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MONEY BUDGET ISSUES, REPORTING ISSUES, THE AUDIT PROCESS, ACCOUNTABILITY ISSUES.

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Presentation on theme: "MONEY BUDGET ISSUES, REPORTING ISSUES, THE AUDIT PROCESS, ACCOUNTABILITY ISSUES."— Presentation transcript:

1 MONEY BUDGET ISSUES, REPORTING ISSUES, THE AUDIT PROCESS, ACCOUNTABILITY ISSUES

2 STEP ONE: PROCUREMENT Check your policy Check for internal controls Ask questions Avoid pitfalls

3 ETHICAL ISSUES ACCOUNTABILITY FOLLOW POLICY AVOID APPEARANCE OF IMPROPRIETY ACC ISSUES HOW DOES IT LOOK? TAKING GIFTS?

4 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

5 IS AN RFP NECESSARY? BLANKET PURCHASE? WHO WRITES? GUIDANCE FROM SAMPLES MINORITY PARTICIPATION ADVERTISING WEBSITE LOOK AT PROCURMENT POLICY!!!!

6 ANALYZING NEEDS IS IT A SMALL OR LARGE PURCHASE? WHAT DOES PROCUREMENT POLICY SAY? WHO NEEDS TO APPROVE? GETTING QUOTES WAS THIS PLANNED??

7 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

8 IMPORTANT RULES DONT 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

9 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

10 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 OR WEBSITE

11 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

12 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

13 OPENING BIDS PUBLIC MEETING? TALLLY SHEET AWARDING BID: – CHECK BUSINESS REQUIREMENTS – INSURANCE – BOND – SPECS – REFERENCES

14 AWARDING BID AFTER VERIFICATION: NOTIFY SUCCESSFUL BIDDER DETERMINE START DATE NOTIFY OTHER BIDDERS IF BID NOT PERFORMED, CHECK INTO NEXT LOWEST BIDDER AVAILABILITY

15 BIDDER CHALLENGES FOLLOW THE PROCUREMENT POLICY ARE BIDS PUBLIC INFORMATION? WHAT ABOUT CONFIDENTIAL INFORMATION? TRADE SECRETS?

16 THE PAPER TRAIL INTERNAL PAPERWORK PURCHASE ORDER COMPARATIVE PRICING EVALUATION METHOD OF PROCUREMENT THE ORDER RECEIPT INVENTORY USE SEPARATE FILES FOR PROCUREMENT

17 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

18 INSIST ON COMPLIANCE HAVE A POLICY FOLLOW THE POLICY WATCH OUT FOR ETHICS PROBLEMS DONT BE INTIMIDATED BY FRIENDS DONT ACCEPT OR SOLICIT GIFTS OR FAVORS FROM VENDORS KEEP GOOD RECORDS REVIEW FILES ON A REGULAR BASIS

19 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.

20 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.

21 Procedure Set timetable Board committee? Fraud Timetable: Handout page 14

22 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.

23 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.

24 Ask Questions Audited financial statement is your report. Understand what is says. Implement solutions to problems identified. Findings are not always the staffs misconduct. Follow the advice of your professionals.

25 STEP THREE: THE CRISIS PHAS and SEMAP Performance Issues Funding issues: programs Tackling the problem Tenants, participants, landlords, staff, etc

26 Budget Cuts PHA budget/funding Central office Section 8 (Housing Choice Vouchers) Recapture of reserves

27 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 cant be reduced?

28 Additional Sources of Income Grants Rents Mixed finance developments

29 CONCLUSION FOLLOW THE MONEY ! FOLLOW THE POLICIES ! PLAN AHEAD ! BE READY FOR SURPRISES ! GET ADVICE ! PUBLIC RELATIONS PRACTICES


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