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

10.1. How do you ensure good fiscal accounting and tracking of funds? To ensure good fiscal account and tracking of funds, the Program utilizes the state accounting system to track Program expenditures and the Financial Status Report/Payment Request. The State account system (New jersey Comprehensive Financial Systems) is used to reflect balances, refunds (which are paid into the State account as soon as refunds are received) to ensure that the refunds are captured and credited to the appropriate account. 10.1a Provide your definitions of the following: Obligation The program defines obligation as - allocating or earmarking portions or the full award amount to specific program activities within the allowable timeframe and in accordance with the lawas and procedure of the New Jersey Treasury's Office of Management and Budget (OMB) that applies to the obligation and expenditure of State appropriated funds with the New Jersey Comprehensive Financial System (NJCFS). Expenditures The Program defines Expenditures as the liquidation or payments made on invoices, purchase orders, approved hoousehold applications benefits, etc, that have been approved or committed in accordance with proper obligation timeframe. Expenditure timeframe All federal funds received for a federal fiscal year must be obligated by September 30 of that fiscal year and per OMB standard protocol for the funds appropriations on NJCFS, all obligations must be liquidated within 12 months and by the following September 30. Administrative costs Administrative costs is that portion of the grant award amount (10%) which the program sets aside to administer the program within the fiscal year. Administrative costs for the Program includes funds set aside for program staff salaries and fringe, subgrantees' administrative costs, and any other costs associated with running the program successfully. 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 auditor is selected through a Request for Proposal (RFP) process conducted by the Department's Audit Unit. The RFP responses are reviewed and a selection is made based on the New Jersey Treasury's Office of Management and Budget guidelines. 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. The subgrantees (agencies) are monitored montly by the Field Monitors who are Program staff and during such monitoring visits, they review at least 25 randomly selected client files, checking for completeness of required documentation, noting files they have issues with and providing the LIHEAP Manager at the agency with the corrective action plans. When we receive compaints from clients about agencies and agency staff, they carry out spot checks to ensure that agency staff are doing what they are supposed to do. They provide technical assistance to agency staff to such agencies and also provide formal trainings when agency staff request for trainings. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: Local agencies are monitored monthly by the field monitors on program staff and randomly if we receive complaints about the agency. During visits, monitors randomly select about 25 clients files for review. The program also have external monitors on retainership through an RFP process that conduct monitoring audit of agencies who are selected triannually. Desk Reviews: During monitoring visits, especially during monitoring by the external monitor, the monitors reviews all aspects of the subgrantee's activities regarding LIHEAP, including fiscal soundness, program integrity and adherence to program guidelines. 10.8. How often is each local agency monitored? Please attach a monitoring schedule if one has been developed. Triannually 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.