U.S. Environmental Protection Agency	13-R-0353

I"	\ Office of Inspector General	August 22,2013
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At a Glance
Why We Did This Review
The U.S. Environmental
Protection Agency awarded
Chelsea Collaborative Inc.
cooperative agreements
2A-96107201 and
2A-96104501 in 2009, under
the American Recovery and
Reinvestment Act of 2009, in
the amounts of $1,563,480 and
$357,946, respectively. The
EPA Office of Inspector
General conducted this review
to determine whether CCI
complied with federal
requirements and the terms
and conditions for Diesel
Emissions Reduction Act
grants awarded under the
Recovery Act.
This report addresses the
following EPA Goal or
Cross-Cutting Strategy:
 Taking action on climate
change and improving air
For further information, contact
our Office of Congressional and
Public Affairs at (202) 566-2391.
The full report is at:
Examination of Costs Claimed Under
EPA Cooperative Agreements 2A-96104501 and
2A-96107201 Awarded Under the Recovery Act to
Chelsea Collaborative Inc., Chelsea, Massachusetts
What We Found
CCI's financial management system supports that funds drawn under the two
cooperative agreements are reasonable, allocable and allowable in accordance
with federal requirements and the terms and conditions for the Diesel Emissions
Reduction Act. However, the system does not meet certain federal requirements
under the Code of Federal Regulations in 40 CFR 30.21, as it was unable to
provide timely financial information and reporting. As a result, there was limited
assurance that the recipient claimed all eligible costs or the financial
management system and Federal Financial Reports reflect the actual costs.
CCI generally complied with the applicable Recovery Act requirements.
We reviewed CCI's compliance with select Recovery Act requirements and
determined that:
	The Buy American requirements under Section 1605 of the Recovery Act
were not applicable.
	The Wage Rate requirements under Section 1606 of the Recovery Act
were met.
CCI's methodology for calculating its estimate of the number of jobs created or
retained with Recovery Act funding did not meet Office of Management and
Budget reporting guidance for Section 1512 of the Recovery Act.
Recommendations and Planned Corrective Actions
We recommend that the regional administrator, Region 1, require CCI to
establish controls to ensure its financial management system complies with the
requirement of 40 CFR 30.21 to provide accurate, current and complete
disclosure, and attend future grant recipient training. We recommend that
Region 1 ensure CCI's calculations for number of jobs created or retained meets
OMB guidance on Recovery Act reporting, and that CCI correct and submit the
number of jobs created or jobs retained documentation. Lastly, we recommend
that Region 1 report the findings in the Grantee Compliance Finding Database.
Region 1 agreed to all the recommendations and provided corrective actions and
completion dates. The recommendations remain open with corrective actions
ongoing. No further response to the report is required.
Noteworthy Achievements
CCI exceeded the expected outcome by repowering 98 diesel transportation
refrigeration units with electric units rather than the 79 originally proposed.