oversight

HUD's Supportive Housing Program, Survey of Grantee Monitoring of Project Sponsors

Published by the Department of Housing and Urban Development, Office of Inspector General on 2011-02-16.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

    U. S. Department of Housing and Urban Development 
                                
        Office of Inspector General for Investigation 
                                
            Inspections and Evaluations Division 




            HUD’s Supportive Housing Program 

     Survey of Grantee Monitoring of Project Sponsors 

                       February 16, 2011 
                         IED‐11‐002R 




.
                                         Executive Summary
The Office of Inspector General (OIG), Inspections and Evaluations Division, conducts
independent, objective examinations of U.S. Department of Housing and Urban Development
(HUD) activities, programs, operations, and organizational issues.

We conducted a survey of HUD’s Supportive Housing Program (SHP); specifically, grantee
monitoring of nonprofit subgrantees (project sponsors) that deliver supportive housing and/or
supportive services. OIG investigations of alleged fraudulent activity by employees of project
sponsors raised concerns about oversight on the part of HUD and the grantees. The objective of
the survey was to assess whether SHP grantees followed Federal regulations and HUD guidance
on monitoring project sponsor activities and program expenditures. We also looked at HUD’s
role in grantee monitoring of project sponsors. Questionnaires were sent to all 44 HUD Office of
Community Planning and Development (CPD) regional and field offices and to a sample of 11
SHP grantees and 12 project sponsors.

Survey responses indicated that overall HUD is actively providing monitoring guidance to SHP
grantees and that most grantees reported compliance with Federal regulations related to their
monitoring of project sponsors. Responses to the survey also indicated that improvement is
warranted in certain aspects of HUD’s guidance and the grantees’ monitoring of project sponsor
activities. For example,

       3 CPD offices did not assess grantee monitoring of project sponsors in their jurisdictions,
       17 CPD offices did not provide specific instructions to SHP grantees on their
        responsibility to ensure that project sponsors had not been debarred or suspended from
        participating in Federal programs,
       7 CPD offices reported that not all grantees in their jurisdiction reviewed project sponsors
        to identify possible conflict-of-interest concerns, and
       Standards differed among SHP grantees as to what was considered adequate
        documentation to support project sponsor expenditures.

HUD and SHP grantees identified staffing and funding as primary barriers in meeting their
oversight and monitoring responsibilities. More than half of the CPD field offices cited
inadequate staffing, insufficient funds to pay for onsite grantee monitoring visits, and the lack of
knowledge and program expertise. Several grantees also expressed concern over insufficient
funding to pay for onsite monitoring visits to project sponsors and inadequate staff levels.

Recent passage of the Homeless Emergency Assistance and Rapid Transition to Housing Act
(HEARTH) in 2009 may help to reduce some of the barriers. For example, HEARTH doubled
the percentage of program funds (from 5 to 10 percent) that grantees may use for administrative
costs such as monitoring. The SHP Director expects that the increase should help grantees meet
their monitoring responsibilities. Further, CPD plans to offer additional technical assistance to
help SHP grantees deal with their staffing difficulties.1
1
 At the time of this survey, HUD was preparing proposed regulations and program guidance to codify and
implement the HEARTH Act, including provisions of the Act which incorporates services that were formerly funded
under SHP.

                                                      2
Effective oversight and monitoring are crucial to ensuring that SHP funds are properly spent to
assist in the transition of persons out of homelessness. When SHP grantees accept Federal funds,
they also accept the responsibility to manage the program in accordance with all applicable
Federal and HUD regulations. Therefore, monitoring of grantees and project sponsors that
deliver supportive housing services is essential for program success. In this regard, HUD should
reinforce compliance with Federal regulations and monitoring guidance and ensure that its
monitoring reviews include an assessment of SHP grantee project sponsor management.

We provided a draft copy of the report to the Assistant Secretary for CPD on December 16,
2010. The Assistant Secretary in a memorandum dated January 31, 2011, agreed with our
observations and concurred with the recommendations. OIG considers CPD’s planned corrective
actions to be responsive to our three recommendations. However, the recommendations remain
open pending verification of corrective actions taken. The complete text of CPD’s response is
included in Appendix A to this report.




