Adams Housing Authority
March 28, 2013 · Read the full official report (PDF) ↗
Published March 28, 2013 Audit covers July 1, 2009 – December 31, 2011 Under Suzanne M. Bump · 2011–2023
source
“The Authority has taken partial corrective action on recommendations from our prior audit report regarding noncompliance with certain provisions of the State Sanitary Code and getting vacant units reoccupied within DHCD recommended timeframes, but still needs to take additional measures to be in full compliance.”
Read the plain-English breakdown
This is a Massachusetts State Auditor review of certain Adams Housing Authority activities from July 1, 2009 through December 31, 2011.
“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, the Office of the State Auditor has conducted an audit of certain activities of the Adams Housing Authority for the period July 1, 2009 through December 31, 2011.”
Auditors checked whether the housing authority was managing its programs well and following applicable laws and rules.
“The objectives of our audit were to assess the adequacy of the Authority’s management control system for measuring, reporting, and monitoring the effectiveness of its programs, and to evaluate its compliance with laws, rules, and regulations applicable to each program.”
The authority manages public housing in Adams, so problems with repairs, vacant units, money controls, or board staffing can affect residents, applicants, and public funds.
“The Authority manages 90 units, including 64 one-bedroom elderly units (Chapter 667-1); 18 family units with one, two, or three bedrooms (Chapter 705-1); six three-bedroom family units (Chapter 705-2); and eight units for the developmentally disabled (Chapter 689-1).”
For ordinary residents, the practical issue is whether public housing units are safe, usable, rented quickly to eligible people, and managed carefully with public money.
“The standards apply to every owner-occupied or rented dwelling, mobile dwelling unit, or rooming house unit in Massachusetts that is used for living, sleeping, cooking, and eating.”
The auditor said the authority should keep working with state housing officials, the Town of Adams, and its own board procedures to fix the remaining problems.
“The Authority should continue to work with DHCD in obtaining the necessary funding to address the Sate Sanitary Code violations we identified.”
The report matters because unresolved repair and vacancy issues can leave units unavailable, reduce rent income, and increase reliance on state subsidies.
“Doing so would allow the Authority to increase its rental revenue and lessen its reliance on state subsidies.”
PILOT means a payment made instead of normal property taxes; the auditor found the town may have charged the housing authority too much for these payments.
“The Town of Adams may have overcharged the Authority $9,611 for fiscal years 2010 through 2012 for Payment in Lieu of Taxes (PILOT) on its scattered-site family housing properties.”
8 figure(s) pending source verification - not shown
What the Auditor checked
- Partially Assess the adequacy of the Authority's management control system for measuring, reporting, and monitoring the effectiveness of its programs.
- Partially Evaluate the Authority's compliance with laws, rules, and regulations applicable to each program.
- Partially Review the Authority's progress in addressing conditions noted in the prior audit report.
- Complied Evaluate compliance with laws, rules, and regulations applicable to ARRA.
What the Auditor found
Why it matters: The prior deficiencies were corrected.
Standard: DHCD's Property Maintenance Guide, Chapter 3(F), and 105 CMR 410. ( DHCD’s Property Maintenance Guide, Chapter 3(F); 105 Code of Massachusetts Regulations (CMR) 410 )
Why it matters: The Authority continued to have unsafe or deficient housing conditions and lost use of a property while still incurring costs and losing rental income.
Standard: Chapter II of the State Sanitary Code, 105 CMR 410. ( Chapter II of the State Sanitary Code; 105 CMR 410 )
2 recommendations
- The Authority should work with DHCD to obtain funds to repair the roof at Columbia Valley.agency: agreed
- The Authority and DHCD should find a solution either to rehabilitate 221 East Road or to dispose of it.agency: partially agreed
Agency response & Auditor reply
Agency: "The Adams Housing Authority (AHA) currently has the re-roofing of Columbia Valley under contract utilizing a grant of capital improvement formula funding from the Commonwealth of Massachusetts Department of Housing and Community Development (DHCD)."
Why it matters: The Authority lost potential rental income and delayed providing housing to eligible applicants.
