OCS - = LIHEAP

Low Income Home Energy=20 Assistance
Information Memorandum

U.S. Department of Health and Human=20 Services
Administration for Children and=20 Families
Office of Community = Services
Division of=20 State Assistance
370 L'Enfant Promenade, = S.W.
Washington, D.C.=20 20447

http://www= .acf.hhs.gov/programs/ocs/liheap/index.html=20

Transmittal No. =20 LIHEAP-IM-2012-05

Date: March 22,=20 2012

TO:	LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) = GRANTEES AND=20 OTHER INTERESTED PARTIES
SUBJECT:	Model Plan Application for LIHEAP Funding for Fiscal Year = (FY)=20 2013 (All Applications due September 1,=20 2012)
RELATED REFERENCES:	Low Income Home Energy Assistance Act, as amended (Title = XXVI of=20 Public Law (P.L.) 97-35, the Omnibus Budget = Reconciliation Act=20 of 1981, as amended).
BACKGROUND:	States, Territories, and Indian Tribes/Tribal = organizations that=20 wish to administer a Low Income Home Energy Assistance = Program=20 (LIHEAP) must submit an application for funds each = year. =20 Section 2605(c)(3) of the Omnibus Budget Reconciliation Act = of 1981,=20 as amended, provides that not later than April 1 of each = fiscal=20 year, the Secretary shall make available a model LIHEAP plan = which=20 may be used, at the option of each grantee, to prepare the=20 application required under Sections 2605(a)(1) and = (c)(1).
PURPOSE:	To provide LIHEAP grantees with a copy of the Model Plan = format=20 and to remind States, Tribes, and Territories that=20 all applications are due September=20 1. To provide grantees with guidance on the requirement for=20 submission of the Program Integrity Assessment and=20 Plan. To inform grantees of a new email address to = which all=20 plan documents should be submitted = electronically. To encourage early submission of plans and = related=20 documents.
CONTENT:	Attached for your use is the Model Plan format for use by = States,=20 Territories, and Indian Tribes/Tribal organizations in = developing=20 Fiscal Year (FY) 2013 LIHEAP plans. You are not = required to=20 use the Model Plan format. You may submit your = application in=20 any format you wish, as long as it includes all of the = information=20 required under the statute and implementing regulations.=20 For those grantees that choose not to use the Model Plan, = we have=20 included a list of reminders that may be helpful in = submitting a=20 complete application. Deadlines: We wish to remind grantees that they must submit an = application=20 each fiscal year in order to receive LIHEAP funds. = Indian=20 Tribes and Tribal organizations must, as always has been the = case,=20 submit their applications by September 1, = unless=20 the State(s) in which the Tribe or organization is located = agrees to=20 a later submission date. A Final Rule published on = October 15,=20 1999 in the *Federal Register* (64 = FR 55843)=20 states in Section 96.10(c)(2) that applications from = States=20 and Territories must also be submitted by = September=20 1 unless the Department agrees to a later = date. The final rule also established a due date for the = submission of=20 all information required to complete the LIHEAP application=20 by Tribes, States and Territories as=20 December 15 of the fiscal year for which = funds are=20 being requested, unless the State(s) in which a Tribe is = located (in=20 the case of Tribal grantees) or the Department (in the case = of=20 States and Territories) agrees to a later date. Detailed and Abbreviated Plans: In FY 1998, we adopted an application process under which = a=20 detailed application is due from each grantee every three=20 years. In the alternate years, an abbreviated = application may=20 be submitted, consisting of: (1) the statutorily required = assurances=20 signed by the Governor/Chief Executive Officer or his/her = designee;=20 (2) a description of any changes from the last detailed = application;=20 and (3) a report on applicant and recipient households for = the=20 previous year. In addition, (4) an opportunity for = public=20 participation must be offered. (5) States must also = hold a=20 public hearing. (6) The Carryover and Reallotment = Report for=20 the previous fiscal year must have been submitted. The = Carryover and Reallotment Report is due August = 1.