1 BOARD OF COMMISSIONERS TRAINING U. S. DEPT OF HOUSING AND URBAN DEVELOPMENT The Commissioner’s Role April 2009

2 BOARD OF COMMISSIONERS TRAINING SERIES I.The Commissioner’s Role II. The Executive Director’s Role III. Program Management IV. Financial Operations and Oversight V. Physical Facilities and Maintenance VI. Procurement and Contracting Overview VII. Preventing and Resolving Audit Findings VIII. Performance Measures PHAS, MASS, FASS, PASS, SEMAP IX. Conducting an Effective Board Meeting X. Emergency and Disaster Preparedness

3 THE COMMISSIONER’S ROLE

4 THE 4 Ws The objective of this phase of the training series is to help you define your role as commissioner WHO YOU ARE AND YOUR LEVEL OF AUTHORITY WHAT - YOU NEED TO DO TO FULFILL YOUR ROLE - HAPPENS WHEN YOU MAKE DECISIONS WHY YOU MAKE DECISIONS AND ACT WHEN ACTION IS REQUIRED

5 The Commissioner’s Role I.Social Responsibility II.Unique Character and Expectations III.Privileges and Liabilities IV.Role and Responsibility V.Accountability

6 Social Responsibility As a public servant, Commissioner actions should be: Open and transparent Honest Ethical Conducted in a manner to avoid conflicts of interest or apparent conflicts of interest Free of personal or social considerations Based on sound business decisions

7 Social Responsibility Board Members: Serve in accordance with Federal, state and local law, and existing authority policy on conflicts of interest, accountability and delegations of authority. Are prohibited from having direct or indirect financial interests in the assets, leases, business transactions or current professional services of the agency.

8 Social Responsibility May not be offered or receive preferential treatment in the application for or receipt of the HA’s facilities, equipment, (i.e. tools, computers, use of trucks, etc.) and services. May not offer preferential treatment to residents of or applicants for public housing, individuals or businesses doing or seeking to do business with the HA, and the general community.

9 Social Responsibility Confidentiality - Board members must avoid general discussion of issues and problems that should not be public information and that will negatively impact the HC. Ex. Personnel, bids and contracts, resident issues Credibility – Evaluations of your credibility and performance are directly related to : the quality of the decisions you make, your ability to keep appropriate information confidential your personal integrity and standards your ability to make sound business decisions

10 Unique Character and Expectations The Board of Commission is unique because it: Performs a community service Serves without compensation Responsible for a multi-million dollar real estate business, specifically “Property Management”

11 Unique Character and Expectations The HUD Act of 1968 requires that at least one member of the Board be a resident of assisted housing. The Resident member has the same authority, expectations and legal responsibilities as other Board members. Board creation and authorities are derived from state enabling legislation

12 Unique Character and Expectations The expectation of the Board is that you will: Provide decent, safe, and sanitary housing Be financially responsible Make sound business decisions Think Corporate!!

13 Unique Character and Expectations So, who has expectations of the Board? EVERYONE!!  Appointing officials  Fellow commissioners  Executive director and staff  Residents  General public  HUD  You

14 Unique Character and Expectations In summary, Boards and Board Members are to : Be Honest and ethical Be Conscientious, hard working and effective Make sound business decisions Act responsibly Be financially responsible Provide decent, safe, and sanitary housing

15 Privileges and Liabilities Serving on the HA Board is a - A.Privilege – it is an opportunity to: Serve your community Help others Enrich your life through new experiences B.Liability – fulfilling the role : Decisions may have legal and/or adverse consequences Members may be held personally liable for decisions made

16 Roles and Responsibilities The role of the Board is to: Provide responsible leadership Create sound policies and set goals for the agency Comply with federal law and program regulations Comply with state and local law Be informed Fulfill financial and fiduciary responsibilities Monitor accomplishments and evaluate performance of the agency Support the Executive Director [ED] and provide oversight of the ED’s activities and performance

17 Roles and Responsibilities Be a leader: Set a positive example – be a role model. Contribute your time, energy and know how. Understand that you are ultimately accountable for the performance of the agency Do not be a blind unquestioning follower Set high standards for yourself and others.

18 Comply with Federal Law and Program Regulations How do I comply with Federal Law and Program Regulations without being an expert in the program? Hire a qualified Executive Director Ask questions of the Director. Ask to see a copy of the regulation and/or law Attend industry conferences and bring back information to your Board Subscribe to industry publications If it doesn’t feel right, it’s probably not right Do your homework; go to the HUD website... Attend training sessions conducted by the local HUD office

19 Comply with state and local law State laws and local ordinances impact the operation of your housing authority. Ohio Revised Code – Chapter 3735 Metropolitan Housing Authority: Ohio law regarding the creation and operation of public housing authorities. The Ohio Public Records Act and Open Meetings Act (also known as Ohio Sunshine Laws) – describes the obligations for using and retaining records and how a public body is required to conduct business. State and local laws ordinances – procurement, housing construction standards, etc.

