Governance and financial management
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Transcript of Governance and financial management
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Governance and financial management Board of Commissioner Training
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To provide the Board with an overview of:
Training Objective
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Training context
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Fundamental Concepts of Oversight
• Governance and finance are the basis of any Public Housing Agency’s (PHA) success.
• The Board of Commissioners has the ultimate responsibility for the PHA’s performance and is accountable to the community.
• The Board sets the operational norms, rules, and values of the PHA.
• The Board establishes policies and internal controls to implement programs and ensure integrity.
• Knowledge is Power
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PHA Governance Basics
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Overview of Board Role• Legally and financially responsible governing
body• Power of the Board is vested in all members as
a body, not individuals• In the accomplishment of its mission, the Board
has the functions of:
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Knowledge is power- be informedBoards should know and review:
• Agency’s history, mission, vision, values, programs, financials and current strategic plan
• Roles and responsibilities of the Board and individuals
• Key staff roles in the programs of the agency
• Agency-owned developments and properties
• Agency records and documents
• Board & committee meeting processes, including open meeting requirements and confidentiality
• Agency printed materials
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Desirable qualities for CommissionersRecommended qualities/assets:• Skills to help the agency’s administration
(financial, reporting, legal)• Skills to help the agency’s outreach & marketing
(speakers, media contacts)• Skills to help the agency’s service provision
(service experts, training contacts)
Experience:• Past service to other agencies• Known reputation• Community connections• Knowledge/skills/abilities needed by agency
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Roles and Responsibilities
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Roles and Responsibilities
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Governance: Lines of responsibility
Commissioner Executive Director
• Select and hire an Executive Director
• Evaluate Executive Director performance
• Approve by-laws, resolutions, policies and procedures
• Approve the authority’s budget
• Set basic PHA policies
• Govern PHA
• Manage the day to day operations
of the PHA
• Hire, evaluate, train, and terminate
staff
• Prepare operating budgets
• Resident selection
• Manage facilities and maintenance
• Develop and manage resident
Programs
• Collect rents and enforce terms of
leases
• Procure annual audit
• Advise Board of regulatory changes
• Execute Board approved policies
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Fundamentals of Oversight
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Commissioners should know:
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Public housing historical context
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Established permanent public housing funded by the Federal government
Established the U.S. Department of HUD
Reformed public housing legislative requirements
1937 1965 1998
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Statutes and Regulations• U.S. Housing Act of 1937 as amended
• Amendments to the Act include the Section 8 Housing Choice Voucher Program
• Quality Housing and Work Responsibility Act of 1998
• Fair Housing Act and subsequent civil rights and disability law
• Title 24 Code of Federal Regulations (CFR)
• Annual appropriations law
• State Laws and Local Ordinances
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Annual Contributions Contract (ACC)•A legal binding contract between HUD
and the PHA
•States PHA obligations andremedies for breaches of contract
•Mechanism through which thePHA receives funding
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Obligations under the ACC •Include but are not limited to:
• Cooperation agreements• Operating budgets• Depository Agreements and General Fund• Pooling of funds• Books of account, records, and government
access• Notices, defaults, remedies• Conflict of Interest
• ACC term extends each year funds are accepted
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Remedies under the ACC
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Include but are not limited to:• A reduction in the amount of the HUD payment for any
funding increment
• A reduction in the contract authority or budget authority for any funding increment
• Other available remedies include:• limited denial of
participation
• suspension or debarment of Board or staff
• taking of possession and control of project(s) by HUD
• receivership
• consolidation
• consortia/joint venture
• contracting of operational activities
• Cooperative Endeavor Agreement
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PHA Policies and Procedures• Admissions &
Continued Occupancy Policy (ACOP)
• Section 8 Housing Choice Voucher Administrative Plan
• PHA Plan (Annual and 5 year)
• Others
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Public Housing PoliciesIncluding but not limited to:
• Capitalization• Drug Free Work Place• Financial Management and Internal Controls• Investments• Maintenance• Personnel• Procurement• Property Disposition• Records Retention• Travel• Vehicle
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Programs and Performance
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How PHAs Are Funded
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Federal Sources of Revenue (Restricted)
•Operating Subsidy•Capital Fund•Housing Choice Voucher Housing
Assistance Payments•Housing Choice Voucher Administrative
Fees•Resident Program grants•Development grants
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Know your PHA