=20 Also, (7) the appropriate certifications must be = submitted. Lastly, (8) the LIHEAP Household Report = must be=20 submitted with the application as described below. Attached to this information memorandum are both a = =93Detailed=20 Model Plan=94 and an =93Abbreviated Model Plan=94. The = Detailed=20 Model Plan is essentially the same as the Model Plan that we = have=20 used for many years. The Abbreviated Model Plan is for = the=20 optional use of grantees that are not scheduled to file a = detailed=20 application for FY 2013. Each grantee must = submit=20 either a Detailed Plan or an Abbreviated Model Plan each = fiscal=20 year. Grantees must submit a =93detailed application=94 every = three years,=20 or sooner, if they are making major changes to their LIHEAP=20 programs. Since most grantees do not substantially = change=20 their programs in a typical two to three-year period, this = frequency=20 will assure that we have a full description of basic plan=20 elements. As part of the detailed application, a full=20 description of how grantees will carry out all of the = assurances=20 specified in the statute and the other program-specific = information=20 required in Section 2605(c) of the statute must be = submitted.=20 Grantees that are making more than two = substantive=20 changes should complete the detailed = application. Some current grantees must submit detailed applications = for FY=20 2013 while the remaining portion of grantees will have the = option of=20 filing an abbreviated application for FY 2013. = Grantees that=20 submit an abbreviated application for FY 2013 will be = required to=20 submit a detailed application for FY 2013 or FY 2014. = Attached=20 is a schedule specifying which state grantees are required = to file=20 detailed applications in FY 2013 and FY 2014 (See Attachment = 2). Generally, Tribes and Tribal organizations must file a = detailed=20 application in the same year as the States in which they are = located. In some cases, Tribes and States are = not on=20 the same three-year cycle if a Tribe applied with a Detailed = Plan=20 during a year in which the State submitted an Abbreviated=20 Plan. Assurances: The assurances printed at the beginning of the Model Plan = are=20 from the current LIHEAP statute. Grantees who choose = not to=20 use the Model Plan still may wish to use these pages. = LIHEAP=20 regulations at 45 CFR 96.10(b) require that the 16 = assurances (15=20 for Tribes and some Territories) in the LIHEAP statute must = be=20 signed by the grantee=92s Chief Executive Officer or =93by = an individual=20 authorized to make such certifications on behalf of the = Chief=20 Executive Officer.=94 Please be sure that (1) the = Governor or=20 Tribal Chairperson signs the assurances or (2) has=20 specifically delegated authority to sign the LIHEAP = assurances to=20 the person/position (not merely the department or = agency)=20 who signs the assurances. A delegation of = authority=20 to administer the LIHEAP program, or one that delegates = authority to=20 sign assurances but does not specify the LIHEAP program is = not=20 sufficient. If a grantee has a new Governor or Tribal=20 Chairperson, a new delegation letter is required. In applying for LIHEAP funds for FY 2013, please remember = that=20 the statute requires States and Territories receiving more = than=20 $200,000 to describe in their plans how they will carry out=20 assurance 15 (Section 2605(b)(15) of the LIHEAP = statute). In addition, please note assurance 16, which sets a 5 = percent=20 limit on the amount of LIHEAP funds that can be used for = certain=20 activities designed to reduce the need for home energy and, = thereby,=20 the need for energy assistance. Leveraging Activities: We wish to remind you that the Model Plan includes a = place to=20 report leveraging activities to take place during the = Federal fiscal=20 year that will be coordinated with LIHEAP. You = should=20 include the information in your plan that will be necessary = for=20 activities to count for leveraging funds awarded the next=20 year. Grantees should also = amend their=20 current year=92s plan to include any activities that are = added during=20 the year but were not previously included in the plan (e.g., = cooling=20 component). Under the Final Rule on implementing the leveraging = program that=20 was issued on May 1, 1995 (60 FR 21322), additional = information must=20 be included in the plan for those leveraging activities = claimed=20 under criterion 96.87(d)(2)(iii), that is, those resources = that are=20 appropriated or mandated by the State for distribution under = the=20 plan, and are coordinated/integrated with the grantees=92 = LIHEAP=20 program, but are not a part of LIHEAP. The plan must describe not only the resources/benefits to = be=20 counted under criterion 96.87(d)(2)(iii), but the plan must = also=20 identify and describe their sources and the way in which = they are=20 integrated/coordinated with the grantees=92 LIHEAP = program. See=20 especially the middle column of page 21339 of the May 1, = 1995=20 *Federal Register* (60 FR 21339) for = further=20 discussion of these requirements: These documents can be = found on=20 the LIHEAP website under the =93Guidance, Policies, and = Procedures=94=20 section at: http://www.acf.hhs.go= v/programs/ocs/liheap If your leveraging activities to be claimed under = criterion=20 96.87(d)(2)(iii) were fully described in your most recent = Detailed=20 Plan, you do not need to describe them again in an = Abbreviated Plan=20 unless they have changed. If any of the required = information=20 on the resources/benefits has changed, please be sure to = submit new=20 descriptions with your Abbreviated Plan. Household Report: The statute requires that complete LIHEAP applications=20 MUST include the LIHEAP Household Report = for the=20 previous year on households applying for and assisted by = LIHEAP=20 before grant awards are made. The LIHEAP statute requires the Secretary to collect data = on the=20 number and income levels of households assisted and the = following=20 additional household data: number of assisted households with at least one young = child=20 and number and income levels of households applying for = LIHEAP=20 assistance and the number of assisted households with at least one or = more=20 individuals who are 60 years or older or disabled. = States, the District of Columbia, and Territories with = regular=20 allotments of $200,000 or more (i.e., Puerto Rico) will need = to=20 collect this data on their FY 2012 applicant and recipient=20 households in order to submit the data as part of their FY = 2013=20 grant applications. Tribal grantees and Territories = with=20 regular allotments of less than $200,000 are required to = submit only=20 information on the number of households served in each of = its=20 program components (i.e., heating, cooling, crisis, and=20 weatherization). We will issue a separate Action = Transmittal=20 with forms and instructions for the Household Report. Carryover and Reallotment Report: The required report on the amount of funds each grantee = will=20 carry over from FY 2012 to FY 2013=97 or will have available = for=20 reallotment=97is due August 1. Prompt = submission of this report allows grantees and HHS to = identify=20 potential under obligation of funds in time to make = adjustments=20 before the end of the fiscal year. However, please remember that the statute provides that = no=20 grantee will receive its FY 2013 grant until it has = submitted its=20 Carryover and Reallotment Report for its FY 2012 = funds. In=20 some cases, we had to delay grant awards to grantees with = otherwise=20 complete applications because they had not submitted their = Carryover=20 and Reallotment Report. Other Certifications: Please remember that all States, whether or not they use = the=20 Model Plan and whether or not they file a detailed = application, must=20 file the Lobbying certification and, if applicable, Form = LLL, which=20 discloses lobbying payments. Tribes and Tribal = organizations=20 are not required to file the Lobbying certification. = The=20 Debarment and Suspension certification must be filed by all=20 grantees, as must the Drug-free Workplace certification, = unless a=20 State has submitted a statewide assurance to the Department = of=20 Health and Human Services. Please note that the = Drug-free=20 Workplace and the Debarment and Suspension certifications do = not=20 require signatures. Submission of those forms with the = application=20 indicates agreement to adhere to the specified = certifications. Program Integrity Assessment and = Plan Beginning with FY 2011 Plans, we adopted an ongoing=20 requirement that all grantees, including States, Tribes, and = Territories, supplement their Plan each year with a = =93LIHEAP Program=20 Integrity Assessment and Plan=94 (=93Assessment=94) in order = to receive=20 funding. The Assessment is part of an effort by = HHS to=20 ensure that effective preventive controls, fraud detection,=20 monitoring, and prosecution systems exist at all levels of = the=20 program=92s administration to prevent improper payments, = fraud, waste=20 or abuse. Grantees must specifically address how the = plan will=20 address key elements of an effective fraud prevention = system.