Mattapoisett Housing Authority
MARCH 31, 2009 · Read the full official report (PDF) ↗
Published MARCH 31, 2009 Audit covers April 1, 2007 – March 31, 2009 Under A. Joseph DeNucci · 1987–2011
source
“Based on our review, we have concluded that the Authority did not maintain adequate management controls or comply with certain laws and regulations, which resulted in inappropriate expenditures, uneconomical practices, and the mismanagement of its housing programs during the 24-month period ended March 31, 2009.”
Read the plain-English breakdown
This is a Massachusetts State Auditor report reviewing certain operations of the Mattapoisett Housing Authority from April 1, 2007 through March 31, 2009.
“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, the Office of the State Auditor conducted an audit of certain activities of the Mattapoisett Housing Authority for the period April 1, 2007 to March 31, 2009.”
Auditors checked whether the housing authority had proper management controls and followed the rules for its programs.
“The objectives of our audit were to assess the adequacy of the Authority's management control system for measuring, reporting, and monitoring the effectiveness of its programs, and to evaluate its compliance with laws, rules, and regulations applicable to each program.”
If you are a taxpayer, tenant, or housing applicant, this matters because poor controls can waste public funds, delay available housing, and weaken services.
“As a result, the Authority may not have the financial resources necessary to fund emergency situations or maintain the current level of services provided.”
The auditor’s bottom line was that the authority’s controls had gotten worse since the prior audit and that management problems led to improper or questionable spending and weak housing program administration.
“Our audit found that internal accounting and administrative controls at the Authority had significantly deteriorated since our prior audit.”
The auditor recommended tighter payroll rules, better approval of timesheets and overtime, recovery of incorrectly paid overtime, faster filling of vacant units, updated management documents, and stronger board oversight.
“The Authority needs to strengthen the controls over its payroll system by developing and implementing personnel policies that require employees to certify the accuracy of their timesheets and instruct management to timely review and approve employee timesheets.”
The report is significant because it says the board’s oversight system broke down, which is a core safeguard for public funds and lawful housing authority operations.
“The various problems at the Authority resulted from a severe breakdown of the system of controls and checks and balances (i.e. governance) that are supposed to be exercised by the Board of Commissioners (Directors) in fulfilling its fiduciary responsibility to set policy, give direction, and monitor and oversee the activities of the Authority.”
“Operating reserve” means backup money the housing authority should have available for cash flow, emergencies, and major non-routine costs.
“The purpose of the operating reserve is threefold.”
6 figure(s) pending source verification - not shown
What the Auditor checked
- Did not comply Assess whether the Authority's management control system was adequate for measuring, reporting, and monitoring the effectiveness of its programs.
- Did not comply Evaluate whether the Authority complied with laws, rules, and regulations applicable to each program.
What the Auditor found
Why it matters: The Authority could not ensure payroll costs were reasonable, allowable, and allocable, and employees may have been overpaid.
Standard: DHCD attendance and payroll requirements, DHCD's Modernization Manual, and Massachusetts Minimum Fair Wage Law and Regulations. ( Section 15 of the DHCD Accounting Manual; Chapter 2 of DHCD's Modernization Manual; Massachusetts Minimum Fair Wage Law and Regulations )
2 recommendations
- Strengthen payroll controls by requiring certified, reviewed, and approved timesheets; timely benefit records; pre-approved overtime; updated payroll policies; and DHCD allowability review.agency: partially agreed
- Recover incorrectly computed overtime benefits and unauthorized and undocumented payments.agency: disagreed
Agency response & Auditor reply
Agency: "I will read payroll rules and adhere to their instructions."
Auditor: "We disagree with the Authority’s contention that overtime rate is allowable for holiday and/or vacation pay when an employee works 40 hours or more."
Why it matters: The Authority lost potential rental income and delayed state-subsidized housing for eligible elderly and family applicants.
Standard: DHCD's 21-day vacancy turnaround requirement and vacancy reporting guidelines. ( Chapter 1 of DHCD's Property Maintenance Guide )
1 recommendation
- Implement procedures to ensure vacant units are occupied within DHCD's 21-day timeframe.agency: already implemented
Agency response & Auditor reply
Agency: "I have been filing them closer to the due date."
Auditor: "Since the corrective measures taken by the Authority occurred after the completion of our audit fieldwork, we cannot express an opinion on their adequacy, and we will review any and all corrective actions taken during our next scheduled audit."
Why it matters: The Authority may lack the financial resources needed for emergencies or to maintain current service levels.
Standard: Section 14 of DHCD's Accounting Manual and DHCD-recommended minimum operating reserve levels. ( Section 14 of DHCD's Accounting Manual )
1 recommendation
- Follow DHCD policies and guidelines to maintain adequate reserve funds and have the Board take a more active oversight role.
Agency response & Auditor reply
Agency: "With the mold remediation behind us, the Authority is operating on a daily basis in maintenance mode unless an emergency arises."
Auditor: "Since the corrective measures taken by the Authority occurred after the completion of our audit fieldwork, we cannot express an opinion on their adequacy, and we will review any and all corrective actions taken during our next scheduled audit."
Why it matters: The Authority lacked a current basis for public housing administration, internal control, and compliance with DHCD requirements.
Standard: DHCD's Accounting Manual for State-Aided Housing Programs and 760 CMR 4.00 and 5.16. ( DHCD's Accounting Manual for State-Aided Housing Programs; 760 Code of Massachusetts Regulations 4.00, Section 4.03; 760 CMR 5.16 )
1 recommendation
- Update the Authority's Management Plan and ensure all updates are initialed and dated.agency: agreed
Agency response & Auditor reply
Agency: "The Plan will be read and updated with the Board’s approval."
Why it matters: Weak oversight allowed fiscal and operational problems and reduced assurance that public funds were handled properly.
Standard: Generally accepted government auditing standards and applicable laws, rules, and regulations. ( Generally accepted government auditing standards )
1 recommendation
- Review all Authority phases and functions, strengthen internal controls, and have the Board more actively oversee and monitor operations.
Agency response & Auditor reply
Agency: "The Board remains diligently involved in overseeing the monitoring the operations of this Authority."
More audits of this entity
Other Office of the State Auditor reports on Mattapoisett Housing Authority .
- Mattapoisett Housing AuthorityHousing Authority · June 19, 2013