The Subsidy , Crisis, and Emergency Components of the Low-Income Home Energy Assistance Program will be administered by the Kentucky Association for Community Action (KACA) under contract with the Department for Community Based Services (DCBS). KACA contracts with the twenty-three (23) Community Action Agencies (CAA’s) for the delivery of energy assistance to eligible households. The DCBS will, upon request, provide KACA with consultation and technical assistance related to the program. DCBS will provide each CAA with Certificate of Need forms and DCBS printouts to assist in the income verification.

Each CAA is responsible for developing and implementing internal management procedures for the local program operation that are consistent with agency policies and that comply with the program requirements. Certain forms must be used by each CAA and are listed in this manual.

Each local CAA is responsible for determining the eligibility of each household seeking assistance under the program. Any person who inquires shall be informed of the eligibility requirements and the rights and obligations of applicants in this program.

Each worker in the program should be familiar with program requirements, eligibility standards, and the policies and procedures contained in Part B--Program Operations section of this manual. In those instances where information or clarification is needed, the county worker should contact the CAA supervisor in charge of the program. Should additional information or clarification be needed, the CAA Supervisor will contact KACA staff. KACA staff will contact the Energy Assistance Branch when needed. Policy and procedural questions will follow this process to ensure program consistency statewide. In no instance should the CAA, county, or central office staff contact the Department for Community Based Services, either at the local or central office to address program concerns.

The purpose of LIHEAP is to assist eligible households with the cost of home energy. The program is designed and is required by federal law, to pay the HIGHEST LEVEL OF BENEFITS TO HOUSEHOLDS WITH THE HIGHEST ENERGY COST AND THE LOWEST INCOMES, taking into account family size.

Households that are at or below 110% of the OMB poverty level, have liquid resources at or below $1,500.00. (with an exception for a family that has a household member with a catastrophic illness, liquid resources can be as much as $4,000.00, when resources are being used on a regular basis for living and medical expenses) and are responsible for home energy cost, whether directly or as an undesignated portion of rent, are eligible for assistance.

In all components, payments will be made to the vendor for the provision of goods and services on behalf of eligible households. NO PAYMENTS WILL BE MADE DIRECTLY TO THE HOUSEHOLDS.

The Subsidy component will begin the first week of November . Applications will be taken and benefits provided to all eligible households that begins the application process prior to the close of business on the last day of the Subsidy Component. An alphabetical schedule for applications, available in the appendix, leaves days open so that home visits can be made or appointments made for those days, if not used as agency holidays.

Residents of subsidized housing will have benefits based on their reduced energy burden, and the benefits for these renters will be less than for all other households. It is important that workers correctly identify households in subsidized housing. Always ask, "How much do you pay in rent?" if you are unsure whether the rent is unsubsidized or not. In some cases, a household may NOT receive a utility allowance check, but may be receiving a utility allowance in the form of a reduction to the rent. Because this is a factor in determining the benefit level, it is critical that it be determined correctly.

The subsidy benefit levels are based on the average cost for home heating by fuel type and provide benefits based on a matrix developed by the Energy Assistance Branch to meet this

The Crisis component will begin the second week of January and continue until March 15, or until funds are exhausted, whichever comes first. The maximum benefit levels will be established to allow for a deliverable amount of fuel. All households at or above the 28% of poverty level will be required to make a co-payment in the Crisis program.

The Crisis component will assist only those eligible households in a home heating crisis situation and program funds may be only used to provide goods and services to alleviate the home-heating crisis.

The Emergency component will begin the first week after Emergency funds are authorized. Emergency Funds will not be authorized each year.

Residents of subsidized housing will have benefits based on their reduced energy burden, and the benefits for these renters will be less than for all other households. It is important that workers correctly identify households in subsidized housing. Always ask, "How much do you pay in rent?" if you are unsure whether the rent is unsubsidized or not. In some cases, a household may NOT receive a utility allowance check, but may be receiving a utility allowance in the form of a reduction to the rent. Because this is a factor in determining the benefit level, it is critical that it be determined correctly.

The Emergency benefit levels are based on the average cost for home heating by fuel type and provide benefits based on a matrix developed by the Energy Assistance Branch to meet this

Households experiencing high-energy costs should be referred for Weatherization services.

Space heaters may be provided as a temporary measure to allow time for the delivery of fuel, repair of a heating system, reconnection of utility service, or location of additional resources to alleviate the household’s crisis situation. The use of space heaters may be critical in the Crisis component, as we will be required to alleviate the household’s home heating crisis, even if they are unable to make the required co-payment. The purchase of space heaters is charged to the agency’s crisis benefit allocation, but may be loaned, if available to eligible households at any time during the heating season.

