Corrective Action Plans

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.568 Low-Income Home Energy Assistance State Agency: Department of Energy Audit Contact: Leonard Rautio Title: Chief of Operations Telephone: (603) 271-6008 E-mail address: leonard.j.rautio1@energy.nh.gov Audit Report Reference: 2024-023, 2023-014, 2022-027 – Cash Management Anticipated Completion Date: June 30, 2025 Corrective Action Planned: Concur The Department has eliminated giving program advances for program year 2025 (PY25) and reduced the amount of the administrative advances from 17.5% to 10% for PY25. The Department monitors monthly bank statements from the subrecipients to ensure there is little or no interest accrued from cash on hand. 2 CFR 200.305 (b)(1) does not limit cash on hand to 30 days but indicates that the timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the subrecipient. Federal guidance to the Department indicates the Department is meeting that requirement. However, the Department will continue to review administrative advances and adjust the amounts to ensure subrecipient cash on hand is limited to a reasonable timeframe.

Management agrees with the recommendation to utilize a checklist specific to each loan program to ensure all required documents are entered into loan files. The organization has implemented a loan filing system for each loan program dividing out the necessary documents required to be inserted into each loan file. The Production and Servicing Departments will be responsible for completing and reviewing the files to ensure all sections have been completed and updated as needed.

Management agrees with the recommendation to implement a control around the allocation of payroll hours. As of January 1, 2024, all staff will be required to specify Micro hours on timesheets by entering Admin, Pre, or Post in the note section. This will ensure payroll time allocation to the Microgrant is properly gathered and supported when submitting reimbursement requests.