Report 2012-037 Recommendation 4 Responses

Report 2012-037: Department of Housing and Community Development: Awards of Housing Bond Funds Are Appropriate, but Cash Balances Are High and Monitoring Continues to Need Improvement (Release Date: October 2012)

Recommendation #4 To: Housing and Community Development, Department of

HCD should continue its efforts to monitor sponsors that receive awards of housing bond funds by requiring staff to follow its procedures related to centrally tracking advances to sponsors under the CalHome Program.

6-Month Agency Response

The CalHome program has developed and implemented the use of a centralized tracking log for advance transactions. It included written policies in its CalHome Program Manual describing when and how staff are to update the tracking log for those advance transactions. HCD management continues to reiterate the importance of using these policies and procedures to ensure proper tracking.

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

60-Day Agency Response

HCD stated that by March 2013, it will review and update all Proposition 1C and 45 CalHome disbursements through September 2012 in the centralized system to track and log advances to ensure current, complete, and accurate information. In addition, HCD explained that current processes for management approval and tracking advances have been implemented and were communicated to all appropriate staff on or about September 27, 2012. Further, a centralized tracking log has been developed and implemented for advance transactions. HCD stated that written policies regarding when and how staff is to update the tracking log have been developed but are currently under management review and not ready for finalization. HCD explained that management will continue to reiterate the importance of using these policies and procedures to ensure proper tracking. (See 2013-406, p. 108)

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

All Recommendations in 2012-037

Agency responses received after June 2013 are posted verbatim.