Space heaters are considered a temporary measure and are therefore loaned rather than given to the households. Since the space heaters are only loaned, the value of the space heaters is not counted as a part of the household’s benefit maximum. Due to safety considerations, electric space heaters will be loaned wherever possible. When it is necessary to loan a kerosene heater, the consumer will be given a "Fact Sheet" on safe operation. The consumer will also be required to sign a statement that they are aware of potential health and safety problems, and assume the responsibility for the safe operation and return of the agency-owned property.

Agencies may purchase a reasonable number of space heaters to be loaned and receive full reimbursement. When purchasing space heaters, the following specifications should be followed.

It shall be the responsibility of each agency to complete and properly route Certificate of Financial Need (CFN EA-46) to extend or reconnect utility service when requested by applicants or as a means of supplementing available assistance when necessary. CFN’s should also be used, when appropriate, to assist those households that are ineligible for a LIHEAP assistance because the household income exceeds 110% of the poverty level. A household may be eligible for CFN with income up to 130% of the poverty level. The income limitations are on the form.

An applicant needing, or requesting, a CFN must provide verification of the household’s current utility status. As with energy assistance, the income must be verified before the CAA can certify the applicant’s financial need. Existing LIHEAP income verification is sufficient for CFN purposes.

If the household is income eligible for the CFN, the CAA either gives the completed and signed original CFN form to the applicant or mails it to the utility provider. If the form will not reach the utility provider prior to the expiration of the 10-day notice of shut-off, the worker should phone the utility and inform them that the CFN has been issued.

The CFN may be used to provide a 30-day extension of service or to reconnect service under the following conditions:

• CFC or its designee certifies in writing that the customer is eligible for
• LIHEAP or the household’s income is at or below 130% of poverty and the customer presents the certificate to the utility during the initial 10-day termination notice period; and;
• The customer makes a present payment in accordance with his ability to do so; and
• The customer agrees to a repayment plan, which will permit the customer to become current in payment of his bill, as soon as possible, but not later than October 15.

• was disconnected for non-payment; and
• applies for reconnect service during the period of November 1 through March 31; and
• has been certified to be in financial need; and
• presents a completed and signed CFN and agrees to accept and cooperate with a referral to Weatherization services; and
• pays 1/3 of the amount owed, up to $200.00; and
• agrees to repayment schedule, which would permit the customer to become current in the payment of the utility bill no later than October 15.

• customer agrees to pay their current bill; and
• makes a good faith payment towards reducing the outstanding bill that is consistent with the customer’s ability to pay.

Each county office will maintain a case file for each household making application for assistance. Included in the case file will be a signed copy of the application, documents used for verification , and any additional information regarding the disposition of the case, including referrals and other services provided.

Also included in the case file will be reasons for requesting additional verification from the consumer for those items of eligibility where self-declaration is allowed, and the additional means of verification used for documentation.

Recording information in the case file is vital to program operations. Individual case files should include all contacts made on behalf of the consumer in providing energy assistance. This includes consumer contacts, contacts with other service providers, contact with the vendors and the reason for delays in processing the application. Keeping case records current will prevent mistakes, such as approving benefits in excess of the maximums.

Case records should also include a copy of the Notice of Denial of LIHEAP Benefits, if applicable.

Case files will be maintained alphabetically by the head of household name. All case records will be maintained for three years after all matters, including audits and any disputes, are resolved.

Each county office must maintain a five-day pending application file. An application will be denied for insufficient information if not completed at the end of the 5th working day. If an applicant is unable to provide all information or verification needed at the time of application, he/she must be notified that the application will be denied if all the information is not submitted by the 5th working day. The reason for any delay in processing the application must be recorded in each case file. All applications should be processed in a timely manner, but in no case should an application be held for more than 5 days. In the Crisis component, benefit funds must be reserved to serve those applications in the pending file.

For agencies utilizing paper applications, the Executive Director or his/her designee, must review 2% of the cases processed on a weekly basis during the program. This review will include monitoring of compliance, documentation of eligibility, accuracy and completeness of application and case records, and consistency and correctness of benefit determination. The case review must be completed weekly to assure that problems are corrected in a timely manner. CAA’s that serve a multi-county area must review cases from all counties during the first week of each component. The Case Review and Summary will be used for quality control and a copy of the Summary Report will be submitted to KACA on a weekly basis. The Summary should document a review of 2% of the cases being reported for that week. It is NOT necessary to submit copies of the individual case reviews, ONLY the summary. Case Reviews will be filed separately and available during monitoring.

.Agencies utilizing computerized applications are exempt from the 2% review.

In addition to the CAA quality control, KACA will review applications. Applications will be selected on a random basis. Applications with errors will be returned to the CAA. Returned application, "Pulls," must be returned to KACA within 7 days of receipt of the "pulls."

