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

10.1. How do you ensure good fiscal accounting and tracking of funds? When THDA receives an award, we allocate funds to all subgrantees based on poverty data and notify the subgrantee of the award amount. 1. At that time, THDA coordinators request a budget from each subgrantee to be entered into SmartSimple. This budget is incorporated into the subgrantee contract agreement and contracts are sent from our legal department for execution. 2. Invoicing is processed through SmartSimple and does not allow a subgrantee to over spend the budget amount. The invoice is reviewed by at least one Coordinators and a Manager (or Director if a Manager is not available). 3. After the final review, the invoice is submitted to the Accounts Payable department for processing. 4. Accounts Payable notes receipt and processing on a shared agency document called the FACP. The FACP shows the progress of the payment through Edison. 5. 10.1a Provide your definitions of the following: Obligation Funds are committed to a subgrantee for LIHEAP specific activities and a contract has been fully executed. Expenditures Costs incurred by a subgrantee for LIHEAP specific activities. Expenditure timeframe The start and end dates for a designated contract period. Expenditure timeframe's can range from one (1) year to five (5) years, based on State of Tennessee grant authority. Administrative costs Allowable costs necessary for the proper administration of the LIHEAP program. Costs can be Direct and/or Indirect. 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 State Comptroller's office who performs the Single Audit for the State of Tennessee and all component units serves as the THDA external auditor. 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 reporting Management should continue to improve the reporting process by implementing additional controls, as necessary, to ensure timely and accurate reports. In Progress 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. See the attached "PY26 Monitoring Plan" and the "LIHEAP Monitoring Process Checklist." 10.7. Describe how you select local agencies for monitoring reviews. Attach a risk assessment if subrecipients are utilized. Site Visits: On-site visits are conducted for all LIHEAP subgrantees a minimum of once every three (3) years. Desk Reviews: Desktop monitoring reviews are conducted annually for all subgrantees. The desk review includes an in-depth assessment of the subrecipient's administration of the LIHEAP grant. Nineteen (19) subgrantees are required to adhere to the audit requirements outlined in 45 CFR 75 Subpart F. 10.8. How often is each local agency monitored? Please attach a monitoring schedule if one has been developed. Annually Triannually 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.