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

10.1. How do you ensure good fiscal accounting and tracking of funds? Audit Process: The OKDHS AFS Fiscal Deputy Director will evaluate a random sample of ODOC draw requests to ensure it falls within the terms of the LIHEAP rules and regulations. ODOC must provide the documentation to support a draw request. OKDHS fiscal staff will identify factors that contributed to the risk assessment score. Depending on the risk assessment score, the sub-grantee will be immediately put either on reimbursement status or further monitoring for any corrective action. Adult and Family Service (AFS) comptroller, AFS LIHEAP program administrative staff, and OKDHS Finance staff work closely to ensure good fiscal accounting and tracking of LIHEAP funds. OKDHS Finance staff use a grant system called GrantsPLUS that tracks all federal grant awards and draws. Each grant award has a separate record by CFDA #, fiscal year, start date, obligation date, expenditure date, and program number. The program number identifies the award's purpose. Examples include, but not are not limited to, "1" for assistance, "2" for administration, "3" for weatherization, and "4" for reallotment. Supplemental awards also receive a program number. To ensure program expenditures are recorded to the benefitting grant, an Expenditure Operating Unit is assigned. Examples include 2710-Heating, 2718-ECAP , 2719- Cooling, and others, as necessary. Financial staff draws the expenditures by Operating Unit from the respective programs. Weatherization tracking also occurs in GrantsPlus. Finance staff have a copy of the Memorandum of Understanding with the Oklahoma Department of Commerce (ODOC). This document and the information in GrantsPlus allow Finance staff to ensure ODOC expends the grant with contractual and award performance period. AFS Finance staff ensure expenditures comply with program rules. LIHEAP encumbrances are monitored daily during the open enrollment application periods until all applications have been processed to ensure that OKDHS does not exceed the allotted amounts. LIHEAP encumbrances are used in conjunction with other internal reports to project for exhaustion of funds and closing the enrollment period. 10.1a Provide your definitions of the following: Obligation Funds received from the federal agency that OKDHS is committed to spend according to the timeline and terms specified in the Notice of Award (NoA). Expenditures Payments made on invoices, approved household applications, liquidation of funds, that were approved or for which a commitment was made within the obligation period. Expenditure timeframe Expenditure Time Frame is the period to expend and liquidate obligated funds. The State allows up to 30 months for an obligation to be liquidated. Unspent funds can be carried over and budgeted for expenditure in the next budget period. (State Fiscal Year is from July 1, 20xx thru June 30, 20xx.) Administrative costs All costs incurred by the Department except direct payments to program recipients, payments for services purchased directly for program recipients and allocated and indirect costs for administering the program. This includes the salaries, fringe, rent, utilities, travel, etc. associated with financial and administrative management of 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 OKDHS AFS Fiscal Deputy Director will evaluate a random sample of ODOC draw requests to ensure it falls within the terms of the LIHEAP rules and regulations. OKDHS fiscal staff will identify factors that contributed to the risk assessment score. Depending on the risk assessment score, the sub-grantee will be either immediately put on reimbursement status or further monitoring for any corrective action. 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: The LIHEAP centralized processing unit receives a training session prior to each open enrollment period. There are internal mechanisms in place to screen and review applications prior to the eligibility authorization. LIHEAP administrative staff routinely conduct evaluations to ensure policy and procedure are being followed. An assigned LIHEAP program staff ensures understanding of policy 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: In addition to including the A-133 audit completed by the Oklahoma Auditor and Inspector's Office, LIHEAP administrative staff randomly pull and review 5-10% of the LIHEAP processed applications. 10.6 Explain, or attach a copy of your local agency monitoring schedule and protocol. LIHEAP administrative staff monitoring are included in the audit completed by State Auditor and Inspector’s Office. Oklahoma LIHEAP administrative staff conduct site visits to our centralized unit weekly. LIHEAP program such as winter heating, energy crisis, and summer cooling LIHEAP administrative staff randomly audits cases each week during open enrollment periods. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: LIHEAP administrative staff and State Auditor and Inspector’s may choose to visit OKDHS offices or our centralized processing unit to review, observe, and audit during the LIHEAP open enrollment period. Desk Reviews: LIHEAP administrative staff may choose to complete a desk review at their discretion. LIHEAP administrative staff pull cases randomly for review to ensure centralized agents are following policy and procedures. If an error is found, it is addressed with the Manager to ensure staff receive adequate coaching. 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.