LIHEAP Grantee Training & Technical Assistance Meeting

Session 7: Vendor Monitoring & Payment Controls (Massachusetts)

Saturday, June 8, 2013San Diego, CA

Akm Rahman

Senior Program Coordinator

Massachusetts Department of Housing &

Community Development, Boston, MA www.mass.gov/dhcd

Program Variations

• MA administers LIHEAP through 22 local sub-

grantees.

• Vendor Agreement templates are released by the

state.

• Over 700 vendors are authenticated by LAAs each

year.

• Vendor payments are authorized by LAAs and

audited by the State.

• Payments cannot exceed the billed amount.

• High consumption households receive an additional

benefit.

Vendor Agreement Templates

• Inspection of records and vendor monitoring

• Service interruption, reconnection, payment plan

• Immediate credit

• Automated notification> billing>payments

• Waiver

• Data collection - cost, consumption & Performance Measures -New

• Applicable laws,

regulations, and statutes

• Non-discrimination

• Non-disclosure of

information

• Privacy & confidentiality

• Discounts and fixed

pricing

• Prompt billing/payments

• Standards and measures

Vendor Authentication and Payment Process

Vendor Agreement templates &

authentication standards are released

Comments are received through the public

hearing process

Clarifications are given during the Annual

Training Conference

Vendors are activated in the LIHEAP software

Signed Agreements are received, authenticated, and executed by LAAs

Agreements are released to vendors

Client eligibility information is shared with active vendors

Deliveries are ordered and billing files are

shared

Oil tickets/payment files are received and payments made

Vendor Authentication

• Each Vendor Agreement must show the vendor’s legal name, DBA name, and EIN number.

• Contracts must include one of the following documents:

> License/Permit

> HazMat Certificate

> Certificate of Good Standing

> Revenue Dept. Trucking License> Local zoning permit

> Annual Report, Environmental License, etc.

• The LIHEAP software ensures segregation of duties and various access rights.

• Vendor activation and changes are tracked.

• A statewide vendor tracking system is being developed -New!

Vendor Payments, Monitoring & Post Audit

Monitoring

• Random selection of authenticated vendors.

• Random selection of vendor payments and client certification.

• Regular review of monthly reports & cash requests.

Post Audit

• Cost, Consumption & Performance Measures.

Payments

• LAA cash requests >

state payments.

• LAA program area

requisition> check run

Post Audit - Data Collection & Data Exchange

Utility Vendors

Existing: client-by-client

cost and consumption

data.

Performance Measures -

Deliverable Fuel Vendors

Existing: client-by-client

cost and consumption

data.

Performance Measures -

Post Audit – Data Collection and Data Exchange

For Utility Companies

• Client information

• Total billed (energy costs)

• Total Unit (Therm, ccf, or kWh)

• Shut-off notice - new

• Service interruption - new

• # of customer payments -new

• Pre-program arrearage -new

• Arrearage forgiveness status - new

For Deliverable Fuel Vendors

• Client Information

• Total billed (energy costs)

• Total Unit (gal., cords, tons,

etc.)

• Out of heat – new

• Non-delivery – new

• # of customer payment –

new

• Past due balance – new

• Payment plan - new

Basic:

signed agreement /written assurances

Enhanced:

Signed agreement + monitoring

Best Practice:

Signed agreement + monitoring + additional measures

VENDOR MONITORING VENDOR MANAGEMENT SYSTEM

Vendor Management

Advantages Barriers

• Reliable major regulated utilities.

• Low to moderate capacity municipal utilities.

• Authentication process.

• Annual update of vendor agreements.

• Partnerships/oversight/ consumer protection.

• Cost/consumption data.

• Fixed price, discounted utititity, payment plans.

• Enforcement?

• What’s the recourse?

• Small vendors.

• Too many vendors.

• Unregulated deliverable

fuel vendors.

• Limited staff time.

Akm RahmanSenior Program CoordinatorMassachusetts Department of Housing & Community DevelopmentDivision of Community Services100 Cambridge Street, Suite 300Boston, MA 02114(617)-573-1413akm.rahman@state.ma.us

www.mass.gov/dhcd

http://www.mass.gov/hed/community/energy/low-income-home-energy-assistance-liheap.html