                                               3
                                                         Table of Contents
Introduction ......................................................................................................................................5

Scope and Methodology ..................................................................................................................6

Observations

     1. Enhancements Needed in Some Areas of HUD and Grantee Monitoring ............................7

     2. Barriers to Effective Grantee Monitoring .............................................................................9

Recommendations ..........................................................................................................................10

Comments and OIG Response .......................................................................................................11

Appendixes

     A. HUD Office of Community Planning and Development’s Comments..............................12

     B. CPD Questionnaire.............................................................................................................13

     C. Grantee Questionnaire ........................................................................................................15

     D. Project Sponsor Questionnaire ...........................................................................................18




                                                                         4
                                                 Introduction
Supportive Housing Program

The Supportive Housing Program (SHP) is one of several homelessness programs authorized by
Title IV, Subtitle C, of the McKinney-Vento Homeless Assistance Act of 1987 as amended.
SHP is designed to develop supportive housing and services that will allow homeless persons to
live as independently as possible. Eligible applicants are State and local governments, public
housing authorities, and private nonprofit entities. As prescribed in 24 CFR (Code of Federal
Regulations) 583.115 and 583.120, program funds may be used for leasing, including paying rent
for entire structures or individual units to provide housing for program participants and/or for
supportive services such as case management and health care. A portion of the grant funds may
also be used by grantees for operations and to cover administrative costs.2 SHP allows grantees
to contract with other organizations, typically nonprofits, to deliver the supportive housing and
services to eligible participants. These nonprofits are referred to as project sponsors.

The following table shows SHP funding by major components for fiscal years (FY) 2008 and
2009.3

                                              FY 2008           No. of          FY 2009            No. of 
               SHP activity                (in millions)       projects      (in millions)        projects 
        Permanent housing for 
        persons with disabilities              $374.1           1,888           $438.9             2,300 
        Transitional housing                   $435.5           2,140           $428.8             2,212 
        Supportive services                    $129.7              829          $132.1                834 
                  Total                        $939.3           4,857           $999.8             5,346 

SHP is administered by the U.S. Department of Housing and Urban Development’s (HUD)
Office of Special Needs Assistance Programs (SNAPS) within the Office of Community
Planning and Development (CPD). SHP management is decentralized, with CPD regional and
field offices being responsible for ensuring that the grantees and project sponsors comply with
applicable Federal laws and regulations and HUD policies and procedures.

Applicable Federal Regulations

Federal regulations for monitoring HUD-funded programs are found in 24 CFR 84.51 for
nonprofits and 24 CFR 85.40 for State and local government agencies. These regulations require
grantees to monitor subgrant-supported activities (e.g., project sponsors). Specifically, 24 CFR
84.51 states that grant recipients are responsible for managing and monitoring each project,
program, and subaward, including compliance with Office of Management and Budget (OMB)
Circular A-133, “Audits of States, Local Governments and Non-Profit Organizations.”
Regulations at 24 CFR 85.40 contain similar language that requires grantees to manage the day-

2
  Federal statute limits the amount of grant funds that may be used by the grantee for administrative costs, such as
monitoring, to not more than 5 percent of the grant award.
3
  FY 2010 SHP funding data were not available at the time of this survey.

                                                           5
to-day operations of grant and subgrant-supported activities to ensure compliance with Federal
requirements and that performance goals are achieved. Section 85.40 also mandates that
grantees submit annual performance reports to HUD. Additionally, 24 CFR 583.330 codifies
Federal regulations related to SHP and cites 24 CFR Part 85, which prohibits conflicts of interest
by grantees and subgrantees. These regulations also reference OMB Circulars A-87 and A-122,
which require that costs incurred by subgrantees using Federal program funds be reasonable and
adequately documented.

                                       Scope and Methodology
We conducted a survey of SHP in response to concerns raised about oversight on the part of
HUD and the grantees. The concerns resulted from Office of Inspector General (OIG)
investigations of alleged fraudulent activity by employees of project sponsors. The objective of
the survey was to assess whether SHP grantees followed Federal regulations and HUD guidance
on monitoring project sponsor activities and program expenditures. We also looked at HUD’s
role in grantee monitoring of project sponsors.

