Finance Committee Meeting February 23, 2011, 1:00 p.m.
Board of Commissioners Chairman Ramiro Cavazos
Vice-Chair Brian Herman
Commissioner Karina C. Cantu
Commissioner Richard Gambitta
Commissioner Yolanda Hotman
Commissioner Stella Burciaga Molina
Commissioner Charles R. Muñoz
Operations and Human Resources Committee Karina C. Cantu, Chair; Charles R. Muñoz, Member; Brian Herman, Member President & CEO Lourdes Castro Ramirez
San Antonio Housing Authority Finance Committee Meeting or Special Board Meeting** of the Board of Commissioners 818 S. Flores Street San Antonio, TX 78204 Wednesday, February 23, 2011 1:00 p.m. The Board of Commissioners will convene for a Committee or Special Board Meeting in the Boardroom located within the San Antonio Housing Authority for discussion and action on the following matters: 1. Meeting called to order. The Board of Commissioners or its committee may hold a closed meeting pursuant to Texas Government Code § 551.071-076 for consultation concerning attorney-client matters, real estate, litigation, personnel, and security matters. The Board or committee reserves the right to enter into closed meeting at any time during the course of the meeting.*
2. Consideration and approval of the minutes held at the December 6, 2010 Finance Committee meeting. 3. Update and discussion regarding the financial report for the San Antonio Housing Authority. (Ed Hinojosa, Chief Financial Officer; Diana K. Fiedler, Director of Finance and Accounting). 4. Update and discussion regarding follow-up items to the 2009-2010 Financial Audit. a) The Internal Audit Annual Plan for FY 2010/2011. (Alejandra Villarreal, Legal and Compliance Officer). b) Review draft of new Conflict of Interest policy. (Paulette Owens-Holmes, Director of Human Resources; Melanie Villalobos, Public Affairs and Personnel Officer; Alejandra Villarreal, Legal and Compliance Officer). 5. Update and discussion regarding the FY 2011-2012 budget process. (Ed Hinojosa, Chief Financial Officer; Diana K. Fiedler, Director of Finance and Accounting). 6. Update and discussion regarding progress on projects funded by the American Recovery and Reinvestment Act (ARRA). (Kathy McCormick, Development Services & Neighborhood Revitalization Officer). 7. Adjournment.
*Note: Whenever the Texas Open Meetings Act (Section 551.001 et seq. Of the Texas Government Code) provides for a closed meeting in matters concerning legal advice, real estate, contracts, personnel matters, or security issues, the Board may find a closed meeting to be necessary. For convenience of the citizens interested in an item preceded by an asterisk, notice is given that a closed meeting is contemplated. However, the Board reserves the right to go into a closed meeting at any other item, whether it has an asterisk or not, when the Board determines there is a need, and a closed meeting is permitted under Chapter 551 of the Texas Government Code that permits the closed meeting. **Note: If a quorum of the Board of Commissioners attends the Committee Meeting, this meeting becomes a Special Meeting of the Board, but no Board action will be taken other than recommendations to the full board, unless the full Board is present.
MINUTES SAN ANTONIO HOUSING AUTHORITY BOARD OF COMMISSIONERS FINANCE COMMITTEE MEETING December 6, 2010 SCHEDULED: 4:00 p.m. at 818 S. Flores, San Antonio, Texas 78204 COMMISSIONERS PRESENT: Karina C. Cantu, Chair Charles R. Muñoz, Committee Member Stella Molina, Commissioner
COMMISSIONERS ABSENT: Ramiro Cavazos, Commissioner Richard Gambitta, Commissioner Brian Herman, Committee Member Yolanda Hotman, Commissioner
COUNSEL: Doug Poneck, Escamilla, Poneck & Cruz, LLP STAFF: Lourdes Castro Ramirez, President & CEO Ed Hinojosa, Chief Financial Officer Alejandra Villarreal, Legal and Compliance Officer Melanie Villalobos, Public Affairs and Personnel Officer Deborah Aleman, Dir. of Non-Profit Housing Michael Bond, Dir. of Public Housing – Families Lori Mendez, Dir. of Public Housing – Elderly/Disabled Corina Wilson, Dir. of Assisted Housing Programs Isaac Carreon, Dir. of Community Development Initiatives
Diana Fiedler, Dir. of Finance & Accounting Chuck Modliszewski, Dir. Tech. & Telecommunications Tim Alcott, Director of In-House Counsel Stacy Padgett, Dir. of Procurement Veronica Guevara, Dir. of Risk Management Jennifer Castillo, Board Liaison Elvira Enriquez, Public Affairs Coordinator Dolores Mueller, Public Affairs Secretary
Meeting called to order. Chair Cantu called the meeting to order at 4:12 p.m.
Presentation and discussion regarding the San Antonio Housing Authority’s annual audit for Fiscal Year 2009-2010. Joel Perez, Marc Sewell and Muriel Rhoder of Padgett Stratemann & Co. LLP identified the key financial performance indicators for the 2009-2010 Fiscal Year audits. The key financial indicators include: •
Current Assets / Current Liabilities (Current Asset Ratio) Company’s ability to pay current liabilities - SAHA’s ratio is 2.1 Anything greater than 1 means the company has the ability to pay off their current liabilities quickly, if necessary
Total Debt / Total Assets (Debt Ratio) Percentage of a company’s debt that are provided by assets - SAHA’s ratio is 0.2 Anything less than 1 means the company has more assets than debt
Debt Service Coverage Ratio = Net Operating Income + Depreciation / Principal and Interest Payments Amount of operating cash flow available to meet annual debt payment requirements SAHA’s ratio is 1.05 Anything greater than 1 means the company has sufficient operating cash to make debt payments
Months Expendable Net Assets Ratio = Current Assets–Current Liabilities / Average Monthly Operating Expenses Available net current assets to cover monthly operating expenses SAHA’s ratio is 3.5 Anything greater than 2 is recommended by HUD to meet operating needs
Recommendations for 2010-2011 Fiscal Year: • In order for SAHA to meet audit requirements, the auditors from Padgett Stratemann & Co. LLP made the following three “best practices” suggestions: Continued enhancement and formalization of the internal audit function Evaluation of the Authority’s conflict of interest policies Continued testing of the disaster recovery plan Item 3:
Update and discussion regarding the Internal Audit Plan for FY 2010-2011. Alejandra Villarreal stated the purpose of an internal audit is to provide independent, objective assurance, auditing, and investigation services to add value, improve internal controls and strengthen the Agency’s operations. The Internal Audit Annual Plan for FY 2010/2011 is being developed using a risk-based assessment approach. The SAHA Legal and Compliance Officer will oversee the internal audit program. Also assisting in this program will be an Assistant Director and an Internal Audit Manager. Staff will also be seeking input and guidance from the Board as the plan is developed.
Presentation regarding the funding outlook and Fiscal Year 2011-2012 budget planning process. Ed Hinojosa reported that for the past two years, SAHA has had a favorable funding environment because of numerous grants and the federal stimulus funding. But the environment is beginning to change due to: (1) continuing economic difficulties; (2) the November mid-term elections; (3) changing public sentiment about government spending; and (4) HUD funding cutbacks. The next few years may bring a difficult funding environment for SAHA. SAHA has begun planning for the new environment by investigating different avenues for funding and identifying various areas in which existing funds may be reappropriated. Additional areas that may help are: (1) bi-annual recertification effective January 1, 2011 will save significant staff time and resources; (2) study rent formula to determine if it can be simplified under MTW; (3) study the possibility of consolidating all wait lists to improve efficiency; (4) analyze the work flow of internal processes; and (5) study other administrative efficiencies.
Adjournment. With no objections, the meeting adjourned at 5:29 p.m.
