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

10.1. How do you ensure good fiscal accounting and tracking of funds? LIHEAP funds are distributed between Administrative, Program Support, Leveraging and Assurance 16 categories up to the grant award amount. Each funding category is assigned a project number and tracked to ensure that expenditures do not exceed the amount allocated to the budget category. Subgrantee’s submit monthly invoices that are reviewed for allowability of expenditures, and to ensure funding does not exceed the amount allocated in the subgrant/budget category. Vendor refunds are reviewed by the Program and are logged. Vendors are required to provide information that explains the refund so that the original issuance date can be identified. Program notifies fiscal of the correct program year to record the refund. Idaho uses LUMA as their fiscal software system. Subgrant Expenditures: Subgrant Recipients are required to submit monthly invoices by the 15th of the month, for the prior month. Invoices are reviewed for completeness and accuracy by a separate unit at Health and Welfare. Part of this review involves ensuring that the Subgrantee has enough funding to be reimbursed. The Program Manager reviews expenditures monthly to monitor progress of fund expenditures. Subgrantee’s are contacted prior to the end of the contractual period to review remaining funding, discuss ability to spend out allocated funding and perform Subgrant amendments to adjust funding that will not be expended to other Subgrantee’s, if needed. Tracking Funds: LIHEAP funds are tracked by funding categories using assigned project numbers. New project numbers are assigned at the start of each Program Year. This allows us to track funds that are issued as benefit and spent by the Grantee and Subgrantee’s. The Grantee maintains a project number for their Administrative/Indirect costs and LIHEAP Benefits issued. Subgrantee’s receive new project numbers, each season, for Administrative Funding, Assurance 16, Leveraging and LIHEAP Weatherization funds. Funding from other grant types (disaster, IIJA, etc.) is tracked the same way. LIHEAP Refunds: LIHEAP funds that are returned come to the Grantee. We track these funds and record the refund on the participant file and in a tracking log. We require the vendor provide us the information about funds to identify who they are for, what Program Year they came from and why they are being returned. 10.1a Provide your definitions of the following: Obligation Funds issued as a LIHEAP benefit or spent by the Grantee prior to September 30th of the current Program Year and funds that are put into Subgrant are considered obligated. Expenditures Benefits issued to eligible LIHEAP households, funds spent by the Grantee for program Administration on or before September 30th of the current Program Year, and allowable costs spent by Subgrantees during the two-year availability of funds. Expenditure timeframe Ninety percent of the funds must be spent or obligated before September 30th of the current program year. The remainder of funds must be spent by September 30th of the second year. Administrative costs Administrative Costs cannot exceed 10% of the federal award. This amount is determined at a state level. Administrative funding is split between the Grantee and the local community action agencies and obligated through Subgrant. Subgrantee funding is determined by formula. Administrative cost are the funds necessary for the proper administration and management oversight of the Idaho LIHEAP program, including all costs, both direct and indirect, associated with the general administration and coordination of the program; supportive services including accounting, human resource, and procurement; development of policies, goals, and objectives; participant intake and eligibility determination; and monitoring. 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 Legislative Audits Division performs the annual Idaho Statewide Single Audit for federal funds expended. They complete the Single Audit in accordance with federal requirements and governmental auditing standards. The Single Audit covers the prior fiscal year for the entire department, and specific federal programs are selected using the methodology described in eCFR § 200.518 Major program determination. 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 reporting Low-Income Home Energy Assistance Program (LIHEAP) performance and special reports did not include a review for accuracy and compliance prior to submission. In Progress procedure/policy changes 2 financial The review and approval of the annual updates to the Low-Income Home Energy Assistance Program (LIHEAP) benefits matrix were not documented. In Progress procedure/policy changes 3 financial The review of the Low-Income Home Energy Assistance Program (LIHEAP) earmarking compliance requirements was not documented. In Progress procedure/policy changes 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. LIHEAP is reviewed monthly through quality assurance reviews of participant files throughout the program year. Annual monitoring reviews are completed and includes desk review of policy, processes and procedures, fiscal/administrative and program/contractual compliance. Risk assessments are performed prior to the issuance of subgrants and subgrant amendments to identify Subgrantees with a higher level of risk. Agencies identified as high risk may have an increased frequency of monitoring. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: We began tri-annual on-site monitoring during PY25 and visited 2 agencies. Desk Reviews: All agencies receive monthly file monitoring and annual fiscal/administrative reviews. 10.8. How often is each local agency monitored? Please attach a monitoring schedule if one has been developed. Annually 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.