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

10.1. How do you ensure good fiscal accounting and tracking of funds? North Carolina Division of Social Services operates under a county administered and state supervised system. Both State and County administrative costs of direct case work are charged directly to the appropriate program and supervisory and overhead cost are allocated in accordance with the cost allocation plan approved by the North Carolina Department of Health and Human Services. NC DHHS fiscal/budget Division tracks in house and subgrantees and administrative cost. Indirect cost are handled through cognizant agencies prior to the final direct cost rate being developed. Expenditures on all components of the LIHEAP plan are recorded in the North Carolina Division of Social Services accounting records by fund, cost center, and line item. Documentation of State office expendtiures are maintained by the accounting office. Applications for heating, cooling, and crisis programs are taken by Department of Social Services personnel and additonal State and local government entitles or community based organizations. The applications are processed by the county and are retained by the county. Local State monitoring is conducted to track the LIHEAP funds used and the number of households that received assistance. 10.1a Provide your definitions of the following: Obligation An obligation is a commitment of funds for a specific use. The State obligates funds by entering into a signed agreement with local agencies. Expenditures are the payments of those funds. The State makes payments for local agency operations and salaries. The funds are available for obligation and expenditure for a period of two years after the award date. The two-year grant period authorizes the State to obligate and expend carryover funds in the second year. If any of the carryover funds are not obligated or expended by the end of the 2nd year in the grant period, they are returned to the federal government. All funds are reported in the SF-425, Federal Financial Report, at the end of the award’s obligation and expenditure period, including any vendor refunds that are re-obligated. Expenditures Expenditures are the payments of those funds. The State makes payments for local agency operations and salaries. Expenditure timeframe The funds are available for obligation and expenditure for a period of two years after the award date. The two-year grant period authorizes the State to obligate and expend carryover funds in the second year. If any of the carryover funds are not obligated or expended by the end of the 2nd year in the grant period, they are returned to the federal government. All funds are reported in the SF-425, Federal Financial Report, at the end of the award’s obligation and expenditure period, including any vendor refunds that are re-obligated. Administrative costs Administrative costs are those expenses incurred by grant recipients or sub-recipients in support of the day to day operations of their organization. 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 Single Auditor will make contact with our department and inform us of the pending review. We will provide the requested materials. Our department will supply the auditor with our case information and the auditor will select cases at random to review. 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: 10.6 Explain, or attach a copy of your local agency monitoring schedule and protocol. Site visits follow the same monitoring schedule as the SNAP program: Small counties have site visits every 3 years, medium counties every 2 years, and large counties every year. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: Site visits follow the same monitoring schedule as the SNAP program: Small counties have site visits every 3 years, medium counties every 2 years, and large counties every year. Desk Reviews: Desk reviews are conducted through monitoring of the Statewide Energy database and our automated system North Carolina Families Accessing services through technology (NC FAST) which is implemented in all 100 county subgrantees through the state. 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? 60 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.