______________________ KARINA C. CANTU COMMITTEE CHAIR
________________________________ LOURDES CASTRO RAMIREZ PRESIDENT and CEO
SAN ANTONIO HOUSING AUTHORITY
February 23, 2011
Ed Hinojosa, Chief Financial Officer Diana Kollodziej Fiedler, Director of Finance and Accounting
Update and discussion regarding the financial report for the San Antonio Housing Authority
SUMMARY: The Quarterly Financial Report for the San Antonio Housing Authority for the six months ended December 31,2010 is attached. Included in the Financial Report are the following documents:
Report of Revenues and Expenses Balance Sheet Cash and Investment Summary
PROPOSED ACTION: None
FINANCIAL IMPACT: None ATTACHMENTS: Financial Report
Agenda Item NO.3
SAHA FINANCIAL REPORT As of December 31, 2010 (UNAUDITED)
Report of Revenues and Expenses •
Revenues exceeded expenses for the six months ended 12/31/2010 by $4.4 million. The result was better than budget with a favorable variance of $2 million. This variance was caused primarily by receipt of additional ARRA competitive grant funds.
Overall operating expenses were 10% less than expected for the six months ended 12/31/2010. All business sectors contributed to the favorable outcome.
Actual costs for ordinary maintenance expense items are 16% below budget, with favorable variances in both maintenance supplies and service contracts.
Overall net revenue is 5% below budget caused primarily by the deferral of HAP revenue for the period. Excess HAP funding over HAP expenses of $7.8 million is currently deferred and will be recognized over subsequent periods as utilized.
Balance Sheet •
Current Assets increased by $8.1 million caused primarily by a steady increase in the unrestricted cash position held by the Public Housing Sector. Various factors are responsible for the increase including receipt of additional operating subsidy and receipt of the final draw on the Mirasol Hope VI Grant.
Current Liabilities were lower in December of 2010 compared to the prior year because the prior year included a prepayment of January 2010 HAP of $7 million received in December of 2009.
Total Net Assets increased by 7.6% caused primarily by an increase in current assets and decrease in current liabilities as described above.
Cash and Investment Report •
COCC’s cash decreased by $1.4 million largely due to a $1.3 million intercompany reimbursement from Public Housing being processed the first week in January 2011.
Section 8’s unrestricted and restricted cash increased by $3.7 million due to excess HAP subsidy over HAP expense. A $3 million T-Bill was purchased with the excess funds. These excess funds are dedicated to SAHA’s preservation and expansion fund.
The final draw of $822,754 from the CFFP construction account was processed in November 2010.
The Restricted Bond Funds decreased by $1 million due to a debt service payment for Crown Meadows in the amount of $442,000 and an interest payment of $549,000 for the Woodhill apartments.
SAHA FINANCIAL REPORT As of December 31, 2010 (UNAUDITED)
Report of Condensed Statement of Revenues and Expenses ( For the 3 Months Ended 12/31/2010 )
Ordinary Maintenance & Operations
Revenue Tenant Revenue
Miscellaneous Revenue Net Revenue Operating Expenses Salaries and Benefits
Total Operating Expenses
Total Operating Income
Interest Expenses Interest Income
$ (2,262,274) 431,366
Other Income (Expenses)
Total Non-Operating Income ( Expenses)
Income Before Non-Cash Items Non-Cash Items Depreciation & Amortization
Non-Oper Income (Expense) Total Non-Cash Items
Change in Net Assets
SAHA FINANCIAL REPORT As of December 31, 2010 (UNAUDITED)
Comparative Balance Sheet
Assets Current Assets
Other Non-Current Assets Total Assets
Liabilities and Net Assets Current Liabilities Non-Current Liabilities
Net of Related Debt
Restricted Net Assets
Unrestricted Net Assets
Net Assets Invested in Capital Assets,
Total Net Assets Total Liabilities and Net Assets
SAHA FINANCIAL REPORT As of December 31, 2010 (UNAUDITED)
Operating Revenue by Source - Business Type Total Revenue $79,892,950
Grants 27,135,953 33.97%
Tenant Revenue $12,904,538 16.15%
HAP Revenue 37,966,583 47.52%
Tenant Revenue Grants HAP Revenue Miscellaneous Revenue
Miscellaneous Revenue 1,885,877 2.36%
Operating Expenses by Use - Business Type Total Expenses $64,433,728
Salaries and Benefits $14,843,644 23.04%
Ordinary Maintenance & Operations 3,446,067 5.35%
Utilities 3,722,876 5.78% Other Expenses 4,503,064 6.99%
HAP Expenses 37,918,077 58.85%
Salaries and Benefits Ordinary Maintenance & Operations Utilities Other Expenses HAP Expenses
SAN ANTONIO HOUSING AUTHORITY
February 23, 2011
To: From: Presented by:
ai, Legal and Compliance Officer Update and discussion regarding the Internal Audit Annual Plan for FY 2010/2011
PURPOSE: The Internal Audit function provides objective assurance, auditing, and investigation services to add value, improve internal controls and strengthen the Agency's operations. The Internal Audit Annual Plan for FY 2010/2011 is being developed using a risk-based assessment approach. This best practice approach is a systemic, disciplined approach to evaluate and improve program and business process effectiveness. ROLES AND RESPONSIBILITIES: The role of the Legal and Compliance Officer is to oversee the Internal Audit Program. The role of the Assistant Director, Internal Audit will be to assist the Board and Management in the effective discharge of the responsibilities, assessments and improvement of internal controls, risk management and compliance. The Internal Audit Manager will assist the Assistant Director, Internal Audit. Reports of all audits and findings will be brought to the Board Finance Committee for review and input. NEXT STEPS:
The new Assistant Director, Internal Audit position has posted and closed, and the screening process is underway, with the position expected to be filled within the next 30 days. Once onboard, the Assistant Director, Internal Audit will review the draft Audit Charter, developed by the Legal and Compliance Officer, and will conduct discussions with the Board, CEO, SAHA Officers and Division Directors to receive input on areas of concern.
This input, in conjunction with input from the external auditors, will form the Universe of
Auditable Entities formerly provided. The Risk Based Planning Methodology will define the variable factors. The Internal Audit Plan for FY 2010/2011 will be completed within 60 days of the employment of the Assistant Director, Internal Audit.
NEXT STEPS: Staff is seeking input and guidance from the Finance Committee as we develop the Internal Audit Charter. ATTACHMENTS: Attachment #1-Draft Internal Audit Charter
Agenda Item No. 4a
SAN ANTONIO HOUSING AUTHORITY INTERNAL AUDIT CHARTER PURPOSE AND DEFINITION The Offices of Legal Services and Compliance, Internal Audit Division provides independent, objective assurance and auditing, and investigative services designed to add value, improve internal controls and strengthen SAHA’s operations. The Internal Audit Division helps SAHA accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and compliance processes. The "independence" of Internal Audit means that its activities are conducted in a manner free from conditions that threaten its ability to carry out its responsibilities is an unbiased manner. ROLE The primary role of the Internal Audit Division is to assist the Board of Commissioners and the CEO and management in the effective discharge of their responsibilities. Its responsibilities and oversight have been defined by the Finance Committee of the Board and management. The activities of the Internal Audit Division assist SAHA in the assessment and improvement of the effectiveness of the internal control framework, risk management and compliance processes. PROFESSIONAL STANDARDS SAHA is committed to the professional practice of internal auditing. The Internal Audit Division’s responsibilities will be performed in accordance with the generally accepted standards. Any aspects of financial auditing are conducted in accordance to Generally Accepted Accounting Principles (GAAP) or any other standards adopted by SAHA. AUTHORITY AND INDEPENDENCE The Internal Audit Division is authorized to direct a broad, comprehensive program of internal auditing within the organization. The Internal Audit Division shall have full, free and unrestricted access to SAHA’s records, physical properties, personnel, independent auditors and other individuals relevant to an area under review. The Assistant Director of Internal Audit reports administratively to the Legal and Compliance Officer and functionally to the Chair of the Finance Committee and the CEO. This charter provides the framework for the Internal Audit Division, its activities and functions in SAHA as defined by the Finance Committee.
