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MONEY

MONEY. BUDGET ISSUES, REPORTING ISSUES, THE AUDIT PROCESS, ACCOUNTABILITY ISSUES. STEP ONE: PROCUREMENT. Check your policy Check for internal controls Ask questions Avoid pitfalls. ETHICAL ISSUES. ACCOUNTABILITY FOLLOW POLICY AVOID APPEARANCE OF IMPROPRIETY ACC ISSUES

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MONEY

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  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 • 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

  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 EMAIL 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 • 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

  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 staff’s 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 can’t 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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