Westport Housing Authority

This is a Massachusetts State Auditor report reviewing parts of the Westport Housing Authority’s operations from July 1, 2009 through March 31, 2011.

“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 Westport Housing Authority for the period July 1, 2009 through March 31, 2011.”

Auditors checked whether the housing authority followed rules and had adequate controls over areas like tenant selection, spending, cash management, contracts, and inventory.

“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; and (13) administration of modernization funds to determine, among other items, the existence of excess funds.”

If public property is not tracked, officials and residents have less assurance that assets are protected and financial records are accurate.

“Without proper property and equipment inventory controls, there is inadequate assurance that the Authority’s accounting records and financial statements accurately reflect fixed-asset values or that the Authority’s assets are adequately safeguarded against possible loss, theft, or misuse.”

For a resident or taxpayer, the key issue is accountability: the authority needs to know what public equipment it owns and make sure it is not lost, stolen, or misused.

“Without proper furniture and inventory controls, there is inadequate assurance that the Authority’s accounting records and financial statements accurately reflect fixed-asset values or that the Authority’s assets are safeguarded against possible loss, theft, or misuse.”

Aside from the inventory problem, auditors said the authority had adequate controls and followed the rules in the areas they tested.

“Based on our audit, we have concluded that, except for the issue addressed in the Audit Findings section of this report, during the period July 1, 2009 through March 31, 2011, the Authority maintained adequate management controls and complied with applicable laws, rules, and regulations for the areas tested.”

The finding was limited, but it mattered because the authority’s property and equipment were reported at $18,296 and were not being tracked as required.

“Our review of the Westport Housing Authority’s internal controls over its property and equipment inventory identified that improvements were needed to ensure compliance with the Department of Housing and Community Development’s (DHCD’s) Accounting Manual.”

In plain terms, “inventory controls” means keeping a list of property, putting ID tags on equipment, checking the items in person each year, and comparing the list with accounting records.

“The inventory procedures are as follows:”