The Internal Audit Division’s objectivity and independence depends largely on having no responsibility for or authority over any of the activities or operations subject to its review. Further, the internal audit review and appraisal does not relieve other personnel in the organization of the responsibilities assigned to them. Internal auditors should not perform any operational duties, develop and install systems and procedures, initiate or approve accounting transactions, prepare records, or engage in any other activity which they would normally review and appraise and which could reasonably be construed to compromise in appearance or fact, the independence and/or objectivity of the internal auditor. SCOPE OF WORK AND RESPONSIBILITIES The scope of work of internal audit is to determine whether SAHA’s work of risk management, control, and compliance processes, as designed and represented by management, is adequate and functioning. The control frameworks are developed with intent to ensure that: • Risks are appropriately identified and managed. • Significant financial, managerial, and operating information is accurate, reliable and timely. • Employees’ actions and transactions are in compliance with internal policies, standards, procedures, and external applicable laws and regulations. • Resources are acquired economically, used efficiently, and adequately protected. • Programs, plans, and objectives are achieved. • Quality and continuous improvement are fostered in SAHA’s control process. • Significant legislative and regulatory issues impacting the SAHA are recognized and addressed appropriately. The Internal Audit Division in conjunction with the Legal and Compliance Officer has a responsibility to: • Develop and execute a flexible annual audit plan using an appropriate riskbased methodology, including any risks or control concerns identified by management, the independent audit firm, or the Finance Committee, and submit that plan as well as periodic updates to the Finance Committee for review and approval. • Implement, as appropriate, any special tasks or projects requested by management and/or the Committee that are consistent with the department’s mission and independence. • Perform advisory services, beyond internal auditing assurance services, to assist management in meeting its objectives. Examples may include facilitation, process design, and training. • Assist in the investigation of significant suspected fraudulent activities within the organization and notify the CEO and the Finance Committee of the results.
• Communicate results of internal audits and recommendations for improvement to the CEO and the Finance Committee and the most senior management responsible for implementing corrective action. Obtain written management responses as to corrective action planned or taken within a specified time from the issuance of the audit reports. Evaluate and monitor the disposition of the proposed actions and their expected effectiveness. Instances of residual risk that may be unacceptable to SAHA be discussed with management and, if unresolved, reported to the CEO and Finance Committee. • Issue periodic reports to the CEO and Finance Committee and management summarizing results of audit activities. • Issue all audit reports to the CEO and the Finance Committee Chair. • The Internal Audit Division in conjunction with the Legal and Compliance Officer will also regularly provide copies of activity reports to management and otherwise ensure that management is informed of the Internal Audit division’s activities. • The budget and staffing levels will be determined as part of SAHA’s annual business planning and budgeting process. The Legal and Compliance Officer, along with the Assistant Director of Internal Audit will report to the CEO and the Finance Committee on a regular basis regarding the adequacy of the department’s staff and budget, and any adjustments that may be made to the audit plan or budget as appropriate during the course of the year. • Maintain a professional audit staff with sufficient knowledge, skills, experience, and professional certifications to meet the requirements of this charter. • Use outside services, where appropriate, to obtain specific expertise which is not available internally to meet the requirements of this charter. • Coordinate with the external auditors, as appropriate, for the purpose of providing optimal audit coverage to the organization at a reasonable overall cost. • Coordinate with other control and monitoring functions within the organization. • Keep the CEO and Finance Committee informed of emerging trends and successful practices in internal auditing. Provide a list of significant measurement goals and results to the CEO and Finance Committee. • Review the organization’s internal audit charter annually with CEO and the Finance Committee. QUALITY ASSURANCE The Assistant Director of Internal Audit in conjunction with the Legal and Compliance Officer shall develop and maintain a quality assurance and improvement program that covers all aspects of internal audit activity. This will enable the evaluation of the conformance of internal audit activities the Code of Ethics. The program will also allow for the assessment of efficiency and effectiveness and identify opportunities for improvement of the internal audit practice. The program will consist of periodic internal and external assessments. The Assistant Director of Internal Audit will present and discuss the results of any assessment with the CEO and Finance Committee.
CHARTER APPROVAL This charter represents the framework for the conduct of the internal audit function at SAHA. It is hereby recommended by the Legal and Compliance Officer for approval executive management and the Finance Committee.
____________________________________ Alejandra I. Villarreal Legal and Compliance Officer Date: _______________________________ Approved:
____________________________________ Lourdes Castro Ramirez Chief Executive Officer Date: _______________________________
Approved by the Finance Committee
____________________________________ Chairman of the Finance Committee
SAN ANTONIO HOUSING AUTHORITY
February 23, 2011 MEMORANDUM
Paulette Owens-Holmes, Director of Human Resources Melanie Villalobos, Public Affairs and Personnel Officer Alejandra Villarreal, Compliance Officer
Update regarding the Conflict of Interest Directive
BACKGROUND The agency's FY 2009-2010 Financial Audit reported that the San Antonio Housing Authority (SAHA) currently addresses Conflict of Interest in several policies, procedures and communications, and recommended the agency consolidate these matters into one, comprehensive Conflict of Interest directive. The Human Resources and Legal and Compliance Departments have collaborated on the attached draft directive, which resulted from reviewing several best-practice templates, incorporating language from existing SAHA procedures, and adding a requirement to annually obtain written disclosure statements from all officers, directors and key management employees. SUMMARY The purpose of the new Conflict of Interest Directive is to establish responsibilities governing outside activities and interests that could pose a conflict of interest with SAHA's general programs and operations. The directive requires that SAHA employees to refrain from participating in activities, employment or enterprises that are, or appear to be, in conflict with public interest laws or regulations and or with his or her duties an employee of the agency. The directive provides notice of activities that SAHA deems incompatible and prohibited, and the violation of which may subject employees to corrective action. Once final and approved, all employees will be required to attend training on the new directive. PROPOSED ACTION: None
FINANCIAL IMPACT: None ATTACHMENTS: Draft Conflict of Interest Directive
Agenda Item No. 4b
SAHA ADMINISTRATIVE DIRECTIVES TITLE: EFFECTIVE DATE: POLICY REFERENCE:
CONFLICT OF INTEREST
Conflict of Interest _______________, 2011 Policy No.
Conflict of Interest I.
The purpose of this directive is to establish the responsibilities governing outside activities and interests that could pose a conflict of interest with the general programs and operations of SAHA. This directive requires SAHA employees to refrain from participating in activities, employment or enterprises which are in conflict with public interest, laws or regulations and/or with his or her duties as an employee of the Authority. This directive provides notice to Employees, including the President/CEO and Executive Staff, of the acts that SAHA deems incompatible and prohibited, violation of which may subject Employees to disciplinary action. II.
The San Antonio Housing Authority administers both Public Housing and Housing Choice Voucher (Section 8) Programs. Under both programs there is an Annual Contributions Contract and under the Section 8 program there are regulations and Housing Assistance Payment (â€œHAPâ€?) contract provisions that govern conflicts of interest. In addition, State-enabling legislation contains supplemental conflict of interest provisions applicable to housing authority commission members and employees. SAHA will follow all applicable statutes related to employment, activities, and/or enterprises that may constitute a real or apparent conflict of interest in the administration of this Conflict of Interest Directive. SAHA adopts the prohibition of outside employment, activities or enterprises included, but not limited to, the acts outlined in Addendum I which contains all of the specific and general legislation related to SAHA employees. A. Employees (including President/CEO and Executive Staff) of the Authority will avoid anything that constitutes a real or apparent conflict of interest as outlined via applicable government codes and through the Conflict of Interest Directive. Further stated, a conflict of interests exists in any situation in which an individual exploits his or her position with SAHA and/or his association with SAHA programs for personal or financial gain. A conflict of interest occurs when an employee compromises professional judgment in carrying out employment responsibilities or public service activities because of an external relationship or situation that directly or indirectly affects the business or creates a financial interest of the employee, an immediate family member or an associated entity. Upon approval and implementation of the Conflict of Interest Directive, all Employees shall complete the Outside Activities and Interests Form (Addendum II) and include the data as outlined therein.
