Report 2014-037 Recommendation 8 Responses

Report 2014-037: California Department of Housing and Community Development: Inconsistent Oversight Has Resulted in the Questionable Use of Some Housing Bond Funds (Release Date: September 2014)

Recommendation #8 To: Housing and Community Development, Department of

To maximize the benefits of its on-site review for CalHome, HCD should revise its current risk assessment tool or develop a new tool to identify the recipients that are at high risk of noncompliance with program requirements. For example, HCD could identify recipients as high risk that have received large amounts of funds and have not submitted required status reports for two consecutive periods.

6-Month Agency Response

CalHome has revised its Desk and Operations manuals to include a new risk assessment process to help identify high risk recipients (AF8a, red text). A new Risk Assessment Form and Tracking Report were implemented by management and staff in October 2014 including data points - percentage of grant amount drawn, amount of award, timeliness of report submission, and contract extension request (AF8b).

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

60-Day Agency Response

The CalHome program is developing a new risk assessment tool to help identify high risk recipients. The new assessment tool will include the following recommended categories: percentage of grant amount drawn, amount of award, timeliness of report submission, and contract extension request.

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

All Recommendations in 2014-037

Agency responses received are posted verbatim.