LIHEAP----Audit Report-s2-s100-May 25

A SPECIAL AUDIT OF THE DEPARTMENT OF PUBLIC WELFARE’S LOW INCOME HOME ENERGY ASSISTANCE PROGRAM JUNE 2007 June 27, 2007 The Honorable Edward G. Rendell Governor Commonwealth of Pennsylvania 225 Main Capitol Building Harrisburg, PA 17120 Dear Governor Rendell: This report contains the results of the Department of the Auditor General’s special audit of the Low Income Home Energy Assistance Program (LIHEAP) for the period of July 1, 2000 through June 30, 2006, administered by the Department of Public Welfare (DPW). This special audit was conducted pursuant to Sections 402 and 403 of the Fiscal Code and in accordance with Government Auditing Standards which are applicable to performance audits and issued by the Comptroller General of the United States. Our audit found that DPW was seriously deficient in its administration and especially its monitoring of LIHEAP. As a result, DPW failed to effectively manage resources, which could erode service to Pennsylvania’s most vulnerable citizens. Systemic weaknesses, including inadequate policies and procedures, insufficient supervision and inadequate oversight, resulted in our determination of potential applicant and employee fraud and abuse within LIHEAP as noted in the executive summary and presented in the body of this audit report. In addition, due to the nature of the systemic weaknesses ...