B. No SAHA employee, nor his/her family members, (including father, mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, husband, wife, father in law, mother in law, son in law, daughter in law, brother in law, sister in law, stepfather, stepmother, step son, stepdaughter, stepbrother, stepsister, half brother, half sister) shall knowingly own property that is owned, utilized or subsidized by SAHA under any program sponsored or administered by SAHA, nor may they have a financial interest in any firm doing business with SAHA. C. No SAHA employee will knowingly handle SAHA matters related to his or her own tenant-based case file, or the tenant-based case files of members of their family. In order to assist SAHA in preventing and mitigating conflicts of interest between employees and tenants, all employees, upon hire, and on at least an annual basis will fill out the Outside Activities and Interests Form disclosing the names of family members known by the employee to receive tenant-based services from SAHA. Family members shall include the same lineage list outlined in Section II B above. D. No employee will knowingly supervise a member of his or her own family (including same lineage as listed above in B). In order to assist SAHA in preventing and mitigating conflicts of interest between employees, all employees, upon hire, and on at least an annual basis, will fill out the Outside Activities and Interests form (Addendum II) disclosing the names of family members known to be employed with SAHA or any of its related entities, Should a conflict be discovered, it shall be resolved the same date or no later than 90 days following disclosure or discovery. E. Employees are advised to use due diligence during the purchasing process of real property to determine in advance whether SAHA program participants reside in the prospective real property. Should a conflict exist as it relates to real property, the employee has the responsibility to notify SAHA within 10 business days upon obtaining title to such property and resolve the conflict. F. Upon being notified that a conflict exists, the employee must promptly resolve the conflict by either: 1. Terminating the outside activity or transferring the property; 2. Resigning from SAHA; 3. In the case of familial employment relationships pursuant to C and D above, cooperating in a reassignment that removes the supervisory relationship or case load issue. G. Failure to promptly resolve and or disclose the conflict of interest will result in disciplinary action against the employee up to and including termination. In addition, where applicable, should the Employee also be violating federal, state or local law, SAHA may notify the applicable authorities and cooperate as requested thereafter. III.
RELATIONSHIPS WITH CONTRACTORS, VENDORS AND TENANTS
SAHA wishes not only to eliminate fraudulent activities but also to prevent the threat of fraudulent activities, questionable conduct and irregularities. For purposes of this policy,
fraud is simply defined as a willful deception, misrepresentation or concealment, by statement or conduct or deliberate inaction, in order to gain a benefit or to cause a benefit that is due another to be denied. In order to avoid even the appearance of impropriety, employees are to avoid employment relationships with contractors, firms or other organizations that are known to them to contract with or are in the process to contract with SAHA or any of its affiliates Employment is defined as service performed with or without pay under a written or oral contract, expressed or implied, including service in interstate commerce. An employee may be in conflict if he or she has a relationship with an actual or prospective SAHA (or any of its affiliates) vendor or contractor who is as follows: 1. An officer of the vendor/contractor; or 2. An individual who would be considered an employee of the vendor/contractor or 3. An individual who performs services with or without renumeration which includes activity as a volunteer, barter of services, payment or any other benefit from a vendor or contractor. A. Employees shall not solicit nor accept either directly or indirectly any form of earned or unearned gift, gratuity, contribution, favor, loan, discount, credit, perk or any other such benefit of monetary value from SAHA or its Affiliateâ€™s active or prospective contractors, vendors, and/or tenants from which it reasonably could be substantiated that the gift was intended to influence the Employee in his/her official duties, or was intended as a reward for any official actions performed by the Employee. A nonmonetary gift having a value of less than $50 and which reasonably could be substantiated as not having been offered in any way to influence the Employee in his/her official duties, and not intended as a reward for any official actions performed by the Employee, will be excluded from this prohibition. Further, free admission and similar non-cash nominal benefits provided to an Employee in connection with his/her attendance at any public or private conference, convention, meeting, social event, meal or like gathering will also be excluded from this prohibition. B. Selling any services and/or products either directly or indirectly, that are not officially sponsored by SAHA to active or prospective contractors, vendors and/or tenants is also prohibited. Employees who solicit and/or accept gifts and other such benefits or sell products and/or services prohibited or not sponsored by SAHA shall be subject to disciplinary action. This section is not intended to regulate candy, cookies, or merchandise of nominal value, which is sometimes displayed and sold in the workplace for a non profit purpose. C. As an exception to item B above, employees partaking in meals and/or entertainment in connection with business operations is acceptable if participation is infrequent and not lavish and the expenditure per vendor or contractor, does not exceed $50 in a calendar month, nor two hundred fifty dollars ($250) in a calendar year. Applicable disclosure regarding such benefit described herein shall be made pursuant to Section VI, Statement of Financial Disclosure (Addendum III) below.
E. Employees are prohibited from using the name and/or resources of SAHA for personal gain. Employees shall not ask to seek to receive a discounted rate, perk, credit or other such benefit due to being employed by and/or associated with SAHA. F. Fraternization with tenants in a way that is detrimental to the landlord-tenant relationship or which otherwise tends to compromise SAHAâ€™s fiduciary relationship with its tenants shall be a conflict of interest and grounds for disciplinary action up to and including termination. Employees are therefore strongly discouraged from entering into romantic relationships with anyone involved in any of the SAHA programs provided or administered by SAHA. IV.
OUTSIDE EMPLOYMENT OR ENTERPRISE
A. SAHA employees will not engage in outside employment that constitutes a real or apparent conflict of interest. Should a conflict of interest be disclosed and/or discovered, the conflict will be resolved within 30 days, pursuant to the guidelines outlined in item F, in Section II above. B. Should any Employee seek to engage in outside employment, as defined by Section III, item A above, he or shall complete the required Employee Disclosure Statement (Addendum III) and receive signed permission from the President and Chief Executive Officer, or designee within ten days prior to engaging in the activity. The signed form will act as confirmation that there is no real or perceived conflict of interest. Should it be discovered that a conflict of interest exists relating to outside employment activities the employee must resolve the conflict within 30 days pursuant to Item F in Section II above. On an annual basis, the employee shall renew any such Employee Disclosure Statement approval that is granted by the President and Chief Executive Officer, or designee. C. The failure of an employee to disclose outside employment that reflects a real or perceived conflict of interest shall result in the automatic resignation of the employee from SAHA. V.
An employee using or having access to confidential information, available by virtue of employment with SAHA or one of its affiliates, for private gain or advantage, or providing confidential information to persons whom issuance of this information has not been authorized is strictly prohibited. VI.
The political activities of SAHA employees shall be in accordance with the Hatch Act found in Addendum I, as it relates to the prohibitions and exceptions with regards to employees influencing elections and taking part in political campaign activities. 1. Employees, shall not participate in, nor attend political rallies and political activities or meetings while on duty with SAHA. Employees are prohibited
from engaging in political activity while on duty, in SAHA offices, on SAHA property, wearing an official SAHA uniform and/or using a SAHA vehicle. 2.
