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 of Illinois ensures that fiscal and fund accounting procedures are established and maintained as may be necessary to ensure the proper receipt and disbursement of federal funds paid to the state. This includes procedures for regularly monitoring the assistance provided under this Title and providing that the state shall have a single audit conducted according to OMB Uniform Guidance 2 CFR Part 200 of its expenditure of amounts received under this Title and amounts transferred to carry out the purposes of this Title. All LAAs are required to maintain an integrated accounting system that provides for accountability of public funds and meets the required OMB Uniform Guidance 2 CFR Part 200 and OMB 45 CFR Part 75. In addition to the ongoing financial evaluation, the Illinois Department of Commerce and Economic Opportunity's grant management staff in the Office of Community Assistance closely monitor the programmatic and fiscal activities of all LAAs or other entities carrying out the energy assistance, crisis assistance, and Weatherization component of this Plan. The Department's Office of Financial Management is available to provide training and technical assistance to the agencies in the structuring of their fiscal management systems. This includes on-going help in establishing integrated accounting and cost allocation systems. The Auditor General of the State of Illinois (OAG) conducts an annual statewide single audit in accordance with auditing standards generally accepted in the United States of America. Government Auditing Standards Single Audit Act Amendments of 1996, and OMB Uniform Guidance 2 CFR Part 200. The OAG submits the annual statewide single audit to the Federal Audit Clearinghouse and the Illinois Legislative Audit Commission. 10.1a Provide your definitions of the following: Obligation when used in connection with an awardee's utilization of funds under an award, means: orders placed for property and services; contracts and subawards; and similar transactions, during a given period that require payment by the awardee during the same or future period. Expenditures means charges made by an awardee to a project or program for which a State, federal or federal pass-through award was received. The charges may be reported on a cash or accrual basis, as long as the methodology is disclosed and inconsistently applied. For reports prepared on a cash basis, expenditures are the sum of: Cash disbursements for direct charges for property and services; The amount of indirect expense charged; The value of third-party in-kind contributions applied; and The amount of cash advance payments and payments made to subrecipients. For reports prepared on an accrual basis, expenditures are the sum of: Cash disbursements for direct charges for property and services; The amount of indirect expense incurred; The value of third-party in-kind contributions applied; and The net increase or decrease in the amounts owed by the awardee for: Goods and other property received; Services performed by employees, contractors, subrecipients and other payees; and Programs for which no current services or performance are required, such as annuities, insurance claims or other benefit payments. Expenditure timeframe "Period of Performance" means the time during which the awardee may incur new obligations to carry out the work authorized under the State, federal or federal pass-through award. The State grantmaking agency, federal awarding agency or federal pass-through entity must include start and end dates of the period of performance in the award (see, as applicable, Section 7000.370(a)(1) of this Part, UR section 200.210(a)(5), and UR section 200.331(a)(1)(D)). Administrative costs "Indirect (Facilities & Administrative (F&A)) Costs" or "Indirect Facilities and Administrative Costs" means those costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted without effort disproportionate to the results achieved. To facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of indirect costs. Indirect cost pools must be distributed to benefitted cost objectives on bases that will produce an equitable result in consideration of relative benefits derived. 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 auditor is selected by the Office of the Auditor General through competitive bid. 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 other DCEO did not adequately review single audits received from its subrecipient for the Coronavirus Relief Fund (CRM) program on a timely basis. Yes 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. All LAAs are intended to be monitored annually but no later than every three (3) years using the Monitoring Tools provided with this Model Plan. Attached is the Comprehensive Monitoring Tool and the Desktop Tool utilized to monitor the LAAs. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: All LAAs are intended to be monitored annually based on a risk analysis but no later than every three (3) years. Desk Reviews: All LAAs are intended to be monitored annually based on a risk analysis but no later than every three (3) years. 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? 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.