For all components each CAA will maintain a Consumer Complaint File. The file will be used for the tracking and recording of the consumer complaints that have been received by the agency. Each complaint received will be recorded on the complaint form, with a synopsis of the case and the progress made in the resolution of the complaint. Each Complaint Form will be reviewed by the CAA supervisor to ensure that complaints are being resolved in a timely manner. The file will contain the evidence used in the resolution of the complaint (lab test reports of fuel quality, statements from witnesses, weigh tickets, etc.) If the agency’s normal complaint system requires that originals be filed in another system, copies will be made for the LIHEAP complaint file and cross-references made.

KACA and local CAA’s will make every effort to document instances of fraud and abuse that occur during the program. Agencies are required to complete the Fraud and Abuse Report on each suspected case of fraud and abuse. One copy of the report will be submitted to KACA at the time the fraud is initially suspected, and the investigation of the case is begun. This report should be marked with a "1" in the upper right hand corner. A second copy of the report will be submitted when the case is resolved. This report should be marked with a "2" in the upper right hand corner. A final report should be submitted, even if the investigation reveals that there were no problems. A copy of each Fraud & Abuse report will be filed in the consumer’s folder. A separate Fraud & Abuse file will also be maintained to allow for ease in tracking patterns or vendor problems.

Should any situations of a more serious nature occur, the information may also be provided in memo form to KACA.

Local efforts to prosecute fraud will be reported to The KACA office. It is the responsibility of each worker to document any suspected case of fraud and report to the supervisor.

CAA staff who are advised of or become aware of potential fraud in the program may also refer the information directly to the Office of Inspector General’s Fraud Hotline (1-800-372-2970).

DCBS may collect fuel vendor information directly from the CAA’s and provide this information to KACA. This information will be used by the DCBS to monitor fuel prices on a statewide basis and for vendor compliance monitoring.

Coal: For both the Subsidy and Crisis components, coal vendors will be asked to document the amount of fuel delivered by the use of weigh tickets, whenever possible.

Wood: FOR THE CRISIS COMPONENT ONLY: firewood bids and vendor solicitation shall require seasoned hardwood and the quoted delivery price must be for unloaded and stacked wood. A cord, or fraction thereof, is still the only measurable unit for wood. If a subcontractor has vendors that wish to bid/sell by the ‘pick-up’ load, they may work with them to establish the volume of wood, by the cord or fraction thereof, that is contained in the standard ‘pick-up’ load. The agency would have to have the vendor stack and measure the amount of wood contained in his pick-up load. The agency would then measure the wood and establish the volume that would be in a ‘pick-up’ load, in terms of cords. A cord is 4x4x8. If an agency wishes to use this procedure, they will need to document in their vendor files, the volume of wood as measured, the type of truck used,

the license number of the truck, whether or not the vendor will be using other trucks (if he is, each truck must be listed and capacity verified) and, if possible, a picture of the truck as loaded.

Kerosene: According to directives of the Office of Excise Tax issued 12-16-98, claims filed by vendors for kerosene sold through LIHEAP will be treated as a sale to a state or local government for its exclusive use. The voucher will be the required certificate for the vendor to submit for the tax exemption.

Continuous Fuels/Electricity and Natural Gas: Agencies may elect to accept vouchers from suppliers of continuous fuel without the consumer’s signature on the voucher.

In addition to the requirement that the vouchers/purchase orders contain the toll-free numbers for KACA and the CFC Ombudsman’s office, the very specific statements contained below must be on the voucher/purchase order. For the consumer’s signature, "I understand that by my signature, I am accepting the fuel provided and that the fuel is of the correct quantity and quality." For the vendor’s signature, "I understand that payment will not be made for this fuel unless the consumer has signed this form, accepting delivery."

Vouchers/purchase orders must include the name, address, and phone number of the issuing CAA and indicate the time period in which the voucher/purchase will be honored by the CAA. Time periods may be agency specific but may not exceed 60 days from the date of the voucher or extend beyond May 15^th.

Applications may be made only by one of the following:

• the head of household; or
• the spouse of the head of household; or
• an individual authorized in writing by the head of household or spouse.

1. Application Process

During the Subsidy Component applications should be taken by the alphabetical schedule. Every effort should be made to accommodate consumers who cannot apply on their assigned date. A face-to- face interview is required unless the CAA has requested a waiver to this requirement.

During the Crisis and Emergency Components applications should be taken upon request. A face-to- face interview is required unless CAA has requested a waiver to this requirement.

Any waiver of the face-to face interview (i.e. phone interviews) requires a written request of the waiver. Waivers will be granted to agencies that provide the following assurances:

• waiver will apply only to those consumers who are homebound due to age or disability, have previously applied for the program, whose income can be verified by the DCBS printout, and have no history of program fraud or abuse and
• the application is mailed to the consumer for a signature.