We designed three questionnaires to collect the majority of the information for this survey. One
questionnaire (appendix B) was used to collect information from all 44 CPD regional and field
offices nationwide, covering the 10 HUD regions.4 Four of the offices did not complete the
questionnaire because they did not have any grantees that used sponsors to deliver SHP services
in their jurisdiction. Therefore, the data analyzed were based on 40 completed questionnaires.
The questionnaire covered topics related to the CPD offices’ guidance to SHP grantees on
monitoring project sponsors and their assessment of grantee monitoring in the respective
jurisdiction.

We sent two other sets of questionnaires (appendixes C and D) to 9 SHP grantees5 and 9 project
sponsors that delivered SHP services for these grantees covering 9 of the 10 HUD regions. The
survey responses were supplemented by responses to questionnaires that we tested at two other
grantees and three of their sponsors located in HUD Region 2.6 Therefore, the survey obtained
results from a total of 11 grantees and 12 sponsors. The information collected from the grantee
and project sponsor questionnaires covered the monitoring activities of the selected grantees and
relationships with their project sponsors.

We used data provided by SNAPS to select the 11 SHP grantees for survey. SNAPS provided
information on all SHP grantees that used project sponsors to provide rental assistance and/or
supportive services during the review period, January 2008 through August 2010. They also
provided a list of SHP grantees that were designated as high risk for FY 2010. We also obtained
project expenditure data from HUD’s Line of Credit Control System.



4
  The 50 States, the District of Columbia, and five U.S. territories are divided among 10 HUD regional offices.
5
  In accordance with restrictions placed on Federal agencies by the Federal Paperwork Reduction Act (44 U.S.C.
(United States Code) 35), we were limited to the number of grantees and sponsors that were sent questionnaires.
6
  HUD Region 2 covers the States of New York and New Jersey. The regional office is located in New York City,
with field offices in Buffalo and Newark.

                                                       6
The factors considered in the selection of the 11 SHP grantees were as follows:

      Grantee representation in all 10 HUD regions,
      Grantees that were designated as high-risk grantees in 2010 by CPD based on an annual
       risk assessment conducted by CPD regional and field offices,
      Grantees that had an agreement with a nonprofit sponsor to deliver housing assistance
       and/or supportive services to eligible project participants, and
      SHP funds expenditures between January 2008 and August 2010.

We received a 100 percent response rate from the CPD offices as well as from SHP grantees and
project sponsors. CPD’s Acting Deputy Assistant Secretary for Operations and the SHP Director
assisted in coordinating the transmission of the questionnaire to the 44 CPD regional and field
offices in the country.

We conducted the survey in accordance with the Quality Standards for Inspections adopted by
the Council of the Inspectors General on Integrity and Efficiency.

                                        Observations
Observation 1: Enhancements Needed in Some Areas of HUD and Grantee Monitoring

Survey results showed that CPD regional and field offices play an important and active role in
educating, instructing, and providing guidance to SHP grantees on their federally required
monitoring responsibilities. While the survey indicated that 10 of the 11 selected grantees (with
the exception of one located in New York, HUD Region 2) monitored their project sponsors and
generally complied with the Federal monitoring regulations, it also identified some areas of
grantee monitoring that can be improved.

HUD Guidance Provided to Grantees

HUD fulfills its monitoring role through various means. Responses to the survey indicated that
most of the CPD field offices participate in annual live video startup conferences for new and
existing grantees. These conferences are sponsored by CPD field offices, and the training is
provided by CPD field staff and HUD contractors. The conference curriculum covers topics that
are germane to monitoring, such as SHP project sponsor management, annual progress reports,
eligibility checklists, and financial management. Federal regulations such as 24 CFR Parts 84
and 85 are distributed to the grantees, or the grantees are given Internet links to the material.
Other conference topics include compliance with OMB Circular A-133, conflict-of-interest
issues, and the need for written agreements between the grantee and the project sponsor.

