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

10.1. How do you ensure good fiscal accounting and tracking of funds? All LIHEAP administering agencies are, by contract, required to conduct the program in accordance with the Office of Management and Bu Guidance. Agencies are required to submit final expense reports and provide appropriate reconciliation. Each administrating agency is monitored on-site by the department at least annually. The Department has a fiscal tracking sheet in place that requires the local administering agency to report and track all (federal and non-feder used, regardless of fund type. The Montana automated LIHEAP system and fiscal accounting systems produce the data which (a) permit preparation of reports required by authorizing the block grant and (b) permit the tracking of funds to a level of expenditure adequate to establish that such funds have not been used in the restrictions and prohibitions of the statute authorizing the block grant. These reports are entered into the HHS On-Line Data Collection System (OLDC) or Basecamp within the required timeframes. Th reviewed and approved by Apprise and OCS staff. In Montana, the LIHEAP benefits are calculated by the Chimes Database System and are issued via the AWACS (Agency Wide Accounting AWACS is a collection of functionality at the core of many DPHHS application systems. AWACS provides a common financial application interfac services for generating payment and journal transaction in the Statewide Accounting, Budgeting, & Human Resource System (SABHRS). The possibility of error is diminished and program integrity is ensured because the benefit determination and payment processing is automat control and fund accounting procedures are established through Montana's automated LIHEAP benefits system to assure the proper disbursal of and for Federal funds paid. New sub-grantee LIHEAP staff attend both Policy/Procedure training and Chimes/LIHEAP system training at the beginning of the heating s Experienced workers attend LIHEAP refresher training. Sub-grantee agency workers are responsible for the entry of LIHEAP case data into Chimes. Approximately, 80% of the cases are applicant served the previous year. Each heating season pre-printed applications are sent to potential applicants who are requested to change any information longer accurate. Applicants are required to include information for each household member, provide verification of all household income and a copy recent fuel bill. Each household member 16 years of age or older must sign the application attesting to the completeness of the information and prov authorization for the Department to obtain personal information needed to verify information provided on the application. Sub-grantee agency workers create a new case (for the heating season) in Chimes which contains some pre-populated data from the previous required by Chimes for benefit calculation must be entered each year to ensure the data is reviewed for accuracy. Sub-grantee agency workers are responsible for the entry of LIHEAP case data into Chimes, such as income, number of bedrooms, housing demographics (elderly, disabled, children), fuel type, fuel vendor, and fuel vendor account number. Various system edits work to ensure case data is correctly. Sub-grantee agency workers are required to verify income and resource information on all cases except those meeting Categorically Eligibili requirements. The State of Montana, Department of Labor, Wage and Unemployment system is accessed to verify income. Sub-grantee agencies also verify fuel vendor information including account numbers. For the larger vendors (comprising approximately 70% Montana fuel vendors) verifying active fuel account numbers is automated and the LIHEAP benefit cannot be issued until account verification has b For situations in which required data is missing the worker issues a notice of missing information to the client with a due date for response. T information must be provided and verified before the case is approved. Automated Social Security Number verifications are completed for all household members through Chimes. Qualified alien procedures are built into Chimes allowing the household to receive a reduced benefit if some members are unqualified aliens The Chimes system contains tables which are used to calculate the benefit amounts, based on the base benefit amount for the household type bedrooms and fuel type. The automated calculation considers the household income level and percentage of poverty along with the Heating Degree multiplier applicable to the agency service area in which the client resides. Chimes system security roles do not allow users to access the tables used to perform benefit calculations. Payments are issued directly to fuel vendors each week. Fuel vendors enter into a contract with DPHHS specifying how the LIHEAP payme applied to the recipients account. (Fuel vendor contract is attached.) Payments scheduled to be released are visually checked to ensure there are not issuances per household, or the wrong payment type has been indicated, etc. Chimes system utilizes LIHEAP fund accounting speed chart numbers to verify the payment is allocated to the appropriate fund (e.g. Regula and Early Fuel). The Chimes system transfers the payment request to the Statewide Accounting system which verifies the funds available and verifies the fue current (non-expired W-9) on file with the Department prior to issuing the payment. If funds (spending authority) are not available the payments wi a review is conducted and funds are made available by DPHHS fiscal personnel. If the W-9 has expired the system will not allow a payment to be is vendor. In situations where there is not a fuel vendor (e.g. wood) or in emergency situations the sub-grantee agency may issue a payment from the C Revolving Fund (CRF). CRF payments are recorded on the Chimes LIHEAP case. CDS does not allow sub-grantee staff to enter CRF payments wh Chimes LIHEAP calculated benefit amount. CRF reconciliations are completed for each agency semi-annually. 10.1a Provide your definitions of the following: Obligation Montana DPHHS-IHSB Definition of Obligation To determine the reported carryover, current expenditures as of 9/30 are added to expected obligations as defined below: 1. Contracts extending into the second year that are entered into for a specific purpose-ie LIEAP admin, LIEAP Wx, LIEAP Client Ed, LIEAP Outreach, Conservation Corp, IT contracts, T & TA contracts. Unpaid contract amounts are obligated. 1. 2. Early Propane-expected to be paid in July-September of the second year. Obligation amount is based on historical data. 2. 3. Payroll expected for the second year. Obligation amount is based on current salaries. 3. 