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The U.S. Department of Energy (DOE) mismanaged millions of dollars in funding for the Smart Grid Demonstration Program, finds a new audit report from DOE Inspector General Gregory H. Friedman. The program, funded with approximately $700 million through the American Recovery and Reinvestment Act of 2009 (ARRA), was created to help modernize the nation's electricity grid.

The audit reviewed 11 projects that were awarded $279 million in ARRA funding and $10 million in non-ARRA funding. According to the report, Friedman identified weaknesses in reimbursement requests, cost-share contributions and coordination efforts with other DOE programs - representing approximately $12.3 million in questioned costs.

The report says the DOE sometimes failed to properly review and monitor financial transactions. For example, the department approved several requests for reimbursement to recipients that lacked proper documentation.

According to Friedman, the DOE agrees with the report’s findings and plans to take corrective actions to improve the program’s management and resolve questioned costs.

To read the full audit report, click here.



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