• PHA programs (Federal, State, Local)• Number of AMPs and units• Budget• Staff size • Major plans and projects underway• Program performance measures and
scores
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PHA Program Performance
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Section 8 Management Assessment System
Public Housing Assessment System
Measurement Performance in housing choice voucher program
Performance in operations: financial, physical, management, Capital Fund
Scoring High Performer - 90% or more
Standard Performer - 60-90%
Troubled Performer – less than 60%
High performer- 90% or more overall
Standard performer- 60-90%Substandard performer- at least 60% overall with less than 60 for 1+ indicators
Troubled- less than 60% overall
Capital Fund Troubled- less than 50% on Cap Fund indicator
*Emphasis on occupancy as measured by 2 indicators (CFP and MASS)
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Board Oversight Reports*
• Monthly financial report• Summary of income statements for admin and
major programs• Latest bank reconciliation• Check vouchers issued• Tenant accounts receivable
• Monthly asset management report• Occupancy• Modernization schedule and units off-line
*Suggested--Board determines required reports
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Board Oversight Reports*
• Monthly contracting and procurement report▫Obligation and Expenditure deadlines▫Contract awards and progress
• Monthly compliance report▫Outstanding audit findings (financial audits,
HUD, OIG)▫Repayment agreements
*Suggested--Board determines required reports
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The Outcome
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Case Study-FASS Score
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Case Study- MASS Score
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Case Study- Occupancy
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Case Study- P2P
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Peer to Peer Financial Review Anytown Housing Authority FYE 2011
Anytown Housing Authority A DifferenttownHousing Authority Project Total Analysis Project Total Analysis 430 PH Units 435 PH Units
FDS
DescriptionProject Project Project Project
Line Totals Totals % Totals Totals %Number FYE 2010 FYE 2011 Change FYE 2010 FYE 2011 Change70300Net Tenant Rental Revenue $885,223 $560,571 -36.67% $883,987 $920,621 4.14%70400Tenant Revenue - Other $54,381 $44,068 -18.96% $160,583 $176,336 9.81%70500Total Tenant Revenue $939,604 $604,639 -35.65% $1,044,570 $1,096,957 5.02%
70600HUD PHA Operating Grants $1,129,741 $1,117,725 -1.06% $1,926,596 $1,817,232 -5.68%70610Capital Grants $0 $0 $0 $0 70710Management Fee 70720Asset Management Fee 70730Book Keeping Fee 70740Front Line Service Fee 70750Other Fees 70700Total Fee Revenue
70800Other Government Grants $0 $0 71100Investment Income - Unrestricted $2,731 $1,955 -28.41% $11,667 $8,662 -25.76%71200Mortgage Interest Income $0 $0 71300Proceeds from Disposition of Assets Held for Sale $0 $0 71310Cost of Sale of Assets $0 $0 71500Other Revenue $24,471 $24,165 -1.25% $114,355 $126,221 10.38%71600Gain or Loss on Sale of Capital Assets $0 ($15) 72000Investment Income - Restricted $0 70000Total Revenue $2,096,547 $1,748,469 -16.60% $3,097,188 $3,049,072 -1.55%
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Case Study- Budget and Trend Analysis
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Anytown HA Total HA Revenue vs. Expense Analysis 430 PH Units Expense HA HA HA HA HA Description FYE 2009 FYE 2010 FYE 2011 FYE 2012 Case Study Audited Audited Audited Budget 70300Net Tenant Rental Revenue $1,007,895 $885,223 $560,571 $498,780 70400Tenant Revenue - Other $60,048 $54,381 $44,068 $22,500 70500Total Tenant Revenue $1,067,943 $939,604 $604,639 $521,280
70600HUD PHA Operating Grants $1,167,836 $1,189,159 $1,117,725 $664,240 70610Capital Grants $0 $0 $0 $0 70710Management Fee $216,012 $296,810 $350,213 $272,866 70720Asset Management Fee $70,215 $0 $0 $51,600 70730Book Keeping Fee $36,196 $36,285 $38,146 $37,800
CFP Management Fee $0 $0 $0 $0 70740Front Line Service Fee $0 $0 $0 $0 70750Other Fees $0 $0 $0 $0 70700Total Fee Revenue $1,490,259 $333,095 $388,359 $362,266
70800Other Government Grants $0 $0 $0 $0 71100Investment Income - Unrestricted $1,958 $10,601 $15,250 $10,030 71200Mortgage Interest Income $0 $0 $0 $0
71300Proceeds from Disposition of assets Held for Sale $0 $0 $0 $0
71310Cost of Sale of Assets $0 $0 $0 $0 71400Fraud Recovery $0 $0 $0 $0 71500Other Revenue $5,079 $24,471 $95,854 $165,107 71600Gain or Loss on Sale of Capital Assets $2,200 $0 ($15) $0 72000Investment Income - Restricted $0 $0 $0 70000Total Revenue $2,567,439 $1,307,771 $1,104,087 $1,058,683
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Case Study- Trend Analysis
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Expense Anytown Housing Authority Description Total HA Revenue vs. Expenditures
HA HA HA HA FYE 2009 FYE 2010 FYE 2011 FYE 2012 Audited Audited Audited Budget
70500 Total Tenant Revenue $1,067,943 $939,604 $604,639 $521,280
70000 Total Revenue $2,738,166 $3,519,736 $2,746,327 $2,028,141
91000 Total Operating - Admn $791,136 $958,623 $1,027,445 $1,099,911
92000 Asset Mgt Fee $70,215 $0 $0 $51,600
92100 Total Tenant Services $5,658 $0 $37,551 $75,900
93000 Total Utilities $97,781 $105,855 $107,530 $101,360
94000 Total Maintenance $536,462 $666,906 $861,566 $828,242
95000 Total Protective Services $86,792 $95,291 $146,868 $130,000
96100 Total Insurance Premiums $100,071 $101,843 $100,707 $117,644
96200 Total Other General Expenses $114,416 $131,241 $55,482 $70,062
96900 Total Operating Expenses $1,802,531 $2,059,759 2,337,149 2,474,719
97000 Excess (Deficiency) of Revenue over Operating Expenses $935,635 $1,459,977 $409,178 ($446,578)
9000 Total Expenses $2,465,294 $2,706,380 $3,183,727 $2,474,719 Total Expenses Excluding Depreciation $1,834,185 $2,091,442 $2,498,293 $2,474,719
Excess (Deficiency) of Total Revenue (Less Depreciation) $903,981 $1,428,294 $248,034 ($446,578)
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HUD-PIH
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