The CPD respondents reported that instructions provided at the annual startup conferences were
continuously supplemented, enforced, and updated through technical assistance provided by
CPD staff or contractors, periodic workshops for grantees and sponsors, and feedback on
grantees’ technical submissions, which is part of the grant application. Additionally, CPD
provides printed material (either hardcopy or via the HUD Web site) to help grantees. The
respondents predominately cited the SHP Desk Guide and the SHP Self-Monitoring Tools as

                                                7
sources that grantees can rely on for guidance on how and what to monitor. In particular, the
Self-Monitoring Tool guide book provides grantees and project sponsors with forms to enable
staff to assess its project operations against the standards set by HUD rules and Federal
regulations. It includes material on how to track eligible activities and expenses and how to
determine and document participant eligibility. Further, this guide book references the Federal
requirements for accounting records and source documents found in 24 CFR 84.21 and 85.20.
These regulations also require that expenditures be supported by source documents such as
cancelled checks, paid bills, payrolls, time and attendance records, contracts, etc.

Exhibit 13-6 of HUD Handbook 6509.2, REV-6 (Community Planning and Development
Monitoring Handbook), includes work steps for CPD offices to assess an SHP grantee’s project
sponsor management, including oversight of the day-to-day operations of project sponsor
activities. Survey results indicated that not all CPD offices followed these work steps when
monitoring SHP grantees for compliance with Federal requirements and the achievement of
performance goals identified in a grantee’s homeless assistance approved application. Three
surveyed respondents reported that they did not perform an assessment of grantee project
sponsor management. By not performing this assessment, they forfeit the opportunity to identify
potential weaknesses with a grantee’s monitoring of project sponsors and to provide needed
corrective assistance. This issue is especially important since the CPD offices focus their
monitoring resources on grantees that are considered high risk and typically conduct onsite
monitoring visits to grantees only once every 2 to 3 years.

The survey results also indicated that CPD offices had not consistently provided guidance on the
Federal regulations prescribed at 24 CFR 84.13 and 85.35, which state that grantees must not
make any award or permit any award to any party which is debarred or suspended. Seventeen
CPD offices reported that they did not provide specific guidance to the grantees on their
responsibility to comply with these regulations. Many of the surveyed respondents stated that
their guidance was accomplished by referring SHP grantees to the applicable regulations.
Further, three surveyed SHP grantees reported that they did not determine whether their project
sponsors had been debarred or suspended. The SHP Director stated that CPD relies on grantees
to verify that project sponsors are not debarred or suspended. The HUD monitoring handbook
does not include a work step for CPD to confirm grantee compliance in this area.

Grantee Monitoring of Project Sponsors

Survey results indicated that the majority of CPD offices (24 of the 40) were basically satisfied
with the monitoring that SHP grantees performed. Overall, grantees have a management system
for oversight and written agreements with their project sponsors. SHP grantees also perform
monitoring steps such as determining whether costs submitted for reimbursement are for eligible
activities and checking rent calculations for payment of subsidies. The results also disclosed that
1 of the 11 surveyed SHP grantees (located in New York, HUD Region 2) reported that it did not
follow HUD guidance on monitoring of project sponsors. The CPD field office recently
conducted a monitoring visit to this grantee and confirmed that the grantee did not comply with
Federal requirements involving the monitoring of project sponsors.




                                                 8
Three SHP grantees attributed their monitoring efforts to uncovering instances in which project
sponsors submitted reimbursement claims for ineligible costs such as personal long distance
phone charges and coffee service for the staff. One of the three grantees terminated the contract
with the responsible project sponsor, and the other two grantees did not reimburse the project
sponsors for the ineligible cost. A fourth grantee determined that two project sponsors were
unable to perform their responsibilities and transferred the projects to other project sponsors.

However, survey results also identified inconsistencies among SHP grantees regarding
compliance with Federal and HUD monitoring requirements. Seven CPD offices reported that
not all grantees in their jurisdiction checked for conflicts of interests. Additionally, results
indicated that not all grantees

      Required written agreements with sponsors,
      Reviewed rent calculations for subsidized living units, and/or
      Verified that project participants lived at the addresses subsidized with program funds.

Further, survey results disclosed inconsistencies in documentation that SHP grantees accepted as
support for project expenses. Six CPD offices reported that SHP grantees accepted nonsource
documents for expenses such as project sponsor-generated vouchers and other accounting
records. One CPD office responded that grantees accepted unverified data reported by project
sponsors in their annual performance reports. While a majority of grantees reported that they
required source documentation from project sponsors such as cancelled checks, paid bills, and
payroll registers, some SHP grantees reported that they accepted nonsource documents including
payroll summaries and cash disbursement journals. Regulations at 24 CFR 84.21 and 85.20
require that expenditures be supported by source documents such as cancelled checks, paid bills,
payrolls, time and attendance records, contracts, etc.

