term. Immediate attention must be paid to production schedules inorder to meet the above mentioned ratio. Any expenditure above the allowable maximumexpenditure is subject to disallowed costs. Reference: DOE ARRA Contract Attachment A.

Recommended Improvement #3: A review of CC Reeves' expenditures revealed inadequatesupport documentation in five (5) of the nineteen (19) expenditures reviewed. Three (3) of thefiles reviewed lacked the adequate documentation showing the eligible household the materialswere installed in, two (2) contained internal forms that were inaccurately completed as well asincomplete fOlms, one (l) procurement purchase lacked documentation providing the internalapproval needed for any purchases done on the company card. The Agency is reminded that allexpenditures must be accompanied by appropriately completed forms any future inadequaciesmay result in disallowed costs. Reference: OMB Circular A-llO, Attachment C_.21 (b) (2)(3) (4), 1 T. A. C. §5.141

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Finding #1:

ActionRequired:

Finding#2:

ActionRequired: -

2009 WEATHERIZATION MONITORING REPORTOF

COMMUNITY COUNCIL OF REEVES COUNTY

CC Reeves shows low expenditures, as of March 2010 CC Reeves has expended95.55% of funds in LIHEAP, 87.85% in DOE, and 38.34 in ARRA while 100%of their LIHEAP and DOE and 33.33% of their ARRA contract period hasexpired.

CC Reeves must submit a plan of action detailing how they will meet productiongoals for Program Year 2010. Furthermore CC Reeves is urged to pay immediateattention to production schedules in order to expedite expenditures for theWeatherization Assistance Program. Although ARRA production is in line withthe amount of contract expired, the Department would like to recommend that CCReeves make use of the multifamily tools the Department has provided and seekout a property in their area that could benefit from weatherization services. Doingso will provide CC Reeves the benefit of not only assuring their benchmarks aremet but also of exceeding them. Reference: OMB Circular A-ll0, Subpart C_.21 (b) (2) (3) (4), 1 T.A.C. §5.141, DOE and LIHEAP Contracts Section 4.

Section II. Travel and Timesheets

Staff timesheets had inadequate support documentation; they did not identifycharges between the grant categories. Travel documents did not have sufficientsupport documentation in order to determine whether the expenditure wasallowed. Check #18143 made out to Wal-Mart for $637.00 did not containsufficient documentation to substantiate the wire transfer to employee DeverickBooke; this lack of documentation creates a question as to the validity of thisexpenditure. Check # 18325 made out to Chevron in the amount of $53.26 hadsupport documentation stating charge was for Comprehensive Energy AssistanceProgram (CEAP) and it was missing the supervisor signature as required by theirfOlID, however funds were-paid out of American Recovery and Reinvestment Act(ARRA). Upon futther review and staff interviews it was determined that themileage log used to support this expenditure was not accurately filled out.Employee Jerry Orona performs work for both the WAP and the CEAP andmistakenly entered CEAP- as the pl'ogram he was working on instead of WAP.This review revealed $637.00 in questioned costs for the Wal-Mart expenditures.

CC Reeves must add the title of the employee and the category charged to theirtheir timesheet cost breakdown column in order to have the timesheets correctlyreflect duties performed and substantiate the expenditures. -

CC Reeves must submit to the Department support documentation detailing thecost breakdown for the $637.00 that was wired to Mr. Bookey, as part of theirresponse to this report. A review of the Agency's travel documents determinedthat staff, especially newly hired staff, must have further training on how to

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2009 WEATHERIZATION MONITORING REPORTOF

COMMUNITY COUNCIL OF REEVES COUNTY

accurately complete the Agency's mileage log. The supervisor must assure thatthe mileage submitted and all necessary fields are complete, and that they sign theform. The Agency will highly benefit from keeping all advances, expenditures,and reimbursements together as they pertain to specific trips. Doing so will aid indetermining if the advance given to the employee was allowable and if theemployee needs to reimburse the Agency or if the employee is owed anything.Reference: OMB A·87 Attachment B 11, OMB A·122 Attachment B, ARRAContract Section 35, DOE and LIHEAP Contract Section 29

Section IV. Property Management

Recommended Improvement #4: The Agency has recently begun the use of in-house crewsand the housing of weatherization materials. They currently perform monthly inventory of thematerials and update the inventory as soon as the materials need to be removed from thepremises and taken to a client home. The Department would like to remind the Agency that ayearly inventory of materials kept on hand must be performed in order to account for thematerials purchased by Weatherization Assistance Program funds. The Department sees thepotential for the current process to result in a future finding that may create questioned costs.

