Operating Fund Rule
TAG Associates has been a leading proponent of site-based management for PHAs. TAG Principal Jeffrey K. Lines has for 25 years been part of the national effort to introduce site-based and asset-based management to public housing. As a Senior Advisor to the National Commission on Severely Distressed Public Housing, and as a principal consultant to the Harvard Public Housing Operating Cost Study, Mr. Lines has worked to identify the need for site-based management of public housing and has developed models for nationwide adoption by PHAs.
The new Operating Fund final rule issued by HUD fundamentally changes the way in which operating subsidy is calculated and requires major changes to the accounting, budgeting and property management functions for most PHAs. It is essential that public housing professionals clearly understand the new requirements if they are to have any chance of maximizing their funding received from HUD.
TAG's founder directed the development of HUD's research in Project-Based Accounting and the development of the HUD Project-Based Accounting Guidebook for PHAs and HUD staff. TAG Associates' involvement in the negotiated rulemaking process has given it an insiders' understanding of the new subsidy formula and asset management requirements. The integration of management systems and responsibilities for delivery at the site level is a major feature of TAG's approach to addressing the challenges facing public housing agencies and housing developments.
TAG Vice President John Wilson has extensive experience in OFR implementation, and was directly involved in the final development of the OFR rule and guidance, participating in the industry conference calls with HUD in the final development of the rule. Mr. Wilson and staff have assisted numerous PHA clients in implementing the rule, including:
Project-Based Management
Members of the TAG team have developed comprehensive management plans for moving housing developments to site-specific management systems and alternative management. Utilizing its wide range of experience in all areas of housing management and related operations, TAG has successfully developed and implemented site-based management systems for a number of large public housing authorities, including Kansas City, Philadelphia and the District of Columbia and assisted countless others in utilizing site-based management strategies for certain functions. TAG recently completed an engagement at the Housing Authority of the City of Pittsburgh where it assisted with their implementation of site-based management that included the drafting of numerous policies, procedures and other written materials.
Project-Based Accounting and Budgeting
TAG's experience in this area is extensive. TAG has direct experience in the design and implementation of models and systems for project-based budgeting and accounting, as well as site-based management. TAG Associates provided technical assistance and training sessions to Dade County Department of Housing and Urban Development in developing and implementing its project-based accounting system. TAG's responsibilities included designing a project-based accounting system to meet HUD requirements, including providing assistance in developing cost centers to form the basis of the Project-Based Accounting system.
TAG Associates has also completed work in a similar capacity for the following Housing Authorities:
Housing Authority of Kansas City
Dade County Housing Authority
Detroit Housing Commission
Indianapolis Public Housing Agency
San Francisco Housing Authority
In addition to the above, TAG has performed the following tasks for various housing authorities:
Created cost allocation plans that comply with OMB, GAAP, and HUD requirements.
Developed and implement cost reduction/income enhancement plans to improve an Authority's financial health.
Developed, implemented, and provided training on a comprehensive project-based management, budgeting, and accounting plan.
Assessed an authority's strengths, opportunities, risks and weaknesses as they relate to project-based accounting and management.
Provided a specific description of the steps needed and a specific timeline for conversion to PBM.
Reviewed current methodology of allocating personnel cost to various programs and project sites and made necessary changes to the H/R system.
Reviewed the computer systems used by HAs as they pertain to the Operating Fund Rule, including Finance; Payroll; Budgeting; Rent Collection; Work Order; Section 8; Purchasing; etc.
Prepared cost allocation plans that were fully in accordance with OMB A-87, GAAP, and the relevant HUD guidelines, which would stand the test of an audit. " Developed, tested and implemented management reports needed to ensure a successful conversion to PBM; and REAC/FDS (HUD) reports.
Reviewed and recommended needed changes to management information systems that are required to implement a PBM conversion.
Prepared financial, operational and procedural manuals needed to implement a PBM conversion.
Tested modified systems and reports such as Trial Balance, General Ledger, HUD FDS, PHAS reports, budgets, Income/Expenditure reports, etc., to ensure that they are in compliance with the new plans and procedures.
Developed training manuals and provided necessary training to staff to ensure their ability to understand and use the various aspects of the new project-based system.
Examined the current operations of HAs in the areas of financial management, compliance, housing operations, information technology, personnel, etc., and identified the steps that needed to be taken for a transition to project-based management.
Developed a detailed strategic plan for the design and implementation of a project-based management process. The proposed strategic plan encompassed all areas of property management, such as maintenance, purchasing, rent collection, evictions, etc., and clearly identify the project manager's role in these processes.
Developed standard operating procedures (hereinafter, "SOP") for the different tasks such as work orders, reviewing tenant ledgers, conducting annual re-certification, preparing annual budget requests, etc.
Developed and prepared project budget systems, processes and procedures for project-based management, budgeting and accounting, in-line with the requirements of 24 CFR Part 990. " Prepared reports required under the HUD Notices/Stop Loss Criteria.
Analyzed the relationships between the Central Maintenance staff and the Project Management staff and provided recommendations for optimizing the use of the skilled and unskilled workers.
Performed analysis and assisted the HAs in developing new reports that are essential for project-based accounting, budgeting and management.
Prepared a complete Standard Operating Procedures (SOP) manual for all of the related functions in the various departments. " Provided guidance and business rules for the new project-based system modifications. Tested the systems for compliance.
Tested the modified systems (Work Order; Inventory; Payroll; Finance; Human Resources; Warehouse; etc.) and reports to ensure they were in compliance with the new plans and procedures.
Reviewed and monitored the functioning of the new OFR plan on a monthly basis to ensure full compliance with all of the aspects of the plan and with HUD requirements. " Reviewed the various processes and all related reports outlined in the OFR plan for compliance with the requirements.
