Three Year LIHEAP Compliance Review Monitoring Schedule: FY 2009 through FY 2011

THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2009-7, DATED 3/30/09                              


TO:           LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) 
              GRANTEES AND OTHER INTERESTED PARTIES
              
SUBJECT:      Three Year LIHEAP Compliance Review Monitoring 
              Schedule: FY 2009 through FY 2011

RELATED
REFERENCES:  The Consolidated Appropriations Act, 2008 (Public Law
             (P.L.) 110-161; the Low-Income Home Energy Assistance 
             Act, Title XXVI of the Omnibus Budget Reconciliation 
             Act of 1981 (Public Law (P.L.) 97-35), as amended.

PURPOSE:     To inform LIHEAP grantees about plans to conduct 
             on-site compliance reviews, the criteria used for 
             selecting grantees, the schedule of States and Tribes 
             selected for FY 2009, and tentative selections for 
             FY 2010 and FY 2011 reviews.

BACKGROUND:  Section 2608(b)(1) of the LIHEAP statute provides 
             that:
                   The Secretary shall conduct in several States 
                   in each fiscal year investigations of the use 
                   of funds received by the States under this 
                   title in order to evaluate compliance with 
                   the provisions of this title.

PURPOSE:     The Office of Community Services developed a refined 
             monitoring system for the LIHEAP program in FY 2007, 
             to better assess State adherence to statutory 
             mandates.  Several improvements have been made as part
             of this renewed effort, which includes:

               •  Establishing specific criteria for selecting 
                  grantees for LIHEAP compliance reviews each 
                  year, considering potential compliance issues 
                  found in annual plan application review, 
                  independent audits, and complaints and media 
                  reports of state or agency mismanagement;

               •  Setting up an enhanced "LIHEAP Compliance Review
                  System", which will capture all of the policies 
                  and procedures with respect to the compliance 
                  review process; 

               •  Establishing timetables for State reviews for a 
                  three year period and informing LIHEAP grantees 
                  well in advance of a planned on-site review;

               •  Integrating more on-site reviews each year of 
                  Tribes and Tribal organizations that receive 
                  direct LIHEAP funding; and

               •  More timely compliance review reporting by OCS 
                  to States and Tribes following the on-site 
                  reviews. We will make an effort to get back to 
                  grantees with our findings within 60 days from 
                  the time of the on-site visit.

             As your Federal partners, our goal in monitoring your
             programs is not only to ensure that your programs are 
             operating in accordance with the LIHEAP statute; but 
             also to provide an opportunity to assist you in areas 
             possibly in need of improvement.

             The following criteria have been developed that will 
             be used for selecting LIHEAP grantees for future 
             on-site compliance reviews, including:

               (1) PLAN REVIEW PROCESS - During the review of 
               applications or amendments to applications, it is 
               determined that the grantee is not implementing 
               LIHEAP in compliance with the LIHEAP statute.

               (2) INDEPENDENT AUDIT FINDINGS - Recurring
               unresolved serious issues or issues dealing with 
               extreme violations, such as, fraud, waste and abuse 
               of funds, other misuse of funds, or financial 
               insolvency.

               (3) SERIOUS COMPLIANCE ISSUES - Issues that arise
               through other means, such as: multiple complaints 
               from constituents, the news media, representatives 
               from Congress or whistleblowers.  Also, change in 
               State administering agency that includes wide-
               sweeping modifications to the program.

               (4) HIGH RISK GRANTEES - Issues identified by the 
               Federal government or through tracking of 
               problematic entities.

               (5) NO ON-SITE VISIT IN 10 YEARS OR MORE - Grantees 
               with significant problems will take precedence; 
               however, regardless of the timing of the most 
               recent on-site visit, grantees whose most recent 
               compliance review was completed as a desk review, 
               will be given priority over those completed as 
               on-site visits.

             The schedule below provides estimated dates for
             on-site monitoring reviews of selected grantees for 
             Federal Fiscal Years 2009, 2010, and 2011.  We may 
             decide later to adjust States and Tribes tentatively 
             selected for FY 2010 and FY 2011, or add additional
             grantees if travel funds permit.  We will inform 
             grantees of any changes that might later be made to 
             this schedule.  Generally, we will conduct LIHEAP 
             on-site reviews from mid-April to mid-September each
             year.  Questions about the LIHEAP compliance review 
             process and the upcoming schedule may be directed to
             Karmen Blackwell (202-401-4864; 
             Karmen.Blackwell@acf.hhs.gov) or Zack Poimboeuf
             (202-401-5544; Zack.Poimboeuf@acf.hhs.gov) in the 
             Division of Energy Assistance.
             

                              _____________/s_____________
                              Yolanda J. Butler, Ph.D.
                              Acting Director
                              Office of Community Services