20 Be Informed Ensure that meetings are informative and productive: Review Financial Reports Review and understand appropriate documentation for prior to making decisions When needed request additional information prior to the meeting so that you arrive informed ready to informed and participate Utilize Robert’s Rules of Order or other generally accepted procedures in conducting meetings

21 Be Informed Know your housing authority! Know the scope of your housing authority – the types of programs, number of units, budget, staff size and major plans and projects underway and needed improvements Know your PHAS and SEMAP scores Know if you are you a high performing or troubled agency and why. If troubled know what is being done to correct the HA’s performance Hold your Executive Director accountable for performance issues

22 Be Informed Know the physical condition of your PHA! Drive by and look at your facilities Know the scope of your Capital Fund program Are units well-maintained? Are there too many vacant units? Are units vacant for long periods of time?

23 Be Informed Know and understand the HA’s legal responsibilities The Annual Contributions Contract denotes all HA contractual obligations with HUD. Failure to carryout these obligations may result in HUD declaring a default of its contract with the agency. Know the role of your attorney and use the expertise wisely oAttorney’s should not be required to attend every Board meeting oBe aware of the fact that calls and meetings with attorney’s are time consuming and expensive. Stay informed regarding litigation and grievances Know applicable federal, state and local laws

24 Be Informed Know, understand, and monitor the financial condition of the agency Financial statements and reports IPA and OIG Audits Utilize the expertise of your financial staff, fee accountants and auditors. When necessary obtain special briefings and training General Depository Agreement Program insurance requirements Make decisions based on financial facts and related information Make sound business decisions

25 Be Informed Fiduciary responsibilities:  the responsibility to protect and preserve housing resources and assets  an obligation to others to operate the agency in the interest and welfare of others

26 Be Informed To fulfill your fiduciary responsibilities: Establish internal management controls Develop standard operating procedures Codify – if it isn’t written its not official and can’t be enforced Be consistent in carrying out oversight

27 Be Informed - Policies authority By-Laws Personnel Policies Disposition Policy Capitalization Policy Admission and Continued Occupancy Policies Housing Choice Voucher (Section 8) Administrative Plan Travel Policies Credit Card Policies Rent Collection Policy Procurement Policy Resident/HA Contracts Grievance Procedures Informal Hearing Procedures Confidentiality Policy Conflict of Interest Policy Disclosure Policy Vehicle Usage Policy Cell Phone Usage Policy

28 Support and Oversight of the Executive Director  The Executive Director is the Chief Operating Officer and responsible for running the Housing authority.  Your role is to provide leadership and establish policy. The executive director is responsible for the day-to-day operations of the agency.

29 Support and Oversight of the Executive Director  Rely on the Executive Director and key executive staff for professional expertise. This does not mean that you fail to: ask questions require supporting documentation monitor and evaluate institute corrective action when necessary  Do not interfere in the day-to-day operations of the agency

30 Support and Oversight of the Executive Director  Refer resident and public concerns and complaints to the Director not directly to agency staff.  Do not attempt to perform the Director’s job. When you intervene you undermine the Director’s authority.  Speak to the Director with one voice.

31 Support and Oversight of the Executive Director Establish policies for the Director and staff to follow Mission Statement – develop or revise and implement a statement that reflects the HC’s objectives Have clear policies for subjects such as travel, vehicle usage, cell phone usage, credit card usage, etc... Be aware that the same policies apply to your travel.

32 Goals: Set annual goals for the agency and hold the Director accountable to those goals. Goals should be achievable and improve agency performance. The results to be obtained should be clearly defined. Goals should be measurable and attainable. Progress reports should occur at least quarterly. Support and Oversight of the Executive Director

33 Support and Oversight of the Executive Director If the goals are not being met determine the reasons for the gap between the planned goals and the level of performance Determine that goals are realistic and that appropriate resources exist Look for patterns and trends Make sure the Board’s performance is not part of the reason for the shortfall

34 Evaluate agency performance and monitor accomplishments! Oversight is your most important function Inadequate oversight is a problem in every troubled housing authority Match accomplishments against goals Support and Oversight of the Executive Director

35 Support and Oversight of the Executive Director Evaluating performance is critical! Formal performance evaluation tools should be in place for the Director. The Director should also have formal performance evaluation tools for all employees of the agency. A formal performance evaluation of the Director should occur at least once a year. The Director should ensure that all employees receive a formal performance evaluation at least once a year. Provide feedback periodically so that employees can determine the level of their performance

36 Support and Oversight of the Executive Director How do I evaluate the Director’s performance?  Public Housing Assessment System (PHAS)  Section 8 Management Assessment System (SEMAP)  HUD Comprehensive/Management Reviews, RIM Reviews, etc.  IPA/OIG Audits  Financial Reports  Occupancy Rates  Condition of Units

37 Appropriate recognition is impossible in the absence of an Evaluation system.

38 Fulfilling your role requires action Initiate Make decisions –timely and based on fact Establish policies Set and Enforce standards

39 Remember Failing to make a decision is a decision and Failing to act is an action!!

40 Do you feel as if the Commissioners are responsible for everything? THEY ARE RESPONSIBLE FOR EVERYTHING !!!

41 If we do all of this what does The ED do ?

42 The ED runs the operation and does the actual work !

43 Know that you cannot say “they didn’t do it” – the question is did you perform your responsibilities in such a manner that “they” were empowered and required to do it.

44 ‘ THE BUCK STOPS WITH YOU ’