Report 2012-037 Recommendation 3 Responses

Report 2012-037: Department of Housing and Community Development: Awards of Housing Bond Funds Are Appropriate, but Cash Balances Are High and Monitoring Continues to Need Improvement (Release Date: October 2012)

Recommendation #3 To: Finance, Department of

Going forward, to the extent that Finance or HCD believes the State needs to issue bonds in excess of cash needs, it should document an analysis demonstrating the appropriateness of the bond sale amount and the circumstances.

60-Day Agency Response

Finance stated that it agrees with our recommendation and explained that it has significantly increased the level of analysis that it conducts regarding the level of bond program cash needs by routinely surveying departments, analyzing usage rates, and assessing future demand. Finance indicated that it is retaining these analyses so that they will be available for any future audits. (See 2013-406, p. 108)

California State Auditor's Assessment of 60-Day Status: Fully Implemented

All Recommendations in 2012-037

Agency responses received after June 2013 are posted verbatim.