Harris County Community Services DepartmentHarris County Community Services Department

Homeless Prevention and Homeless Prevention and Rapid Re-housing ProgramRapid Re-housing Program

Financial GuidelinesFinancial Guidelines

Office of Special Needs Assistance Programs

Office of Community Planning & Development

U.S. Department of Housing and Urban DevelopmentU.S. Department of Housing and Urban Development

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American Recovery and Reinvestment Act of 2009

RequirementsRequirements HPRP funds for the benefit of your program participants must be HPRP funds for the benefit of your program participants must be

issued directly to a third party (e.g., landlord or utility company), issued directly to a third party (e.g., landlord or utility company), NOT directly to program participants.NOT directly to program participants.

Note, 60% of your funds in your agreement with CSD must be Note, 60% of your funds in your agreement with CSD must be expended by July 2011, and 100% by the end of July 2012.expended by July 2011, and 100% by the end of July 2012.

An assisted property may not be owned by the grantee, An assisted property may not be owned by the grantee, Subrecipient or the parent, subsidiary or affiliated organization of the Subrecipient or the parent, subsidiary or affiliated organization of the Subrecipient.Subrecipient.

Funds used for ineligible activities are subject to recapture by CSD Funds used for ineligible activities are subject to recapture by CSD and will be returned to HUDand will be returned to HUD

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Eligible Activity CategoriesEligible Activity Categories

Financial AssistanceFinancial Assistance

Housing Relocation and Stabilization ServicesHousing Relocation and Stabilization Services

Data Collection and EvaluationData Collection and Evaluation

Administrative costsAdministrative costs

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Eligible Activities – Four CategoriesEligible Activities – Four Categories

Financial AssistanceFinancial Assistance - Short and - Short and medium term rental medium term rental assistance, assistance, security/utility deposits security/utility deposits payments, moving payments, moving assistance, assistance, motel/hotel motel/hotel vouchersvouchers

Housing Relocation & Stabilization Serv.Housing Relocation & Stabilization Serv. - - Outreach/engagement, case Outreach/engagement, case management, legal services, housing management, legal services, housing search/placement, credit repairsearch/placement, credit repair

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Eligible Activities – Four CategoriesEligible Activities – Four Categories

Data Collection and EvaluationData Collection and Evaluation- Costs related to data collection on - Costs related to data collection on

HPRP clients in HMIS or comparable HPRP clients in HMIS or comparable database, as appropriatedatabase, as appropriate

Administrative costsAdministrative costs- Costs related to accounting of funds, - Costs related to accounting of funds,

audit, preparation of HUD reports, grant audit, preparation of HUD reports, grant administration, staff training on HPRPadministration, staff training on HPRP

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Eligible Activities: Rental and Utility Eligible Activities: Rental and Utility AssistanceAssistance

Total period of assistance cannot exceed 18 Total period of assistance cannot exceed 18 months for rental assistance and 18 months for months for rental assistance and 18 months for utilitiesutilities

Arrears (up to 6 months) but counts toward 18-Arrears (up to 6 months) but counts toward 18-month service periodmonth service period

Rental assistance must comply with HUD’s “rent Rental assistance must comply with HUD’s “rent reasonableness” standard:reasonableness” standard: www.hud.gov/offices/cpd/affordablehousing/library/fwww.hud.gov/offices/cpd/affordablehousing/library/forms/rentreansonablechecklist.docorms/rentreansonablechecklist.doc

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Please don’t forget YOUR GRANT AGREEMENTPlease don’t forget YOUR GRANT AGREEMENT with Harris County.with Harris County.

Eligible Activities: Other Financial Eligible Activities: Other Financial AssistanceAssistance

Security Deposits – Directly to LandlordsSecurity Deposits – Directly to Landlords Utility Deposits – Directly to Utility companies.Utility Deposits – Directly to Utility companies. Moving costs – Directly to movers.Moving costs – Directly to movers. Storage (up to 3 months) – Directly to unit.Storage (up to 3 months) – Directly to unit. Hotel/motel vouchers (up to 30 days)Hotel/motel vouchers (up to 30 days) Direct Services/Project Delivery Staff costs to Direct Services/Project Delivery Staff costs to

issue financial assistance should be included.issue financial assistance should be included. Cost of Inspections for habitability standards; if Cost of Inspections for habitability standards; if

applicable.applicable.