Standard: DHCD’s Property Maintenance Guide indicates that housing authorities should reoccupy units within 21 working days of their being vacated by a tenant. ( DHCD’s Property Maintenance Guide )
2 recommendations
- The Authority should continue to develop a preventive maintenance policy that requires it to conduct, at a minimum, annual inspections of its units.agency: agreed
- The Authority should prioritize the implementation of procedures, including increasing the number of applicants on its waiting list, to ensure that all vacant units are reoccupied within DHCD’s 21-day timeframe.agency: partially agreed
Agency response & Auditor reply
Agency: "The AHA continues to work to minimize unit turnover times."
Why it matters: Board meetings were canceled because of the absence of a quorum.
Standard: Chapter 121B, Section 5, of the Massachusetts General Laws. ( Chapter 121B, Section 5, of the Massachusetts General Laws )
1 recommendation
- The Authority should continue to encourage DHCD to work with town and state officials to find a nominee to serve on the Board of Commissioners.
Agency response & Auditor reply
Agency: "The Authority informed us that it had contacted the town’s Board of Selectmen as well as its state representative and senator and had informed the Governor’s appointment secretary of the vacancy."
Why it matters: The Authority paid more than it should have for PILOT payments during fiscal years 2010 through 2012.
Standard: Chapter 121B, Section 16, of the General Laws. ( Chapter 121B, Section 16, of the General Laws )
2 recommendations
- The Authority should work with the Town of Adams to ensure that the Authority’s PILOT payments are correctly calculated.
- The Town should reimburse the Authority for the amount it overcharged for PILOT payments during our audit period, which we calculate to be $9,611.
Agency response & Auditor reply
Agency: "The AHA has requested an advisory opinion from DHCD."
Why it matters: Without specific hours worked, there is no way to ensure employees are working all paid hours.
Standard: DHCD Accounting Manual. ( DHCD Accounting Manual )
2 recommendations
- The Authority should continue to use its timesheet system to track the hours worked by its employees.agency: already implemented
- This process should involve requiring employee and supervisor signoff of timesheets in order to fully support payroll expenditures.agency: already implemented
Agency response & Auditor reply
Agency: "A signed timesheet system was implemented per recommendations by the auditor."
Auditor: "However, based on its response, the Authority has taken measures to address our concerns on this matter."
Why it matters: An outdated plan may prevent consistent procedures and compliance with DHCD internal control requirements.
Standard: Contracts for Financial Assistance require DHCD-funded housing authorities to have a Management Plan. ( Contracts for Financial Assistance )
1 recommendation
- The Authority’s Management Plan should be routinely updated and should include all applicable and current Authority and DHCD policies and procedures.agency: agreed
Agency response & Auditor reply
Agency: "This recommendation continues to be addressed."
Auditor: "We restate the need to review current DHCD policies and procedures to ensure that the Management Plan provides coverage of current requirements."
Why it matters: The Authority risked paying for personal use of cell phones by employees.
Standard: DHCD budget guidelines from 2005 and 2006.
1 recommendation
- The Authority should take measures to fully implement the cell-phone policy approved by its board and ensure that this policy is consistent with DHCD guidelines.agency: already implemented
Agency response & Auditor reply
Agency: "Upon review of the DHCD guidelines the Authority promptly implemented corrective action and adopted the DHCD guidelines as policy."
Auditor: "Based on its response, the Authority has taken measures to address our concerns on this matter."
Why it matters: Cash could be misappropriated, and errors or fraud could go undetected.
Standard: Generally accepted accounting principles require adequate internal control and segregation of duties. ( generally accepted accounting principles )
1 recommendation
- The Authority should consider improving its controls over its washer and dryer income.
Agency response & Auditor reply
Agency: "Certainly pointing out the fact that handling cash places the Authority at risk is legitimate."
Auditor: "We again recommend that, if resources become available, the Authority enhance its segregation of these duties."
Verified dollar findings
Identified dollar findings that do not fall in a named band.
Prior findings revisited
"Our current audit revealed that the Authority had adequately resolved these prior issues, as discussed below."
"Our current audit indicated that these prior issues had been partially resolved, as discussed below."