Lee Housing Authority

This is a state performance audit of the Lee Housing Authority covering July 1, 2010 through June 30, 2012.

“I am pleased to provide this performance audit of the Lee Housing Authority.”

Auditors checked whether the housing authority had proper controls over buying goods and services and whether it followed state housing procurement rules.

“The objectives of our audit were to review and analyze the Authority’s internal controls over its procurement of goods and services and to determine whether its procurement activities were efficient and in compliance with the Department of Housing and Community Development’s (DHCD’s) procurement guidelines and laws, rules, and regulations applicable to state-aided housing programs.”

Without DHCD approval, the authority risked entering into legal contracts the state might have considered too costly or invalid.

“The Authority entered into this agreement without prior approval by the Department of Housing and Community Development (DHCD), thus risking entering into an agreement whose terms DHCD could have found excessive or invalid.”

If you live in or care about Lee public housing, this audit concerns the agency that manages housing for elderly people, people with disabilities, families, and people with developmental disabilities.

“The Authority’s management oversees 48 units of housing for the elderly and the handicapped, 16 units for families, and 13 units for the developmentally disabled.”

Aside from the legal-contract approval problem, auditors concluded the authority had adequate controls in the areas they tested and generally handled procurements efficiently and properly.

“Based on our audit, we have concluded that, except for the issue addressed in the Detailed Audit Results and Findings section of this report, for the period July 1, 2010 through June 30, 2012, the Authority maintained adequate internal controls in the areas tested and conducted its procurements in an efficient manner in compliance with DHCD guidelines and laws, rules, and regulations applicable to state-aided housing programs.”

The authority should send required contracts to DHCD for approval and review procurement rules before signing agreements.

“The Authority should submit all required contracts to DHCD for approval.”

The finding was limited: officials said they did not know approval was required, and the authority agreed the finding was correct and said it would follow the recommendation.

“Authority officials told OSA that they were not aware of this requirement.”

A monthly retainer means the authority paid an attorney a regular monthly amount so legal help would be available when needed.

“These contracts were monthly retainer agreements to provide legal services or representation as needed.”