Millbury Housing Authority

This is a Massachusetts State Auditor report on the Millbury Housing Authority, covering October 1, 2008 through December 31, 2010.

“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, we have conducted an audit of certain activities of the Millbury Housing Authority for the period October 1, 2008 through December 31, 2010.”

Auditors checked whether the housing authority followed laws and rules, whether its internal management practices were adequate, and whether it fixed problems from a prior audit.

“The objectives of our audit were to determine the Authority’s compliance with applicable laws, rules, and regulations and to review and analyze its management controls and practices over the following areas and functions for the purpose of determining their adequacy: (1) tenant selection; (2) preparation and reoccupation of vacant units; (3) rent determinations; (4) collectability of accounts receivables; (5) site inspections; (6) payroll, travel, and fringe benefits; (7) disbursements; (8) inventory controls over property and equipment; (9) contract procurement; (10) cash management and investment practices; (11) Department of Housing and Community Development (DHCD)-approved budgets versus actual expenditures; (12) level of need for operating subsidies and operating reserves; (13) the Massachusetts Rental Voucher Program; and (14) off-line housing units.”

The report matters because unresolved repair problems, long vacancies, and low reserves can affect public housing quality, rental income, and the authority’s ability to handle emergencies.

“As a result, the Authority may not have the financial resources to fund emergency situations as they arise.”

If you live in or rely on public housing, this report points to issues that could affect housing conditions, how quickly vacant units become available, and whether the authority has money for urgent repairs.

“Our follow-up review revealed that the condition of the units at Forest Drive and North Main Street Family Housing had not improved since our last audit.”

The biggest findings were that prior audit issues remained unresolved and the authority’s reserves were below recommended levels.

“Our follow-up review indicated that these issues remained unresolved.”

The report says the authority should keep working with DHCD on funding repairs, reduce vacancy turnaround time, consider using formula funding for modernization, and monitor budgets and spending to rebuild reserves.

“The Executive Director and the Board of Directors should review future budgets and monitor current spending to determine whether adjustments can be made that will increase the Authority’s reserves to ensure that it has adequate funds available for unforeseen or emergency circumstances.”

This audit is significant because it shows repeated problems from a prior audit had not been resolved, while the authority’s financial cushion dropped sharply by 2010.

“During fiscal years 2009 and 2010, the Authority’s net assets-unrestricted account was below DHCD’s recommended minimum levels, as outlined in the chart below:”

“Net assets-unrestricted” means money available as reserves. In plain terms, it is the cushion the housing authority can use for cash flow, emergencies, and non-routine costs.

“The Authority’s net assets-unrestricted account, formerly known as the operating reserves, has experienced a decline in the balance below the DHCD-recommended levels for fiscal years 2009 and 2010.”