Agawam Housing Authority
October 4, 2011 · Read the full official report (PDF) ↗
Published October 4, 2011 Audit covers October 1, 2008 – March 31, 2010 Under Suzanne M. Bump · 2011–2023
source
“Our follow-up review revealed that these issues have not been adequately addressed and remain partially resolved or unresolved.”
Read the plain-English breakdown
This is a state audit of the Agawam Housing Authority covering October 1, 2008 through March 31, 2010.
“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 Agawam Housing Authority for the period October 1, 2008 through March 31, 2010.”
Auditors checked whether the housing authority followed the rules, managed its programs properly, and fixed problems found in an earlier audit.
“The objectives of our audit were to determine the Authority’s compliance with applicable laws, rules, and regulations and to review and analyze its management controls and practices over the following areas and functions for the purpose of determining their adequacy: (1) tenant selection; (2) preparation and reoccupation of vacant units; (3) rent determinations; (4) collectability of accounts receivable; (5) site inspections; (6) payroll, travel, and fringe benefits; (7) inventory controls over property and equipment; (8) contract procurement; (9) cash management and investment practices; (10) DHCD-approved budgets versus actual expenditures; (10) level of need for operating subsidies and operating reserves; and (11) modernization awards.”
If you live in or are waiting for public housing, the audit points to practical concerns: whether units are inspected, repaired, rented quickly, and whether rents are calculated correctly.
“Annual unit inspections are an important part of property maintenance through which Authorities can assess unit conditions, generate work orders, and minimize the cost of maintaining units.”
The authority had improved in many areas, but it still needed to fix basic management problems that affect housing quality, vacancies, tenant records, rent calculations, and tracking public assets.
“Our prior audit report also noted issues regarding (a) noncompliance with the State Sanitary Code, (b) improvements needed in unit vacancy turnaround time, (c) noncompliance with tenant selection procedures, (d) rent determination deficiencies, and e) inadequate inventory controls.”
The report says the authority should keep seeking funding, inspect units annually, fill vacancies faster, follow tenant selection rules, improve rent checks, and create a proper inventory system.
“The Authority must take steps to improve its inventory practices in regard to property and equipment under its control.”
This audit is significant because it shows a public housing agency making progress after a prior audit, while still leaving unresolved problems that can affect tenants, applicants, finances, and public accountability.
“Based on our review, we have concluded that, except for the issues addressed in the Audit Results section of this report, for the period October 1, 2008 through March 31, 2010, the Authority maintained adequate management controls and complied with applicable laws, rules, and regulations for the areas tested.”
DHCD is the state housing agency overseeing local housing authorities; CORI means criminal record information; operating reserves are backup funds; vacancy turnaround time means how long it takes to repair and rent an empty unit.
“The LHA [Local Housing Authority] shall maintain permanent handwritten ledgers including a master file ledger and, waiting list ledgers.”
4 figure(s) pending source verification - not shown
What the Auditor checked
- Partially Did the Authority comply with applicable laws, rules, and regulations and maintain adequate management controls and practices over the areas tested?
- Partially Did the Authority address the conditions noted in prior audit report No. 2007-0595-3A?
What the Auditor found
Why it matters: The Authority risked not providing safe and sanitary housing in a timely manner.
Standard: DHCD’s Property Maintenance Guide and Chapter II of the State Sanitary Code ( Chapter II of the State Sanitary Code )
2 recommendations
- The Authority should continue seeking necessary DHCD funding to provide safe and sanitary housing in a timely manner.agency: agreed
- The Authority should develop and adopt a plan for annual residential unit inspections so physical and sanitary problems are corrected timely.agency: already implemented
Agency response & Auditor reply
Agency: "The Executive Director, along with the Maintenance Supervisor, has set an annual inspection schedule for all facilities."
Why it matters: The Authority may have lost rental income and delayed state-subsidized housing for eligible elderly and family applicants.
Standard: DHCD’s recommended 21-day unit turnaround timeframe
2 recommendations
- The Authority should complete a preventive maintenance policy requiring annual unit inspections and retain related reports.agency: agreed
- The Authority should generate work orders as needed to ensure proper maintenance of inspected units.agency: already implemented
Agency response & Auditor reply
Agency: "AHA is in the process of completing a comprehensive Preventative Maintenance Policy."
Why it matters: Incomplete or ineligible applicants could be placed on waiting lists, and public waiting list records may not be properly maintained.
Standard: 760 Code of Massachusetts Regulations 5.16 ( 760 Code of Massachusetts Regulations 5.16; 760 CMR 5.16(2) )
2 recommendations
- The Authority should take appropriate steps to comply with DHCD regulations.agency: already implemented
- The Authority should maintain hardcopy program ledgers required by DHCD.agency: already implemented
Agency response & Auditor reply
Agency: "The AHA is now in full compliance with CMR 760 5.16 that speaks to maintenance of a hand written ledger for all control numbers assigned to applications once the application is in the possession of the agency."
Why it matters: Tenants were overcharged or undercharged because deductions were not applied correctly.
Standard: DHCD rent determination regulations ( DHCD rent determination regulations )
1 recommendation
- The Authority should continue improving procedures to periodically monitor rent determinations and provide formal employee training.agency: already implemented
Agency response & Auditor reply
Agency: "All rent determination procedures are now in accordance with DHCD guidelines."
Why it matters: The Authority could not demonstrate what assets it had, where they were located, or whether any had been lost, stolen, removed, or discarded.
Standard: DHCD’s Accounting Manual for State-Aided Housing Programs, Section 15 ( DHCD’s Accounting Manual for State-Aided Housing Programs, Section 15 )
5 recommendations
- Establish written inventory policies and procedures for property and equipment.agency: agreed
- Conduct a complete physical count, record location, condition, and value, and assign asset numbers to items missing tags.agency: agreed
- Review purchases from the last 36 months to determine what the Authority has, should have, and is missing or unaccounted for.agency: agreed
- Maintain a perpetual inventory record for all assets.agency: agreed
- Ensure inventory value and extent are properly reflected in financial statements.agency: agreed
Agency response & Auditor reply
Agency: "The Executive Director and Maintenance Supervisor are currently in the process of establishing a specific inventory policy for all AHA equipment and material."
Prior findings revisited
"Our follow-up review indicated that these prior issues had been adequately addressed, as discussed below:"
"Our follow-up review revealed that these issues have not been adequately addressed and remain unresolved, as discussed below:"
"Our follow-up review indicated that the Authority has improved its monitoring of tenant accounts receivable."
"Our follow-up review showed that the Authority did have board-approved personnel policies and that the personnel policies and payroll procedures require all Authority employees, including the Executive Director, to complete and sign weekly time sheets that include supervisory approval."
"Our follow-up review found that the Authority now performs its rent re-evaluations internally and has adopted a procurement policy that complies with Chapter 30B of the Massachusetts General Laws and DHCD regulations."
"Our follow-up review confirmed that the Authority has taken corrective action regarding its storage of CORI information."
"Our follow-up audit of travel expenses and operating expenditures found that all expenditures reviewed had proper approvals, were appropriate and allowable, and were processed with the proper supporting documentation."
"Our review of payroll and operating expenditures found that all expenditures had proper approvals and were appropriate, allowable, and in accordance with DHCD regulations."
"Our follow-up review noted that the board has made oversight a priority, and the Authority has increased its operating reserve balance to comply with DHCD regulations."
"Our follow-up audit found that the Authority did adopt a DHCD-approved pet security deposit policy for its elderly/handicapped housing that is consistent with DHCD regulations."