Cun'ently the Agency purchases stoves and refrigerators in bulk and has the vendor house themuntil they are needed in a home. Someone from the Agency will call the store manager and letthem know to release which ever item is needed to the contractor that will go and pick it up. TheAgency is pre-paying for an item that has not been predetermined as needed in an incomeeligible house; the Agency caunot assure the Department that the items are safeguarded as theAgency and the vendor have a verbal agreement; there are no effective internal controls whendetelmining the release of the items; there are no efficient separation of duties to allow foreffective internal controls when ordering and maintaining inventory. The Department stronglyrecommends that if CC Reeves must pre-pay for stoves and refrigerators they enter into a formalcontract with the vendor detailing the responsibilities that lay with each party and as anattachment there should be a list of names and titles of the person(s) authorized to remove thisinventory. In addition a similar sign in sheet must be kept by the vendor and a signature must berequired prior to the removal ofthe material. The Department reminds CC Reeves that it is their .responsibility to safeguard any material against theft, loss, 01' damage.

The Agency's internal inventory procedures lack the adequate intemal controls that will allowfor the safeguarding of materials. The WAP Coordinator initiates the purchase request and theExecutive Director reviews and approves the purchase. The WAP Coordinator receives theshipment (if she is not available the assessor will sign); both the WAP Coordinator and theassessor maintain the records (whoever is available); both the WAP Coordinator and the assessortake physical inventory. together; the WAP Coordinator reconciles the records. At the minimuma third person must be added to the current process, the person who maintains the

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COMMUNITY COUNCIL OF REEVES COUNTY

records must not take the physical inventory, and the person that reconciles the inventory mustnot be the person who takes the physical inventory nor the person that maintains the records.Reference: ARRA Contract Section 21, DOE and LIHEAP Contracts Section 17, 10CFR 600.232.

Recommended Improvement #5: A review of CC Reeves maintenance records showed thatmaintenance is being conducted in the vehicles; however the receipts are not sufficient to show

. that the vehicles are maintained on a regular maintenance schedule. Failure to implement andmaintain a maintenance schedule will result in future findings.

The Agency's cost allocation plan must be used for maintenance and gasoline expenditures,since the three vehicles are shared by all of CC Reeves programs. The expenditures reviewedshowed that ARRA was being charged for all of the vehicles maintenance. Future vehicleexpenditures will be disallowed if the cost allocation plan is not followed. Reference: 10 CFR600.232

Finding #3:

ActionRequired:

The Agency's mileage logs cannot be adequately matched to the vehicle beingused; reimbursement for mileage, gas, and vehicle maintenance is being chargedto the Weatherization Assistance Grants however it is not clear as to how theAgency is effectively assuring that the charges are allowable. The currentmileage logs used for gas reimbursement do not differentiate between the use of apersonal vehicle or the company car.

The Agency is strongly urged to purchase a vehicle for the sole use of theWeatherization Department. If the Agency still chooses not to purchase a vehiclefor Weatherization, a master mileage log must be kept in each vehicle; a separateand different mileage reimbursement form must be used when an employee mustrequest a reimbursement for mileage using their personal vehicle. Under nocircumstances may the employee use the company gas card to purchase gas fortheir personal vehicle even when conducting business. All gas reimbursementexpenditures must coincide with the mileage logs for the corresponding vehicle.Each reimbursement should be kept separate per vehicle. Reference: OMB A­122

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Finding #4:

ActionRequired:

Finding #5:

ActionRequired:

Note:

2009 WEATHERIZATION MONITORING REPORTOF

COMMUNITY COUNCIL OF REEVES COUNTY

Section V. Procurement

CC Reeves currently utilizes an inadequate inventory process. In order to buildand replenish CC Reeves' inventory the Agency is purchasing materials andplacing a direct charge to program support prior to determining the eligibility ofthe home they will be used for. Expenditures for materials necessary toweatherize a home are only allowable when they are needed for an incomeeligible home prior to the purchase. The current procedure CC Reeves has postsexpenditures to their Program Support budget line item prior to having the eligiblehousehold and performing the Energy Audit, thus skipping the key steps that willdetermine whether expenditures are allowable.

