Marshfield Housing Authority

This is a Massachusetts State Auditor performance audit of the Marshfield Housing Authority covering July 1, 2012 through June 30, 2014.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2012 through June 30, 2014.”

Auditors checked whether the housing authority had proper controls, followed applicable rules, and met state housing department reporting requirements.

“The purpose of the audit was to review and analyze certain areas of the Authority’s operations to determine whether it had established adequate internal controls in these areas and was operating in compliance with applicable laws, rules, regulations, and financial reporting and data requirements established by the Department of Housing and Community Development.”

Public agencies need records showing that spending is legitimate; without them, there is more risk that public money could be spent on non-business purposes.

“Without documentation to support credit-card expenses paid by the Authority, there is a higher-than-acceptable risk that these expenses may not be for business-related purposes.”

If you live in Marshfield or care about public housing funds, this report tells you whether the authority managing housing units and vouchers had basic financial safeguards in place.

“The Authority manages 113 units for low-income tenants, 97 units for elderly tenants, and 16 units for families.”

Most areas reviewed passed, but financial controls did not fully pass because of the undocumented credit-card spending.

“Did the Authority have adequate controls over its financial operations, including reasonableness of administrative expenses such as executive compensation and benefits, credit-card purchases, rent collection, collectability of accounts receivable, cash controls, cost allocation, and administration and oversight of modernization and development fund expenditures?”

The auditor recommended a written rule requiring documentation before credit-card bills are paid, and the authority said it had created a formal credit-card policy.

“The Authority, with the approval of its board of commissioners, should implement a formal written policy requiring that sufficient documentation be submitted for all credit-card expenses before payment.”

The dollar amount was limited to $2,046, but the issue matters because missing receipts weaken accountability for public spending.

“During our audit period, the Authority made credit-card purchases for a total of $2,046 without maintaining documentation to substantiate that they were reasonable and business related.”

Internal controls means the basic checks an agency uses to protect money and property, follow rules, and keep accurate records.

“These controls should safeguard assets; promote efficiency; encourage compliance with appropriate policies, rules, and regulations; and ensure accuracy of accounting records.”