Hopedale Housing Authority
March 11, 2014 · Read the full official report (PDF) ↗
Published March 11, 2014 Audit covers October 1, 2010 – December 31, 2012 Under Suzanne M. Bump · 2011–2023
Read the plain-English breakdown
The audit checked whether the housing authority had proper controls over money, contracts, tenant selection, rent, payroll, inventory, and compliance with rules.
“The objectives of our audit were to review and analyze the internal controls the Authority had established over the following selected activities: budgeting; accounting and financial reporting; tenant selection; rent determination; inventory of fixed assets; procurement of goods and services; contract management; program site inspections; management of cash and investments; turnover of vacant units; management of accounts receivable; payroll and fringe benefits; administrative expenses such as travel and credit-card expenditures and related-party transactions; and compliance with applicable laws, regulations, policies, procedures, and other guidance related to these activities.”
The authority manages public housing and public resources, so inaccurate records or weak controls can affect oversight, spending decisions, and public trust.
“If the information presented on the financial statements, including the balance sheet, is not accurate and complete, then stakeholders such as taxpayers, the Department of Housing and Community Development, the board of commissioners, and the Legislature will not be able to rely on the information reported and will not be able to assess and make decisions about the performance of the entity under review.”
For an ordinary resident or taxpayer, the report matters because it checks whether a public agency is using money properly and whether scarce low-income housing is being managed fairly.
“The Authority has a tenant waiting list, and there may be people on the list who are in greater need, based on income, of the space currently occupied by the two noncompliant tenants.”
The biggest takeaway is that the authority needed to fix its accounting, bidding, rent-waiver, inventory, policy, contract, and leave-record practices.
“The Authority’s response indicates that it has taken measures to address many of the concerns raised in this report.”
The report recommends that the authority correct its records, improve policies, get required approvals, and keep documents and contracts current.
“In addition to the measures already taken, the Authority should ensure that its policies, procedures, and management plan are reviewed at least annually, in accordance with sound business practices; updated if necessary; and approved by the board.”
The audit did not say the whole agency was failing, but it found weaknesses that could make financial reports unreliable, purchases less competitive, and oversight harder.
“The Authority’s policies, procedures, and management plan were last updated and approved by the board of commissioners in January 2003.”
A balance sheet is a financial snapshot: what the authority owns, what it owes, and what is left after debts are counted.
“The balance sheet is one of three key financial statements.”
5 figure(s) pending source verification - not shown
What the Auditor checked
- Partially Review and analyze the internal controls the Authority had established over selected activities and compliance with applicable laws, regulations, policies, procedures, and other guidance related to these activities.
What the Auditor found
Why it matters: The Authority’s accounting records and financial reports were inaccurate and unreliable.
Standard: DHCD’s Accounting Manual for State-Aided Housing Programs and generally accepted accounting principles. ( Section 15(D) of DHCD’s Accounting Manual for State-Aided Housing Programs )
1 recommendation
- Correct the financial records to include the fixed assets and prepare adjusting entries for related depreciation expense.agency: already implemented
Agency response & Auditor reply
Agency: "I, along with Hopedale’s Fee Accountant . . . have made the necessary adjustments to correct the sick and vacation accrual."
Auditor: "The Authority’s response indicates that it has taken measures to address many of the concerns raised in this report."
Why it matters: The Authority could not be sure that it paid the best price for the work.
Standard: Chapter 149, Sections 44A–44J, of the Massachusetts General Laws. ( Chapter 149, Section 44A(2), of the Massachusetts General Laws; Chapter 149, Section 44J(1), of the Massachusetts General Laws )
1 recommendation
- Ensure every contract for construction, labor, and materials complies with Chapter 149, Sections 44A–44J.agency: agreed
Agency response & Auditor reply
Agency: "I explained the reason for the . . . door replacements going over the $25,000.00 and not receiving the tenant rent waivers, which in the future I will request written waivers from DHCD, it is always my goal to comply with state laws governing contracts for bid proposals."
Auditor: "The Authority’s response indicates that it has taken measures to address many of the concerns raised in this report."
Why it matters: People on the waiting list may have been in greater need of the units occupied by the noncompliant tenants.
Standard: 760 CMR 5.06 and 760 CMR 5.15. ( 760 CMR 5.06(2); 760 CMR 5.15 )
1 recommendation
- Submit waiver requests immediately if the Authority chooses to request waivers, and develop a contingency plan if DHCD denies them.agency: agreed
Agency response & Auditor reply
Agency: "I explained the reason for the . . . door replacements going over the $25,000.00 and not receiving the tenant rent waivers, which in the future I will request written waivers from DHCD, it is always my goal to comply with state laws governing contracts for bid proposals."
Auditor: "The Authority’s response indicates that it has taken measures to address many of the concerns raised in this report."
Why it matters: Fixed assets and inventory might not be accurately reported or safeguarded against loss, theft, or misuse.
Standard: DHCD’s Accounting Manual for State-Aided Housing Programs. ( Section 16 of DHCD’s Accounting Manual for State-Aided Housing Programs )
2 recommendations
- Develop and implement a comprehensive capitalization policy modeled on DHCD guidance.agency: already implemented
- Establish and maintain inventory records, take annual physical inventory, and adjust records to match physical counts.agency: already implemented
Agency response & Auditor reply
Agency: "The inventory has been updated using the $1,000.00 threshold which was voted to increase from $300.00 to $1,000.00 by the Authority’s Board."
Auditor: "The Authority’s response indicates that it has taken measures to address many of the concerns raised in this report."
Why it matters: Employees might not use current guidance, causing inefficient operations and unnecessary resource use.
Standard: DHCD management plan requirements and sound business practices for annual policy review. ( DHCD sample template of the management plan )
1 recommendation
- Immediately update policies, procedures, and management plan; obtain board approval; and review them at least annually.agency: partially agreed
Agency response & Auditor reply
Agency: "The Director is working on updating the policies and procedures, the inventory, working on a calendar for attendance."
Auditor: "In addition to the measures already taken, the Authority should ensure that its policies, procedures, and management plan are reviewed at least annually, in accordance with sound business practices; updated if necessary; and approved by the board."
Why it matters: The Authority could not be certain that the parties’ obligations were clearly stated and agreed upon.
Standard: The Authority’s policies and procedures requiring contracts for the executive director and fee accountant. ( Authority policies and procedures, General Job Descriptions, Section 2, Executive Director; Authority policies and procedures, Fiscal Policy and Procedures, Section A )
1 recommendation
- Establish new contracts for the executive director and fee accountant if the Authority retains them.
Agency response & Auditor reply
Auditor: "It should also establish new contracts for its executive director and fee accountant."
Why it matters: Benefits owed to employees were reported incorrectly, financial reporting was inaccurate, and employees could be denied retirement sick-leave benefits.
Standard: GASB Statement 16, the executive director’s contract, and the Authority’s sick leave policy. ( GASB Statement 16; Executive director’s contract; Authority sick leave policy )
1 recommendation
- Correct vacation accruals, record vested sick time accrual, review final accruals before recording, and properly classify current and long-term liabilities.agency: already implemented
Agency response & Auditor reply
Agency: "I, along with Hopedale’s Fee Accountant . . . have made the necessary adjustments to correct the sick and vacation accrual."
Auditor: "The Authority’s response indicates that it has taken measures to address many of the concerns raised in this report."
Verified dollar findings
Identified dollar findings that do not fall in a named band.