FFY 2013 EAP Annual Training August 15

FFY 2013 EAP Annual Training August 15 & 16, 2012 FFY 2013 EAP Annual Training Part 8: EAP/WAP Internal Controls Assessment; Local Plan; Grant Contract; FFY 13 Approach

EAP/WAP Internal Controls (IC) Evaluation August 15 & 16, 2012 FFY 2013 EAP Annual Training 2

EAP/WAP Internal Controls (IC) Evaluation Context § In light of the FFY 2012 OLA finding, EAP has come under scrutiny at various levels: § DOC Senior Management § The MN Office of the Legislative Auditor § The MN Legislative Audit Commission § EAP’s reputation and credibility are at risk August 15 & 16, 2012 FFY 2013 EAP Annual Training 3

EAP/WAP IC Evaluation The Evaluation § DOC management proposed to evaluate EAP and WAP auditing and internal controls methodology for improvements § We have contracted with a consultant to conduct an independent process/program evaluation to provide external validation and provide recommendations for improvements § The evaluation will help us to identify potential improvements and address both external and internal concerns August 15 & 16, 2012 FFY 2013 EAP Annual Training 4

EAP/WAP IC Evaluation The Consultant § We received 3 responses to our RFP § Baker Tilly Virchow Krause of Madison WI was selected by a DOC proposal evaluation panel August 15 & 16, 2012 FFY 2013 EAP Annual Training 5

EAP/WAP IC Evaluation The Workplan § Contract finalized July 16 § EAP and WAP are collecting and submitting information regarding: § § § Program practices and procedures Program accounting and financial reporting Organizational structure Service provider capacity and oversight Internal reporting and auditing August 15 & 16, 2012 FFY 2013 EAP Annual Training 6

EAP/WAP IC Evaluation The Workplan § Field visit the week of August 20 § DOC Management, EAP/WAP subject matter experts, and SP representatives will be interviewed § Evaluation will: § Document and assess EAP/WAP current internal controls methodology and processes § Review and assess state and national internal controls best practices August 15 & 16, 2012 FFY 2013 EAP Annual Training 7

EAP/WAP IC Evaluation The Report § Baker Tilly will present its final report by October 15, including: § An analysis of the programs’ auditing and internal controls strengths and weaknesses § A review and comparison of similar programs at the state and national levels § Program-specific, detailed, and actionable recommendations to implement improvements and to ensure the programs’ effectiveness and efficiency 8 August 15 & 16, 2012 FFY 2013 EAP Annual Training

EAP/WAP IC Evaluation The Results § Implementing the evaluation’s recommendations may result in program changes after October 1 § While this evaluation is a state initiative, push for enhanced internal controls is coming from the federal level as well § National Program Integrity Working Group § Additional program changes may result August 15 & 16, 2012 FFY 2013 EAP Annual Training 9

EAP/WAP Internal Controls (IC) Evaluation Q&A August 15 & 16, 2012 FFY 2013 EAP Annual Training 10

FFY 2013 EAP Local Plan August 15 & 16, 2012 FFY 2013 EAP Annual Training 11

FFY 2013 EAP Local Plan 5. Monitoring Local Plan question Does the Service Provider have separate evaluations of internal control, such as self-assessments or evaluations of internal procedures and performance? 2013 Updates § 5. 1 Performance Measures & Quality Assurance is improved § Weekly Application Certification Targets (WACT) August 15 & 16, 2012 FFY 2013 EAP Annual Training 12

FFY 2013 EAP Local Plan 5. Monitoring 5. 1 Performance Measures & Quality Assurance 5. 1. 1 Customer Satisfaction Feedback 5. 1. 2 Self Monitoring and Internal Controls 5. 2 Energy Vendor Management 5. 2. 1. SP plan to train vendors 5. 2. 2. SP plan to timely monitor vendors 5. 2. 3. SP plan to ensure accuracy of consumption & payment information August 15 & 16, 2012 FFY 2013 EAP Annual Training 13

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FFY 2013 EAP Local Plan Supplements § Agency Policy Documentation § Additional changes not included in the Local Plan § Acknowledgement and Certification § Agency Approval § DOC Approval August 15 & 16, 2012 FFY 2013 EAP Annual Training 17

August 15 & 16, 2012 FFY 2013 EAP Annual Training 18

FFY 2013 EAP Local Plan Q&A August 15 & 16, 2012 FFY 2013 EAP Annual Training 19

FFY 2013 EAP Grant Contract August 15 & 16, 2012 FFY 2013 EAP Annual Training 20

FFY 2013 EAP Grant Contract § Address three general areas §Grant administration §Fiscal management §Program performance requirements § FFY 13 update on record retention § Current: Under Minn. Stat. § 16 C. 05, Subd. 5, Grantees keep books/documents for a minimum of three years § FFY 13: Under Minn. Stat. § 16 C. 05, Subd. 5, 21 Grantees keep books/documents for a minimum August 15 & 16, 2012 FFY 2013 EAP Annual Training

FFY 2013 EAP Grant Contract Checklist üFFY 13 EAP Grant Contract üAffirmative Action Certificate üCertification Regarding Lobbying, Debarment … üFFY 2013 Local Plan üConflict of Interest Policy üSupplements üe. HEAT Admin Security Agreement üWACT August 15 & 16, 2012 FFY 2013 EAP Annual Training 22

FFY 2013 EAP Grant Contract Submission § Make sure signatories are available to sign the EAP contract § Return all contract copies with original signatures on time § Signature page of the contract with original signature of the Chair of the Board of Directors or the authorized signatory. § Signature authority from Board of Directors must accompany the grant contract only if person signing the grant contract is not the Chair of the Board of Directors. § The approved Service Provider Local Plan August 15 & 16, 2012 FFY 2013 EAP Annual Training 23

FFY 13 EAP Local Plan & Contract Grant Contract and Local Plan Timeline § July 2012 SPs received Local Plan instructions § DOC posted EAP Local Plan template on DOC website § August 24, 2012 Local Plan submissions due by 4: 00 pm. § Week of August 27, 2012 DOC reviews Local Plans § SPs may be asked for additional information during review § Early September 2012 DOC approves acceptable Local Plans 24 August 15 & 16, 2012 FFY 2013 EAP Annual Training

FFY 13 EAP Local Plan & Contract Local Plan Submission Requirements Include § Use Arial Narrow 12 point for answers § Rename the Word document to include your Service Provider name (Example: for Semcac: “Semcac FFY 2013 Local Plan”) § Include your Service Provider name and FFY 2013 Local Plan in the subject of the email (Example: for Semcac: “Semcac FFY 2013 Local Plan”) § Submit FFY 2013 Local Plan as an attachment by email to eap. mail@state. mn. us 25 August 15 & 16, 2012 FFY 2013 EAP Annual Training

FFY 2013 EAP Grant Contract Q&A August 15 & 16, 2012 FFY 2013 EAP Annual Training 26

FFY 13 Approach August 15 & 16, 2012 FFY 2013 EAP Annual Training 27

FFY 13 Approach FFY 2013 Service Approach § § § § $500 Primary Heat benefit average $1, 200 maximum Primary Heat benefit $500 maximum Crisis Serve non-heat electric emergency Encourage household payment through A 16 (case management) services Crisis & ERR budget limited to 15. 1% The State will no longer match ROFW donations with federal funds 5% EAP/Wx transfer Planned FFY 2013 Households Served § Process approximately 185, 000 applications August 15 & 16, 2012 § Serve approximately 165, 000 households FFY 2013 EAP Annual Training 28

FFY 13 Approach Q&A August 15 & 16, 2012 FFY 2013 EAP Annual Training 29