Report 2018-037 Recommendation 15 Responses

Report 2018-037: California Department of Housing and Community Development: Its Oversight of Housing Bond Funds Remains Inconsistent (Release Date: September 2018)

Recommendation #15 To: Housing and Community Development, Department of

In conjunction with the planning efforts outlined above and to ensure that it can most efficiently manage its limited resources related to IT, HCD should develop a cost-benefit analysis by March 1, 2019, that addresses the costs of continuing to maintain and enhance CAPES in the long term versus the acquisition and maintenance costs of an off-the-shelf database product. At a minimum, it should include the following:

- All costs associated with CAPES's enhancement, support, and future maintenance.

- A documented methodology, including all assumptions, and thorough documentation of the sources for the underlying data.

1-Year Agency Response

After careful review, and in conjunction with our consultant, HCD has determined that it is not feasible with regards to cost and resources, to continue with the assessment and cost-benefit analysis of the CAPES system. HCD has decided to implement a phased replacement of the CAPES system. The department is piloting the use of a new Grants Management System (GMS) for the CDBG program to gauge the feasibility of converting the programs remaining in CAPES to the new GMS system. This approach is outlined in the attached decision document. In addition, the consultant is developing a CAPES replacement plan.

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

6-Month Agency Response

HCD has procured a consultant to assist with mapping current business needs as it relates to the CAPES system. It is anticipated that the business mapping will be completed within four months (6/30/19). This assessment will inform the development of the cost-benefit analysis, which is scheduled for anticipated completion by 9/30/19.

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

60-Day Agency Response

HCD will develop a cost-benefit analysis by March 1, 2019, that addresses the costs of continuing to maintain and enhance CAPES in the long term versus the acquisition and maintenance costs of an off-the-shelf database product. The HCD will estimate the level of effort both in staffing and technology costs required to modify CAPES to a sustainable state. This includes upgrade of existing database and application software to conform to current security and application standards. The HCD will also scope the costs of essential high-level enhancements to CAPES. Additionally, the HCD will obtain up front and maintenance cost estimates for one or more off-the-shelf technologies that will accommodate the identified high-level functionality.

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

All Recommendations in 2018-037

Agency responses received are posted verbatim.