No on-duty SAHA employee shall directly or indirectly, knowingly solicit campaign contributions from another SAHA employee to support or oppose the candidacy of any person for elective office or for the recall of any elected official. Nothing shall prohibit an employee from communicating through personal email or other independent means, or requesting campaign funds or contributions from the general public, which may include officers or employees of the Authority.
STATEMENT OF FINANCIAL DISCLOSURE
SAHA has adopted the format of the City of San Antonioâ€™s Financial Disclosure Report (Addendum IV) to be completed annually by any SAHA employee who responds in the affirmative to the questions found on the Outside Interests and Activities Form.
Open Records. Financial disclosure reports are open records subject to the Texas Open Records Act, and shall be maintained in accordance with the Public Information Act.
Annual Filing Date. All Annual financial disclosure reports must be received by the Director of Human Resources by 4:30 p.m. on the 31st day of January. Annual financial disclosure reports filed by SAHA officials who are not SAHA employees and who are required to report must be received by the Director of Human Resources by 4:30 p.m. on the 31st day of March. When the deadline falls on a Saturday or Sunday, or on an official SAHA holiday, the deadline for receipt by the Director of Human Resources is extended to 4:30 p.m. of the next day which is not a Saturday or Sunday or official SAHA holiday. The Director of Human Resources shall grant an extension of time in which to file a report upon written request submitted in advance of the deadline. The extension shall not exceed fifteen (15) days.
Unforeseen Circumstances. In the event of an unforeseen circumstance, including, but not limited to, military service or acute illness or leave without pay under the Family Medical Leave Act, the deadline for receipt by the Director of Human Resources is extended until such time as the SAHA official or employee resumes his/her duties.
Director of Human Resources. The Director of Human Resources shall:
(1)prior to January 15 of each year, notify Housing Authority employees of the need to file the Employee Disclosure Statement (Addendum II) and the Outside Activities and Interests Form (Addendum III) prior to January 31 of each year. Any employee affirmatively responding to any question in the Outside Activities and Interests Form shall then be required to file the financial disclosure reports prior to February 15 of each year. (2) provide forms to all new SAHA employees and advise them of reporting requirements and deadlines; (3)provide guidance and assistance on the reporting requirements for persons required to file financial disclosure reports; (4)review reports for completeness and timeliness; (5)maintain filing, coding, and cross-indexing systems to carry out the purpose of these filings, including making a publicly available list of all persons required to file; and (6)make available for public inspection and copying at reasonable times the reports filed under this administrative directive; (7)upon determining that a SAHA employee has failed to timely file a financial disclosure report, or has filed incomplete or unresponsive information, notify the individual by certified mail that failure to file or correct the filing within fifteen (15) days after the original deadline will result in the matter being forwarded to the SAHA President and CEO. If the person in question fails to file a completed report within 15 days of the original deadline, a report of noncompliance shall be forwarded to the SAHA President and CEO for appropriate action. The failure of the Director of Human Resources to provide any notification required by this Section does not bar appropriate remedial action, but may be considered on the issue of culpability. F.
Contents of Financial Disclosure Reports
Each initial or annual financial disclosure report shall disclose, on a form provided by the San Antonio Housing Authority, the information required by Addendum IV.
ADDENDUM I PART A Section 19(A) of the Public Housing ACC…………………….………………………………2 Section 19(B) of the Public Housing ACC…………………….………………………………3 Section 20 of the Public Housing ACC………………………………………………………..4 Examples of ACC Conflicts of Interest………………………………………………………..5 Additional HUD Regulations……………………………………………………………………5 “The Common Rule” Ethics in Procurement………………………………………………….6
PART B Section 8 Regulation – Tenant Based Assistance…………………..……………………….7 Section 8 HAP Contract – Tenant Based Assistance……………….……………………….8 Section 8 HAP Contract – Moderate Rehabilitation Program………………………..…..…9 Section 8 ACC – Moderate Rehabilitation Program………………………………………....9 Section 8 – Project Based Assistance……………………………………………………….11
PART C Hatch Act………………………..………………………………………………………………11
Part D Texas Conflict of Interest Provisions…………………………………….………..………….12
Part A of this Directive addresses Public Housing conflict of interest provisions while Part B addresses Section 8 conflict of interest provisions. Part C describes Hatch Act requirements and provides a sample form to be used when requesting waivers of exceptions to conflict of interest prohibitions. Part D describes state law relating to applicable conflicts of interest. PART A – PUBLIC HOUSING
Section 19(A) of the Public Housing ACCContracts and Arrangements with Individuals
Section 19(A) of the 1995 Public Housing ACC 1 provides: “(A)(1) In addition to any other applicable conflict of interest requirements, neither the HA nor any of its contractors or their subcontractors may enter into any contract, subcontract, or arrangement in connection with a project under this ACC in which any of the following classes of people has an interest, direct or indirect, during his or her tenure or for one year thereafter: “(i) Any present or former member or officer of the governing body of the HA, or any member of the officer’s immediate family. There shall be excepted from this prohibition any present or former tenant commissioner who does not serve on the governing body of a resident corporation, and who otherwise does not occupy a policymaking position with the resident corporation, the HA or a business entity. “(ii) Any employee of the HA who formulates policy or who influences decisions with respect to the project(s), or any member of the employee’s immediate family, or the employee’s partner. “(iii) Any public official, member of the local governing body, or State or local legislator, or any member of such individual’s immediate family, who exercises functions or responsibilities with respect to the project(s) or the HA. “(2) Any member of these classes of person must disclose the member’s interest or prospective interest to the HA and HUD. “(3) The requirements of this subsection (A)(1) may be
PHAs should follow the conflict of interest provisions in the ACC they are currently utilizing.
waived by HUD for good cause, if permitted under State and local law. No person for whom a waiver is required may exercise responsibilities or functions with respect to the contract to which the waiver pertains. “(4) The provision of this subsection (A) shall not apply to the General Depository Agreement entered into with an institution regulated by a Federal agency, or to utility service for which the rates are fixed or controlled by a Sate or local agency. “(5) Nothing in this section shall prohibit a tenant of the HA from serving on the governing body of the HA.” Requests for waivers of this provision must be approved by HUD Headquarters. Field offices will perform the first review of such requests and submit recommendations to HUD Headquarters. Section 19(B) of the Public Housing ACCNepotism Restrictions
Section 19(B) provides: “(B)(1) The HA may not hire an employee in connection with a project under this ACC if the prospective employee is an immediate family member of any person belonging to one of the following classes: “(i) Any present or former member or officer of the governing body of the HA. There shall be excepted from this prohibition any former tenant commissioner who does not serve on the governing body of a resident corporation, and who otherwise does not occupy a policymaking position with the HA. “(ii) Any employee of the HA who formulates policy or who influences decisions with respect to the project(s). “(iii) Any public official, member of the local governing body, or State or local legislator, who exercises functions or responsibilities with respect to the project(s) or the HA. “(2) The prohibition referred to in subsection (B)(1) shall remain in effect throughout the class member’s tenure and for one year thereafter. “(3) The class member shall disclose to the HA and HUD the member’s familial relationship to the prospective employee. “(4) The requirements of this subsection (B) may be waived by the HA Board of Commissioners for good cause, provided
that such waiver is permitted by State and local law. “(C) The requirements of subsections (A) and (B) of this section do not apply to contracts entered into by an Indian Housing Authority, its contractors or subcontractors, although such contracts remain subject to other applicable conflict of interest requirements. 2 “(D) For purposes of this section, the term ‘immediate family member’ means the spouse, mother, father, brother, sister, or child of a covered class member (whether related as a full blood relative, or as a ‘half’ or ‘step’ relative, e.g., a halfbrother or stepchild).” A PHA’s Board of Commissioners considering the issuance of a waiver of this section pursuant to section 19(B)(4) should ensure that its determination of “good cause” is well documented. Section 20 – Interest of Section 20 of the Public Housing ACC provides: a Member or Delegate to Congress “No member of or delegate to the Congress of the United States of America or resident commissioner shall be admitted to any share or part of this ACC or to any benefits which may arise from it. (As used in this section, the term “resident commissioner” refers to an individual appointed to oversee a territory or possession of the United States of America, e.g., Guam.)” Examples of Conflicts 1.) Contracts – including hiring or employment contracts Under Sections 19 and – entered into between a housing authority and a 20 of the ACC family member of a housing authority official – for example, where a member of the Board of Commissioners is the parent of an individual who is being considered for employment as the housing authority’s director of facilities. See section 19(A)(1)(iii) of the ACC. 2.) Contracts between a housing authority and a former housing authority board member or official whose tenure ended less than one year ago. 3.) Contracts between a housing authority and a member of the local governing body or other public official.
