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 Kansas Dept. for Children and Families (DCF) uses a public assistance cost allocation plan (CAP) and further information can be found document which is overseen by HHS Division of Cost Allocation. Each grant is tracked by a Fund and a Budget Unit combination. Fund numbers related to a grant CFDA #. The Budget Unit is related more to grant reporting and/or specific grants using the same Fund. Program codes (also refe pools in the CAP) are assigned to track like costs for a similar purpose within a specific agency department that will be distributed in the CAP in the manner. The program code may be funded with one fund-budget unit or with multiple fund-budget units, depending on its purpose. Using the LIHE an example, there are two primary program codes: 25521 LIEAP Administration and 25522 LIEAP Assistance. Each type of revenue or expenditur account code which defines the type of revenue such as grant award, or type of expenditure such as salaries, travel, office supplies, assistance, etc. T accounting system is maintained by the State of Kansas Department of Administration. Various databases and reports are available to provide infor DCF staff to carry out their accounting and reporting duties. The Federal Reporting unit within DCF is primarily responsible for tracking grant acti maintaining worksheets to support claims, and filing reports. They are assisted by the Budget analyst and various program staff who provide supple and reports related to client assistance and internal activities. There is only one sub-recipient: Kansas Housing Resource Corp. who receives 15% of the basic LIHEAP award to provide weatherization a They draw funds based on their expenditures and submit quarterly reports. Due to the timing of the weatherization program activities, they provide information for their sub-contracts at the end of the first federal fiscal year. Responses in 10.4 are related to the Weatherization program. 10.1a Provide your definitions of the following: Obligation A future expenditure is obligated either through the purchase order process or through the approval process of a client benefit against a specific program code. Expenditures The accounting system uses program codes to record expenditures. Benefit refunds are deducted from the same cost pool expenditures in which they were issued and reduce the federal claim. Expenditure timeframe 90% of the award is expended and/or obligated within the first year of the award. Administrative costs Direct LIEAP administrative costs are recorded in a specific cost pool. Indirect administrative costs that are charged to the LIEAP program may be distributed in several ways from various agency cost pools: 1) by agency FTE (full-time equivalent employee counts), 2) by specific time reports (for example IT services), 3) by beneficiary case counts of persons served, and 4) by random moment time studies. 1) Salaries and related costs of the staff of the Lead Agency or other agencies engaged in the administration and implementation of the program. Program administration and implementation include the following types of activities: i. Planning, developing, and designing the Low-income Household Energy Assistance Program (LIHEAP); ii. Providing local officials and the public with information about the program, including the conduct of public hearings; iii. Preparing the state model plan. iv. Updating/maintaining vendor agreements v. Developing agreements with sub grantees to carry out program activities. vi. Monitoring program activities for compliance with program requirements; vii. Preparing reports and other documents related to the program for submission to the Secretary; viii. Coordinating the resolution of audit and monitoring findings. ix. Evaluating program results. x. Program personnel management xi. Financial and Performance reporting; accounting processes 2) Administrative services, including such services as accounting services, performed by grantees or subgrantees or under agreements with third parties. 3) Audit services 4) IT systems related to agency operations. 5) Indirect costs as applied through federally approved cost allocation plan. 6) Other operating costs directly related to the activities listed above would be considered administrative costs. This would include supplies, rent, utilities, travel, etc. The following activities do not count towards the 10 percent limitation on administrative expenditures in paragraph (a) of this section: 1) Establishment and maintenance of computerized LIHEAP information systems. 2) Eligibility determinations. 3) Preparation / participation in judicial hearings. 4) Training for LIHEAP staff. 5) IT systems development and operations related to eligibility determination. 6) Other operating costs related to LIHEAP eligibility determination and the staff performing these duties, including but not limited to travel, supplies, rent, equipment, etc., would not apply to the administrative limit. 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. While the LIHEAP program isn’t selected as a major program every year, it is included in the SEFA report and single audit every year conducted by an independent audit firm for the state of Kansas. HHS has not designated LIHEAP as a high-risk program, so unless it becomes high risk for other reasons, it is subjected to the 3-year cycle and audited as a major program like the other type A programs. The audit firm is selected by the Department of Administration for the statewide single audit through a procurement process. 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: State administered LIHEAP program for heating and winter crisis assistance; there are no local administering agencies for these components. The responses above for local administering agencies are those used for the weatherization component. 10.6 Explain, or attach a copy of your local agency monitoring schedule and protocol. Kansas self-administers the program (no outside agency handling eligibility) for the energy assistance component; monitoring is handled by management staff in each of the four agency offices where applications are processed. This is done via a random ongoing case-read process during the application processing period where managers do periodic reads of case files processed across all workers in their location. In addition, lessons-learned conversations occur following each program year to assess issues identified and work to develop solutions for those issues. We also review every case on which we receive an appeal, prior to the appeal hearing, to determine if the handling of the case was appropriate. If determined that there was a processing error made, we take corrective action, notifying the client as well as noting the issue for discussion during staff sessions and the lessons-learned process. The templates used for monitoring subrecipients in the weatherization component are included as three attachments beginning with 10.6. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: Programmatic, fiscal, and technical monitoring is conducted on each subrecipient agency annually. Desk Reviews: Desk reviews of all submitted projects are conducted monthly. 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.