Greenfield Housing Authority

This is a state audit of certain Greenfield Housing Authority activities from April 1, 2009 through March 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 Greenfield Housing Authority for the period April 1, 2009 through March 31, 2011.”

The audit checked whether the housing authority followed rules, had adequate controls, and fixed problems found in an earlier audit.

“In addition, we reviewed the Authority’s progress in addressing the deficiencies noted in our prior audit report of the Authority (No. 2006-0669-3A).”

The audit matters because public housing units need to be kept safe, decent, and sanitary for residents.

“The goal of good property maintenance at a public housing authority is to serve the residents by assuring that the homes in which they live are decent, safe and sanitary . . . .”

For residents and taxpayers, the report says earlier sanitary-code problems were fixed and the authority received funding for maintenance and modernization work.

“During our current audit, we re-inspected each of the six units and found that the Authority’s maintenance staff had corrected each of the 11 deficiencies previously noted.”

The auditor recommended adding annual unit inspections to the maintenance plan and having the independent auditor recheck how GHAI is treated in the financial statements.

“The Authority should amend its preventive maintenance plan to require annual inspections of the Authority’s dwelling units and upon each vacancy to ensure compliance with the minimum standards set forth in Chapter II of the State Sanitary Code.”

The report is significant because it shows progress since the prior audit, but also flags two remaining accountability issues: required inspection language and accurate financial reporting.

“The Authority has made progress in addressing our prior audit results by correcting all instances of noncompliance with Chapter II of the State Sanitary Code, applying for and receiving additional funding for its maintenance projects, resolving discrepancies within its operating subsidy records, and identifying buildable lots to expand its housing capacity.”

A “component unit” means a legally separate organization that is closely enough tied to the authority that it may belong in the authority’s financial statements; the auditor said GHAI did not meet that test.

“Based on this, the OSA determined that the Authority and GHAI do not have the organizational and financial interrelationship that must exist to characterize GHAI as a component unit.”