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.
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.
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).
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.
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.
Agency responses received are posted verbatim.