1. August 15 & 16, 2012 FFY2013 EAP Annual Training FFY2013 EAP Annual Training Part 8: EAP/WAP Internal Controls Assessment; Local Plan; Grant Contract; FFY13 Approach

2. August 15 & 16, 2012 FFY2013 EAP Annual Training 2 EAP/WAP Internal Controls (IC) Evaluation

3. August 15 & 16, 2012 FFY2013 EAP Annual Training 3 Context  In light of the FFY2012 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 EAP/WAP Internal Controls (IC) Evaluation

4. August 15 & 16, 2012 FFY2013 EAP Annual Training 4 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 EAP/WAP IC Evaluation

5. August 15 & 16, 2012 FFY2013 EAP Annual Training 5 The Consultant  We received 3 responses to our RFP  Baker Tilly Virchow Krause of Madison WI was selected by a DOC proposal evaluation panel EAP/WAP IC Evaluation

6. August 15 & 16, 2012 FFY2013 EAP Annual Training 6 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 EAP/WAP IC Evaluation

7. August 15 & 16, 2012 FFY2013 EAP Annual Training 7 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 EAP/WAP IC Evaluation

8. August 15 & 16, 2012 FFY2013 EAP Annual Training 8 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 EAP/WAP IC Evaluation

9. August 15 & 16, 2012 FFY2013 EAP Annual Training 9 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 EAP/WAP IC Evaluation

10. August 15 & 16, 2012 FFY2013 EAP Annual Training 10 Q&A EAP/WAP Internal Controls (IC) Evaluation

11. August 15 & 16, 2012 FFY2013 EAP Annual Training 11 FFY2013 EAP Local Plan

12. August 15 & 16, 2012 FFY2013 EAP Annual Training 12 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) FFY2013 EAP Local Plan

13. August 15 & 16, 2012 FFY2013 EAP Annual Training 13 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 FFY2013 EAP Local Plan

14. August 15 & 16, 2012 FFY2013 EAP Annual Training 14

15. August 15 & 16, 2012 FFY2013 EAP Annual Training 15

16. August 15 & 16, 2012 FFY2013 EAP Annual Training 16

17. August 15 & 16, 2012 FFY2013 EAP Annual Training 17 Local Plan Supplements  Agency Policy Documentation  Additional changes not included in the Local Plan  Acknowledgement and Certification  Agency Approval  DOC Approval FFY2013 EAP Local Plan

18. August 15 & 16, 2012 FFY2013 EAP Annual Training 18

19. August 15 & 16, 2012 FFY2013 EAP Annual Training 19 Q&A FFY2013 EAP Local Plan

20. August 15 & 16, 2012 FFY2013 EAP Annual Training 20 FFY2013 EAP Grant Contract

21. August 15 & 16, 2012 FFY2013 EAP Annual Training 21 EAP Grant Contract  Address three general areas  Grant administration  Fiscal management  Program performance requirements  FFY13 update on record retention  Current: Under Minn. Stat. § 16C.05, Subd.5, Grantees keep books/documents for a minimum of three years  FFY13: Under Minn. Stat. § 16C.05, Subd.5, Grantees keep books/documents for a minimum of six years FFY2013 EAP Grant Contract

22. August 15 & 16, 2012 FFY2013 EAP Annual Training 22 Grant Contract Checklist FFY13 EAP Grant Contract Affirmative Action Certificate Certification Regarding Lobbying, Debarment … FFY2013 Local Plan Conflict of Interest Policy Supplements eHEAT Admin Security Agreement WACT FFY2013 EAP Grant Contract

23. August 15 & 16, 2012 FFY2013 EAP Annual Training 23 Grant Contract Submission  Make sure signatories are available to sign the EAP contract  Return all contract copies with original signatures o n 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  Signature of Certifications for Affirmative Action & Lobbying FFY2013 EAP Grant Contract

24. August 15 & 16, 2012 FFY2013 EAP Annual Training 24 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  By October 1, 2012 DOC executes and distributes contract documents with Local Plan FFY13 EAP Local Plan & Contract

25. August 15 & 16, 2012 FFY2013 EAP Annual Training 25 Local Plan Submission Requirements Include  Use Arial Narrow 12 point font for answers  Rename the Word document to include your Service Provider name (Example: for Semcac: “Semcac FFY2013 Local Plan”)  Include your Service Provider name and FFY2013 Local Plan in the subject of the email (Example: for Semcac: “Semcac FFY2013 Local Plan”)  Submit FFY2013 Local Plan as an attachment by email to eap.mail@state.mn.us eap.mail@state.mn.us  Service Provider receives automated receipt of the Local Plan FFY13 EAP Local Plan & Contract

26. August 15 & 16, 2012 FFY2013 EAP Annual Training 26 Q&A FFY2013 EAP Grant Contract

27. August 15 & 16, 2012 FFY2013 EAP Annual Training 27 FFY13 Approach

28. August 15 & 16, 2012 FFY2013 EAP Annual Training 28 FFY2013 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 A16 (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 FFY2013 Households Served  Process approximately 185,000 applications  Serve approximately 165,000 households FFY13 Approach

29. August 15 & 16, 2012 FFY2013 EAP Annual Training 29 Q&A FFY13 Approach