Report 2014-037 Recommendation 11 Responses

Report 2014-037: California Department of Housing and Community Development: Inconsistent Oversight Has Resulted in the Questionable Use of Some Housing Bond Funds (Release Date: September 2014)

Recommendation #11 To: Housing and Community Development, Department of

Before July 2015 HCD should adopt policies identifying the steps it should take to ensure that it does not exceed statutory administrative costs limits from bond funds and follow those polices when warranted.

1-Year Agency Response

HCD's Admin Division has updated the new policy to include an annual management review to ensure a review of administrative cost information on a regular basis. This issue is fully implemented.

  • Completion Date: September 2015
  • Response Date: September 2015

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

6-Month Agency Response

HCD Admin Division developed a new policy to ensure the Department does not exceed statutory limitation of administrative costs for all Bond Programs (Attachment - Admin Mgmt Division Policy document).

  • Completion Date: February 2015
  • Response Date: March 2015

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

Although HCD issued a policy to track its administrative costs, the policy contains no steps to ensure its management reviews the tracked costs and thereby ensure it does not exceed those limits.

60-Day Agency Response

The Department has enhanced its internal program cost tracking tool to identify the total actual and projected administrative costs for each of the bond programs. The Department will create policies and procedures to clarify the processes necessary to prevent exceeding administrative cost limits in the future.

  • Estimated Completion Date: 3/1/2015
  • Response Date: November 2014

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

All Recommendations in 2014-037

Agency responses received are posted verbatim.