Observation 2: Barriers to Effective Grantee Monitoring

Of the 40 CPD offices surveyed, 16 reported that they were either not satisfied with SHP
grantees or concerned that they might not be doing a satisfactory job of monitoring their project
sponsors. Further, 12 CPD offices indicated that they found instances in which program funds
were used for ineligible costs or unsupported expenditures.

Twenty-one CPD offices identified barriers which they believed hindered a grantee’s ability to
perform effective monitoring of its project sponsors; specifically,

      Insufficient funds to pay for adequate staff and conduct onsite monitoring,
      Staff turnover,
      Lack of knowledge and program expertise, and
      Limited experience in performing monitoring.

Three grantees also expressed concern over insufficient funding to pay for onsite monitoring
visits to project sponsors and inadequate staff levels.



                                                9
Additionally, while 9 of the 11 grantees reported that they conducted onsite monitoring visits to
project sponsors, the monitoring was neither performed on a regular basis, nor were all project
sponsors visited. In particular, project sponsors that are located in large rural areas may not be
visited because of insufficient staffing and lack of travel funds.

Recent Legislation

In 2009, Congress passed the Homeless Emergency Assistance and Rapid Transition to Housing
Act (HEARTH), which reauthorized the McKinney-Vento Homeless Assistance Act of 1987.
The legislation in part consolidates three of the separate homeless assistance programs
administered by HUD under the McKinney-Vento Homeless Assistance Act into a single grant
program.

The eligible activities of the SHP will be combined with the Shelter Plus Care and Single Room
Occupancy Programs’ program activities and services. The primary goal of these programs is to
provide funds to State and local governments and non-profit organizations to offer housing and
supportive services for homeless individuals and families.

The current administration cap for SHP is five percent of the total grant amount. To pay for
additional administrative requirements under HEARTH, such as monitoring, Congress doubled
the percentage from 5 to 10 percent.

The SHP Director acknowledged that limited administrative dollars may present a barrier to
facilitating monitoring responsibilities for many organizations and believes that the increase in
administrative funds through this new legislation should help grantees fulfill their monitoring
responsibilities. The Director is hopeful that grantees will be able to hire additional staff to
manage their funded projects and pay for more regular onsite monitoring. Recognizing that a
number of grantees also have staff capacity problems, CPD plans to offer technical assistance to
grantees that need to enhance their staff, organizational, and financial capacity.

At the time of the survey, HUD was drafting proposed regulations and program guidance to
codify and implement the HEARTH Act, including specific provisions related to Subtitle C –
Continuum of Care Program; which incorporates services that were formerly funded under SHP.

                                      Recommendations
Effective oversight and monitoring are crucial to ensuring that SHP funds are properly spent to
assist in the transition of persons out of homelessness. When SHP grantees accept Federal funds,
they also accept the responsibility to manage the program in accordance with all applicable
Federal and HUD regulations. Therefore, monitoring of grantees and project sponsors that
deliver supportive housing services is essential for program success.

In this regard, we recommend that HUD’s Office of Community Planning and Development

   1. Reinforce compliance with Federal regulations and HUD monitoring guidance;
      specifically, to ensure that SHP grantees

                                                10
       A. Confirm that prospective project sponsors are not debarred or suspended from
          participating in Federal programs before making an award.
       B. Check for any possible conflict-of-interest issues.
       C. Conduct onsite monitoring visits to project sponsors.
       D. Require project sponsors to provide adequate source documentation to support the
          expenditure of SHP funds as prescribed in 24 CFR 84.21 and 85.20.

