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

2. 2 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 ICF

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

4. 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. 5 Desk Monitoring All state staff do monitoring  Regular queries in eHEAT  Weekly monitoring for your “money needs”  Applications status  Payments status

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

7. 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. 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. 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. 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. 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. 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. 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. 14 2009-2010 Monitoring Assignments

15. 15 Quality & Performance Controls

16. 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. 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. 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. 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. 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. 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