Agenda 01/14/2014 Item # 13A 1/14/2014 13.A.
EXECUTIVE SUMMARY
Presentation of an analysis performed for the Clerk by CliftonLarsonAllen LLP, an independent
Certified Public Accounting firm, of sub-recipient agreements approved by the Board of County
Commissioners (Board) to identify the amount of program income earned by Housing
Opportunities Made for Everyone, Inc. (H.O.M.E.) related to the purchase, rehabilitation, and
subsequent resale of foreclosed properties partially subsidized by federal and state grant funds.
OBJECTIVE: To present to the Board of County Commissioners (Board) the Clerk's audit, including
the results of the independent analysis performed for the Clerk by CliftonLarsonAllen LLP, of sub-
recipient agreements approved by the Board partially subsidized by federal and state grant funds.
CONSIDERATIONS: In July 2008, Collier County Housing and Human Services Department (HHS)
solicited proposals from organizations for projects to be funded under its FY 2008-2009 Community
Development Block Grant(CDBG)program.
On July 26, 2008, HHS received an "Application for Funding" from the non-profit organization Housing
Opportunities Made for Everyone, Inc. (H.O.M.E.). H.O.M.E. requested $840,000 in federal and state
funds to subsidize the following activities:
• purchase properties in foreclosure throughout Collier County;
• refurbish these properties to bring into compliance with current building codes;
• cover related administrative expenses, such as legal and accounting;
• sell properties to income-qualified buyers, as defined by HUD guidelines; and
• subsidize home sales prices to lower the qualified buyer's mortgage payment.
From August of 2008 through January of 2009, the Board approved three separate sub-recipient
agreements with H.O.M.E. in the amount of$627,472.42. These agreements are as follows:
• Sub-recipient Agreement dated August 19, 2008 for $50,000 of State Housing Initiative
Partnership (SHIP) funds. The Project Scope was for the rehabilitation of a property located at
4178 18th Place SW.
• Sub-recipient Agreement under CFDA #14.218 and HUD Grant #B-08-UC-12-0016 dated
September 23, 2008 for$427,472.42 of CDBG funds. The Project Scope was for the purchase of
up to twelve (12) foreclosed properties, rehabilitate them and resell them to low and very low
income families in Collier County.
• Sub-recipient agreement dated January 13, 2009 for $150,000 of SHIP funds. The Project Scope
was to acquire and/or rehabilitate at least three (3) residential dwelling units in Collier County to
benefit very low, low, or moderate income persons as defined by F.S. 420.9071. Funding shall
not exceed fifty-thousand dollars per residential unit.
During 2009 and 2010, H.O.M.E. used grant funds to purchase and rehabilitate properties, and
homeowner assistance to buy down mortgages. Revenues from the sale of homes were used to
purchase, renovate, and pay expenditures for subsequent properties.
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1/14/2014 13.A.
Beginning in 2011, the Clerk's Internal Audit Department worked with the County's Housing, Human,
& Veteran Services (HHVS f/k/a/ HHS) staff and John Barlow, Vice President of H.O.M.E., to gather
all records necessary to complete a comprehensive review to determine program income generated from
these activities. Preliminary observations were communicated to County Staff in June 2011, with the
final report released by the Clerk in May 2012 (Audit Report 2011-4). Internal Audit could not fully
reconcile program generated income due to insufficient records provided by H.O.M.E.
During the April 23, 2013 meeting, the Board approved a motion to have H.O.M.E. provide the records
necessary for the Clerk to complete the review. Additional documentation was provided to the Clerk's
Office on April 26, 2013. After taking into consideration the principle individual of H.O.M.E. was John
Barlow, who opposed Dwight Brock (the incumbent and current Clerk) in the 2012 election for Clerk of
the Circuit Court and who alleged Mr. Brock had a personal vendetta against him during the campaign,
the Clerk chose to engage CliftonLarsonAllen LLP to perform an independent analysis to determine if
any program income was generated and to identify potential ineligible program expenditures.
Subsequent to this engagement, the Board hired CliftonLarsonAllen LLP to be Collier County's external
auditor.
Per F.S. 119.0713 (2)(a) "The audit report of an internal auditor ... prepared for or on behalf of a unit of
local government becomes a public record when the audit ... becomes final. An audit ... becomes final
when the audit report ... is presented to the unit of local government. Audit workpapers and notes
related to such audit ... are confidential and exempt from the s. 119.07 (1) and s. 24(a), Art. I of the
State Constitution until the audit... is complete and the audit report becomes final ...". The Clerk is
releasing the CliftonLarsonAllen LLP independent report as a follow-up to Audit Report 2011-4.
Please follow the links below for the CliftonLarsonAllen LLP report and Clerk's presentation.
CliftonLarsonAllen LLP Report:
http://www.colherelerk.eom/resource-library/pdf/internal-audit-pd172013-eliftonlarsonallen-llp-
consultants-report-h.o.m.e.-program-income
Clerk of Courts Presentation:
http://www.collierelerk.comiresource-library/pdflinternal-audit-pdf/h.o.m.e.-proeram-incotne-
presentation-bee-on-december-10-2013
GROWTH MANAGEMENT IMPACT: None
FISCAL IMPACT: There may be a fiscal impact based on actions taken by the Board.
LEGAL CONSIDERATIONS: None
RECOMMENDATION: For the Board to hear the presentation of the Clerk's audit, including the
independent analysis performed by CliftonLarsonAllen LLP.
Prepared by: Ron Dortch, Senior Internal Auditor, Clerk's Office
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1/14/2014 13.A.
COLLIER COUNTY
Board of County Commissioners
Item Number: 13.13.A.
Item Summary: Presentation of an analysis performed for the Clerk by CliftonLarsonAllen
LLP, an independent Certified Public Accounting firm, of sub-recipient agreements approved by
the Board of County Commissioners (Board)to identify the amount of program income earned
by Housing Opportunities Made for Everyone, Inc. (H.O.M.E.) related to the purchase,
.rehabilitation, and subsequent resale of foreclosed properties partially subsidized by federal
and state grant funds.
Meeting Date: 1/14/2014
Prepared By
Name: MilumJennifer
Title: Office Assistant, Clerk of Courts
1/3/2014 8:19:24 AM
Submitted by
Title: VALUE MISSING
Name: DortchRonald
1/3/2014 8:19:26 AM
Approved By
Name: KinzelCrystal
Date: 1/7/2014 4:19:24 PM
Name: KlatzkowJeff
Title: County Attorney
Date: 1/7/2014 4:59:40 PM
Name: StanleyTherese
Title:Management/Budget Analyst, Senior,Office of Manage
Date: 1/8/2014 9:44:54 AM
Name: OchsLeo
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1/14/2014 13.A.
Title: County Manager
Date: 1/8/2014 12:36:01 PM
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