To ensure that recipients spend advanced funds promptly and that it has accurate information about outstanding advanced funds, HCD should do the following:
- Develop a thorough process to track and monitor advances.
The DFA CalHome program has updated their desk manual (pg 55) to specifically require documented justification by senior management on waivers to the policy. Per CSA, this type of documentation would resolve their concern. This issue is fully implemented.
DFA BEGIN updated the Desk Manual to include the policy and process for tracking fund advancements (Attachment AF5a, red text).
CalHome produced a Management Memo (AF5b-1) outlining its advanced funds policy. The memo was provided to all active award recipients. CalHome updated its desk manual with staff instructions on documenting draw requests (AF5b-2, red text).
Although HCD updated its policies to include a process to track and monitor advances for its BEGIN and CalHome programs, those policies allow the CalHome program manager to waive its advance policy at his or her discretion, increasing the risk that HCD will experience the same problems with advances we found in our report.
DFA staff and management are currently evaluating the process to track advanced funds. The evaluation involves a more efficient coordination through the HCD Admin Division, to reconcile and improve accuracy of data and determine any amounts outstanding.
†Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.
*Agency responses received after June 2013 are posted verbatim.