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

10.1. How do you ensure good fiscal accounting and tracking of funds? In order to ensure proper fiscal account and tracking for our LIHEAP funds, the NH Department of Energy staff work closely with the five CAA subgrantees to ensure accurate and regular tracking and reporting. NH DOE staff track grant awards and provide funding to the CAAs through a contract process. Once funds are authorized to spend, the CAAs submit reimbursements with fiscal reports and backup documentation weekly for program benefits paid or monthly for other expenditures. Multiple layers of review are required at the CAAs and NH DOE. A statewide software system is utilized by the NH DOE and each CAA to generate reports and reimbursement requests that are then reviewed by at least three NH DOE staff members before being approved. All program benefits paid are tracked in the state LIHEAP software while other expenditures are tracked in the CAA fiscal software. Vendor payments, including any refunds, are performed and tracked by the CAAs, with funds being returned after a contract expires requiring NH DOE approval before receipt. A risk assessment and fiscal monitoring at least once annually provides an in depth analysis of each CAA’s fiscal operations and ends with a written report. This fiscal monitoring includes a review of the agency’s internal controls, financial policies and procedures, cash receipts, compliance with the OMB Uniform Guidance, contract compliance, cost allocations, purchasing, and budgeting. A sampling of expenditures is verified from the general ledger to the reimbursement request. A separate annual program monitoring includes a testing of accuracy of benefits awarded, verification of vendor agreement compliance, and a second review of benefit expenditures. The five CAAs are required to submit their Single Audit reports annually as well as a copy of their fiscal policies and procedures manual. The NH DOE also has a Single Audit conducted annually. 10.1a Provide your definitions of the following: Obligation Funds that have been committed to be spent, typically through an executed contract Expenditures Funds spent on purchases for goods or services Expenditure timeframe When expenditures were actually spent Administrative costs Costs associated with running the program 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 State of New Hampshire Department of Administrative Services does a competitive Request for Proposals for independent audit service 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 financial NH DOE was found to need more internal controls related to cash advances for subrecipients Yes procedure/policy changes NH DOE was found to have insufficient procedures for including all required details on contracts and 2 monitoring Yes procedure/policy changes for testing subrecipient data 3 reporting NH DOE was found to have two reports not submitted by the deadline and two reports with data that could not be verified as accurate and complete. Yes staffing/management 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: 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: In addition to NH DOE performing the above monitoring procedures, The NH Office of Legislative Budget Assistant (LBA) does spot reviews of the CAA programs, including LIHEAP. 10.6 Explain, or attach a copy of your local agency monitoring schedule and protocol. The New Hampshire Department of Energy utilizes a risk assessment tool for each of our five local agencies. Most agencies fall into the middle on the assessment key which requires annual monitoring, though if an agency scored particularly low risk they could be monitored on a biannual basis. Two monitoring teams from the NH DOE provide two distinct monitoring occurrences: a program monitoring (site, applications, outreach, use of software, and other programmatic components) and a fiscal monitoring (reviewing expenditures, spend down, fiscal and agency policies, and other business components). At least one of these is an onsite visit and additional monitoring will be completed as deemed necessary. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: All five agencies have an annual site visit at one of their locations. The Risk Assessment score could dictate more than one annual visit. Desk Reviews: All five agencies have desk reviews throughout the program year for compliance with application and certification timelines. 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.