Note that although this provision remains in the ACC, it has no force and effect, since all Indian housing assistance is now provided under the Native American Housing Assistance and Self-Determination Act of 1996, 25 U.S.C. 4101 et seq.
4.) PHA employees seeking election to local governmental boards and offices, such as a city council or board of selectmen, if such boards and offices exercise authority over housing authority operations. Employees may seek election but if elected, may have to resign. 5.) A PHA employee engaged in simultaneous service on the Board of Commissioners of his or her PHA. The individual may have to take a leave from his or her board position to serve temporarily as a PHA official. 6.) Any conflict of interest situation prohibited by State or local law, including but no limited to the conflict of interest prohibitions set forth in State PHA enabling legislation. The above list is intended to be illustrative of some situations that would give rise to conflict of interest issues. Each situation must be evaluated in light of the particular facts and local law. Additional Public Housing Regulations
Another HUD regulation, 24 C.F.R. § 964.145 sets forth conflict of interest requirements applicable to resident council officers. Also, the regulations pertaining to the Mixed Finance Development of Public Housing Units, found generally at 24 C.F.R. § 941.600, provide that the PHA must certify, in its mixed-finance proposal that it will “use an open and competitive process to select the partner and/or the owner entity and shall ensure that there is no conflict of interest involved in the PHA’s selection of the partner and/or owner entity used to develop and operate the proposed public housing units.” See § 941.606(n)(1)(ii). Additional requirements are set forth at § 941.606(n)(1)(ii)(A) and (B). Also there is the necessity to adhere to conflict of interest requirements in selection of legal counsel.
Section § 85.36 (“The Common Rule”)Ethics in Procurement
Inasmuch as the responsibilities of a housing authority involve the expenditure of monies in procurement activities funded wholly or in part through HUD, 24 C.F.R. § 85.36 also applies. This regulation frequently referred to as “the Common Rule,” establishes a uniform scheme for ensuring the propriety of procurement activities of grantees and sub grantees that receive grants from federal agencies. 3 PHAs should also note that the Common Rule applies to expenditures of grant funds for the purposes of obtaining
Because Section 8 housing assistance payments are not grants, they are not subject to 24 C.F.R. Part 85.
legal counsel. Moreover, PHAs are required to include as a part of their construction contracts Form HUD-5370 (“General Conditions of the Contract for Construction- Public Housing Programs”), which contains provisions intended to implement the antikickback requirements of the Common Rule. In particular, the Common Rule, at 24 C.F.R. § 85.36, provides in pertinent part as follows: “(b) Procurement standards. (1) Grantees and sub grantees will use their own procurement procedures which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in this section. “(2) Grantees and sub grantees will maintain a contract administration system which ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. “(3) Grantees and sub grantees will maintain a written code of standards of conduct governing the performance of their employees engaged in the award and administration of contracts. No employee, officer or agent of the grantee or sub grantee shall participate in selection, or in the award or administration of a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: “(i) The employee, officer or agent, “(ii) Any member of his immediate family, “(iii) His or her partner, or “(iv) An organization which employs, or is about to employ, an of the above, “has financial or other interest in the firm selected for award. The grantee’s or sub grantee’s officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors or parties to sub agreements. Grantee and sub grantees may set minimum rules where the financial interest is not substantial or the gift is an unsolicited item of nominal
intrinsic value. To the extent permitted by State or local law or regulations, such standards or conduct will provide for penalties, sanctions, or other disciplinary actions for violations of such standards by the grantee’s and sub grantee’s officers, employees, or agents, or by contractors or their agents. The awarding agency may in regulation provide additional prohibitions relative to real, apparent or potential conflicts of interest.” Also, 24 C.F.R. § 85.36(i) requires that certain contracts of grantees and sub grantees include, among other requirements, a provision that expressly mandates: “(4) Compliance with the Copeland “Anti-Kickback” Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 C.F.R. Part 3). (All contracts and sub grants for construction or repair.)” PART B Section 8 Tenant Based Assistance Regulation – Housing Choice Voucher Program
HUD’s Section 8 regulation at 24 C.F.R. § 982.161 is a conflict of interest provision applicable to PHAs that administer Section 8 Tenant-Based Assistance. This provision and its subsections fall within 24 C.F.R. part 982, whose heading is “Section 8 Tenant Based Assistance: Housing Choice Voucher Program”. Captioned “Conflict of Interest,” 24 C.F.R. § 982.161 provides: “(a) Neither the PHA nor any of its contractors or sub contractors may enter into any contract or arrangement in connection with the tenant-based programs in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter: “(1) Any present or former member or officer of the PHA (except a participant commissioner); “(2) Any employee of the PHA, or any contractor, sub contractor or agent of the PHA, who formulates policy or who influences decisions with respect to the programs; “(3) Any public official, member of a governing body, or State or local legislator, who exercises functions or responsibilities with respect to the programs: or “(4) Any member of the Congress of the United States.
“(b) Any member of the classes described in paragraph (a) of this section must disclose their interest or prospective interest to the PHA and HUD. “(c) The conflict of interest prohibition under this section may be waived by the HUD field office for good cause.” The PHA should not execute the HAP contract until the HUD Field Office makes a decision on the waiver request. Section 8 HAP Contract Housing Choice Voucher Program
The Section 8 HAP contract for the Housing Choice Voucher Program, between the PHA and the owner of a unit occupied by an assisted family details the types of interests that are prohibited under the contract. Section 13 of the HAP contract refers to those classes of persons mentioned in § 982.161(a) as “covered individuals” and further provides: “(b) A covered individual may not have any direct or indirect interest in the HAP contract or in any benefits or payments under the contract (including the interest of an immediate family member of such covered individual) while such person is a covered individual or during one year thereafter. “(c) ‘Immediate family member’ means the spouse, parent (including a stepparent), child (including a stepchild), grandparent, grandchild, sister or brother (including a stepsister or stepbrother) of any covered individual. “(d) The owner certifies and is responsible for assuring that no person or entity has or will have a prohibited interest, at execution of the HAP contract, or at any time during the HAP contract term. “(e) If a prohibited interest occurs, the owner shall promptly and fully disclose such interest to the PHA and HUD. “(f) The conflict of interest prohibition under this section may be waived by the HUD field office for good cause. “(g) No member of or delegate to the Congress of the United States or resident commissioner shall be admitted to any share or part of the HAP contract or to any benefits which may arise from it.”
