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

10.1. How do you ensure good fiscal accounting and tracking of funds? Any other state agency receiving funds and any local administration agency will maintain an accounting system and supporting fiscal records adequate to audit and otherwise verify that the assistance payments and administrative cost claims for reimbursement meet Federal requirements. The DFCS will use its currently established and operational PeopleSoft System to ensure proper fiscal control and fund accounting for Federal funds paid to the State under this title. In addition, a separate computer system will be used to track agency and county use of benefit fund expenditures provided under this title. An obligation of funds is a legal liability to disburse funds based on the obligation date of the grant for the purpose of providing assistance under the State program funded. The process of obligating funds includes entering into a contract, awarding a subgrant, receiving goods or services, or otherwise incurring allowable costs during the grant period that will require payment immediately or in the future. 10.1a Provide your definitions of the following: Obligation The commitment of funds for LIHEAP purposes. Expenditures The payment of LIHEAP funds in the provision of services to eligible households. Allowable expenditures include, but are not limited to, client benefits, administrative costs, program outreach costs, travel, and training. Expenditure timeframe The timeframe in which relative program expenditures must be incurred and reported between the start and end dates of a contract. Administrative costs Costs directly related to program operations, planning and development, including direct and indirect costs. This includes the salaries, fringe, rent, utilities, travel, etc. associated with financial and administrative management of the program. 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. The auditors select LIHEAP each year for monitoring. The complete a random selection of Community Action Agencies to review their documents for accuracy. 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. Local reporting and Division/State Office monitoring efforts will be used to ensure proper dispersal of and accounting for Title XXVI benefit funds. CAAs will provide reports of fund allocation utilization and program implementation activities. The Division/State Office shall monitor the activities of CAAs and payment processing schedules. Details of local reporting procedures are included in the LIHEAP Policy Manual. The Department of Human Services will monitor the activities of the CAAs at least every three years using on-site reviews and desk audits. In addition, we conduct desk reviews, technical assistance by phone, and monitoring of the EAP subsystem. DHS can conduct unannounced monitoring visits if the agency is at high risk or presented with reasonable evidence of fraud, abuse, or neglect of program funds or mismanagement of the program. The Division/State office will ensure that the appropriate warning statements are included on benefit applications, Home Energy Supplier's Agreements, contracts with CAAs, and Letters of Agreement to prevent, detect, and correct waste, fraud, and abuse. Should households receive an overpayment, procedures as outlined in the LIHEAP Policy Manual will be implemented for recoupment or repayment of such overpayment or referred to the office that handles fraud and abuse. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: All agencies could receive a site visit. If an agency has not received an on-site review within the past 2 FFY years, they are to be reviewed the following FFY. If an agency has received an unusual number of complaints or there is evidence of possible mismanagement, an on-site monitoring visit is conducted. If there is any information found during a desk review that may raise a red flag, the State will schedule an on-site monitoring review of that agency. Desk Reviews: If an agency is receiving a follow up visit we may decide to have a desk audit to review the most recent federal fiscal year. 10.8. How often is each local agency monitored? Please attach a monitoring schedule if one has been developed. Triannually 10.9. How many local agencies are currently on corrective action plans? 1 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.