SUMMARY The Inflation Reduction Act of 2022 allocated $8.8 billion to the Department of Energy for issuing grants to states, U.S. territories, and Indian Tribes for distribution to the public in the form of home energy rebates. The Department’s Office of State and Community Energy Programs is responsible for oversight and guidance of the $181.9 million of grants awarded to Indiana. The Indiana Office of Energy Development (OED) administers Indiana’s Home Energy Rebates programs.
We initiated this inspection to assess the OED’s internal controls to administer the Home Energy Rebates programs under the Inflation Reduction Act of 2022.
We determined that the OED did not establish an adequate internal controls system to administer the Home Energy Rebates programs under the Inflation Reduction Act of 2022, though it began accepting rebate applications in May 2025. Specifically, the OED did not: (1) document risk assessments that identified, analyzed, and responded to potential risks that could prevent the Home Energy Rebates programs from achieving their stated objectives; and (2) develop a program-specific policy for monitoring and assessing the implementing company’s performance.
A fully established internal controls system helps protect Department funds and meet program objectives.
To address the issues identified in this report, we made one recommendation that, if fully executed, should help strengthen the OED’s internal controls to implement the Home Energy Rebates programs.