4. Administrative Costs expected for the second year- the Obligation is based on historical data 4. When figuring the obligation reports, obligations are added to current expenditures to meet the 10% carryover Expenditures 10.1a Expenditures_MOM-SFSD-POL-SAB 318-Miscellaneous Expenditure Topics” Document Expenditure timeframe “10.1a Expenditures_MOM-SFSD-POL-SAB 318-Miscellaneous Expenditure Topics” Document Administrative costs 10.1a Administrative Costs_MOM-SFSD-POL-SAB 391- Indirect Cost Recovery” & “10.1a Administrative Costs_HHS-Agency Wide Fiscal Management-POL-Cost Allocation Restrictions” documents 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. Montana's federal Single Audit is a biennial audit that completes the reporting requirements of the Single Audit Act Amendments of 1996, and the Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards. Audits are available to view at https://leg.mt.gov/publications/audit/year-search-report/ 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: The department is audited through the Legislative Auditor's office on a two (2) year cycle. Administering agencies are required, by contract, to conduct a financial audit under the single audit act. 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: Each administrating agency is monitored on-site by the department annually. Random case file reviews are conducted to determine if client eligibility was determined correctly. Agencies are required to perform necessary corrective actions. 10.6 Explain, or attach a copy of your local agency monitoring schedule and protocol. LIHEAP files are reviewed annaully. These files are requested in advance of the on-site visit to enable the monitor sufficient time to review. Files are specifically selected to include cases from each fuel type; each housing type; each county served by the agency; a variety of income levels and a mixture of categorically eligible and non-categorically eligible cases. Agencies are monitored annually and LIHEAP files are chosen for desk review. These files are requested in advance of the on-site visit to enable the monitor sufficient time to review. Files are specifically selected to include cases from each fuel type; each housing type; each county served by the agency; a variety of income levels and a mixture of categorically eligible and non-categorically eligible cases.CRF files from both the heating season and non-heating season months are also chosen for review. Agencies must have a plan in place to address CRF emergencies outside the heating season timeframe.Documentation collected and examined within the course of the review will include, but are not limited to the following:• Client Education (Assurance 16)• Client Outreach• Two Fuel Vendor Site Visits• Timesheets (2)Notes taken during the review of these files will be discussed with the agency during the visit. After discussion, a review will be given of the LIHEAP program. Weatherization files are reviewed . Information and reports from CDS and Energy Audit are reviewed. These reports are compared with the previous year and the statewide percentages. This information may identify additional areas of monitoring focus. These reports include but are not limited to: • percent of dwellings weatherized with the various ECMs addressed • agency Average Cost Per completion and compare to statewide Average cost per completion. Documentation collected and examined within the course of the review will include, but are not limited to the following: • Procurement • Debarment • Timesheets (2) • Equipment Inventory over $10,000 • Stock Inventory • Vehicles • Office/Storage Space • Inventory Expenditures • Weatherization Expenditures • Certifications • Training • Policies and Procedures Manuals • Insurance General contract requirements state that 5% of the agency’s completions must have home inspections conducted, and 10% of the agency’s completions must have a file review. Inspections Each dwelling will be thoroughly inspected to ensure that all invoiced work was completed in a workman-like manner, all SIR driven measures were performed and that ASHRAE and health and safety items were appropriately addressed. This will include the following health and safety measures: ASHRAE fans, broken glass replacement, range hoods, bathroom fans, dryer vents, gable vents, roof vents, pressure relief valves, and lead safe measures. Clients will be asked: • about crew and/or contractor professionalism, education received and if they have experienced reduced energy related costs • if the agency informed the NWE clients that NWE paid a portion of the weatherization costs in their homes • if an insulation certificate is posted. All water heaters will receive a visual inspection to confirm venting, temperature and pressure relief valves and drain pipe. It will be verified that earthquake straps are installed on all mobile home water heaters. For single family and multi-family dwellings, it will be verified that the smoke detectors and CO detectors are installed for the client, as opposed to given to the client for the client to install themselves. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: Each administrating agency is monitored on-site by the department at least annually. Random LIHEAP case file reviews are conducted to determine if client eligibility was determined correctly. Agencies are required to perform necessary corrective actions. Additional field reviews may be conducted to address potential problems and ensure compliance with required corrective actions. Monitoring will address subgrantee program administration and production. The review of program administration will cover financial management, personnel management, property management, inventory control, record keeping, client file documentation, labor and materials procurement, reporting, and compliance documentation. A review of program production will cover energy audit procedures, quality of workmanship, program support costs, production goals, compliance with State and Federal material standards, monitoring of prices paid for labor and materials by subgrantees, and monitoring of the accuracy of subgrantee pre- and post-work inspections. Desk Reviews: Monthly desk monitoring is an important component of quality control in Montana. Desk monitoring will include routine analysis of the LIHEAP monitoring report, energy audits, energy audit/fuel switch report, and quarterly energy conservation program status reports. Information contained in these reports will enable the grantee to ensure benefits are issued correctly and homes are weatherized as deemed necessary. Weekly LIHEAP case file reviews are conducted to identify outliers. LIHEAP case file reviews include a routine analysis of LIHEAP cases. These reviews allow the grantee to ensure benefits are issued correctly. 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.