C C Reeves must immediately implement a new way of charging for theirinventory as it cannot be charged to Program Support until it is installed inincome eligible household. The new plan'must be submitted to the Department aspart of their response to this report. Reference: 10 CFR 440.18,10 CFR 440.21,CFR440.22.

CC Reeves' procurement contracts are missing contract provisions for "Rights toInventiolls Made Under a Contract or Agreement" and "Prevention of Fraud andAbuse" within their contractor contracts. The· contract with Four SeasonsInsulation is the only contract missing the "Prevention offraud and abuse" clause.

The agency must amend their contracts to include both of the above mentionedclauses immediately. The Agency has different formats for their contracts; theDepartment recommends that the Agency implement one format so as not toexclude any required clause. Reference: 10 TAC 5.10, OMB A-110 AppendixA.

CC Reeves conducted small purchase procurement for their materials purchase,CC Reeves is reminded that if purchases for material will reach or exceed$25,000,00 per vendor they must perform sealed bid procurement in order to be incompliance with all rules and regulations.

\

Section VI. Audit

Finding #6: At the time of monitoring, the' submittal of Audit Certification to the PortfolioManagement and Compliance Division had not taken place. The auditcertification for fiscal year ending February 28, 2010 was due on April 30, 2010.

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ActionRequired:

Finding #7:

ActionRequired:

Note:

Finding# 8:

2009 WEATHERIZATION MONITORING REPORTOF

COMMUNITY COUNCIL OF REEVES COUNTY

CC Reeves must submit their audit certification letter immediately and take theappropriate steps to ensure that all future items are submitted in a timely manner.Reference: ARRA Contract Section 20, DOE and LIHEAP Contracts Section16.

Section VIII. Performance Review

A review of CC Reeves March 2010 Expenditure Report revealed a lack ofservices and outreach activities in Loving County.

CC Reeves must serve their service area equitably, and must demonstrate thatoutreach efforts were done to attempt to service that county. A record ofoutreachperformed must be kept in order to be in compliance with serving your countyequitably. Reference: ARRA Contract Section 4

The Agency has not performed any work on pre-1978 homes yet, but they aregearing up to do so. They are beginning to create a file with all the certificationsfrom their staff and the contractors. In addition they need to include in this filethe training provided to other non-certified staff and all other necessary supportdocumentation as required by the EPA RRP Final rule. The· Departmentrecommends CC Reeves get at least 2 digital cameras in order to provide forbetter documentation for compliance. The current Lead Certified Renovator forthe Agency is the Executive Director. Given the demands that their currentposition requires and the amount of responsibility the Lead Certified Renovatorhas it is imperative that a member of the Weatherization Assistance Program besent to attain this certification.

Inadequate onsite inspections are being conducted by CC Reeves on the homesthey weatherize. The Health and Safety issues, Foundation, Floor, and Wallmeasures were not adequately addressed and Carbon Monoxide testing was notproperly performed. Units with combustible appliances were not provided with asmoke detector and carbon monoxide detector in a consistent manner.Assessment of walls with existing insulation is not being done, and assessmentsof items requiring repairs are not properly documented. There were minor ail'infiltration measures that needed to be addressed, most however, were under theoptional air sealing category.

The onsite review also revealed that CC Reeves was not conducting thoroughfinal inspections of the units weatherized. Three (3) out of the six (6) unitsinspected had work still needing to be completed after the stated Building

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ActionRequired:

Finding #9:

ActionRequired:

2009 WEATHERIZATION MONITORING REPORTOF

COMMUNITY COUNCIL OF REEVES COUNTY

Weatherization Report (BWR) work end date and after the final blower door wasperformed. A return is required to three (3) out of the six (6) units inspected.

