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32 12. Local Agency LIHEAP Funds

Each local agency will be provided LIHEAP funds to be used to issue all payments to eligible households and for the administration of the program. LIHEAP funds are to be maintained separately from all other agency funds. It is required that LIHEAP funds not be commingled with any other agency funding. Agencies’ financial management systems must be able to trace funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and terms and conditions of the award. Agency records must adequately identify the source and application of funds for federally-funded activities. Additionally, a separate ledger sheet should be maintained for programmatic funds and for LIHEAP administrative funds. Since each agency will have funds to operate four programs (i.e., Regular Heating, Crisis Heating, Regular Cooling, and Crisis Cooling), it is recommended that the ledger books for these accounts be maintained separately and in a manner that the agency will know at all times current expenditures and balances of each program component.