MONEY

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

• DONT 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
• DONT BE INTIMIDATED BY FRIENDS
• DONT 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 staffs 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 cant 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