Dudley Housing Authority

This is a Massachusetts State Auditor review of certain Dudley Housing Authority activities from May 1, 2008 through June 30, 2011.

“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, we have conducted an audit of certain activities of the Dudley Housing Authority for the period May 1, 2008 through June 30, 2011.”

Auditors checked whether the authority had proper controls, followed rules, and fixed problems from a prior 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 receivables; (5) site inspections; (6) payroll, travel, and fringe benefits; (7) disbursements; (8) inventory controls over property and equipment; (9) contract procurement; (10) cash management and investment practices; (11) Department of Housing and Community Development (DHCD)-approved budgets versus actual expenditures; (12) level of need for operating subsidies and operating reserves; and (13) off-line housing units.”

An up-to-date management plan helps a public housing authority run properly, protect public resources, and follow state housing rules.

“Moreover, an updated and complete Management Plan provides the basis for establishing and maintaining the systems necessary for the proper administration of public housing, as well as implementing a system of internal control and ensuring compliance with DHCD’s internal control requirements.”

If you live in Dudley or care about public housing, this report tells you whether local housing for elderly, handicapped, and special-needs residents is being managed responsibly.

“The Authority, which is located at 22 Joshua Place in Dudley, has 80 one-bedroom apartments at Joshua Place for elderly and handicapped residents (Chapter 667) and eight one-bedroom special needs housing units (Program 689) at Schofield Avenue.”

The authority fixed earlier problems with contractor tax forms and inventory records, but still needed to update its management plan.

“Our follow-up review of the Authority found that it had resolved prior audit issues by issuing Internal Revenue Service Forms 1099-MISC for its independent contractors and establishing inventory procedures over its furniture and equipment.”

The auditor recommended routine updates, and the housing authority said it was already updating the plan with board review and approval.

“The Dudley Housing Authority is in the process of updating the Management Plan.”

This was not a finding of widespread failure; it was mostly a clean audit with one important housekeeping issue: keeping the governing plan current.

“The Authority should implement procedures to ensure that its Management Plan is routinely updated.”

A “management plan” is the authority’s rulebook for how it runs operations, staff policies, job duties, and required housing regulations.

“Our review of the Authority’s Management Plan, which was created in 1981, showed that although the plan had the necessary components (e.g., organization, personnel policies, job descriptions, Department of Housing and Community Development [DHCD] regulations), there was no indication that it had been adequately updated since its creation.”