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Audit Objective

Determine whether energy efficiency and recycling rebates and credits were issued in accordance with program guidelines.

Key Findings

• The Board did not adopt adequate written policies or procedures, and management did not provide sufficient oversight.
• Twenty-six applications for energy rebates totaling $127,000 did not have sufficient technical documentation attached and 25 totaling $150,876 did not have required documentation to clearly identify the type and/or quantity of materials purchased.
• Recycling credits were not processed accurately resulting in 1,004 customer accounts being under credited by $2,050 over a six-month period.

Key Recommendations

• Adopt written policies and procedures for processing and reviewing rebates and credits.
• Ensure all rebates and credits have appropriate documentation and are paid at appropriate rates.
• Provide adequate management oversight.

BPU officials agreed with our recommendations and indicated they planned to initiate corrective action. Appendix B includes our comment on an issue raised in the BPU’s response.