=20 Attachment 5 provides a framework and checklist that States = may use=20 to provide this information. While LIHEAP grantees are = not=20 required to use this format, the format that is submitted = must=20 include all of the information requested in Attachment = 5. =20 As a reminder, the Assessment must be = included in the=20 Plan for purposes of public comments and public=20 hearing. After receiving feedback from grantees and the Program = Integrity=20 Working Group on the Assessment, we are providing further=20 clarification below on the information requested in the=20 Assessment. For more background on the Assessment, = please see=20 LIHEAP-AT-2010-6. In General: Many of the questions in the Assessment address = overlapping=20 topics. Please place responses under the most = appropriate=20 question. If information is relevant to more than = one=20 question, you may provide the information once and refer = to that=20 section for other questions. However, please do = not=20 answer questions only by referring to sections in your = application=20 for funding. In order for the assessment to be = marked=20 complete, please provide a response and refer to the = application=20 or other attachments only for documentation. Please enter a response in each box, if the model = format is=20 used, even if the answer is =93None=94 or = =93N/A.=94 Please make sure to distinguish between documentation = and=20 verification. For example, a grantee may require=20 documentation of identity, such as a Social Security card, = but may=20 not verify that documentation through a database or other=20 means. Verification requires documentation to be = checked=20 against an independent source, and does not include mere=20 inspection of documentation. Please make sure to distinguish between requiring and=20 requesting information. Some grantees may require = Social=20 Security Numbers, while others may only request them. = Please=20 be clear about this distinction when describing your=20 policies. Please make sure to clarify whether policies, such as=20 documenting and verifying identity, apply to the applicant = or all=20 members of a household, and any exceptions to these = policies=20 (e.g., for infants). Clarification of Individual Questions: Question 1, concerning audit findings: Please = list the=20 types of findings, if any, in recent audits (e.g., = reporting,=20 financial, etc.). In addition, please describe the=20 activities taken to resolve such findings. Question 2, concerning monitoring: This = question=92s focus=20 is the monitoring activities at the grantee and local = agency=20 levels, if local agencies are used. Compliance = monitoring of=20 grantee and local agency procedures should clearly be = addressed,=20 with a description of how monitoring is = undertaken. Question 3, concerning fraud reporting: This question=20 addresses the methods by which the public may report = fraud. =20 Several grantees also provided information on separate = procedures=20 for fraud reporting by local agencies or vendors. If = you=20 have additional or separate procedures for these or other = groups,=20 please indicate this. Questions 4, 5, and 6, concerning identity = verification:=20 Implied in question 4 is the distinction between = documentation and=20 verification. Please indicate both how identity is=20 documented as well as how identity is verified. This = question=20 overlaps considerably with questions 5 and 6. = Question 4=20 seeks a broad overview of identification policies, whereas = questions 5 and 6 focus in on Social Security Number = policies.=20 For all three questions, please clarify whether = policies=20 apply to applicants or all household members. = Question 7, concerning verification of income: = Again,=20 this question seeks information about verification = practices,=20 which implies a request for documentation practices. = Many=20 grantees included income documentation that is required of = applicants, such as pay stubs, bank statements, tax = records,=20 unemployment insurance documents, employer letters, = etc. For=20 example, a response might indicate that unemployment = insurance=20 documentation is checked against the state unemployment = insurance=20 database. Question 8, concerning confidentiality = practices: =20 Responses to this question may range from having a = confidentiality=20 policy in place, to staff training on confidentiality, to = database=20 safeguards. This should include policies that affect = local=20 agencies, if applicable. Question 9, concerning direct payments to energy=20 vendors: This question seeks information about fraud = deterrence when making payments on behalf of clients to = energy=20 vendors. Examples of responses include computer = safeguards,=20 coordination of payments among similar programs, = monitoring,=20 requirements for submission of bills, and training for=20 vendors. Question 10, concerning payments to unregulated = vendors: This=20 question overlaps with question 9, but seeks to determine = whether=20 there are additional or different policies in place to = deter fraud=20 in transactions with unregulated fuel vendors. = Grantees=20 should describe how the grantee assures that unregulated = vendors=20 deliver what is promised. Question 11, concerning authenticity of vendors: = Questions 9 and 10 relate to