Section 8 HAP Contract- Moderate Rehabilitation
There are two different versions of Moderate Rehabilitation HAP Contracts. However, the conflict of interest provision reads the same:
Program “No present or former member of officer of the PHA (except tenant-commissioners), no employee of the PHA who formulates policy or influences decisions with respect to the Section 8 Program, and no public official or member of a governing body or State or local legislator who exercises functions or responsibilities with respect to the Section 8 Program, shall have any direct or indirect interest, during his or her tenure or for one year thereafter, in this Contract or in any proceeds or benefits arising from the Contract or in any proceeds or benefits arising from the Contract. This provision may be waived by HUD for good cause.” There is also a provision entitled “INTEREST OF MEMBER OR DELEGATE TO CONGRESS” “No member of or delegate to the Congress of the United States of America or resident commissioner shall be admitted to any share or part of this Contract or to any benefits arising from the Contract.” Section 8 – Moderate Rehabilitation Program- ACC
The conflict of interest provision in the ACC for the Moderate Rehabilitation program is found in Part II. Terms and Conditions of the ACC section 2.18 “Interests of Members, Officers, or Employees of PHA, Members of Local Governing Body, or other Public Officials. “(a) Neither the PHA nor any of its contractors or their sub contractors shall enter into any contract, sub contract, or arrangement, in connection with any Project in which any of the following classes of persons has an interest, direct or indirect, during tenure or for one year thereafter: “(1) any member or officer of the PHA except those members or officers who have an interest in the Section program by reason of their tenancy in a Section 8 unit, or “(2) any employee of the PHA who formulates policy or who influences decisions with respect to the Section 8 Program or “(3) any public official, member of a governing body, or State legislator who exercises functions or responsibilities with respect to the Section 8 program” “(b) Any members of the classes described in paragraph (a) must disclose their interest or prospective interest to the PHA and HUD and may, with appropriate justification, if consistent with State law, apply through the PHA to HUD for a waiver.
“(c) No person to whom a waiver is granted shall be permitted (in the capacity as member of class described in paragraph (a)) to exercise responsibilities or functions with respect to an Agreement or Contract executed, or to be executed, on his or her behalf, or with respect to an Agreement or a Contract to which this person is a party. “(d) Notwithstanding the provisions of paragraphs (a) through (c), a PHA responsible for the administration of the Contract may, with prior HUD approval and pursuant to a contract between the PHA and the Owner of existing housing or moderately rehabilitated units exercise management and maintenance responsibilities with respect to the units covered by Contracts. “(e) The PHA and contractors and sub contractors shall insert in all contracts, sub contracts, and arrangements entered into in connection with any Existing Housing or Moderate Rehabilitation Project or any property included or planned to be included in any Project, and shall require its contractors to insert in each of its sub contracts, the provisions of paragraphs (a) through (e). “(f) The provisions of paragraphs (a) through (e) of this section shall not be applicable to the Depositary Agreement, or utility service the rates for which are fixed or controlled by a governmental agency.” The provision “INTEREST OF MEMBER OR DELEGATE TO CONGRESS” as stated in the Moderate Rehabilitation HAP contract, also appears in this ACC. Section 8 – Project Based Assistance Contracts
For PHAs that administer Project-Based Assistance 4, there are many different HAP contracts, and HAP conflict of interest provisions (with various section numbers). Also, PHA conflict of interest provisions are embedded in various ACC forms (e.g. the Housing Finance Agency ACC for a project of New Construction/Substantial Rehabilitation). For PHAs who are new Contract Administrators for the Project-Based Section 8 Program, there is a special form of ACC with a significantly different conflict of interest clause. When faced with a conflict of interest issue for Project-Based Assistance contracts that administered by the PHA, be sure to check the particular HAP contract and the ACC to ensure a complete review of any applicable conflict of interest
Not to be confused with Project-Based vouchers, for which the standard voucher provision applies.
provisions. PART C Hatch Act Provisions Applicable to SAHA Employees
The Hatch Act may also apply, in many instances (see, e.g., 5 U.S.C. §§ 1501 – 1508), to the political activities of certain state and local employees. The activities in which such employees may or may not engage are detailed in the Hatch Act. The Office of Special Counsel operates a website that provides guidance concerning Hatch Act issues at www.osc.gov. PHA employees with questions about the Hatch Act’s application to their activities are strongly urged to contact the Hatch Act section of the Federal Office of Special Counsel to seek a written opinion. They may do so by calling 1-800-85-HATCH and asking to speak to a Hatch Act Counselor or by sending an e-mail to email@example.com. Such an opinion should be sought prior to engaging in the questionable activities, of course, and it is essential that PHA staff understand that only the Office of Special Counsel, not local HUD staff, is authorized to render an authoritative opinion on the Hatch Act.
PART D Texas Conflict of Interest Provisions Applicable to SAHA Employees
OUTSIDE ACTIVITIES AND INTERESTS FORM Addendum II In order to safeguard the activities and assets of the San Antonio Housing Authority, employees of San Antonio Housing Authority should not have interests in outside businesses which conflict or appear to conflict with their ability to act and make independent decisions in the best interest of the San Antonio Housing Authority. An employee is considered to have an interest in an outside business if the employee or any member of his/her immediate family holds any ownership in the business or its property; furnishes goods or services to the business; is a creditor, employee, agent, officer, director, or consultant of the business. â€˜Outside businessesâ€™ include any person, firm, corporation, or government agency that sells or provides a service to, purchases from, or competes with the San Antonio Housing Authority. At the time of hire, and annually thereafter, all employees will be required to complete the following Outside Activities and Interests Form (Addendum III). In the event that there are affirmative responses to this Addendum III, the employee shall be required to complete within thirty days, the Financial Disclosure Report (Addendum IV). Excluded are investments in the securities of a bank, public utilities, and transportation companies subject to regulations by government authority or a mutual fund or investment company, or securities listed on a national securities exchange or customarily bought and sold at least once a week in the over-the-counter market or in which the employee and/or his or her family have less than $10,000 invested, at cost or market value, or hold less than one percent of such outstanding securities. A. Do you or any member of your immediate family hold any "interest" in an "outside business" in such terms as defined above (check only one)?  YES
If YES, please describe: ________________________________________________ ____________________________________________________________________ B. Do you have any other relationships that might reasonably be regarded as creating a possible conflict of interest (check only one)?  YES
If YES, please describe: ________________________________________________ ________________ _______________________________ __________________________ DATE EMPLOYEE NAME EMPLOYEE SIGNATURE
EMPLOYEE DISCLOSURE STATEMENT Addendum III PURPOSE: Pursuant to SAHA requirements, all employees must disclose any employment with third-parties. Additionally, employees must disclose any outside activities which may be a conflict of interest or which may be perceived to be a conflict of interest. In addition, employees must disclose any other employment, payment, consulting fees, and non-monetary compensation from any other housing authorities, housing-related entities, their vendors, and others undertaking housing related-activities. Such employment, payment, consulting fees, and non-monetary compensation may not be undertaken without prior approval of the President and CEO. PART A: TO BE COMPLETED BY ALL EMPLOYESS: 1. Employee Name_____________________________________________ 2. Job Title___________________________________________________ 3. Describe all outside activities, include any other employment:
4. Have you been employed by any housing authority other than SAHA, any housing entity, the vendors or others undertaking housing related activities? YES_____ or NO_____ If yes, please explain______________________________________________
5. Have you or will you receive any payment, fee, or non-monetary compensation from a housing authority other than SAHA, housing-related entity or housing related vendors or others? YES___ or NO____ If yes, please explain______________________________________________
I am aware that in accordance with Conflict of Interest policies, I am required to complete this disclosure statement and to update it at any time that I am aware of a change in information to which this disclosure applies. The CEO or designee will either approve or deny the outside activity based on SAHA requirements and will advise me in writing once review has been completed. I am also aware that based on the answers to these questions, I may be asked to submit a more comprehensive financial disclosure. I also understand that failure to fully disclose the information requested herein may be grounds for disciplinary action, including termination of my employment. The information contained in this disclosure is true and accurate.
