Lynnfield Housing Authority
December 13, 2017 · Read the full official report (PDF) ↗
Published December 13, 2017 Audit covers April 1, 2015 – March 31, 2017 Under Suzanne M. Bump · 2011–2023
source
“The Authority lacks important board-approved policies and procedures.”
Read the plain-English breakdown
This is a Massachusetts State Auditor performance audit of the Lynnfield Housing Authority covering April 1, 2015 through March 31, 2017.
“This report details the audit objectives, scope, methodology, finding, and recommendation for the audit period, April 1, 2015 through March 31, 2017.”
Auditors reviewed selected housing authority activities, including money handling, tenant selection, purchasing, and housing inspections.
“In this audit, we reviewed the Authority’s financial activities and its activities related to the selection of tenants, the procurement of goods and services, and the inspection of housing units.”
Without clear written rules, the housing authority has less assurance that staff handle public money and key operations properly and consistently.
“This creates a higher-than-acceptable risk of loss or misuse of the Authority’s funds.”
If you are a Lynnfield resident, tenant, applicant, or taxpayer, this matters because written policies help protect housing authority funds and make rent collection, purchases, and credit card use more accountable.
“The management of each Local Housing Authority is responsible for developing and implementing a system of internal control which will:”
The auditor recommended that the authority adopt board-approved policies for procurement, credit card use, and tenant rent collection.
“The Authority should create board-approved policies and procedures for procurement, credit card use, and tenant rent collection.”
The authority said it was already working on written policies and had formed a board subcommittee to draft and review them.
“The Authority’s executive director stated that the Authority was drafting written policies and procedures for procurement, credit card use, and rent collection.”
The audit did not report multiple findings; it identified one governance and control issue, and the authority agreed written policies were needed.
“The Board takes note of the Auditor’s findings regarding written policies and agrees that these policies need to be drafted, updated and properly formalized by the Board.”
“Procurement” means the process the housing authority uses to buy goods and services or enter contracts.
“It is necessary that all LHAs [local housing authorities] have a formal stated policy to control the purchases and contracts for equipment, materials, supplies and services,” which would also include purchases made with credit cards.”
What the Auditor checked
- Did not comply Are the Authority’s financial operations performed in accordance with all applicable laws, regulations, and other authoritative guidance regarding the reasonableness of administrative expenditures in accordance with Sections 8 and 16 of the Department of Housing and Community Development Accounting Manual?
- Did not comply Are the Authority’s financial operations performed in accordance with all applicable laws, regulations, and other authoritative guidance regarding rent collections and other accounts receivable in accordance with DHCD’s Accounting Manual and other applicable authoritative requirements?
- Did not comply Are the Authority’s financial operations performed in accordance with all applicable laws, regulations, and other authoritative guidance regarding the reasonableness of credit card expenditures in accordance with DHCD’s Accounting Manual and other applicable authoritative requirements?
- Complied Are the Authority’s financial operations performed in accordance with all applicable laws, regulations, and other authoritative guidance regarding contract compliance with DHCD regulations and other applicable authoritative requirements for the contracting agreement with the executive director?
- Complied Does the Authority determine tenant eligibility in compliance with Sections 5.0, 6.04, and 6.05 of Title 760 of the Code of Massachusetts Regulations (CMR)?
- Did not comply Does the Authority procure goods and services in accordance with Chapter 30B of the General Laws and Sections 8 and 16 of the DHCD Accounting Manual?
- Complied Are the Authority’s procedures for site inspections adequate to ensure that housing units meet the safety and sanitation requirements of 105 CMR 410 and the DHCD Property Maintenance Guide?
What the Auditor found
Why it matters: This creates inadequate assurance that these activities are consistently performed according to requirements and increases the risk of loss or misuse of Authority funds.
Standard: Section 16 and Section 8 of DHCD’s Accounting Manual, and DHCD’s Training Manual for Housing Authority Board Members. ( Section 16 of DHCD’s Accounting Manual; DHCD’s Training Manual for Housing Authority Board Members; Section 8 of DHCD’s Accounting Manual )
1 recommendation
- The Authority should create board-approved policies and procedures for procurement, credit card use, and tenant rent collection.agency: agreed
Agency response & Auditor reply
Agency: "The Board takes note of the Auditor’s findings regarding written policies and agrees that these policies need to be drafted, updated and properly formalized by the Board."