   2. Ensure that monitoring reviews of SHP grantees include an assessment of grantee project
      sponsor management.

   3. Provide SHP grantees technical assistance and guidance as needed.


                            Comments and OIG Response

We provided a draft copy of the report to the Assistant Secretary for CPD on December 16,
2010. The Assistant Secretary agreed with our observations and concurred with the related
recommendations (Appendix A). We recognize CPD’s efforts to reinforce and improve
compliance with federal regulations and SHP monitoring guidance and consider the planned
corrective actions to be responsive to recommendations 1 through 3. However, the
recommendations remain open pending verification of corrective actions. OIG will follow-up
with CPD to determine the status of the corrective actions taken.




                                             11
Appendix A – HUD Office of Community Planning and Development’s Comments




                                       12
13
14
Appendix B – CPD Questionnaire

                  CPD Regional/Field Office Questionnaire 
                                                         
   Point of contact with your office for possible follow‐up questions.
   Name and position of        Regional/field office       Telephone No.            Email address 
   POC                         location – city/state 
                                
   Question  What type of guidance and/or technical support does your office provide to SHP grantees 
   # 1          under your jurisdiction on the grantees’ responsibility to monitor sponsors that they have 
                agreements with to provide leasing and supportive services to project participants? 
   Answer        
   Question  Identify for the following areas that your office provides guidance or instructions to the 
   #2           grantee as it relates to their relationship with their sponsors. 
                 
   Non‐federal audits in        Conflict of interest       Written agreements        Determining whether 
   compliance with OMB          between employees          between grantee           project sponsors were 
   Circular A‐133.              and individuals and        (recipient) and sponsor  debarred or suspended 
                                entities conducting        (sub‐recipients)          from participating in 
                                business with.             detailing a project       federal programs. 
                                                           sponsor’s 
                                                           responsibilities and 
                                                           obligations. 
                                 
   Question       Does your office provide the SHP grantees with guidance on the type of documentation 
   #3             they should require the sponsor to provide them to support the eligibility of participants 
                  and the expenditures of SHP grant funds?  Describe. 
   Answer          
   Question       As standard procedure, does your office provide to the SHP grantees copies of the 
   #4             Supportive Housing Program Desk Guide and/or the Supportive Housing Program Self‐
                  Monitoring Tools? 
   Answer          
   Question       Does your office’s monitoring of SHP grantees include steps to assess grantee’s 
   #5             monitoring of the sponsors?  Describe. 
   Answer          
   Question       As part of your grantee monitoring, do you also monitor the sponsors? 
   #5a 
   Answer          
   Question #  Since 2008, has your office, through its SHP grantee monitoring, found any instances of 
   6              material misuse of SHP funds by the sponsor and/or possible fraudulent activities by the 
                  sponsor? Describe the circumstances. 
   Answer          




                                                      15
Question        Based on your office’s monitoring of SHP grantees, do the grantees generally have or 
#7              conduct the following monitoring steps? 
Management system for oversight 
of its sponsors? 
Execute written agreements with 
sponsor? 
Review sponsors for evidence of 
conflict of interest? 
Review sponsors’ documentation 
supporting expenditures of SHP 
funds? 
Review sponsors’ system for 
determining the eligibility of 
participants, calculating rent, and 
tracking the participants to ensure 
that they are residing in the SHP 
funded living units? 
Question        Based on your office’s contacts with the SHP grantees and sponsors, have you identified 
#8              any possible barriers or impediments to the grantees’ oversight and monitoring of the 
                sponsors?  If yes, describe. 
Answer           
Question        Based on your office’s oversight of the SHP grantees, are you satisfied that the grantees 
#9              are doing a satisfactory job of monitoring their sponsors? 
Answer           
Question        If not, please explain reasons why.
#9a 
Answer           
Question        Provide any further comments on SHP grantee monitoring of sponsors that you may like 
#10             to add. 
Answer           




                                                    16
Appendix C – Grantee Questionnaire

                                  SHP Grantee Questionnaire  
     
    Please provide responses to the following set of questions for your monitoring of sponsors for the SHP 
    project(s) identified below in Question #1 for the period covered by fiscal year (or program year) 2008 
    through to the present.  
 
