Wareham Housing Authority
October 12, 2016 · Read the full official report (PDF) ↗
Published October 12, 2016 Audit covers July 1, 2012 – June 30, 2014 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 Wareham Housing Authority covering mostly 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.”
The audit was requested because the Authority’s board suspected irregularities and questionable activity.
“Our audit was initiated, at the request of the Authority’s board of commissioners, because of suspicion of irregularities and questionable activities at the Authority.”
The Authority manages public housing and rent support, so weak controls can affect tenants, public money, and whether people in need are treated fairly.
“The Authority manages and oversees 104 state-subsidized housing units for elderly tenants.”
For residents and taxpayers, the report points to practical fixes: accurate rents, better records, documented spending, regular inspections, and stronger board oversight.
“The Authority should give refunds to tenants who were overcharged.”
The audit found repeated failures in documentation, accounting, housing lists, inspections, rent calculations, purchasing, inventory, credit cards, and board governance.
“The Authority’s board did not provide proper governance.”
The Auditor recommended new or stronger policies, better documentation, reconciliations, inspections, rent corrections, inventory controls, and regular board meetings.
“The Authority’s board of commissioners should establish and implement internal controls, policies, and procedures regarding payroll, time, and attendance.”
The report matters because auditors could not verify some pay, tenant selection, rent charges, expenses, and asset records, which means the Authority could not prove key decisions and spending were correct.
“This means there is no assurance that the former executive director was entitled to all the compensation she received during this period.”
17 figure(s) pending source verification - not shown
What the Auditor checked
- Complied Were administrative expenses charged to the proper accounts?
- Did not comply Did administrative expenses have adequate supporting documentation?
- Did not comply Does the Authority properly manage its rent-collection process, including reconciling tenant accounts-receivable balances?
- Complied Does the Authority submit its financial statements and budgets in accordance with Department of Housing and Community Development (DHCD) requirements?
- Did not comply Did the Authority determine tenant eligibility and placement, perform annual rent redeterminations, and report vacancies in accordance with DHCD regulations?
- Did not comply Does the Authority perform an annual inspection of all units and document the inspections?
- Did not comply Does the executive director comply with DHCD requirements regarding payroll and documentation of time and attendance?
- Did not comply Does the Authority maintain an up-to-date inventory list of its property and equipment and conduct a physical inventory annually according to DHCD requirements?
- Did not comply Were the board of commissioners’ meetings held as required and were they appropriately attended to properly oversee and govern the business affairs of the Authority?
- Did not comply Is there adequate documentation for all Authority credit-card expenses?
What the Auditor found
Why it matters: There was no assurance that the former executive director was entitled to all compensation received.
Standard: DHCD Accounting Manual Section 15 and DHCD Public Housing Notice 2007-6 ( Section 15 of the Department of Housing and Community Development Accounting Manual; DHCD Public Housing Notice 2007-6 )
1 recommendation
- Establish and implement internal controls, policies, and procedures regarding payroll, time, and attendance.agency: already implemented
Agency response & Auditor reply
Agency: "We, to the contrary have put controls in place to prevent any re-occurrence of such questionable activity and conflict."
Why it matters: The Authority could not substantiate that credit-card purchases benefited the Authority rather than being personal purchases.
Standard: The Authority’s Bookkeeping Policy for accounts payable ( The Authority’s Bookkeeping Policy for accounts payable )
2 recommendations
- Update credit-card policies to require review and retention of documentation and reconciliation of receipts to statements to prevent duplicate payments.agency: already implemented
- Consider additional controls such as a list of authorized credit-card users.agency: already implemented
Agency response & Auditor reply
Agency: "Because of this and that some charges were not business related we canceled all credit cards and canceled cell phones."
Why it matters: Missed meetings and attendance issues hindered the board’s ability to oversee financial and physical operations.
Standard: Section 3 of Article III of the Authority’s bylaws ( Section 3 of Article III of the Authority’s bylaws )
1 recommendation
- Hold meetings at least monthly or amend bylaws if monthly meetings are not feasible.agency: already implemented
Agency response & Auditor reply
Agency: "By comparison the new administration, Board, and Administrator meet regularly, have comprehensive agendas, and Board packages containing extensive, detailed, and documented reporting at our meetings covering all programs and activities of the WHA."
Why it matters: The Authority lacked formal benchmarks to measure performance, hold the executive director accountable, and control compensation.
Standard: DHCD memo on executive director contracts and 760 CMR 4.05 ( 760 CMR 4.05 )
3 recommendations
- Establish employment policies and procedures governing hiring, including executive director contracts with length, salary, and benefits.agency: already implemented
- Vote on hiring and contracts at a scheduled open meeting and document the vote in meeting minutes.agency: already implemented
- Send approved contracts to DHCD for review and approval.agency: already implemented
Agency response & Auditor reply
Agency: "The new Board and Administrator drafted new policies and implemented practices consistent with applicable enabling statutes and requirements which provide for terms of employment, job descriptions and duties and responsibilities, benefits and compensation for all employees."