________________ _______________________________ __________________________ DATE EMPLOYEE NAME EMPLOYEE SIGNATURE
Addendum IV FINANCIAL DISCLOSURE REPORT 1.) The reporting partyâ€™s name and position at SAHA: __________________________________________________
2.) The name of any person related as parent, child, (except a child who is a minor), or spouse to the reporting party: ______________________________________________________________________ __________________________________________________________________
3.) The name of all members of the reporting partyâ€™s household: ______________________________________________________________________ __________________________________________________________________
4.) The name of any employer of any household member : ______________________________________________________________________ ___________________________________________________________________
5.) The name of any business entity (including self employment in the form of a sole proprietorship under a personal or assumed name) in which the reporting party or his or her spouse holds an economic interest: ______________________________________________________________________ __________________________________________________________________
6.) The name of any business which the reporting party knows is a partner, or a parent or subsidiary business entity, of a business entity owned, operated, or managed by the reporting party or his or her spouse: ______________________________________________________________________ __________________________________________________________________
7.) The name of any person or business entity from whom the reporting party or his or her spouse, directly or indirectly: ______________________________________________________________________ __________________________________________________________________
8.) The name of each nonprofit entity or business entity in which the reporting party serves as an officer or director, or in any other policy making position: ______________________________________________________________________ __________________________________________________________________
9.) The name of each business entity which has sought SAHA business, has a current SAHA contract or anticipates seeking SAHA business in which any household member is known to directly or indirectly own: ______________________________________________________________________ __________________________________________________________________
10.) The name of any business entity of which any individual or entity disclosed is known to be: ______________________________________________________________________ ______________________________________________________________________ ____________________________________________________________ 11.)
The name of each source of income, other than dividends or interest, amounting
to more than five thousand dollars ($5000) received during the reporting period by the reporting party or his or her spouse:
______________________________________________________________________ ______________________________________________________________________ ___________________________________________________________
12.) The identification by street address, or legal or lot-and-block description, of all real property located in the State of Texas in which the reporting party or his or her spouse has a leasehold interest, a contractual right to purchase, or an interest as: fee simple owner; beneficial owner; partnership owner; joint owner with an individual or corporation; or owner of more than twenty-five (25) percent of a corporation that has title to real property. ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ _____________________________________________________________________
13.) The name of persons or entities to whom the reporting party or spouse owes an unsecured debt of more than five thousand dollars ($5,000.00), other than debts for: ______________________________________________________________________ __________________________________________________________________
14.) The name of each person, business entity, or other organization from whom the reporting party, or his or her spouse, received a gift with an estimated fair market value in excess of fifty dollars ($50) during the reporting period and the estimated fair market value of each gift .________________________________________________________________
I am aware that in accordance with Conflict of Interest policies, I am required to complete this disclosure statement and to update it at any time that I am aware of a change in information to which this disclosure applies. I understand that failure to fully disclose the information requested herein may be grounds for disciplinary action, including termination of my employment. The information contained in this disclosure is true and accurate.
____________________ ___________________________________ __________________________________ DATE EMPLOYEE NAME EMPLOYEE SIGNATURE
SAN ANTONIO HOUSING AUTHORITY
February 23, 2011
MEMORANDUM To: From:
Ed Hinojosa, Cftiet Financial Officer Diana Kollodziej Fiedler, Director of Finance and Accounting
Update and discussion regarding the FY 2011-2012 budget process
SUMMARY: The FY 2011-2012 budget process began in late November and is proceeding on schedule. Managers have been working diligently to produce operating budgets for their areas of responsibility. This Friday, February 18, 2011, marks the deadline for all proposed budgets and staffing plans to be submitted to the budget staff. After that, the budget staff will begin a review to assure budget accuracy and reasonableness. Next, a series of meetings will be triggered and budgets will be further refined. In April, a further review by Directors will be scheduled and budgets will have to be defended in Management Committee Meetings. The draft budget will be presented to the Board of Commissioners in a budget workshop scheduled for May. After that final review, budgets will be finalized and presented at the June Board of Commissioners meeting for approval. As you are likely aware, on Monday, February 14, 2011, President Obama issued the Administration's proposed federal budget for FY 2012. Our initial impression is that funding looks favorable for Public Housing Agencies (PHA) in general in the Administration's proposed budget; however, the HUD budget does propose the possible recapture of Public Housing Cash Reserves and we are analyzing this carefully. We will continue to monitor funding discussions and changes closely and will incorporate adjustments into our budget planning as necessary. PROPOSED ACTION: None
FINANCIAL IMPACT: None ATTACHMENTS: Fiscal Year 2012 Budget Process
Agenda Item NO.5
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SAN ANTONIO HOUSING AUTHORITY
February 23, 2011
Fiscal Year 2012 Budget Process .
November 2010 0 Staffing Plans made available to SAHA Departments
January 2011 0 Staff budget training and data entry 0 Operating Budgets reviewed by Management staff
February 2011 0 Budgets reviewed by Directors 0 Operating Budgets reviewed by Finance
April 2011 0 Budgets and Department Performance Goals reviewed by Executive and Budget Committees
May2011 0 BudgetRevisionsand Preparationof BoardPacket 0 BudgetWorkshopfor Boardof Commissioners
June 2011 0 Consolidated budgets presented to the Board of Commissioners for consideration and approval
July 2011 0 Budgets Implemented
SAN ANTONIO HOUSING AUTHORITY
February 23, 2011 MEMORANDUM
Update and Discussion regarding progress on projects funded by the American Recovery and Reinvestment Act (ARRA)
SUMMARY: The San Antonio Housing Authority (SAHA) received two rounds of American Recovery and Reinvestment Act (ARRA) grants. The first was a $14.5 million formula grant that is being used for improvements at Lewis Chatham, Fair Avenue, Villa Tranchese, Victoria Plaza, Park View and Marie McGuire apartments. The second was a competitive grant for $5.3 million, which is being used for improvements at properties such as Matt Garcia, Victoria Plaza, and OP Schnabel. We are meeting all targets for spending these funds in accordance with the requirements. Formula Grant The ARRA formula grant required that at least 60% of the $14.5 million grant allocation be spent by March 17, 2011. SAHA will exceed this requirement because the $6.42 million Chatham Apartments modernization is 90% complete and slated to be substantially complete by March 31, 2011. (This date could be affected if any CPS Energy electrical power delivery delays are encountered.) Additional formula grant projects include the elevator and emergency generator work at Fair Ave, Villa Tranchese, Victoria Plaza, Parkview and Marie McGuire, which are 52% complete. The playgrounds, fencing, roofing, HVAC and cabinet upgrades contracts have been substantially completed and moving towards contract closeout. Overall, the stimulus formula grant is 83% expended, which is well ahead of the deadline requirement. Competitive Grants
The ARRA competitive grants have been moving diligently forward with completion of the asbestos abatement required testing and the abatement of Asbestos Containing Materials (ACM) moving forward for implementation. Matt Garcia Apartments is the one project that has moved quicker and has passed the 50% completion mark. The other 12 sites are all contracted with varying stages of progress. ACM's and hidden latent conditions at these properties have required staff to move cautiously forward in order not to impact the budgets for these sites. The competitive grants need to be 60% expended by September 27, 2011. This grant is currently at 8.4% expended. Once ACM is completed in the next 30 days, the interiors contractor can move quicker through expenditures. PROPOSED ACTION: None
FINANCIAL IMPACT: ARRA Formula grant amount = $14,557,802 ARRA Competitive grant amount = $5,350,593 ATTACHMENTS: None Agenda Item NO.6
Matt Garcia窶年ew accessible entry, widened/painted corridor and energy efficient windows to newly painted community spaces
Matt Garcia-Energy efficient windows to newly painted community spaces.
Parkview Apartments-New painted corridor walls on 2nd through 15th floors
Lewis Chatham Apartments-New steel entry upgrades
February Finance Committee Book