Grafton Housing Authority

This is a Massachusetts State Auditor report on the Grafton Housing Authority, covering certain activities from July 1, 2008 through August 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 Grafton Housing Authority for the period July 1, 2008 through August 31, 2010.”

The housing authority’s board asked for the audit after two former staff members retired and a new executive director was hired.

“The audit was conducted at the request of the Authority’s Board of Directors following the retirement of the former Executive Director and Administrative Assistant and the hiring of a new Executive Director.”

The problems mattered because delays and mistakes reduced potential rental income and weakened oversight of public housing resources.

“Our follow-up review found that the average turnaround time for vacant units had increased to 71 days, resulting in a lost opportunity to earn approximately $13,610 in potential rental income.”

For an ordinary resident or taxpayer, this report shows whether public housing units, rent, deposits, cash, and equipment were being managed properly.

“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) DHCD-approved budgets versus actual expenditures; (2) level of need for operating subsidies and operating reserves; (3) administration of development funds to determine, among other items, the existence of excess funds; (4) cash management and investment practices; (5) preparation and reoccupation of vacant units; (6) the Massachusetts Rental Voucher Program; (7) inventory controls over property and equipment; (8) tenant selection; (9) rent determinations; (10) collectability of accounts receivables; (11) disbursements; (12) payroll, travel and fringe benefits; (13) site inspections; and (14) contract procurement.”

The authority needed to move faster on filling vacant units and tighten controls over petty cash, pet deposits, inventory, rent calculations, and tenant transfers.

“However, our review identified that the Authority needs to strengthen its internal controls over certain administrative functions, including (a) petty cash, (b) pet deposits, (c) inventory control, (d) rent determination, and (e) tenant transfers, as follows:”

The auditor recommended that the authority reduce vacancy delays, check with DHCD on badly damaged units, and strengthen its internal controls.

“The Authority should continue its effort to reduce vacant unit turnaround time.”

The report is significant because it found a prior problem had gotten worse: the average time to refill vacant units rose from 34 days to 71 days.

“Our follow-up review found that the average turnaround time for vacant units had increased to 71 days, resulting in a lost opportunity to earn approximately $13,610 in potential rental income.”

Internal controls means the basic systems an agency uses to protect assets, keep records accurate, operate efficiently, and follow rules.

“The management of each Local Authority is responsible for developing and implementing a system of internal controls which will:”