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Notice CPD-22-04: Implementing Risk Analyses for Monitoring CPD Grant Programs in FY 2022

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Date Published: February 2022

Description

This Notice supersedes Notice CPD-14-04.

The purpose of this Notice is to provide a consistent methodology for conducting risk analyses for Community Planning and Development (CPD) formula and competitive grantees1 and establish monitoring priorities within available resources. This risk analysis process has been incorporated into CPD's Grants Management Process Reporting (GMP-R) system, a computer-based information system which is used to provide a documented record of conclusions and results.

This Notice reflects an updated risk analysis methodology that has been developed by a CPD working group in collaboration with the Office of the Chief Risk Officer. The working group discussed risk factors, subfactors, symptomatic causes in program performance, and subsequently developed this revised Notice. The updated methodology is designed to better identify risk, streamline the process, and enhance consistency across reviews through the integration of available performance data from grant reporting systems, and use, to the greatest extent feasible, subfactors which can be auto-populated using data extracted from existing information technology systems available to CPD.

This Notice is intended to augment the Departmental policy contained in Handbook 1840.1, Departmental Management Control Program, which requires the development of risk-based rating systems for all programs, and Handbook 6509.2, Community Planning and Development Monitoring Handbook, which establishes standards and provides guidance for monitoring CPD Programs. The major steps for implementing risk-based monitoring include:

  • Developing risk-based rating systems to evaluate all program grantees
  • Rating and selecting grantees for monitoring
  • Identifying program risks and setting monitoring objectives
  • Documenting the process and recording the rationale for choosing grantees to be monitored

Each CPD Field Office will perform the risk analysis using the methodology described in this Notice. The Evaluator (e.g., CPD Representative, Financial Analyst, or CPD Specialist) and Management Representative (e.g., CPD Director, Program Manager) have specific responsibilities for risk analysis review and information update for each grantee.


1The terms "program participant," "grantee," "participating jurisdiction" (PJ), and "recipient" all refer to the entity that receives the Federal award directly from HUD and are used interchangeably in this Notice.

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