Taunton Housing Authority

This is a state audit of the Taunton Housing Authority covering January 1, 2012 through March 31, 2013.

“I am pleased to provide this performance audit of the Taunton Housing Authority.”

Auditors checked whether the housing authority followed laws and rules, had proper controls, and managed areas like finances, tenant selection, procurement, inspections, leases, and reporting properly.

“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 for the following areas and functions to determine their adequacy: (1) financial operations, including reasonableness of administrative expenditures such as executive compensation and benefits, subsidy calculations, rent collections, the collectability of accounts receivable, cash controls, and the administration and oversight of development and modernization fund expenditures; (2) eligibility determinations, redeterminations, and tenant selection; (3) procurement of goods and services, including the use of collective purchasing and inventory controls over supplies and equipment; (4) site inspections; (5) contracting and leasing procedures; (6) cost allocation; and (7) compliance with the Department of Housing and Community Development’s (DHCD’s) financial reporting and data collection requirements.”

This matters because public housing money should be billed and paid correctly, especially when local government charges the housing authority for services normally funded by taxes.

“The PILOT program enables tax-exempt entities to submit a payment for municipal services that are normally funded by taxes.”

Most areas tested were adequate, but the authority needed better monitoring of Payments in Lieu of Taxes to make sure the city charged the right amount.

“However, the Authority needs to improve its monitoring of Payments in Lieu of Taxes to the City of Taunton to ensure that the amounts charged comply with DHCD policies.”

The authority should work with the city to put a formal PILOT agreement in place so future bills are calculated correctly for all eligible properties.

“The Authority should work with the City of Taunton to sign a PILOT agreement to ensure that PILOT payments are accurately calculated for all eligible properties and that the proper amounts are paid.”

The finding was limited: auditors found an overpayment issue, but otherwise concluded the authority had adequate controls in the areas they tested.

“Based on our audit, we have concluded that for the period January 1, 2012 through March 31, 2013, except for the issues addressed in the Detailed Audit Results and Findings section of this report, the Authority maintained adequate internal controls in the areas tested and conducted its procurements in an efficient manner in compliance with DHCD guidelines and applicable laws, rules, and regulations.”

PILOT means a payment made by a tax-exempt organization, like a housing authority, to help cover city services that property taxes usually pay for.

“The PILOT program enables tax-exempt entities to submit a payment for municipal services that are normally funded by taxes.”