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INELIGIBLEINELIGIBLE Activities: Financial Activities: Financial AssistanceAssistance

Duplicating paymentsDuplicating paymentsYou CANNOT use HPRP funds and another source for the You CANNOT use HPRP funds and another source for the

exact same cost type for same time period. (Check exact same cost type for same time period. (Check HMIS/Coalition)HMIS/Coalition)

Mortgage assistance/costsMortgage assistance/costs Operations costs for housing programsOperations costs for housing programs Assistance longer than 18 monthsAssistance longer than 18 months Direct payments to program participants Direct payments to program participants Payment of credit arrears (credit cards, loans, Payment of credit arrears (credit cards, loans,

etc.)etc.)

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Eligible Activities: Housing Relocation Eligible Activities: Housing Relocation & Stabilization Services& Stabilization Services

Services to assist homeless persons that need Services to assist homeless persons that need temporary assistance to obtain housingtemporary assistance to obtain housing

Services to assist persons at risk of Services to assist persons at risk of homelessness to maintain housinghomelessness to maintain housing

Eligible services:Eligible services: - - Case management; outreach and Case management; outreach and engagement; housing search and engagement; housing search and placement; legal; services; credit placement; legal; services; credit repairrepair

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INELIGIBLEINELIGIBLE Activities: Housing Activities: Housing Relocation & Stabilization ServicesRelocation & Stabilization Services

Non-housing services, such asNon-housing services, such as - - Child careChild care - - Employment trainingEmployment training - - Education (i.e. books, fees, tuition, etc.)Education (i.e. books, fees, tuition, etc.) - Food, - Food, household items, clothinghousehold items, clothing

- Transportation - Transportation (i.e. gas, bus tokens, cabs, etc.)(i.e. gas, bus tokens, cabs, etc.)

- Furniture and appliances- Furniture and appliances

Discharge planning at institutionsDischarge planning at institutions

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Eligible Activities: Administrative CostsEligible Activities: Administrative Costs

Cannot exceed 5% of the grant total. Cannot exceed 5% of the grant total.

Your agreement will indicate how much in Admin Your agreement will indicate how much in Admin funds you are limited to claim.funds you are limited to claim.

Eligible costs:Eligible costs: Pre-award administrative costsPre-award administrative costs Accounting for the use of grant fundsAccounting for the use of grant funds Preparing reports for submission to HUDPreparing reports for submission to HUD Obtaining program auditsObtaining program audits Grantee or sub-grantee staff salaries Grantee or sub-grantee staff salaries

associated with eligible administrative associated with eligible administrative costs, costs, HPRP training for staffHPRP training for staff

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INELIGILIBLEINELIGILIBLE Activities: Administrative Activities: Administrative CostsCosts

Staff costs for issuing financial assistance or Staff costs for issuing financial assistance or providing servicesproviding services

General training (e.g. for case manager to gain General training (e.g. for case manager to gain credentials). credentials). TRAINING MUST BE DIRECTLY TRAINING MUST BE DIRECTLY RELATED TO THE HPRP PROGRAMRELATED TO THE HPRP PROGRAM..

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Financial FormsFinancial Forms Financial resources are available on the following website:

http://www.csd.hctx.net/http://www.csd.hctx.net/

As a “rule of thumb” As a “rule of thumb” GREENGREEN andand WHITEWHITE = = GOGO PINKPINK, , GREYGREY andand YELLOWYELLOW = = NONO!!!!

Please refer to the Sub-recipient Accounting Procedures Please refer to the Sub-recipient Accounting Procedures Manuals provided.Manuals provided.

Also, failure to update the current invoice with any previous adjustments may postpone payment by AT LEAST 2 weeks!!

