Additionally, staff was allowing contracts and their funding to carry over into the next allocation cycle. As a result, contractors were operating under two and sometimes three sets of requirements. Management has agreed to base contractual performance goals on the subgrantees' ability to produce and terminate contracts at the end of the contract term. We found that contract monitoring needed to be formalized and performed on a more consistent basis. Several issues were identified that revealed gaps in the methods used to monitor subrecipient compliance.
Management needs to establish file content standards and develop a monitoring schedule.
Staff was not aware that houses had been sold or leased under the housing acquisition and rehabilitation program. Staff approved the sale of a house to an ineligible recipient. Quarterly performance reports were not submitted by one contractor. Contracts were extended past the ending date without formal amendment of the contract. Liens for rehabilitation work were not recorded for every project, and those that were filed sometimes did not reflect the amount of change orders.