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

10.1. How do you ensure good fiscal accounting and tracking of funds? LIHEAP expenditures are accounted for in Nebraska's Enterprise-One (E1) accounting system. Eligibility and authorization services are entered and tracked through the N-FOCUS system. N-FOCUS interfaces with E1 to issue payments. Additionally, LIHEAP staff have monthly meetings with the financial services unit and with NDEE to discuss and track LIHEAP funds. E1 tracks LIHEAP funds (including funds awarded to DWEE) that are expended within the program year to ensure funds are not overspent. Refunds are tracked through On-Base using subsidiary codes. Subsidiary codes are also utilized for other components, such as: heating; cooling; crisis; deposit; and repair and replacement. This is also tracked via N-FOCUS. The DHHS Economic Assistance Program Accuracy Specialist Team tests a sample of LIHEAP payments daily to ensure LIHEAP funds are expended according to State and Federal Regulations. 10.1a Provide your definitions of the following: Obligation When used in connection with a non-Federal entity's utilization of funds under a Federal award, obligations mean orders placed for property and services, contracts and subawards made, and similar transactions during a given period that require payment by the non-Federal entity during the same or a future period. Obligations are legal commitments of funds for a specific use and dollar amount. Expenditures A disbursement recorded in a budget Program, for which the expending Agency was given Appropriation authority by the Legislature, drawing money from a fund in the state treasury. Expenditures are for such things as employee salaries and benefits, agency operating expenses for purchase of goods, services and contracts, travel expenses, capital equipment and hardware expenses, and government aid. Expenditure timeframe To assure that expenditures are proper and in accordance with the terms and conditions of the Federal award § 75.502 Basis for determining Federal awards expended. (a) Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Expenditures are the payments of funds. Administrative costs Accounts for the costs of actually operating state agencies including the expenditure Major Accounts of employee Salaries and Benefits, Operating Expenses, Travel Expenses, and Capital Outlay. Examples of some of the more detailed objects of expenditure included within operations are postage expense, publication and printing, utilities, office and facility rent, repair and maintenance of property and equipment, legal services, information technology consulting services, insurance expense, and purchase of furniture, machinery and computer equipment. 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. DHHS receives an audit engagement letter each year from the Nebraska Auditor of Public Accounts relating to an audit period and it is follo the Government Auditing Standards from the GAO Yellow Book. 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 other DHHS lacked adequate procedures to ensure LIHEAP applicants met eligibility requirements prior to issuing aid payments. In Progress procedure/policy changes 2 reporting DHHS lacked adequate procedures to ensure that required FFATA reports were submitted and Household Report information reported was complete and accurate. In Progress procedure/policy changes 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: DHHS is the grantee administering agency. DHHS strives to comply with federal laws and regulations. The DHHS Economic Assistance Program Accuracy Team completes reviews of a sample of payments to ensure compliance with Federal and State LIHEAP regulations, policies, and procedures. This team also completes reviews of LIHEAP eligibility determinations to ensure compliance with Federal and State regulations, policies, and procedures. 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: DHHS does not utilize a local administering agency or district office to distribute funds to eligible households. 10.6 Explain, or attach a copy of your local agency monitoring schedule and protocol. DHHS does not utilize a local administering agency or district office to distribute funds to eligible households. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: DWEE conducts reviews and provides oversite of the agencies that are contracted for weatherization services. Desk Reviews: DHHS does not utilize a local administering agency or district office to distribute funds to eligible households. 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? 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.