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Important Notice

Please be advised that “DIRECT DEPOSIT” is available.

Financial MonitoringFinancial Monitoring Mission of Financial MonitoringMission of Financial Monitoring – To obtain reasonable – To obtain reasonable

assurance that program financially performs in assurance that program financially performs in accordance with applicable laws and regulationsaccordance with applicable laws and regulations

Primary Goals of Financial Monitoring:Primary Goals of Financial Monitoring:

To provide Sub-recipient technical assistance.To provide Sub-recipient technical assistance. To ensure production and accountabilityTo ensure production and accountability Assist with and ensure compliance with HPRP and other Federal Assist with and ensure compliance with HPRP and other Federal

regulationsregulations Evaluate organizational and project performance as well as Evaluate organizational and project performance as well as

project viability (financial health, management capacity, project viability (financial health, management capacity, timeliness requirements, etc.)timeliness requirements, etc.)

Financial Monitoring (cont.)Financial Monitoring (cont.)

Financial Monitoring goals are achieved through on-going desk Financial Monitoring goals are achieved through on-going desk monitoring and annual on-site monitoring which follows basic elements:monitoring and annual on-site monitoring which follows basic elements:

1.1. Notification letter – formal notification letter will be send to you 15-30 Notification letter – formal notification letter will be send to you 15-30 days prior to the planned visit including the following:days prior to the planned visit including the following:

Confirmation of the dates for the reviewConfirmation of the dates for the review Scope of monitoringScope of monitoring Information required for review during the visitInformation required for review during the visit Staff needed for interviews or other assistance during the visitStaff needed for interviews or other assistance during the visit

2.2. Entrance conferenceEntrance conference Entrance conferences are held at the beginning of monitoring visits, usually Entrance conferences are held at the beginning of monitoring visits, usually

with the executive director or other top official of the organization, to make with the executive director or other top official of the organization, to make sure the Sub-recipient has a clear understanding of the purpose, scope and sure the Sub-recipient has a clear understanding of the purpose, scope and schedule for the monitoring.schedule for the monitoring.

Financial Monitoring (cont.)Financial Monitoring (cont.)

3.3. Review of support documentation related to the project as well as Review of support documentation related to the project as well as organization’s financial policies and procedures in order to organization’s financial policies and procedures in order to confirm and verify integrity of financial operations and stability of confirm and verify integrity of financial operations and stability of organization’s internal controls.organization’s internal controls.

4.4. Exit conference to present preliminary results of monitoring visit Exit conference to present preliminary results of monitoring visit and provide opportunity for the Sub-recipient to correct any and provide opportunity for the Sub-recipient to correct any misconceptions or misunderstandings.misconceptions or misunderstandings.

5.5. Monitoring results letter is sent to sponsor within 30 days after Monitoring results letter is sent to sponsor within 30 days after visit. visit.

6.6. If there are findings and/or concerns, a response is due to CSD If there are findings and/or concerns, a response is due to CSD 30 days after receipt of results letter30 days after receipt of results letter

Financial Monitoring - Audit ReviewFinancial Monitoring - Audit Review

Financial Monitoring requires a copy of the annual audit to be Financial Monitoring requires a copy of the annual audit to be submitted to CSD for review. There are two main types of auditsubmitted to CSD for review. There are two main types of audit

1.1. Single AuditSingle Audit - OMB Circular A-133 requires recipients that - OMB Circular A-133 requires recipients that expend $500,000 or more of Federal assistance (this amounts expend $500,000 or more of Federal assistance (this amounts consists of all federal funds received and expended by consists of all federal funds received and expended by organization) in one year to have single audit. organization) in one year to have single audit.

2.2. Annual AuditAnnual Audit - If organization doesn’t expend $500,000 or more, - If organization doesn’t expend $500,000 or more, organization must provide CSD with a copy of their regular organization must provide CSD with a copy of their regular financial audit.financial audit.

Please don’t hesitate to seek Technical Please don’t hesitate to seek Technical Assistance, if necessary!Assistance, if necessary!

Technical Assistance