1. LIHEAP Grantee Training &
Technical Assistance Meeting
Session 7: Vendor Monitoring &
Payment Controls (Massachusetts)
Saturday, June 8, 2013
San Diego, CA
Akm Rahman
Senior Program Coordinator
Massachusetts Department of Housing &
Community Development, Boston, MA
www.mass.gov/dhcd

2. 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.

3. 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

4. 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

5. 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!

6. 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

7. 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 -

8. 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

9. Basic:
signed agreement
/written assurances
Enhanced:
Signed
agreement +
monitoring
Best Practice:
Signed
agreement +
monitoring +
additional
measures
VENDOR MONITORING VENDOR MANAGEMENT SYSTEM

10. 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.

11. Akm Rahman
Senior Program Coordinator
Massachusetts Department of Housing & Community Development
Division of Community Services
100 Cambridge Street, Suite 300
Boston, MA 02114
(617)-573-1413
akm.rahman@state.ma.us
www.mass.gov/dhcd
http://www.mass.gov/hed/community/energy/low-income-home-energy-
assistance-liheap.html