Press Release  Audit: Quicker turnaround of vacant units, financial improvements needed at Fitchburg Housing Authority

Boston — State Auditor Suzanne Bump today released an audit of the Fitchburg Housing Authority (FHA). The audit identified some improvements needed in the financial and management areas of the Authority.

As of August 2013, the Leominster Housing Authority (LHA) has acted as Executive Director of the Fitchburg Housing Authority, to manage day-to-day operations. This change occurred during the audit period. Findings in the audit reflect operations prior to the Leominster Housing Authority taking over. The LHA manages the operations within the Leominster Housing Authority consortium which is made up of four local housing authorities including Fitchburg. Each member housing authority maintains separate administrative and accounting functions, and each Authority has a separate, independently operated five-member board of commissioners.

During the audit period, auditors found that 321 of the Authority’s 338 vacant units for families and elderly residents were vacant longer than the 21-day specified by Massachusetts Department of Housing and Community Development (DHCD) guidelines. The units were vacant for an average of 176 days, and means the Authority may have lost as much as $458,599 in potential rental income and eligible applicants may not have been placed on a timely basis.

Additionally, auditors also found that the FHA did not perform annual dwelling-unit inspections as required by DHCD. As a result, safety and sanitary deficiencies may not be corrected as needed.

Auditors found discrepancies in two of the authority’s financial records. The accounts-receivable record showed $9,523 owed to former family tenants as of December 31, 2013, though FHA officials believe the balance is not actually owed, but was unable to provide documentation. Additionally, auditors found that the authority’s tenant pet deposit records showed a balance that was $5,480 less than the account’s bank balance. The report also identified that the Authority was unable to provide an inventory list of its state-owned furniture and equipment.

The authority indicated it is working to address issues identified in the audit. The Authority has hired a Director of Facilities Management and a dedicated Work Order Clerk and Inspections Clerk to address the issues, and said the Inspection Clerk has systematically inspected all apartments within the FHA, and a schedule for accomplishing the 2015 Annual Inspections has already been put into place.

The Fitchburg Housing Authority manages and oversees 160 units of state housing for low-income families, 359 units of state housing for elderly tenants, 15 units of state scattered housing for low-income families, and 26 units for special- needs tenants. The FHA also managed 39 vouchers under the Massachusetts Rental Voucher Program and Alternative Voucher Program, and an additional 219 units of federal housing as of December 31, 2013.

The Office of the State Auditor conducts technical assessments and performance audits of state government’s programs, departments, agencies, authorities, contracts, and vendors. With its reports, the OSA issues recommendations to improve accountability, efficiency, and transparency.

The Fitchburg Housing Authority audit is available here.

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