Sudbury Housing Authority
January 16, 2015 · Read the full official report (PDF) ↗
Published January 16, 2015 Audit covers April 1, 2012 – December 31, 2013 Under Suzanne M. Bump · 2011–2023
source
“Below is a summary of our findings and recommendations, with links to each page listed.”
Read the plain-English breakdown
This is a Massachusetts State Auditor performance audit of the Sudbury Housing Authority covering April 1, 2012 through December 31, 2013.
“I am pleased to provide this performance audit of the Sudbury Housing Authority.”
Auditors reviewed whether the housing authority had proper controls over money, tenant eligibility, purchasing, inspections, contracts, reporting, and certain outside or Community Preservation Act funds.
“The objectives of our audit were to review and analyze the Authority’s management controls and practices over its financial operations; eligibility determinations, redeterminations, and tenant selection; procurement of goods and services; site inspections; and contracting and leasing procedures.”
These problems matter because weak controls can make public assets and funds harder to protect and can reduce the board’s oversight of important decisions.
“This places the Authority at risk of loss, theft, or misuse of its assets and of misreporting the value of its assets.”
For residents and taxpayers, the audit is about whether a local public housing authority is keeping accurate records, protecting public money, and following approval rules.
“The Authority currently manages and oversees 16 units of state scattered-site housing for low-income families and 64 units of state housing for elderly tenants.”
The audit did not say everything was broken, but it found four concrete areas needing correction: inventory tracking, board approvals, leave-time accounting, and bank reconciliations.
“The Authority should perform monthly reconciliations of all of its bank accounts.”
The report recommends that the authority improve its procedures, and the authority said it had resumed annual inventory work, would improve communication with its accountant, and would make sure all bank accounts are reconciled.
“The SHA has taken steps to ensure that its current fee accountant consistently reconciles all bank account statements to the SHA’s transaction records.”
The findings point to routine but important government accountability issues: public housing agencies need accurate books, documented approvals, and regular checks so problems are caught early.
“Monthly bank reconciliations are important in helping protect the Authority against unauthorized charges and electronic theft.”
A bank reconciliation means comparing the housing authority’s records with the monthly bank statement to catch errors, unauthorized charges, or missing money.
“Section 16 of DHCD’s Accounting Manual for State-Aided Housing Programs requires LHAs to perform a “reconciliation of the monthly bank statement.””
6 figure(s) pending source verification - not shown
What the Auditor checked
- Did not comply Did the Authority have adequate controls over its financial operations, including reasonableness of administrative expenses such as executive compensation and benefits, rent collections, the collectability of accounts receivable, cash controls, and the administration and oversight of development and modernization fund expenditures?
- Complied Did the Authority have adequate controls over eligibility determinations, redeterminations, and tenant selection?
- Did not comply Did the Authority have adequate controls over procurement of goods and services and inventory controls over supplies and equipment?
- Complied Did the Authority have adequate controls over site inspections?
- Did not comply Did the Authority have adequate controls over contracting and leasing procedures?
- Complied Did the Authority comply with the Department of Housing and Community Development’s (DHCD’s) financial reporting and data collection requirements?
- Complied Were there any Authority-related associations, corporations, or other private entities that were involved in financial and/or management activities related to the Authority?
- Complied Did the Authority spend money received under Chapter 44B of the General Laws, or the Community Preservation Act (if it received any), according to that law and DHCD guidelines?
What the Auditor found
Why it matters: This increased the risk of undetected loss, theft, misuse, or inaccurate reporting of asset values.
Standard: Section 15 of DHCD’s Accounting Manual for State-Aided Housing Programs requires an annual physical inventory and comparison to equipment records. ( Section 15 of DHCD’s Accounting Manual for State-Aided Housing Programs )
1 recommendation
- The Authority should perform an annual physical inventory of its property and equipment and reconcile the inventory information to its accounting records to ensure the accuracy of its inventory list.agency: already implemented
Agency response & Auditor reply
Agency: "The SHA is aware of the requirement to perform an annual physical review of its inventory and has resumed this annual practice."
Why it matters: The board could not fulfill its governance and oversight role over contracts and revenue reductions.
Standard: The Authority’s procurement policy requires board approval of bids, and Section 19 of DHCD’s Accounting Manual requires board approval of tenant account write-offs. ( The Sudbury Housing Authority’s procurement policy; Section 19 of DHCD’s Accounting Manual )
1 recommendation
- The Authority should ensure that it obtains the required approval from its board of commissioners for all contract awards and write-offs of uncollectible accounts.agency: agreed
Agency response & Auditor reply
Agency: "The absence of a Board vote for the contract award of $8,395 was simply an oversight; the Board approved the expenditure at its June 11, 2013 Regular Session and has since ratified the award."
Auditor: "We again recommend that the Authority take the measures necessary to ensure that it obtains the required approval from its board of commissioners for all contract awards and write-offs of uncollectible accounts."
Why it matters: The Authority reported inaccurate compensated absence liabilities to DHCD.
Standard: Section 19 of DHCD’s Accounting Manual requires LHAs to follow Government Accounting Standards Board Statement No. 16, Accounting for Compensated Absences. ( Section 19 of DHCD’s Accounting Manual; Government Accounting Standards Board Statement No. 16, Accounting for Compensated Absences )
1 recommendation
- The executive director and fee accountant should work together to calculate the Authority’s paid leave liability, making sure to include all applicable paid leave time and use the current pay rate for all employees in its liability calculations.agency: agreed
Agency response & Auditor reply
Agency: "For reporting periods subsequent to the audit period, the SHA will ensure that the accountant’s records align with those of the SHA."
Why it matters: The Authority risked untimely detection of unauthorized charges, electronic theft, or loss of funds.
Standard: Section 16 of DHCD’s Accounting Manual for State-Aided Housing Programs requires monthly bank statement reconciliations. ( Section 16 of DHCD’s Accounting Manual for State-Aided Housing Programs )
1 recommendation
- The Authority should perform monthly bank reconciliations of all of its bank accounts.agency: already implemented
Agency response & Auditor reply
Agency: "The SHA has taken steps to ensure that its current fee accountant consistently reconciles all bank account statements to the SHA’s transaction records."