The Federal Government says action is being taken against an Environment Department employee over a string of problems with a $300 million energy efficiency program.
An Auditor-General's report has found there was poor oversight of the Green Loans program by senior management and the former environment minister was given inaccurate and incomplete advice.
The scheme was designed to help households improve their energy efficiency but was scrapped in July.
Climate Change Minister Greg Combet says the Government is determined to learn from the problems.
"Steps are being followed at the moment in relation to one of the officers involved at the time in the Department of Environment, Water, Heritage and the Arts, but it's not appropriate for me to go any further than that," he said.
He says the Government is taking the findings seriously.
"We are taking all of the steps that are necessary to prevent any repeat of some of the problems," he said.
Greens Senator Christine Milne says the report shows there are serious problems that need to be dealt with.
"This goes to a systemic problem in the department and it goes to who is responsible," she said.
"Why is it that the senior executive management team did not take appropriate oversight of this program?"
Thousands of people paid to become trained assessors for the scheme but some never received work.
The Government is considering whether it will offer compensation.