Why it matters: Auditors could not determine whether applicants were selected in proper order, and applicants with the greatest need may have been passed over.
Standard: 760 CMR 5.16(2) ( 760 CMR 5.16(2) )
1 recommendation
- Maintain written waiting-list ledgers and ensure each eligible applicant is entered on the appropriate waiting list.agency: already implemented
Agency response & Auditor reply
Agency: "After their arrival, the interim manager and the new Administrator instituted corrective action to develop a proper record keeping system to ensure compliance, so that applicants are housed accordingly."
Why it matters: Unreconciled balances may impair budgeting and give DHCD unreliable financial information.
Standard: DHCD Accounting Manual Section 8 and the Authority’s accounting services contract ( Section 8 of the DHCD Accounting Manual )
2 recommendations
- Require the fee accountant to reconcile tenants’ accounts-receivable and general-ledger records.agency: already implemented
- Ensure that these reconciliations are performed.agency: already implemented
Agency response & Auditor reply
Agency: "This is done on a monthly basis and is presented at the Board Meeting as part of the Administrator’s report."
Why it matters: Incomplete or inaccurate vacancy information can delay or misdirect housing placements and impair DHCD monitoring.
Standard: DHCD Public Housing Notice 2008-04 ( DHCD Public Housing Notice 2008-04 )
2 recommendations
- Properly report all required housing data in HAFIS and seek DHCD assistance if needed.agency: already implemented
- Establish policies and procedures for administering the vacant-unit reporting process.
Agency response & Auditor reply
Agency: "Our Administrator offered, sought after advice, in revising a new system that was implemented at DHCD in June of 2016 along with correctly listing unit 51."
Auditor: "We again recommend that it establish policies and procedures related to the administration of this process."
Why it matters: There was inadequate assurance that units were regularly monitored for safe, decent, and sanitary housing standards.
Standard: DHCD Property Maintenance Guide Sections 3F and 3B ( Section 3F of DHCD’s Property Maintenance Guide; Section 3B of DHCD’s Property Maintenance Guide )
3 recommendations
- Develop an annual inspection schedule for all dwelling units managed.agency: already implemented
- Generate a work order after inspection to make each unit compliant with the State Sanitary Code.agency: already implemented
- Retain an inspection report for each inspection.
Agency response & Auditor reply
Agency: "Our new Administrator has developed and instituted a work order maintenance system and has sought Emergency modernization and Formula Funding from DHCD to address other long overdue Capital type improvements."
Auditor: "The Authority should ensure that its work-order maintenance system includes an annual inspection schedule and a requirement that all annual inspections be documented."
Why it matters: Tenants were overcharged or undercharged, and the Authority could not substantiate one tenant’s rent.
Standard: 760 CMR Section 6 ( 760 CMR Section 6 )
3 recommendations
- Review affected tenant files and make appropriate adjustments to each tenant account.agency: already implemented
- Give refunds to tenants who were overcharged.agency: already implemented
- Obtain and retain all necessary income and expense documentation in tenant files.agency: already implemented
Agency response & Auditor reply
Agency: "Our interim management and new Administrator upon rent confirmation and verification found significant problems with tenant eligibility and selection as well as rent computations by the prior administration and took measures to properly adjust and correct rents and obtain appropriate income and expense documentation to be included in tenant files."
Why it matters: Lack of documentation, oversight, and approval left the Authority vulnerable to waste, fraud, and abuse.
Standard: DHCD Accounting Manual Section 8, the Authority’s Bookkeeping Policy, and the Authority’s tax-exempt certificate ( Section 8 of DHCD’s Accounting Manual )
1 recommendation
- Update disbursement policies to require purchase orders, supporting invoices, no sales tax payments, paid stamps, and board-approved warrants signed by two members.agency: already implemented
Agency response & Auditor reply
Agency: "Accordingly, because of these conditions, we require, whether for payroll, or accounts payable, that documentation accompany all checks presented for approval and signing, and we have implemented a purchase order system."
Why it matters: Incomplete inventory records created risk of undetected loss, theft, misuse, inaccurate asset values, and inaccurate depreciation expenses.
Standard: DHCD Accounting Manual Section 15(D) ( Section 15(D) of the DHCD Accounting Manual )
3 recommendations
- Implement formal policies and procedures for managing property and equipment, including annual inventory and discrepancy resolution.
- Immediately conduct a physical inventory, compare it to the current list, investigate discrepancies, and update the list.
- Give inventory results to the fee accountant for reconciliation to the general ledger and financial statements annually.agency: already implemented
Agency response & Auditor reply
Agency: "This difference was corrected."
Auditor: "Though the Authority has taken steps to correct the $21,000 variance between the general ledger and its financial statements, it should also establish policies and procedures for managing its inventory that include conducting an annual physical inventory and resolving any discrepancies between the items in its possession and the current inventory list."
More audits of this entity
Other Office of the State Auditor reports on Wareham Housing Authority .
- Wareham Housing AuthorityHousing Authority · MARCH 1, 2011