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

10.1. How do you ensure good fiscal accounting and tracking of funds? Development's grant management and database software is Salesforce, a web- based application. Local Energy Assistance Providers are required to complete an application in Salesforce detailing their management plan and budget. The online application is designed and built with various validations to ensure good fiscal accounting and tracking of LIHEAP funds in the following ways: Prevent budgeting greater than the maximum grant award. Only allow the maximum administration amount to be budgeted and track expenditures during the grant period. Track and prevent reporting total cash received smaller than the sum of monthly cash received, and track and prevent reporting expenditures greater than the grant award amount. Track final expenditures with grant balance. Reports are available from all of Development’s systems to produce statewide obligation/expenditures and number of households served reports to track expenditures on heating, crisis, and weatherization by program year. Local Energy Assistance Providers have the opportunity to submit budget revisions, as necessary by program needs, and/or to align with actual expenditures at the end of the grant period. All requested revisions go through a review and approval process by Development staff. 10.1a Provide your definitions of the following: Obligation 2 CFR 200.1 defines this as “when referencing a recipient's or subrecipient's use of funds under a Federal award, means orders placed for property and services, contracts and subawards made, and similar transactions that require payment.” Expenditures 2 CFR 200.1 defines this as “means charges made by a non-Federal entity to a project or program for which a Federal award was received.” Expenditure timeframe 2 CFR 200.1 defines period of performance as “means the total estimated time interval between the start of an initial Federal award and the planned end date, which may include one or more funded portions, or budget periods. Identification of the period of performance in the Federal award per § 200.211(b)(5) does not commit the awarding agency to fund the award beyond the currently approved budget period.” Administrative costs Funding disbursed or paid to a vendor supporting the general administration of a grant. These costs would include but are not limited to payroll/fringe for staff, consulting services, general maintenance/supplies, and 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. Annually, a criteria-based process is used to select recipients of grants for an audit. This approach allows us to assess and prioritize grant recipient data and information for a risk-based analysis. We rely on several data sources to select LIHEAP grant recipients, including federal/state/ local regulations, the grant recipient total award data from all funding sources, annual LIHEAP plans, award amounts, our prior audit history of the grant recipient, and the grant recipient’s annual audit report from independent sources. 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 Funds were obligated past the period of performance. Yes procedure/policy changes 2 reporting Annual Carryover and Reallotment Report was not mathematically accurate. Yes procedure/policy changes 3 reporting Grant contract date does not match PO creation date 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: Other program review mechanisms are in place. Describe: A structured monitoring system was implemented by Development for on-site visits by trained personnel for review of all computer- collected/compiled data and through identification of special problems. Development implemented a new centralized client application in Salesforce on July 1, 2025. This system is shared with local Energy Assistance Providers and allows for real-time reporting as well as access to client intake processes, income calculations, eligibility determination and client comments. There is also an audit log which tracks any updates to a client's record. Development created a monitoring Review Tool in the client entry Salesforce system. Both local Energy Assistance Providers and Development can access and review client applications that are in the system. These reviews can track where errors are being made, which team member may need additional assistance and allow the intake worker to view their mistakes and make corrections. There are reports designed to track how many reviews have been completed and if they are expected to reach the required number of reviews in each individual category (as outlined in the Energy Assistance Programs Guidelines). 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. It is Development’s practice to monitor local Energy Assistance Providers annually. The monitoring process may be conducted remotely. Development will send each local Energy Assistance Provider a copy of the monitoring tool, a list of items to submit through a secure website, along with submission instructions. Development will review all items and schedule an exit interview with the local Energy Assistance Providers. During the exit interview, the community development analyst will review the tool with staff and may provide a copy of the tool for review and comments, if necessary. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: It is development's practice to monitor every local Energy Assistance Provider annually. Desk Reviews: Available as needed using electronic system 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.