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Section 10 - Program, Fiscal Monitoring, and Audit, 2605(b)(10) - Assurance 10 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES ADMINISTRATION FOR CHILDREN AND FAMILIES August 1987, revised 05/92, 02/95, 03/96, 12/98, 11/01 OMB Clearance No.: 0970-013 Expiration Date: 02/28/2027

LOW INCOME HOME ENERGY ASSISTANCE PROGRAM(LIHEAP) MODEL PLAN

Section 10: Program, Fiscal Monitoring, and Audit, 2605(b)(10)

10.1. How do you ensure good fiscal accounting and tracking of funds?

The LHC financial operations manual establishes the framework and procedures for budgeting, reporting, internal controls, cost allocation,and accountability as described in the costs principle applicable to the grant. Contractors submit weekly electronic copies of the Request for Payment to LHC for their benefit payments based on eligible households and monthly Request for Payment to LHC for actual administrative, program, and client education expenditures. LHC conducts monthly reconciliation of funds and expenditures with sub-recipients to ensure accuracy and reliability for data reporting. All LIHEAP expenditures are tracked and monitored using the web-based software, Hancock Energy Software (HES) and MS Excel spreadsheets. 10.1a Provide your definitions of the following: Obligation

The State of Louisiana’s definition of “obligation” can be found in LA Civ Code 1756: An obligation is a legal relationship whereby a person, called the obligor, is bound to render a performance in favor of another, called the obligee. Performance may consist of giving, doing, or not doing something. The State of Louisiana’s definition of “encumbrances” aka “obligations” can be found in the Louisiana Division of Administrations’ Control Agencies Policies and Procedures Manual, Chapter 6.1.1 (Exhibit 9): An obligation for which the State is committed, but for which goods and services have not yet been received or and accepted. Expenditures

The State of Louisiana’s definition of “payments” aka “expenditures” can be found in the Louisiana Division of Administrations’ Control Agencies Policies and Procedures Manual, Chapter 7.1.1 (Exhibit 9): The liquidation of a liability and the final event in the purchasing process. Expenditure timeframe Louisiana obligates 90%-100% of funds by September 30th of the first year. Remaining funds are obligated or reobligated by September 30th of the second year not to exceed 10% Carryover. All remaining obligations are liquidated by December 31st following the second year. Any refunds received after September 30th of the second year are returned to HHS. Administrative costs The term administrative costs means costs necessary for the proper administration and management oversight of the Louisiana 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. All Federal funds used to administer LIHEAP activities (except for the costs associated with client education – Assurance 16) count against the 10% State limit and are considered an administrative cost.

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. A Request for Proposals is issued every 3-5 years, and it is issued by LHC on behalf of the Louisiana Legislative Auditors Office.

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