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

10.1. How do you ensure good fiscal accounting and tracking of funds? NYS OTDA utilizes fiscal and fund accounting procedures similar to those utilized by the agency and districts in the administration of other income tested programs. Districts are provided with allocations for district payments. All claims by the districts are monitored by NYS OTDA fiscal staff to ensure that allocation levels are not exceeded. The NYS OTDA WMS is used to monitor application activity and benefits authorized outside New York City (NYC). NYC utilizes its own computer system to authorize and pay HEAP benefits and NYC provides reports to NYS OTDA from its system for review. The use of LIHEAP funds sub-allocated for outreach services is governed by a Cooperative Agreement which OTDA enters into with the agency on an annual basis. OTDA conducts periodic reviews of the usage of LIHEAP funds. OTDA tracks sub-grantee awards and obligations and OTDA expenditures on a quarterly basis to ensure that funds are expended within the allowable contract/grant period. These expenditures are gathered from the NYS Statewide Financial System (SFS). The SFS system allows OTDA to run reports showing the sub-grantee activity by Federal grant year. OTDA also prepares a weekly funding and obligations report which breaks out spending by components such as heating, crisis, and cooling. Refund checks related to Federal grants are first deposited in the NYS Treasury and then checks are issued to the Federal government referencing the Federal grant and fiscal year. 10.1a Provide your definitions of the following: Obligation The commitment of federal funds for a specific purpose. Expenditures Cost of assistance paid to or on the behalf of eligible applicants of HEAP benefits services, and the administration of HEAP. Total expenditures include direct and indirect payments and vendor assistance furnished to eligible clients in accordance with State rules and regulations applicable to HEAP. Expenditure timeframe LIHEAP expenditures start with opening of the grant period with the receipt of verified Autopay vouchers from home energy suppliers and runs throughout the two-year grant period, with the final Program and Administrative expenditures being processed for eligible obligated benefits/ administrative costs and disbursed within 90 days after the end of the two-year grant period. Closeout and cleanup grant activities may occur after that but no later than five-years after the grant start date during the grant’s five-year liquidation timeframe Administrative costs Block grant regulations at 45 CFR 96.88(a) (a) Costs of planning and administration. Any expenditure for governmental functions normally associated with administration of a public assistance program must be included in determining administrative costs subject to the statutory limitation on administrative costs, regardless of whether the expenditure is incurred by the State, a subrecipient, a grantee, or a contractor of the State. 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 NYS Office of the State Comptroller (OSC) has the constitutional authority (Articles V and X) to conduct financial, compliance, and performance audits of all State and New York City agencies, including their associated facilities, institutions, boards, and program activities, as well as virtually all public benefit corporations (authorities). In addition to the Constitution, the legal basis for the Comptroller’s authority is contained in various statutes, including the State Finance Law and New York City’s General Municipal Law. The Comptroller also has the authority to audit the records of private firms and non-profit organizations that are awarded contracts or grants by, or receive funding from, these government entities. 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 monitoring OTDA must develop written policies and procedures to ensure that applicants of all LIHEAP funded components are informed about the benefits of both LIHEAP bill payment assistance and weatherization services. Yes procedure/policy changes 2 monitoring To be considered Categorical Eligible (CE) for LIHEAP benefits, the household must be in receipt of a federally funded benefit. OTDA must only include federally funded households when determining categorical income eligibility. Yes procedure/policy changes 3 financial OTDA must establish written policies and procedures for regular participation in the monitoring of subrecipient agencies that administer weatherization. Yes procedure/policy changes 4 financial OTDA must establish written policies and procedures for tracking local districts process for vendor refunds. Yes 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: 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. OTDA conducts an operational review that includes but is not limited to: an assessment of pending applications; client and vendor complaints; client program access; Regular benefit application processing, Emergency benefit telephone procedures; compliance with the 18-48 hour emergency resolution rules; and compliance with all other component’s procedures. Any contracts with alternate certifiers and other agencies performing HEAP related services are also reviewed. OTDA's review period/schedule runs January through April each year. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: 5 of the top 10 districts with the largest caseloads are monitored every other year, plus additional districts on a rotating basis. As part of a district monitoring, the HEAP Bureau staff conducts an operational review of the district's Home Energy Assistance Program. This includes an assessment of the overall adherence to processing timeframes for both districts and the alternate certifiers. The operational review also includes but is not limited to an assessment of pending applications; client and vendor complaints; client access to application forms; Regular benefit application processing, Emergency benefit telephone procedures; compliance with the 18-48 hour emergency resolution rules; and compliance with all component procedures. Any contracts with alternate certifiers and other agencies performing HEAP related services are also reviewed. Desk Reviews: Districts who must have a corrective action plan (CAP) must submit them to OTDA within 60 days of receipt of notification of findings to the Commissioner. OTDA will then monitor elements of the CAP during the next HEAP year. 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? 5 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.