Governance and financial management

1. Governance and financial management Board of Commissioner Training

2. Training Objective To provide the Board with an overview of:

3. Training context

4. 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

5. PHA Governance Basics

6. 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: Leadership Board Proceedings Operational Oversight Financial Oversight Compliance Oversight

7. Knowledge is power- be informed Boards 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

8. Desirable qualities for Commissioners Recommended 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

9. Roles and Responsibilities

10. Roles and Responsibilities

11. 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

12. Fundamentals of Oversight

13. Commissioners should know:

14. Public housing historical context 1937 1965 1998 Established permanent public housing funded by the Federal government Established the U.S. Department of HUD Reformed public housing legislative requirements

15. 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

16. Annual Contributions Contract (ACC) • A legal binding contract between HUD and the PHA • States PHA obligations and remedies for breaches of contract • Mechanism through which the PHA receives funding

17. 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

18. Remedies under the ACC • 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

19. PHA Policies and Procedures • Admissions & Continued Occupancy Policy (ACOP) • Section 8 Housing Choice Voucher Administrative Plan • PHA Plan (Annual and 5 year) • Others

20. Public Housing Policies Including but not limited to: • Capitalization • Drug Free Work Place • Financial Management and Internal Controls • Investments • Maintenance • Personnel • Procurement • Property Disposition • Records Retention • Travel • Vehicle

21. Programs and Performance

22. How PHAs Are Funded

23. 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

24. 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

25. PHA Program Performance

26. 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

27. 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

28. The Outcome

29. Case Study-FASS Score

30. Case Study- MASS Score

31. Case Study- Occupancy

32. Case Study- P2P

33. Case Study- Budget and Trend Analysis

34. Case Study- Trend Analysis

42. HUD-PIH