Report 2012-037 Recommendation 5 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 #5 To: Housing and Community Development, Department of

HCD should continue its efforts to monitor sponsors that receive awards of housing bond funds by ensuring that it receives, reviews, and centrally tracks required status reports from sponsors under its CalHome and BEGIN programs.

1-Year Agency Response

CalHome programs have developed and implemented procedures that will allow program managers the ability to assess sponsor quarterly and annual reporting compliance. Monitoring of reporting compliance is a key performance indicator for both staff and management. On 11/1/12, HCD initiated the process of updating all CalHome files to collect all past due reports.

The BEGIN Program developed and implemented procedures that will allow program managers the ability to assess recipient quarterly and annual reporting compliance. Monitoring of reporting compliance is a key performance indicator for both staff and management. As of September 2013, BEGIN staff are continuting to receive and log quarterly and annual reports.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

HCD recongizes that monitoring of reporting compliance is a key performance indicator for both staff and management. CalHome management has developed and implemented procedures that allow program managers the ability to assess sponsor quarterly and annual reporting compliance, and on November 1, 2012, program staff initiated the process of updating CalHome files to collect all past due reports.

BEGIN program manangement are currently reviewing procedures for the BEGIN program and expect to complete their review by September 30, 2013, and provide those finalized procedures with the one-year status report.

As of April 4, 2013, CalHome staff continue to receive and log all quarterly and annual reports, and BEGIN staff are actively contacting recipients regarding missing status reports. Additionally, due to monitoring and technical assistance efforts that began in January 2013, HCD has seen a slight increase in report submittals.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

HCD explained that at the beginning of each quarter staff will contact their assigned sponsors via e-mail to request the required quarterly reports. HCD indicated that this will ensure that program staff are proactively requesting the information and documenting the request. Upon receipt, HCD stated that staff will review and record the report in the established centralized tracking report file. In those instances when a sponsor fails to submit a report, HCD asserted that the program manager will takes steps to obtain the report and document the response in the file and the centralized tracking report. HCD also explained that the CalHome and BEGIN programs have developed procedures, currently under review by program management, which will give program managers the ability to assess sponsor quarterly and annual reporting compliance. HCD stated that it anticipates completion of the written procedures on or before May 31, 2013. HCD also indicated that monitoring of reporting compliance is a key performance indicator for both staff and management. (See 2013-406, pp. 108-109)

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

All Recommendations in 2012-037

Agency responses received after June 2013 are posted verbatim.