To be eligible for assistance, a household must:

• make and complete an application; and
• be responsible for home energy costs, directly or as an undesignated

• have a combined household income, for the calendar month prior to the month of application, not in excess of 110% of the federal poverty level as listed in the Income Eligibility Guidelines; and
• live in Kentucky when the application is made and apply in the county of residence; and
• not have liquid resources in excess of $1,500.00 (except when there is a household member with a catastrophic illness, liquid resources can be as much as $4,000.00, when such resources are being used on a regular basis for living and medical expenses).

Countable income includes, but is not limited to:

• Non-recurring lump sum payments;
• Wages;
• Statutory benefits such as VA Pensions; Black Lung Payments; Railroad Retirement; Social Security Retirement; Disability or Survivorship Benefits;
• Kentucky Temporary Assistance Program (KTAP);
• Supplemental Security Income (SSI);
• Farm profits;
• Rental profits;
• Self-employment profits;
• Private pensions;
• Child support payments received by the household;
• Unearned income.

• Payments received by the household from a state, federal, or local agency designated for a particular purpose and which the consumer must use for that purpose, such as payments for Foster Care, Special Requirement Education Allowance, Caretaker Payments, JTPA, Incentive Payments, Pell Grants;
• Payments made to others on the household’s behalf, such as Medicaid, or vendor payments;
• Loans;
• Reimbursements for expenses;
• Incentive payments normally disregarded in KTAP;
• Federal payments or benefits which must be excluded according to federal law (LIHEAP, Food Stamps);
• Supplemental Medical Insurance payments and reimbursements;
• Income Tax refund:
• Wages of students in primary, middle or high school.

• DCBS printout;
• Most recent DCBS award letter;
• Social Security award letter;
• Pension statement;
• Internal Revenue Service records;
• Veterans Administration records;
• Railroad Retirement records;
• Court support records;
• Union records;
• SSA verification forms;
• College financial aid award documents;
• Contracts for sale of property;
• Bank statements;
• Statement from absent parent or copy of checks from absent parent for support payments;
• Statement from individual providing income to the consumer.

• Pay stubs;
• Employer statement or contract;
• Records maintained by individual on self-employment income;
• Contracts;
• Current income tax return;
• Records of income and expenses on farm and/or rental income.

A Weekly Summary Report listing head of household, social security number, vendor, and amount of benefit must be provided to your local DCBS office on a weekly basis.

Each CAA will develop a policy to assure that applicants are served on a first come, first served basis and to assure that the application process is safe and orderly. Consumer confidentiality must be considered.

The policy must also address plans for high volume days and the last day of programs, when arrangements must be made to assure that all applicants for the day are served. Appointments may be made for up to five working days after the close of the program for these applicants, if the program is not closed due to lack of funds

.

Hardware: KACA and all CAAs will test hardware utilized for the LIHEAP Program or for financial management of the LIHEAP Program prior to 11-01-99.

Software: KACA and all CAAs will obtain written assurances from LIHEAP related software providers indicating that the software is capable of handing Y2K. KACA has obtained written assurances from both the suppliers of GMS and CAPbase.

Utilities: KACA and all CAAs will obtain written assurances from all utility providers and suppliers indicating their readiness to comply with Y2K. Most providers and suppliers have posted their assurances on the Internet.

General: In the event that the state experiences power-outages or other losses of services as a result of Y2K, each agency must have a written plan to assure that the energy needs of low-income consumers are met. The plan will assure that other agencies approved to complete applications and vendors are also ready to handle a possible emergency. Plans will be in place to contact consumers by mail or homevisits, if phone contact is not available. All staff will be trained to handle emergency situations and crowd control.

Each agency must be prepared to maintain a minimum of one agency application site which may be in the local emergency shelter and make homevisits to assure the needs of persons who are home bound are identified. The proposed emergency application site and emergency instructions must be posted during November and December in all LIHEAP application offices and must be provided in pre-program publicity. The agency must also be equipped to complete and process LIHEAP applications, vouchers, logs, and vendor payment on paper.

Agencies will also provide consumer education on how to handle the possible Y2K emergency during November and December 1999.

Agencies must have an adequate supply of blankets or sleeping bags to distribute to assist households to remain warm. In the event that there is no Y2K related emergency, blankets and sleeping bags will be distributed to LIHEAP consumers, until the supply is exhausted. When possible arrangements should be made to return unused blankets to the supplier, if they are not utilized.

Agencies must also work with their local disaster teams to assure that consumers have access to area shelters.

Agencies will require all vendors to submit their Y2K contingency plan with the Vendor Agreement.