        Question # 1          Please provide the following information for each SHP project shown. 
        HUD/SHP Project       Name of         Point of          Telephone and Email       Type of Services 
        Number                Sponsor         Contact for       Contact for Sponsor       Provided 
                                              Sponsor 
                                                                                           
        Question     Describe your management system for the oversight and monitoring of your sponsor(s).
        #2 
        Answer        
        Question     Do you monitor sponsor activities and expenses, as found in HUD’s SHP Desk Guide and 
        #2a          the SHP Self‐Monitoring Tools? Describe how you accomplish this. 
        Answer        
        Question     Do you maintain a separate project monitoring file, as suggested in the HUD/SHP Desk 
        #2b          Guide, for each SHP project? List the documents included in the project monitoring file. 
        Answer        
        Question     As part of your oversight, do you determine whether a prospective sponsor had been 
        #3           debarred, suspended or otherwise excluded from or ineligible for participation in Federal 
                     assistance programs or activities?  Describe how you determine this. 
        Answer        
        Question     Do you review sponsors to determine whether there is any evidence of conflict of 
        #4           interest, either between grantee and sponsor and the sponsor and any contractors or 
                     employees? 
        Answer        
        Question     As recommended in HUD’s SHP Desk Guide, do you have a “sub‐recipient agreement,” 
        #5           which sets out the duties and responsibilities of the sponsor?  
                     If there is a sub‐recipient agreement, please provide a copy 
        Answer        
        Question     Do you conduct monitoring on‐site visits to the sponsor’s place of business and/or 
        #6           location(s) where project participants reside and/or receive supportive services to review 
                     SHP funded program activities and records? Describe. 
        Answer        
        Question     How often do you make site visits? Did you make any monitoring site visits during the 
        #6a          period 2008 to present?  Provide date(s) of these monitoring site visits and identify which 
                     sponsor visited. 
        Answer        
        Question     If you did not make any on‐site monitoring visits to the sponsor(s) from 2008 to the 
        #6b          present, explain why? 
        Answer        
        Question     Do you review how sponsor(s) determined that project participants are eligible to receive 
        #7           SHP funded assistance? Describe how. 
        Answer        
        Question     What documentation do you require from the sponsor to support the homeless status of 
        #7a          each participant? 

                                                          17
    Answer         
    Question      Do you verify that project participants who are receiving rental assistance from the 
    #8            sponsor actually live in the living units being subsidized with SHP funds? Describe how. 
    Answer         
    Question      Do you track the sponsors’ termination of housing and/or supportive services provided to 
    #9            specific project participants? 
    Answer         
    Question      In accordance with 24 CFR 583.300 (b) (11) (d); do you assure that the sponsor providing 
    #9a           supportive services to project participants conducts ongoing assessments of the 
                  participants’ needs and the availability of such services? 
    Answer         
    Question      Do you review calculations made by the sponsor to determine if the rental amount 
    #10           subsidized with SHP funds are correct and reasonable? Describe how. 
    Answer         
    Question      In processing monthly (periodic) claims from sponsor for costs, either advance or 
    #11           reimbursement payments, what documentation do you require from the sponsor to 
                  process payments through HUD’s LOCCS? 
    Answer         
    Question      Do you independently verify the data reported on the sponsor’s Annual Progress Report 
    #12           (APR)? 
    Answer         
    Question #    How do you assure that sponsors are in compliance with the audit requirements 
    13            contained in the Single Audit Act Amendments of 1996 (31 U.S.C. 7501‐7507) and the 
                  revised OMB Circular A‐133, “Audits of States, Local Governments, and Non‐Profit 
                  Organizations.” 
    Answer         
    Question      If the sponsor is not required to submit an A‐133 audit, do you require an annual 
    #13a          independent audit of the sponsor? 
    Answer         
    Question      Through your monitoring activities, have you identified any instances of the sponsor using 
    #14           SHP funds for ineligible costs and/or found instances of sponsor misuse or possible 
                  fraudulent activity?  Please describe. 
    Answer         
    Question      If the misuse of SHP funds and/or possible fraudulent activity was found during your 
    #14a          monitoring, was it reported to your local HUD CPD office or directly to the HUD Office of 
                  Inspector General? 
    Answer         
    Question #    Are there any barriers or impediments to your ability to satisfactorily perform oversight 
    15            and monitoring of your sponsor(s)? Indentify any. 
    Answer         
    Question #    Provide any further comments or observations about monitoring conducted by SHP 
    16            grantees and other related topics, such as HUD guidance for grantee monitoring. 
    Answer         
 
Please provide all monitoring reports (desk reviews and on‐site) prepared by your organization on the 
identified project sponsors, from fiscal (program) years 2008 to the present.   




