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FFY2010FFY2010

August 12 & 13, 2009

St. Cloud MinnesotaHoliday Inn

EAP Annual EAP Annual TrainingTrainingSection 5.0 MonitoringSection 5.0 MonitoringIncludes Monitoring process & Focus and Quality & Performance Control

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5. Monitoring5. 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

ICFICF

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Introduction to MonitoringIntroduction to MonitoringNew monitoring- Amanuel Asghedom Initial Monitoring and Full Monitoring guides will be

transformed around ICF

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MonitoringMonitoringMajor Control Activity for ICFCompliance with EAP contractMinnesota State Energy Assistance PlanEAP policy and procedures Manual

• Field Reps serve as chief liaison between SP and State• Primary contact

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Desk MonitoringDesk MonitoringAll state staff do monitoringRegular queries in eHEAT Weekly monitoring for your “money needs”Applications statusPayments status

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Office of Legislative AuditorOffice of Legislative AuditorOLA monitors us yearlyPast four years very good audits. Last two years, no findings.Are requiring ICF

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Monitoring Results for 2009Monitoring Results for 2009Did 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)

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Monitoring and SP ObjectivesMonitoring and SP ObjectivesDo 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

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Monitoring Focus for 2010Monitoring Focus for 2010Increased 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

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Monitoring Focus for 2010, cont.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 approachWe intend to share and implement changes as we

move ahead Everyone will be kept in the loop, intentions are to

make positive changes

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Introducing Amanuel to the FieldIntroducing 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.

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VisitsVisitsInitial 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.

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Monitoring VisitsMonitoring VisitsFull 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.

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2009-2010 Monitoring 2009-2010 Monitoring AssignmentsAssignments

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Quality & Performance Quality & Performance ControlsControls

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Quality & Performance Quality & Performance ControlsControlsTo 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 householdsAssure quality customer service including timely serviceAssure equitable use of funds through fiscal and program controlsAssure consistent statewide program delivery

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Quality & Performance Quality & Performance ControlsControlsByConducting routine checks on program activitiesGathering, assessing, analyzing and acting on findings Improving processes to assure or advance

performance

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Quality & Performance Quality & Performance ControlsControlsValues 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

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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)

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Quality & Performance Quality & Performance ControlsControls 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

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Quality & Performance Quality & Performance ControlsControlsWhat 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