CC Reeves must ensure all assessors are adequately trained to performassessments/inspections taking the whole house approach. All measures thatcould be addressed in the home must be assessed. All assessment forms must beadequately completed to reflect what the assessment of each item resulted in; if ameasure must be omitted a reaSOll why must be clearly documented. Assessmentsof home with existing insulation must be physically verified by the assessor inaddition to noting the "client states there is existing insulation."

In order to ensure program compliance, CC Reeves must return an address theunits as indicated in Attachment A of this report. Reference: ARRA ContractSection 13 B (F), Weatherization Field Guide

Section X. Client File Review Worksheet

Client file review revealed inadequate support documentation for repair measures,BWR did not mirror the Audit, charges to each grant are difficult to ascertain, andinvoice amounts do not equal the charges reflected on BWR. CC Reevescurrently tries to differentiate between the funds charged for the measure by usingthe Word Bold feature to bold the amount and the grant charges. However, thismethod proved inefficient as there are mismatched field throughout all of theBWRs. An adjustment to the monoxer date and time is needed, one (I) file hadan assessment performed prior to application date being signed, and all BlowerDoor Data sheets need to have the target air infiltration reduction completedcorrectly.

CC Reeves must immediately begin to use the updated Building WeatherizationReport Form and make sure all employees completing this form know how tocomplete it. Each measure installed must be accounted for individually in theBWR, all measures need to be in SIR order and must mirror the Audit. Onlyitems that are installed in the home must be included in the BWR. CC Reeves iscurrently keeping items in the BWR that are not installed and indicating so by notadding a charge. Invoices must clearly match the amount and measure charged toeach of the Department funded grants. CC Reeves must update the date of theirmonoxer immediately in order to properly document their testing. CC Reeves isreminded that no work may be done in a home, this includes assessments, prior todetermining eligibility. Future work done prior to determining eligibility willresult in disallowed costs. The blower door data sheet must be completed fully

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Finding#10:

ActionRequired:

2009 WEATHERIZATION MONITORING REPORTOF

COMMUNITY COUNCIL OF REEVES COUNTY

and properly, the target reduction must be determined and the building tightnesslimit is not to be used as the target number for air infiltration reduction.Reference: Texas Administrative Code §5.526, DOE and LIHEAP ContractsSection 10, ARRA Contract Section 13, Texas Administrative Code §5.20, 10CFR440.21

Section XI. Denied Files

Inadequate income calculation was performed by CC Reeves in their denial file.They took into account· mileage reimbursement in the income calculation forclient file ESA1889. The mileage reimbursement is for the use of the client'spersonal vehicle for business and is not additional income. Income verificationwas recalculated and it was determined that the client's household is incomeeligible.

CC Reeves mustre-open the file and contact client ESAl889 to set up the date ofthat their assessment will take place. CC Reeves must submit to the Departmentdocumentation verifying the client was contacted and an assessment has beenscheduled as part of their response to this report. A new application is notrequired as the date of the application is March 31, 2010 thus allowing for ampletime to rectify the mistake without it requiring anything further from the client.Reference: 10 T.A.C. §6.8, 10 T.A.C. §6.108

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COMMUNITY COUNCIL OF REEVES COUNTY

ATTACHMENT A

Units Fund Source Return CommentsInspected

WX·AI009 ARRA No No Retum required

WX·AI004 ARRA Yes Address Flex Gas Pipe in fumace.Address the hole in the water heater closet.

WX-AIOII ARRA Yes Additional air sealing is needed around the accordion blockaround the window unit, in the water heater closet, and under thesink in the bathroom.

I· Address the duct tape covering the holes in the floorInitial Blower Door 1531Final Blower Door 1428At time ofmonitoring 1604

WX·AI002 ARRA No No Retum Required.

09RV0722 DOEILIHEAP Yes Address additional sealing in Fumace closet.Bring all attic insulation to a R·30

09RV0723 DOEILIHEAP No No Retum Required.

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Texas Department of Housing and Community Affairs representatives, Rosy L. Falcon,participated in an exit conference with Mary Jane Rios, Executive Director, Amparo Valenzuela,WAP Coordinator, and Rose Guerrero, Fiscal.

Signature:~~Rosy L. Falls n, TDHCA Program Officer Date