                                                      18
Appendix D – Project Sponsor Questionnaire

                              SHP Sponsor Questionnaire
 
Please provide responses to the following set of questions as it relates to the grantee monitoring of the 
supportive housing services that your organization provides as a sponsor for the following SHP grantee, 
for the period covered by calendar years (or fiscal year) 2008 through to the present.  
 
    SHP project number             Name of grantee
                                    
    SHP sponsor                    Name, position, and telephone# of sponsor point‐of‐contact 
                                    
    Name of landlord(s) if SHP funds are used to lease living units, and telephone number 
     
    Question      Is your organization a not‐for‐profit or other type of entity?
    #1 
    Answer         
    Question      What type of SHP funded supportive housing services is your organization providing to the 
    #2            project participants at any time during the period of 2008 to present? 
    Answer        Housing assistance (lease/pay rent)              Supportive services
                  Entire structure        Individual units
                   
    Question      Show the amount of SHP funds the grantee actually paid your organization for the years 
    #3            (calendar or fiscal) shown for the supportive housing services you provided to project 
                  participants.   
    Answer        2008                             2009                           2010 (to present) 
    Leasing        
    structure 
    for 
    participant 
    residences 
    Rental         
    assistance 
    for 
    individual 
    living units 
    Supportive   
    services 
    Question      Has your organization ever been debarred and/or suspended from participating in 
    #4            Federally funded programs or activities?   If yes, when and was it terminated prior to your 
                  participation as a sponsor in the SHP? 
    Answer         
    Question      Has the grantee provided you with Federal/HUD regulations on potential conflicts of 
    #5            interest? 
    Answer         
    Question      What guidance has the grantee provided on the types of eligible costs that are covered by 
    #6            SHP funding and the required documentation to support the expenditures?  
    Answer         
    Question      What documentation do you provide to the SHP grantee to support requests for payment 
    #7            for the services you provide? 

                                                       19
    Answer        Leasing structure or individual living units    Supportive services
                  for project participants 
                   
    Question      During the period 2008 to present, did the grantee make monitoring site visits to either 
    #8            your place of business and/or the locations where the project participants reside and/or 
                  receive supportive services? If yes, when? 
    Answer         
    Question      Has your SHP grantee ever found possible misuse of SHP funds and/or fraudulent 
    #9            activities during its monitoring of your organization? 
    Answer         
    Question      Has HUD/CPD ever visited your site and found instances of misuse or fraud involving SHP 
    #9a           funds?   
    Answer         
    Question      Has your organization ever found any misuse or fraud by internal review/audit? 
    #9b 
    Answer         
    Question      Do you provide the grantee with documentation to support the eligibility of your project 
    #10           participants? If yes, describe the documentation provided to the grantee. 
    Answer         
    Question      Do you provide the grantee with documentation to support the calculation on the 
    #11           appropriate rental assistance funded with SHP grant funds? If yes, describe the 
                  documentation provided to the grantee. 
    Answer         
    Question      Do you verify that project participants are actually residing at the address that is 
    #12           subsidized with SHP funds? 
    Answer         
    Question      Does the grantee verify that the project participants reside at the address subsidized with 
    #12a          SHP funds? 
    Answer         
    Question      Has the grantee ever asked for documentation to support the data included in your 
    #13           Annual Progress Report (APR)? 
    Answer         
    Question      Has your organization filed an annual audit report per the audit requirements in the 
    #14           revised OMB Circular A‐133, “Audits of States, Local Governments, and Non‐Profit 
                  Organizations?”  Or other independent annual audit report to the grantee? 
    Answer         
    Question      Identify any problems that the SHP grantee has or may encounter with its oversight and 
    #15           monitoring of the project sponsors. 
    Answer         
    Questions     Provide any further comments or observations about monitoring conducted by SHP 
    #16           grantees and other related topics to your participation as a sponsor in the SHP. 
    Answer         
 
Please provide all correspondence your organization has received from the SHP grantee since fiscal 
(program) years 2008 to the present relating to its monitoring of your SHP activities.  




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