10 Program, Fiscal Monitoring, and Audit, 2605(b)(10) - Assurance 10

10.1. How do you ensure good fiscal accounting and tracking of funds? The State will follow usual fiscal controls and fund accounting procedures for the expenditure of LIHEAP funds. Subrecipients are required to submit an invoice at least once per month to request funds. The Alabama Examiners of Public Accounts will annually conduct an audit of LIHEAP funds received by the State agency. Local subrecipients are required to arrange for an annual audit of funds received and expended under this title. 10.1a Provide your definitions of the following: Obligation Orders placed for property and services, contracts and subawards made, and similar transactions during a given period that require payment during the same or a future period. Expenditures Charges made to a project or program in the ADECA accounting system and STAARS (State of Alabama’s payment system). The sum of cash disbursements, indirect cost charged, cash advances, and payments to subrecipients. Expenditure timeframe The Period of Performance for a given award as specified on the Notice of Award. Administrative costs Salaries, fringe benefits, travel and vehicle operations, information services charges, supplies ordered for a specific program, and indirect cost. Audit Process 10.2. Is your LIHEAP program audited annually under the Single Audit Act and OMB Circular A - 133? Yes No 10.2a - if yes, describe your auditor selection process. ADECA uses the Department of Examiners of Public Accounts to perform their Single Audit. The Department of Examiners of Public Accounts is empowered to audit the books, accounts, and records of all state and county offices, officers, bureaus, boards, commissions, corporations, departments, and agencies and to report on expenditures, contracts, or other audit findings found to be in violation of law. The Department has the authority to make audits of the accounts of all entities receiving or disbursing public funds. 10.3. Describe any audit findings of the grant recipient (i.e. State/Tribe/Territory) rising to the level of material weakness or reportable condition cited in the single audits, inspector general reviews, or other government agency reviews from the most recently audited fiscal year. No Findings Finding Type Brief Summary Resolved? Action Taken 1 10.4. Audits of Local Administering Agencies What types of annual audit requirements do you have in place for local administering agencies/district offices? Select all that apply. Local agencies/district offices are required to have an annual audit in compliance with Single Audit Act and OMB Circular A-133 Local agencies/district offices are required to have an annual audit (other than A-133) Local agencies/district offices' A-133 or other independent audits are reviewed by Grant recipient as part of compliance process. Grant recipient conducts fiscal and program monitoring of local agencies/district offices Local agencies and district offices are required to have an annual audit in compliance with Single Audit Act and OMB Circular A-133 Compliance Monitoring 10.5. Describe your monitoring process for compliance at each level below. Check all that apply. Grant recipients have a policy in place for appropriate separation of duties and internal controls. Internal program review Departmental oversight Secondary review of invoices and payments Other program review mechanisms are in place. Describe: Local Administering Agencies/District Offices: On - site evaluation Annual program review Monitoring through central database Desk reviews Client File Testing/Sampling Other program review mechanisms are in place. Describe: 10.6 Explain, or attach a copy of your local agency monitoring schedule and protocol. The State has eighteen subrecipients that are divided into four districts. Subrecipients have one CSBG/LIHEAP Program Manager who is the primary point of contact for both CSBG and LIHEAP. While programmatic reviews have historically been conducted annually for LIHEAP and triennially for CSBG, timelines for each program’s monitoring schedule have been adjusted so that subrecipients will be monitored on a biennial schedule. The following summarizes the actions taken during each visit: Core Monitoring Procedures: The core monitoring is the same for CSBG, LIHEAP, and the Weatherization Assistance Program. State staff will request the necessary documents to conduct a thorough review of: Timeliness and accuracy of documentation submitted to ADECA • Board involvement • Fiscal requirements • Personnel/Payroll • Subcontracts • Travel expenses • Programmatic expenses • Federally-owned equipment • The State’s review includes comparing the subrecipients’ processes to their written policies and procedures, as well as to any requirements from ADECA and 45 CFR Part 75. The goal of the core piece of the State’s monitoring is to assess the overall health of each subrecipient agency, to ensure that strong internal controls are in place, to ensure that procedures are documented and adhered to, and to