Housing Assistance Corporation's Use of Certain American Recovery and Reinvestment Act Funds

This is a Massachusetts State Auditor report about how Housing Assistance Corporation on Cape Cod used federal stimulus money for home weatherization work from September 21, 2009 through June 30, 2012.

“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, we have conducted an audit of certain HAC activities for the period September 21, 2009 through June 30, 2012.”

The audit checked whether the federal money was spent for the weatherization program as intended and whether the organization met accounting and reporting rules tied to the stimulus funds.

“The objectives of our audit were to determine whether ARRA funds awarded to HAC from DHCD for the WAP were used for their intended purposes and in compliance with program requirements, and to evaluate whether HAC complied with ARRA accounting and reporting requirements.”

The money was meant to help low-income households on the Cape and Islands make their homes more energy efficient, which can affect comfort and energy costs.

“The WAP enables low-income families and households on the Cape and Islands to make their homes more energy efficient.”

If you live in the Cape and Islands area and qualify as low-income, this program supported home improvements like insulation, leak sealing, patching holes, and weather-stripping.

“Some of the weatherization measures taken to improve home energy efficiency include the installation of blown-in insulation to attics and walls, sealing of leaks, patching of holes, and caulking and weather-stripping of windows and doors.”

The main result was positive: the funds were properly used and accounted for. The one issue was that HAC needed to add a formal fraud, waste, and abuse policy to its procedures.

“We determined that during our audit period, the ARRA funds awarded to HAC from DHCD for WAP were used for their intended purposes and were properly accounted for and expended in compliance with program requirements.”

The auditor recommended that HAC put a written fraud, waste, and abuse policy into its financial procedures manual, and HAC said it had drafted one after audit fieldwork ended.

“HAC should develop a formal, written Fraud, Waste, and Abuse Policy Statement and include it in its Financial Procedures Manual.”

The report covers $3,261,175 in federal stimulus funding, 602 weatherized units, and reported job impacts, so it shows how a sizable public grant was used locally.

“HAC provided weatherization assistance for 602 units using ARRA funds during our audit period.”

ARRA refers to federal stimulus funds; WAP is the Weatherization Assistance Program; DHCD passed the federal money to HAC; HAC was the organization carrying out the local work.

“The funds were passed through DHCD, the prime recipient of U.S. Department of Energy (DOE) funds, to HAC, the sub-recipient.”