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

10.1. How do you ensure good fiscal accounting and tracking of funds? An Excel spreadsheet is maintained to track obligations (earmarking) based on award restrictions and limits set by the submitted RI State Plan with expenditures broken down by categories, and drawdowns. This spreadsheet is reconciled to the state’s financial system monthly. 10.1a Provide your definitions of the following: Obligation When used in connection with a non-Federal entity's utilization of funds under a Federal award, obligations means orders placed for property and services, contracts and subawards made, and similar transactions during a given period that require payment by the non-Federal entity during the same or a future period. Expenditures Costs incurred during the fiscal year related to the acquisition of goods and services whether or not payment has been made. Expenditure timeframe Expenditures should be recognized upon the delivery of goods or services, including personal services, contractual services, capital outlay, interest on fund liabilities, materials and supplies, insurance, and rent. Administrative costs Administrative costs are expenses incurred by grant recipients or sub-recipients in support of the day-to-day operations of their organization. These overhead costs are the expenses that are not directly tied to a specific program purpose. 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 last completed, Single Audit was SFY23. LIHEAP was audited as a major program. The threshold for major programs varies year to year. For SFY23, LIHEAP was audited as a major program. The threshold for SFY23 was $21,087,467 and can change annually to cover 66% of federal expenses in accordance with federal uniform guidance. 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: Financial transactions are reviewed and tested. A policy and procedure checklist is filed. Program client files are reviewed for completeness. Agency managers meet with program staff to check in regarding processes and policy. 10.6 Explain, or attach a copy of your local agency monitoring schedule and protocol. We maintain an active and structured oversight process for all LIHEAP subrecipient agencies. Monthly Program Engagement: DHS host ten (10) monthly meetings each year with program managers of all LIHEAP subrecipient agencies. These meetings provide consistent engagement, featuring updates on policy and program operations, technical training, and open forums for agencies to share challenges, questions, and best practices. Annual Pre-Season Training: A comprehensive half-day training is held for all subrecipients prior to the start of the LIHEAP season. This training covers policy updates, intake procedures, software use, fiscal processes, and compliance expectations. Attendance is required and monitored. Daily Oversight and System Monitoring: DHS staff monitors the LIHEAP intake software and subrecipient portals daily to ensure timely data entry, accurate invoicing, and adherence to program guidelines. This ongoing, real-time oversight allows for immediate intervention if issues arise. Ongoing Technical Assistance: Customized support and individualized training are offered to agencies throughout the year based on performance data, staff turnover, software challenges, or specific requests. This ensures consistent service delivery and compliance. Formal Monitoring Visits: DHS conducts formal monitoring visits to two to three subrecipient agencies each year. These reviews include assessment of client files, fiscal documentation, intake procedures, and adherence to federal and state requirements. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: Site Visits: Two to three Community Action Agencies have a fiscal and program monitoring visit every year. Agencies are selected for monitoring on a rotating basis. If there are concerns about an agency or there were findings at the previous year’s monitoring, that agency will be monitored again the following year. Desk Reviews: A risk assessment is completed for each program. If subrecipients are considered low-risk, a desk review or site visit is performed every three years or more frequently if needed. Desk Reviews: A risk assessment is completed for each program. If a subrecipient is considered medium risk, a site visit or desk audit is mandatory during the first six months of the fiscal year. If a subrecipient is high risk, our agency conducts at least two site visits or desk reviews. 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? 1 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.