Press Release  Audit Finds Department of Energy Resources Needs to Improve Oversight of Green Communities

BOSTON — An audit released today by the Office of State Auditor Suzanne M. Bump (OSA) showed the Green Communities Division (GCD) within the Department of Energy Resources (DOER) must strengthen its oversight of the green communities designation program. GCD was created by the Green Communities Act to help municipalities become more sustainable in terms of their energy needs, control rising energy costs, and facilitate the use of clean energy technologies. The audit, which examined the period of July 1, 2018 through June 30, 2020, found GCD did not ensure that all municipalities that received a “green communities” designation from GCD were submitting their required annual reports and did not ensure documentation of all grant funding expenditures was submitted as required by state regulations and grant requirements. 

As of November 2020, 271 of the 351 cities and towns in the Commonwealth had been designated as green communities, meeting five criteria that demonstrate a commitment to using clean energy. In return, these communities are offered grant opportunities to help them reduce their carbon footprint and lower their energy costs. During the audit period, DOER awarded designation grants totaling $9,916,438 to 61 municipalities. 

“The green communities designation is highly advantageous for municipalities across the state, which is why the proper administration of this program is vitally important to its success,” Bump said of the audit. “Our audit makes clear that moving forward the Green Communities Division must establish effective monitoring controls over its reporting processes for towns and cities.” 

In fiscal year 2019, GCD did not receive annual reports from 11 green communities; in fiscal year 2020 the division did not receive annual reports from 17 green communities. As a result, GCD cannot be sure that these municipalities are compliant with the five criteria in the Green Communities Act. In addition, GCD did not obtain documentation to justify $46,471 in administrative expenses made by eight green communities that had requested reimbursements through the GCD grant program. The audit recommends that GCD establish stronger monitoring controls over the grant program and its green communities’ reporting process to ensure compliance. Based on the auditee’s response, it is taking steps to correct the issues identified. 

DOER is charged with developing and implementing policies and programs aimed at ensuring the adequacy, security, diversity, and cost-effectiveness of the Commonwealth’s energy supply to create a clean, affordable and resilient energy future for all residents, businesses, communities, and institutions. Five divisions carry out the DOER’s mission, including the GCD. For fiscal years 2019 and 2020, DOER received state appropriations totaling $4,978,014 and $4,437,101, respectively, to fund its operations.

The full audit report is available here. 
 

###