Iowa Program Monitoring (Administrative, Fiscal, and Housing) DOE Regional Training Middleton, WI May 10 – 12, 2006

1. Iowa Bureau of Weatherization Iowa Program Monitoring (Administrative, Fiscal, and Housing) DOE Regional Training Middleton, WI May 10 – 12, 2006

2. Organizational Overview

3. Statistical Overview StatisticsPY 2005 DOE Funding $5,011,292 Other Federal Funding $5,184,900 Other Funding $4,834,187 Total Funding $15,030,397 Units Completed 2,139 Total Clients Served 6,349

4. Local Agency Overview Total Number of: Providers 18 CAA’s 17 Local Governments* 1 Crew-Based 4 Contractor-Based 11 Combination Crew/Contractor-Based 3 Providers Contracting Furnace Work 17 * Agency is both a local government and a CAA.

5. Types of Monitoring Activity • Three types of monitoring activity conducted (not usually done simultaneously) • Program (Non-Fiscal, Non-Inspection) • Reviews contracts with contractors and vendors, insurance coverage, file documentation, etc. • Conducted by a member of the Weatherization Bureau • Program monitor only monitors local agencies’ weatherization program during the monitoring visit • Conducted on-site as well as desk review

6. Types of Monitoring Activity • Fiscal • Done by two members of the department’s fiscal division • Monitors review accounting procedures for Weatherization, LiHEAP, CSBG, and sometimes FaDSS during their monitoring visits • Conducted on-site as well as desk review • House Inspections • Conducted by a member of the Weatherization Bureau • Percentage of each agencies’ homes monitored each year

7. Iowa Bureau of Weatherization Program Monitoring

8. Program Monitoring Pre-Visit Program Monitor will contact Weatherization Coordinator and Executive Director to determine date for monitoring visit Confirmation letter sent 2 weeks prior to visit Monitor obtains year-to-date local agency expenditures Monitor compares year-to-date expenditures to historical data Review SLICE (the previous years’ evaluation report) and make needed copies

9. Pre-Visit Monitor obtains list of trainings attended by local agency staff (there are trainings each evaluator/inspector, crewmembers, and contractors are required to attend) Review of local agency purchase requests since last monitoring visit (review paperwork while at the agency) Note specific files and/or issues to review during visit Review agency’s previous years’ monitoring report (while at agency review items that were findings and see if improvements have been made)

10. Pre-Visit • Request to have various information sent from the local agency to the DCAA office prior to the visit (these items can be reviewed ahead of time) • Sample copy of contracts with contractors • Sample copy of invitations to bid • Staff names, titles and length of time with agency/weatherization program • Number of homes weatherized by county • Enter data into monitoring tool

11. Monitoring Tool • Computerized program in Access • Enables the program monitor to: • Access information from other agencies for comparison purposes • Quickly assess whether a consistent issue is present (i.e., overspending, an excessive amount of appliances being replaced, etc.) • Calculate averages • Determine whether a house was completed in a timely fashion • Virtually unlimited amount of data at the monitor’s fingertips • Access agency information from previous years for comparison purposes • Produces reports to be utilized for the written report that is sent to the agency (report usually 9-12 pages in length)

12. Monitoring Tool

13. Monitoring Tool

14. Monitoring Tool

15. Monitoring Tool

16. Monitoring Tool

17. Monitoring Tool

18. Monitoring Tool

19. Monitoring Tool

20. On-Site • Items Reviewed During the On-Site Monitoring • Interview with Contractor • Contractor files • General Liability insurance • Auto insurance • Worker’s Compensation insurance or waiver • Current contract with agency • Current contractor’s registration with the state of Iowa • Lead safe work practices training • House/Client files, including incomplete homes • Required contents in file

21. On-Site Crews (if applicable) Check for attendance of required trainings Contracts with contractors Recommended and required statements Invitations to bid and advertisements Recommended and required statements Appliance vendor agreements List of staff and length of time with agency/weatherization

22. On-Site • Trainings staff have taken • Location of weatherization manuals and MSD sheets (if applicable) • Priority List • Ensure agency is following the priority list as required • Replacement Ratings Report (for refrigeration appliance replacement) • NEAT Audit (review of each computer on which NEAT is installed) File Retention • Provide guidance as needed • Exit conference with agency

23. Desk Review • Desk Review • Review on-site findings with DCAA staff • Make recommendations for changes • Indicate practices the agency is doing well • Cite findings • Response due from agency within 45 days • Once response is received, a letter is sent to the agency accepting the responses and closing the monitoring