delivery and financial=20 transaction. In contrast, question 11 seeks a = description of=20 policies that ensure vendors are authentic before a = transaction=20 takes place. Responses may include vendor = registration=20 policies, vendor agreements, monitoring, checking against=20 debarment lists, and requiring submission of vendor = Taxpayer=20 Identification Numbers. Question 12, concerning training and technical=20 assistance: Please be sure to explain training = practices for=20 each of the four groups listed =96 grantee staff, = subgrantees,=20 clients, and vendors =96 and how training is different for = each=20 group. Question 13, concerning audits of local = agencies: This=20 question only applies to those grantees that utilize=20 subgrantees. Please describe audit requirements that = are=20 placed on subgrantees, as well as if and how those audit = reports=20 are used by grantees (e.g., as part of the monitoring = process).=20 Timely Application Submittal and=20 Completion by Tribes, States and Territories: In accordance with the E-Government Act of 2002 (PL = 107-347),=20 beginning with FY 2012 Plans, we are requiring that = all=20 Plans and attachments be submitted in an electronic = format=20 (Microsoft Office files and/or PDF) to the =93submissions=94 = email=20 address provided below. Please submit each document = (e.g.,=20 Plan, Program Integrity Assessment) as a separate = file. If you=20 have technical limitations that will prevent this, please = notify the=20 contact listed below how you intend to submit your = plan. =20 Early receipt and processing of your application will = facilitate=20 your ability to meet the statutory requirement to obligate = at least=20 90 percent of your funds in the fiscal year in which they = are=20 appropriated. Grantees should allow four to six weeks for = Division=20 of Energy Assistance review of their applications and = issuance of=20 grant awards. A longer time may be required if we have = to=20 request additional information because an application is not = complete. Therefore, we strongly encourage = early=20 submission of completed applications. Applications = will be=20 reviewed in the order in which they are received, and thus = early=20 receipt will greatly increase our ability to approve = applications by=20 the time funding is released. We encourage grantees to = submit=20 their plan and program integrity assessment with the = carryover and=20 reallotment report which is due August 1. The Cash Management Improvement Act of 1990 (P.L. = 101-453, as=20 amended by P.L. 102-589), is in effect. This statute, = which=20 covers States and Territories but not Tribes, imposes a = requirement=20 for timely transfers of funds between Federal agencies and=20 States. The Department of the Treasury issued a Final = Rule (57=20 FR 60676-606894, published December 21, 1992) implementing = the=20 statute, which affects the LIHEAP program. It is = important=20 that we receive your application several weeks before you = intend to=20 draw funds from the Payment Management System so that we may = comply=20 with the intent of this Act and its implementing = regulations. As noted above, all necessary information must be = included in the=20 application before it can be accepted as complete and we can = issue a=20 grant. When we have to ask for additional information, it = means that=20 you may not receive the grant award on the schedule you had=20 planned. We have noticed that applications often fail = to=20 include the same kinds of additional information that we had = to=20 request the previous year in order to make the application = complete.=20 Accordingly, we suggest that you include in your = detailed=20 application answers to the questions or the information we = requested=20 in previous years. The Model Plan can be downloaded from the ACF website = under=20 =93Grantees, Forms, Funding Applications=94 at: http://www.acf.hhs.g= ov/programs/ocs/liheap/
ATTACHMENTS:	(1)<= /A>=20 LIHEAP Application Reminders (2)<= /A>=20 Schedule for Detailed LIHEAP Plans (3= )=20 LIHEAP Detailed Model Plan for FY 2013 and Certifications = (4= )=20 LIHEAP Abbreviated Model Plan for FY 2013 and = Certifications (5)=20 LIHEAP Program Integrity Framework
INQUIRIES:	LIHEAP=20 Regional Liaisons
SUBMISSIONS:	LIHEAPsubmissions@acf.hhs.g= ov
	________/s_______________________ Nick = St. =20 Angelo Director Division of Energy=20 Assistance Office of Community Services =

Download FREE = Adobe=20 Acrobat=AE Reader=99 to view PDF files located on this site.=20

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Administration for Children and Families =95 = 370=20 L'Enfant Promenade, S.W. =95 Washington, D.C. 20447

This is a Historical = Document.=20