ensure that the agency is being well managed. Case File Review: There is a program-specific component to the State’s monitoring, as well. For LIHEAP, client case files are audited using the following procedure: Conduct an entrance conference with the Board Chair, Executive Director and/or LIHEAP Coordinator to discuss the monitoring procedures 1. Review the requested documentation to complete the core questions of the monitoring 2. Review client files of regular, crisis, and supplemental assistance (if applicable) awarded during the current fiscal year for completeness and accuracy 3. If applicable, observe how and where paper case files are maintained to ensure confidentiality 4. Observe how agency personnel files are maintained 5. Review batching and vendor payments of 10-15 client files that were reviewed during monitoring 6. Conduct an exit conference with the Board Chair, Executive Director, and/or LIHEAP Coordinator to discuss any questioned costs 7. A random sampling of client files from each county in the agency's service area are assessed to verify that the required documentation exists. A random month during each fiscal year being monitored is selected. The State has not established a minimum standard for the number of client files to be reviewed at each agency; however, the Program Manager is trained to examine files from every month in both the Heating and Cooling seasons and from a variety of energy vendors. Client files are reviewed for the following documentation: Application - a complete application with the client's signature/electronic signature and the intake worker's signature. Accuracy of the information and award amount is confirmed during review. The monitor also reviews case notes. • Client identification -copy of picture ID and Social Security Card - Household member(s) identification -copies of the Social Security Card of all household members • Household income - copies of payroll, check stubs, or checks; records of the self-employed; written statements from employers; documents • from social agencies such as the Department of Human Resources; or statements of someone in a position to know the circumstances of the household. Declaration of Household Income form for household members aged 18 and over that had no income and verification cannot be obtained from a governmental entity such as the Department of Human Resources, Department of Labor, Public Housing manager, etc.; received income from occasional work such as lawn care, house cleaning, babysitting, car repair, etc. when a receipt book is not maintained; received money from family/friends; or received income not reported elsewhere. Residence - review of home energy bill, driver's license, work visa or other forms of documentation to verify that they are legal residents and have been assisted at the appropriate agency. • Utility bill - copy of the most recent utility bill to ensure the bill is in the client or spouse's name and that the address corresponds to the client's physical address. An excel spreadsheet called the "LIHEAP Monitoring Form" is completed during the case review. • The monitor enters the following information for each case file: Date of application • Type of benefit • Applicant name • Applicant's Social Security number • Applicant's unique identification number from our state-wide intake database (FACSPro) • Total household income • Household condition to identify if there is at least one member that is elderly, disabled, or a child under 18 • Household size • County of residence • LIHEAP benefit amount • Home Energy Supplier • Comments - the energy vendor is noted as is the amount of utility allowance received (if applicable) and if the optional extra $50 was awarded to high energy households. • As part of review process, a selection of three to five energy vendors is contacted via phone or email to verify if they have been receiving LIHEAP payments from the local administering agency within 30 days of the date of the award. Within 30 days of the monitoring review, the State Office sends a letter to the agency to summarize any findings and, if applicable, request corrective action. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: Program managers will conduct on-site monitoring visits to nine (9) of the eighteen (18) subrecipients at least once every two years. Desk Reviews: State LIHEAP staff will select a single month at random and conduct a desk review for the subrecipients that are not scheduled for a site visit during that particular year. The desk review will include reviewing ten randomly-selected client files for completeness and accuracy and checking the timeliness of vendor payments at least once during the fiscal year. 10.8. How often is each local agency monitored? Please attach a monitoring schedule if one has been developed. Other 10.9. How many local agencies are currently on corrective action plans? 0 If any of the above questions require further explanation or clarification that could not be made in the fields provided, attach a document with said explanation here.