24. Iowa Bureau of Weatherization Fiscal Monitoring

25. Fiscal Monitoring Process • Pre-Visit Preparation • Scheduling • Visit Preparation Document • On-Site Monitoring • Financial/Contractual Compliance Testing • Staff Interactions • Post-Visit Wrap-up • Review of Monitoring Results • Follow-up to Grantee • Other Fiscal Monitoring • Independent Auditor Opinions/Review

26. Pre-Visit Questionnaire Basic Procedures • Cost Allocation • Indirect Cost • Inventory Control • Account Codes • Significant Changes • Payroll Program Specific • Pool Accounts • Administrative Expense • Support Expense • Contractor/Crew Based • Expense Charging

27. Visit Preparation Document • Provides an outline of the monitoring visit scope. • Requests materials to be ready when arrive on site. • General Ledger Reports • Trial Balance Reports • Payroll Journals • Timesheets • Bank Statements • Home Weatherization Files • Certificates of Insurance • Other Manuals and Documents

28. Fiscal Testing Procedures • Payroll Review • Timesheets are completed appropriately • Timesheets agree with amount charged to grant • Accounting Transaction Review • Adherence to Generally Accepted Accounting Procedures • Compliance with Grant Requirements • Follows agency written procedures • Internal Control Procedures • Segregation of Duties • Adequate controls

29. Fiscal Testing Procedures • Indirect Cost Application • Follows approved indirect cost rate • Cost Allocation Plan Application • Fair and equitable distribution of costs • Adequately documented • Applied correctly to transactions • Application of Fiscal Policy & Procedures • Follows procedures as written

30. Contractual Compliance • Insurance Requirement Verification • General Comprehensive Liability • Vehicle (General, Uninsured) • Pollution Occurrence Insurance • Administrative/Support Funds Usage • Are expenditures allowable? • Picture of how agency uses funds • Completed Home Expenditure Verification • Fiscal documentation of expenses • Compliance with expenditure limits • Tests accuracy and completeness of reported data

31. Fiscal Oversight • Officer/Staff Salary Review • Compensation previous fiscal year • Salary approval documentation • Were any bonuses/extra pay given? • Sample current year payroll • Fiscal Policy/Procedure Manual Review • Are they written? • Are they up-to-date? • Review of Personnel Manual • Employee Moral/Productivity Policy • Time Reporting Procedures

32. Post-Visit Wrap-up • Review of Monitoring Results • Meet with program staff • Questioned Costs • Questioned Activities • Procedural Clarifications • Follow-up Report to Grantee • Executive Summary of Monitoring Activites • Reports Findings • Explanation of finding • Conditions for resolution with Timetable • Reports Recommendations • Findings are tracked through resolution.

33. Other Fiscal Monitoring • State Auditor’s Pre-Award Survey • Expresses opinion that agency has designed an accounting system adequate to effect compliance with terms and conditions of the grant. • Review of Independent Audit Report • Verification that program closeout reports match Independent Auditors results. • Review Schedule of Findings and Questioned Costs • Monitored on next visit. • Send letter to grantee • Determination based on review of audit • Attempt to resolve any findings or questioned cost

34. Iowa Bureau of Weatherization House Inspections

35. Pre-Visit • Data sent from agencies to state weatherization specialist • All materials and labor costs from each home that was completed at all 18 agencies • Printout of agency completions • Determine homes to be inspected • Minimum of 10% of agency completions inspected each program year • Schedule inspections the day of or maximum 2 days in advance

36. At the House • Introduction • Discuss weatherization experience with client • Ensure thermal/air barrier of the home is aligned, sealed, and insulated • Check for any health and safety issues • Use infrared camera to check walls • Ensure the work reported was actually done • Materials must meet Iowa standards, DOE standards, and local and national codes

37. At the House • Some problems encountered while inspecting heating and water heater appliances • Rigid pipe through the cabinet • Fused switch within 24” of furnace • Furnace is to be on blocks or pads at least 1-1/2” thick • Filter rack cover is required; on many of the new furnaces, bottoms need to be sealed • Sealed combustion units need grommets to fill in around pipes, etc. and to seal holes in cabinet • Discuss findings/observations with client

38. Wrap-Up • Either meet with or call the coordinator with results of monitoring visit • Results sent to coordinator • Number of homes inspected/re-inspected • Number of homes needing corrective work • Corrections and response from agency are to be completed within 45 days • Comments/suggestions regarding what needs to be changed or improved • Let them know when they are doing a good job • Completed inspection form • Completed field inspection report

39. For More Information Program Monitoring • Christine Taylor ~ Christine.Taylor@iowa.gov Fiscal Monitoring • Jim Mezera ~ Jim.Mezera@iowa.gov • Mike Adams ~ Mike.Adams@iowa.gov House Inspections • Mike Speed ~ Mike.Speed@iowa.gov