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

10.1. How do you ensure good fiscal accounting and tracking of funds? The State of South Dakota has established necessary fiscal control and accounting procedures to properly disburse and account for federal funds administered by the State of South Dakota under this title. 10.1a Provide your definitions of the following: Obligation Obligation is a commitment of LIHEAP funds for a specific purpose. Examples of obligations include: -Signed contracts or subgrants with vendors or local agencies -Approved LIHEAP applications -Purchase orders or requisitions -Invoices submitted for payment Expenditures Expenditure is when obligated funds are spent and posted to the state accounting system. Expenses typically include: -Payments for heating assistance -Costs for Furnace repair or replacement services -Administrative costs (within allowable limits) Expenditure timeframe LIHEAP funds must be expended within the federal timelines. Generally, expenditures must occur within two years of the award. Administrative costs Allowable direct and indirect costs associated with administering the funds 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. 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. Each agency is monitored annually by the Office of Provider Reimbursements and Office of Energy Assistance and the Office of Energy Assistance. 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: The Office of Provider Reimbursements monitors each of the four agencies FRR files annually. Desk Reviews: The Office of Provider Reimbursements monitors each of the four agencies FRR files annually. Program staff will monitor the FRR program and pull a random sample of no less than 10% of homes that received Furnace Repair/Replacement and review all documentation associated with the assistance to verify completion. 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.