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Section 13: LSP Financial Management As a condition for receiving the LIHEAP block grant, the State of Indiana is required to account for how the grant funds are spent. LSPs participate in this process by providing fiscal and statistical information to IHCDA. 13.1 LSP Grant Agreements All LSPs enter into a subgrantee agreement in order to administer EAP. A contract is created at the beginning of the program year, and amendments are created any time funds are added or reduced to a grantee’s budget. IHCDA uses an electronic signature system. 13.2 Recording Energy Assistance Benefit Payments LSPs must not record EAP benefits on their general ledgers. This is because EAP benefits never actually go into the LSP’s budget. Only Administrative Costs, Assurance 16 activities, Outreach and Eligibility Determination, direct pay crisis benefits that the LSP issues and is reimbursed for and ERR contractor payments that the LSP is reimbursed for should be on the general ledger. 13.3 LSP Budgets Allocation The initial allocation for PY2026 EAP funds to the Local Service Providers will be distributed as follows: • IHCDA will allocate funds using the same formula as previous program years. This allocation is based on county-level Census data pertaining to poverty, as well as elderly and disabled populations and the proportion of households that heat with bulk fuel, and is approved by the IHCDA Board of Directors • If the federal appropriation exceeds the current projected amount, IHCDA will distribute additional funds on an as-needed basis. • If an energy crisis is identified or energy emergency is declared, IHCDA may amend the funding allocation to accommodate the energy crisis. Budgets LSPs will inform IHCDA of their budgets in writing using the budget form, see Form EAPB-2026 – Energy Assistance Program Budget. LSPs will submit a budget to IHCDA at the initiation of the annual contract, its renewal, or upon a change of funding. LSPs may also need to submit a budget to adjust line-item balances, such as to move funding between Regular and Crisis assistance. The budget is effective October 1st through September 30th each year. IHCDA will approve all budgets and subsequent modifications. Budgets must be sent to eap@ihcda.in.gov within 7 days of acceptance of the subrecipient agreement.