It could take up to nine years to clear the backlog of more than 9,000 applicants for a program to help low-income Pennsylvanians make their homes more energy efficient, according to a new report by the state auditor general's office.

As of June 30, 2006, the greatest backlog noted by the report was in Fayette County, where 1,100 applicants were on a waiting list. On the other hand, Action Housing Inc. had no applicants on its waiting list for Allegheny County, but that did not include McKeesport, where the Steel Valley Opportunities Industrialization Center had a backlog of 316 applicants that would take 18 months to clear.

The report, covering the period from July 1, 2001, through June 30, 2006 attributes the backlog, and other deficiencies, to poor administration, inadequate funding and insufficient manpower.

The federally funded Weatherization Assistance Program is administered by the Pennsylvania Department of Community and Economic Development. Under the program, DCED provides funds to local public and private nonprofit agencies, which in turn hire subcontractors to repair homes.

Waiting List: Local agencies that administer the state's Weatherization Assistance Program Click image for larger version. To download full report on the weatherization program, click here.

The audit found that DCED was not adequately monitoring the program.

Among the control weaknesses Auditor General Jack Wagner cited were a failure to develop a priority list of the neediest applicants; failure to make sure local agencies responded to crises within the federally mandated period of 48 hours; and failure to conduct follow-up inspections to make sure that repairs were delivering their promised energy savings.

During visits to four local agencies in Philadelphia, York, Dauphin and Lancaster counties, auditors found 178 errors in 100 client files inspected. They also found that in Philadelphia, weatherization repairs were made twice to 30 buildings, at a cost of $94,081, because two local agencies had failed to coordinate their efforts.

In another case, auditors found an applicant received more than $8,700 worth of weatherization services even though the applicant was ineligible based on income.

These violations could jeopardize future federal funding for needy Pennsylvanians if the weaknesses are not corrected, Mr. Wagner said. DCED disbursed $35 million during the 2005-06 heating season, enabling the program to serve 25,099 residents living in 10,368 homes.

Deputy Secretary Ken Klothen defended DCED's oversight of the program, and disputed some of the auditor general's assertions, saying his department "recognizes areas of improvement are needed but believes that sound management practices are being used to correct them."

Mr. Klothen also disputed the Auditor General's assertion that the neediest Pennsylvanians did not receive priority for receipt of weatherization services, noting that several different vulnerable populations are given priority in the current program structure -- elderly people; persons with disabilities; families with children; high residential energy users; and households with a high energy burden.

"DCED has been very responsive in addressing our findings and recommendations," Mr. Wagner said. "I would hope that these corrective measures are in place prior to the start of the home heating season."

Mr. Wagner's weatherization audit makes 24 recommendations, including:

Monitor local agencies and develop prioritizing procedures to ensure that at-risk and needy Pennsylvanians are first in line to receive weatherization services. DCED should consider waiting lists when allocating grant money to local agencies and consider requesting additional LIHEAP funds from the Pennsylvania Department of Public Welfare.

Minimize potential for fraud and abuse by creating a system to ensure weatherization services are not provided to ineligible dwellings.

Strengthen oversight and verification by developing written policies and procedures for local agencies.

Ensure the program's effectiveness by calculating energy and monetary savings. Develop a statewide database to assess local agencies and improve performance of the program.

Mr. Klothen said DCED instituted a set of improvements to address identified program weaknesses prior to the audit in 2006, and already is addressing process development, planning and implementation of better fiscal and administrative oversight of grantees; gaps in client and grantee information management; and standardization of program practices.

This is the second time in a little more than a month that Mr. Wagner's office has reported problems with an energy-related program in the state. A report issued on June 27 said a special performance audit found "serious deficiencies" in the Department of Public Welfare's administration of the state's Low Income Home Energy Assistance Program between July 1, 2000, and June 30, 2006.

According to that report, "inadequate policies and procedures, insufficient supervision and inadequate oversight" resulted in potential applicant and employee fraud and abuse in all six counties examined, including Allegheny.