The document is a letter from the Director of the Department of Budget and Fiscal Services responding to HUD's findings from an on-site monitoring of the City's CDBG program. It provides updates on the City's progress in addressing 3 findings and 1 concern. The City remains committed to resolving all open issues and appreciates HUD's assistance. Progress includes ORIAH developing a plan to increase facility use by eligible clients and verifying an increase in users, and the City continuing to review ORIAH's financial records and suspend their CDBG funding.

1. DEPARTMENT OF BUDGET AND FISCAL SERVICES
CITY AND COUNTY OF HONOLULU
530 SOUTH KING STREET, ROOM 208 • HONOLULU, HAWAII 95813
PHONE: (808) 7E8-3900 • FAX: (808) 766-3179 • INTERNET: whonoftjlu.gov
PETER B CARLISLE M(CHAEL R HANSEN
MAYOR DIRECTOR
NELSON H KOYANAGI JR
DEPUrV DIRECTOR
October 14, 2011
437765
Mr. Mark A. Chandler, Director
Office of Community Planning CD b:—
==
and Development OlD
CD t
U.S. Department of Housing —
and Urban Development
Honolulu Field Office Region IX
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500 Ala Moana Boulevard, Suite 3A >cDE
Honolulu, Hawaii 9681 3-4918 cr
Cn
Dear Mr. Chandler:
Subject: On-Site Program Monitoring
April 11-25, 2011
Community Development Block Grant (CDBG) Program
This responds to your letter dated October 11, 2011, which updated the status of
findings and the concern originally raised in the U.S. Department of Housing and Urban
Development’s (HUD) April 11-25, 2011 on-site monitoring. We are pleased that HUD has
accepted some of our corrective actions and has also closed a monitoring finding. As
required, to ensure the timely resolution of the monitoring, the City will continue to submit a
progress update every 15 days until the remaining findings and concern are resolved.
Attached is our report of the City’s progress, which incorporates HUD’s most recent update.
The City remains committed to addressing and closing all open findings and the concern
raised and appreciates HUDs continued assistance. Should you. have any questions or
req,, re a u tcr’a orat c ecad ng ‘ese ma ?ers o ease a ‘“e a 6839O1
0
Sincerely,
Michael Hansen J
Director
M RH/HK:ts
Attachment
cc: Department of Community Services

2. Attachment 1
CPD Finding Ml 1-012 (ACT> ORI Anuenue Hale Aloha Gardens Is Not Complying
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with CDBG Eligible Use and National Objective
Corrective Actions 1-1 and 1-2.
1-2. The City and OR! Anuenue Hale Inc. (ORIAH) are preparing a detailed
plan to increase the utilization of the Wellness Center to at least 50 eligible
elderly and adults with developmental disabilities during all normal hours of
operation. ORIAH has identified two senior organizations and has engaged in
further discussions to have those groups attend classes at the Wellness Center,
An additional class has been added to the curriculum at the Weilness Center and
discussions are in progress to add other classes and activities. Additionally,
various marketing efforts and press releases have been issued, ranging from the
classes available at the Weliness Center, to general informational publications
targeted to adult day care and senior centers to help garner community
awareness of the Weilness Center. ORIAH reports that, since August 2011,
there has been an increase of 5 new elderly persons attending classes at the
Weilness Center. The City will verify ORIAH’s report of the increase by
October 31, 2011.
3. ORIAH has stated that it does not charge fees for the following activities at
the Wellness Center: exercise classes, Mahjong, hair services (no fees are
charged by ORIAH to the hair dresser or eligible user). ORIAH does have a
contractual agreement with the Waianae Coast Comprehensive Health Care
(WCCHC), whereby WCCHC will provide direct client care at the Wellness
Center facility. WCCHC bills their clients for services based on a $60 per day
rate (insurance and other benefits included), and ORIAH receives 60% of this
revenue. ORIAH is working on providing a listing of fees charged to
individuals/groups that have made use of the Camp Pineapple 808 facility, which
may vary based on the number of users in any particular group. After reviewing
ORIAH’s financials. the City will verify ORIAH’s statements and provide policies
and procedures to ensure that the fees do not preclude low and moderate
income persons from using the facilities.
45 The Cty and ORIAH are continuing to wcrk on dentafyng specfc steps to
increase the utihzation of the Camp to meet a CDBG national objective.
Corrective Action 1-3. The City is continuing to suspend CDBG funding for the
ORIAH public service activity.
I

3. Corrective Action 1-5. The City is continuing to resolve this issue and is
committed to submitting its report of quarterly on-site monitoring visits of ORIAH
to HUD within 30 days of the end of the quarter ending September 30, 2011, and
thereafter for the remaining years of the CDBG real property use period.
CPD Finding Ml 1-013 (INC) — Tracking Program Income Generated by Subrecipients
Corrective Action 2, The City is currently reviewing ORIAH’s financial records,
which were received by the City on October 5, 2011. Unfortunately, ORIAH has
not yet been able to respond to further inquiries as their chief financial contact
had been out on leave. She has recently returned from her scheduled leave and
the City and ORIAH remain committed to addressing this issue.
CPD Concern M11-015 (ACT)— Pablo Chinese Home’s Documentation of National
Objective Compliance
The City will submit evidence that the required changes have been made to the
Pablo Chinese Home and Hospice Hawaii’s admissions process by October 31,
2011.
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