FFY2010

1. FFY2010 EAP Annual Training Section 5.0 Monitoring Includes Monitoring process & FocusandQuality & Performance Control August 12 & 13, 2009 St. Cloud Minnesota Holiday Inn

2. ICF 5. Monitoring • This activity, performed by management and supervisors, sometimes with the assistance of internal auditors, on a continuous or periodic basis, exists to evaluate whether components of the internal control system are operating effectively

3. Introduction to Monitoring • New monitoring- Amanuel Asghedom • Initial Monitoring and Full Monitoring guides will be transformed around ICF

4. Monitoring • Major Control Activity for ICF • Compliance with EAP contract • Minnesota State Energy Assistance Plan • EAP policy and procedures Manual • Field Reps serve as chief liaison between SP and State • Primary contact

5. Desk Monitoring All state staff do monitoring • Regular queries in eHEAT • Weekly monitoring for your “money needs” • Applications status • Payments status

6. Office of Legislative Auditor • OLA monitors us yearly • Past four years very good audits. • Last two years, no findings. • Are requiring ICF

7. Monitoring Results for 2009 Did well • Increase in Outreach – new ways to get the word out • Increase in applications by 21% • Increase in Crisis by 72% • Increase in ERR by 43% • Increase in ROFW by 8% • Increase in participation in EBA: 25,553 • Complete:(11,878) In progress (7,608) Cancelled (6,067) • Entering Assurance 16 Activities 2008:83,782 2009:130,994 • Entering “time spent” on activities • eHEAT ERR and monthly FRS’s are matching (for most)

8. Monitoring and SP Objectives Do Better • Properly staffing EAP operations to assure competent program delivery • Increases in numbers of applications obviously means an increased workload = increased staff time • Staffing up at the front end • Continue to Enter Assurance 16 activities and time spent on those activities • Ensure EAP funding is used for EAP staffing & EAP activities only

9. Monitoring Focus for 2010 Increased focus on: • Internal Control Framework • Control Environment – • Staffing levels • Appropriate Admin & A16 charging • Control Activities • Managing and Processing Applications & Payments: • ERR and FSR documentation – both in eHEAT and in files

10. Monitoring Focus for 2010, cont. ICF will become apparent in the monitoring tools • Initial and Full Monitoring tools will reflect the transformation of ICF into our overall approach • We intend to share and implement changes as we move ahead • Everyone will be kept in the loop, intentions are to make positive changes

11. Introducing Amanuel to the Field • Field Reps will accompany Aman on his first Initial and Full monitoring visits. • Aman will want to make a few visits to nearby SP’s to observe applications processing and get general feel for operations at program start-up.

12. Visits Initial Monitoring Focus • Check Initial Setup • Local Plans • Initial training • Training includes all parts of the program • Request T & TA early • New policy changes • eHEAT questions -- Send questions in advance if possible • Contact – September to schedule • Commence in late September – end October/ early November.

13. Monitoring Visits Full monitoring Focus • File reviews • Random sample of 30 files for most SP’s • In-depth • Monitoring tools: Word documents will be emailed before the visits • EAP Coordinator - monitoring tool • Field Representatives will begin contacting SP’s in November/December to set up visit dates. • Full monitoring will begin in December and conclude in late April.

14. 2009-2010 Monitoring Assignments

15. Quality & Performance Controls

16. Quality & Performance Controls • To maintain affordable, continuous, and safe home energy for low-income Minnesota households through the high-level objectives (from ICF) of: • Effectiveness and efficiency of operations, • Reliability of financial reporting, and • Compliance with applicable laws & regulations • Intentions for Performance and Quality Control: • Assure health and safety of applicant households • Assure quality customer service including timely service • Assure equitable use of funds through fiscal and program controls • Assure consistent statewide program delivery

17. Quality & Performance Controls • By • Conducting routine checks on program activities • Gathering, assessing, analyzing and acting on findings • Improving processes to assure or advance performance

18. Quality & Performance Controls • Values • Timeliness as customer service and safety approach to program delivery • Good stewardship of tax payers resources • Good controls as a method of program integrity • Program integrity • Maintaining good public image • Not reinventing a process every time we need it • Program consistency as a means of fairness and accountability

19. Focus (ICF areas of Risk Mitigation, Control Activities and Monitoring • Timeliness, consistency and accuracy (Benefit accuracy, timeliness of processing, quality of data, anticipating program closeout, payment management, identifying relevant activities) • Continuous improvement (Performance measurement, identify areas of inconsistency, process improvement (routines & exceptions), discovery & dissimilation of promising practices • Program Resource Management (ROOM, ERR FSR)

20. Quality & Performance Controls • In-Progress non-EBA events Crisis Events or EB • DOB • In-Progress ERR events • WACT: Weekly Application Certification Targets • Rate Of Incidence • 30 Day Study • Aging Refunds • Aging Payments • Aging Application Study • Electric Usage Study • Payment to obligations study • Consumption Quality check • Program End check

21. Quality & Performance Controls What to do? • Formalize and institutionalize routines • DOC will initiate • Need timely response • The responses or important for due diligence Improvements • Think of things to do with your own local processes and risk • Share them with others • State will continue to improve • Balance between good controls and burden