Dennis Housing Authority
April 4, 2014 · Read the full official report (PDF) ↗
Published April 4, 2014 Audit covers January 1, 2011 – December 31, 2012 Under Suzanne M. Bump · 2011–2023
source
“Finally, we determined that that the Authority had resolved most of the issues noted in our prior audit report but still needed to take measures to resolve its problems with vacancy turnaround, which are described in detail in this report.”
Read the plain-English breakdown
This is a state performance audit of the Dennis Housing Authority covering January 1, 2011 through December 31, 2012.
“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 Dennis Housing Authority for the period January 1, 2011 through December 31, 2012.”
Auditors checked whether the housing authority had good financial and management controls, followed rules for state-aided housing, and fixed problems found in a previous audit.
“The objectives of our audit were to review and analyze the adequacy of the Authority’s financial and management controls in selected areas and to evaluate its compliance with laws, rules, and regulations applicable to state-aided housing programs.”
Long vacancy delays can mean people wait longer for housing and the authority loses rent money that helps fund its work.
“The Authority should continue to implement procedures to ensure that all vacant units are occupied within DHCD’s 21-working-day timeframe to provide housing to eligible applicants in a timely manner and maximize its primary revenue source (rental income).”
If you live in Dennis or need affordable housing, this audit shows whether local public housing is being managed well and whether empty units are being filled quickly.
“The Authority oversees 124 units for elderly and handicapped residents, 20 family units at multiple scattered sites, and 24 units of leased housing under the Massachusetts Rental Voucher Program.”
Most areas reviewed were in good shape, but the authority still had a vacancy turnaround problem.
“Based on our audit, we have concluded that for the period January 1, 2011 through December 31, 2012, the Authority established adequate financial and management practices and controls over adherence to DHCD’s approved budgets; operating reserves; administrative expenditures; subsidy calculations; development and modernization fund expenditures; administration of the Massachusetts Rental Voucher Program; inventory; tenant eligibility, rent redeterminations, and tenant selection; collectability of accounts receivable; site inspections; procurement of goods and services; contract administration; and compliance with DHCD’s financial reporting and data collection requirements.”
The authority should keep working to fill vacant units within the state’s recommended 21-working-day timeframe, and consider outside help when many units are vacant at once.
“If multiple units are vacant within a short time, the Authority should consider contracting outside help to expedite the process of filling the vacant units.”
The main unresolved issue had a measurable cost: 34 units sat vacant longer than recommended, totaling 681 days and an estimated $7,340 in lost rent over two years.
“The 34 units were vacant for a total of 681 days, with an estimated income loss of $7,340 for the two-year audit period.”
“Vacancy turnaround” means the time it takes to prepare an empty apartment and have someone move in again.
“Our test showed that 34 of the 42 units took longer than the recommended 21 working days to reoccupy.”
7 figure(s) pending source verification - not shown
What the Auditor checked
- Partially Review and analyze the adequacy of the Authority’s financial and management controls and practices in selected areas.
- Complied Determine whether any Authority-related associations, corporations, or other private entities were involved in financial and/or management activities related to the Authority and, if so, assess the propriety of these transactions.
- Partially Review the Authority’s progress in addressing the issues noted in the prior audit report.
What the Auditor found
Why it matters: Eligible applicants may not receive housing in a timely manner, and the Authority risks losing rental income.
Standard: Department of Housing and Community Development’s Property Maintenance Guide 21-working-day timeframe ( Chapter 11, Section 12, of the Massachusetts General Laws )
1 recommendation
- The Authority should continue to implement procedures to ensure that all vacant units are occupied within DHCD’s 21-working-day timeframe and should consider contracting outside help when multiple units are vacant within a short time.agency: partially agreed
Agency response & Auditor reply
Agency: "The Authority has made every effort possible and continues to make strides in unit turnover."
Why it matters: The Authority remains responsible for monitoring a judgment that may affect its liability until it is liquidated.
Standard: Chapter 121B, Section 13, of the Massachusetts General Laws; Chapter 260, Section 20, of the General Laws ( Chapter 121B, Section 13, of the Massachusetts General Laws; Chapter 260, Section 20, of the General Laws )
Why it matters: The operating reserve balance was above the DHCD-suggested minimum level.
Standard: DHCD’s annual budget guidelines
Why it matters: The Authority’s fund repayment issue was resolved, and tested modernization expenditures were allowable and approved.
Standard: DHCD-approved budgeted amounts
Why it matters: Inventory records were more complete and reconciled to accounting records for items valued at $1,000 or more.
Standard: DHCD guidelines ( DHCD guidelines )
Verified dollar findings
Estimated or sample-projected amounts - shown separately because they are not a hard-identified dollar figure.
Identified dollar findings that do not fall in a named band.
Prior findings revisited
"Finally, we determined that that the Authority had resolved most of the issues noted in our prior audit report but still needed to take measures to resolve its problems with vacancy turnaround, which are described in detail in this report."
"During our current audit, we found that this issue was resolved."
"During our current audit, we determined that the Authority had made significant progress in increasing its Operating Reserve account balance."
"During our current audit, we found that the repayment of the Revolving Fund and the Modernization Fund was resolved via DHCD’s approval of the Authority’s 2009 operating budget."
"During our current audit, we found that the Authority had completed an annual physical inventory as of June 30, 2012 and was maintaining a comprehensive inventory list of assets with applicable data fields that included items’ costs, purchase dates, and descriptions."