HomeMy WebLinkAboutDept. of Commerce - Ethan Stapp M NTANA
Department of Commerce
P.O. aox 200545 * Hel,na. Montane 59620-0545 * h.p://oommerce.s[ale rr .~.~2J '-~ 'LL~. . ~7 ~ ri, ~
November 13, 2003 l '
JOhncity of E'LaureIJ°hns°n' Mayor C i T ~! OF:~- , , ,., ~ L. ,J.. ~' I ~' F2 ~: ~.~_j_
PO Box 10
Laurel, MT 59044
Dear Mayor Johnson,
On November 4, 2003, Julie Flynn and I met with Mary Embleton to review the City of Laurel's efforts to manage
the program income resulting from the City's 1996 HOME grant. Through the monitoring process, it is MDOC's
intent to help HOME recipients identify any concerns and resolve any problems that could result in
noncompliance with state or federal regulations or prevent successful execution of the program. I appreciate the
assistance and courtesy extended to us by Mary Embleton during our visit. She had the program income funds
itemized in a manner that made our review relatively straightforward.
We found Laurel's program income funds to be accurately accounted for; however, we identified one concern
during the monitoring visit:
· The City has used its program income resulting fora the 1996 grant to fund the development of the grant
application for the 2003 HOME award. Fund raising activities are not a HOME-eligible expense,
regardless of the purpose for which the funds will be used. It is clear that the Citywas not acting in
deliberate violation of the requirements. However, we require that the funds expended for the grant
application development be reimbursed to the program income account and used Dr HOME eligible
activities.
Program income mayonly be used for HOME eligible expenses. In addition, any projects to be funded with
program income will require full compliance with applicable HOME requirements, including submittal of set-
up reports, performance of an environmental review, and compliance with procurement standards.
I also remind you that program income reporting is required on a quaffedybasis. P~ease refer to the HOME
Administration Manual, Chapter 3, for information regarding the reporting requirements.
In other matters, we noted that the contract betv~een the City of Laurel and Big Sky Economic Development
Authority authorizes a flexible payment. I remind you that payment to a contrador must be made under a
fixed-price agreement, as required byHOME regulations. Please make the necessarychanges.
I commend the Cityof Laurel's efforts to assist Iow-income persons in achieving homeownership and
rehabilitating their homes. I thank y~u for your continued participation in the Montana HOME Program and
ask that you contact me at 841-2819 with any questions regarding these matters.
[than Stapp, Program Officer
HOME Program
cc: dulie Flynn, HOME Pro9ram Manager
Mary Embleton, City of Laurel