money budget issues, reporting issues, the audit process, accountability issues
TRANSCRIPT
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MONEY
BUDGET ISSUES, REPORTING ISSUES, THE AUDIT PROCESS,
ACCOUNTABILITY ISSUES
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STEP ONE: PROCUREMENT
• Check your policy• Check for internal controls• Ask questions• Avoid pitfalls
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ETHICAL ISSUES
• ACCOUNTABILITY• FOLLOW POLICY• AVOID APPEARANCE OF IMPROPRIETY• ACC ISSUES• HOW DOES IT LOOK?• TAKING GIFTS?
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ISSUES BEFORE TAKING STEPS
• PROCURING VS. ORDERING• COCC OR PROJECT LEVEL• THE PROCUREMENT POLICY• WHO DETERMINES?• WHAT STEPS:– NEEDS ASSESSMENT, COST ASSESSMENT– PURCHASE ORDER– BUDGET APPROVAL
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IS AN RFP NECESSARY?
• BLANKET PURCHASE?• WHO WRITES?• GUIDANCE FROM SAMPLES• MINORITY PARTICIPATION• ADVERTISING• WEBSITE• LOOK AT PROCURMENT POLICY!!!!
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ANALYZING NEEDS
• IS IT A SMALL OR LARGE PURCHASE?• WHAT DOES PROCUREMENT POLICY SAY?• WHO NEEDS TO APPROVE?• GETTING QUOTES• WAS THIS PLANNED??
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SOLICITING BIDDERS
• CAN BE DONE AT PROJECT LEVEL• ACTIVELY SOLICIT PARTICIPATION• UTILIZE MINORITY AND WOMEN OWNED
BUSINESSES• ADVERTISE THROUGH AGENCIES SUCH AS THE
CHAMBER OF COMMERCE, MINORITY AND SMALL BUSINESS AGENCIES
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IMPORTANT RULES
• DON’T BREAK DOWN CONTRACTS TO AVOID PROCURMENT PROCESS: SMALL VS. LARGE PURCHASES
• DO BREAK DOWN CONTRACTS WHEN APPROPRIATE TO ALLOW SMALLER FIRMS TO BID
• ADVERTISE, ADVERTISE, ADVERTISE
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PUBLISH REQUIRED FORMS
• SOME BIDS REQUIRE FORMS TO BE COMPLETED BY THE BIDDER
• SEE PROCUREMENT SECTION AT: MHATODAY.ORG
• BEWARE OF INSURANCE REQUIREMENTS, BUSINESS LICENSES, LEGAL ENTITY STATUS
• DRUG FREE, WAGE AND HOUR
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GETTING VENDORS INFORMED
• SCHEDULE MEETING OF POSSIBLE VENDORS• GO THROUGH GOVERNMENT REQUIREMENTS• COMMUNICATE WITH BUSINESS COMMUNITY
AND INVITE THEM TO BE ON THE LIST• REGISTER PROSPECTIVE BIDDERS• SEND ALL BID PACKET: MAIL OR EMAIL OR
WEBSITE
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SOLE SOURCE/ONE BID
• ANY CONTRACT OVER 100K MUST HAVE TWO BIDDERS
• SOLE SOURCE MUST BE DOCUMENTED’• SUGGEST THAT HUD REVIEW SOLE SOURCE
OR IF ONLY ONE BID RECEIVED• SMALL PURCHASES, MID-RANGE PURCHASES,
LARGE PURCHASES: RULES MAY DIFFER
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BID DELIVERY REQUIREMENTS
• NOTATE TIME BIDS DUE• USE OUTSIDE OF ENVELOPE TO GET SOME
INFORMATION: CONTRACTOR LICENSE, INSURANCE COVERAGES, BUSINESS LICENSE
• LATE BIDS DO NOT COUNT• GATHER BIDS AT THE TIME DESIGNATED AND
HAVE A WITNESS• MARK BIDS RECEIVED AFTER “LATE”
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OPENING BIDS
• PUBLIC MEETING?• TALLLY SHEET• AWARDING BID:– CHECK BUSINESS REQUIREMENTS– INSURANCE– BOND– SPECS– REFERENCES
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AWARDING BID
• AFTER VERIFICATION: NOTIFY SUCCESSFUL BIDDER
• DETERMINE START DATE• NOTIFY OTHER BIDDERS• IF BID NOT PERFORMED, CHECK INTO NEXT
LOWEST BIDDER AVAILABILITY
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BIDDER CHALLENGES
• FOLLOW THE PROCUREMENT POLICY• ARE BIDS PUBLIC INFORMATION?• WHAT ABOUT CONFIDENTIAL INFORMATION?• TRADE SECRETS?
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THE PAPER TRAIL
• INTERNAL PAPERWORK• PURCHASE ORDER• COMPARATIVE PRICING EVALUATION• METHOD OF PROCUREMENT• THE ORDER• RECEIPT• INVENTORY• USE SEPARATE FILES FOR PROCUREMENT
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INTERNAL CONTROLS
• DO RANDOM REVIEWS TO INSURE PROCEDURES AND POLICY DONE CORRECTLY
• DEVELOP AGENCY WIDE AND PROJECT INTERNAL CONTROLS
• BE SURE ALL FILES ARE COMPLETE AND ALL FORMS COMPLETED
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INSIST ON COMPLIANCE
• HAVE A POLICY• FOLLOW THE POLICY• WATCH OUT FOR ETHICS PROBLEMS• DON’T BE INTIMIDATED BY “FRIENDS”• DON’T ACCEPT OR SOLICIT GIFTS OR FAVORS
FROM VENDORS• KEEP GOOD RECORDS• REVIEW FILES ON A REGULAR BASIS
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STEP TWO: THE AUDIT
• Belongs to the PHA.• Must be independent.• Procurement of services of audit firm• Must include entity-wide operation, including
component units and/or joint venture activities.
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The RFP
• Page 7 of handout.• Prepare at least 8 months prior to fiscal year
end.• Follow procurement policy for bids.• Evaluate and award.• Do signed agreement.
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Procedure
• Set timetable• Board committee?• Fraud• Timetable: Handout page 14
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Red Flags
• Cheapest not always the best.• Number of field days must be adequate.• No plan developed, including fraud.• Licensing problem if auditor works multi-state.• Auditor has no experience in PHA or multi-
family work.
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Board Participation
• Committee should work as liason between board, PHA and auditor.
• Have regular meetings with auditor to monitor progress.
• Rough audit report at least 3 months prior to submission date.
• Final report at least 2 months prior to submission.
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Ask Questions
• Audited financial statement is your report.• Understand what is says.• Implement solutions to problems identified.• Findings are not always the staff’s misconduct.• Follow the advice of your professionals.
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STEP THREE: THE CRISIS
• PHAS and SEMAP• Performance Issues• Funding issues: programs• Tackling the problem• Tenants, participants, landlords, staff, etc
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Budget Cuts
• PHA budget/funding• Central office• Section 8 (Housing Choice Vouchers)• Recapture of reserves
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Making It Work
• Section 8 lack of funding provisions: roughly 83 percent of needs for administrative.
• Public Housing• Working with contractors/providers• Staff salaries/benefits• New cap and reporting• What can’t be reduced?
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Additional Sources of Income
• Grants• Rents• Mixed finance developments
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CONCLUSION
• FOLLOW THE MONEY !• FOLLOW THE POLICIES !• PLAN AHEAD !• BE READY FOR SURPRISES !• GET ADVICE !• PUBLIC RELATIONS PRACTICES