Press Release  Auditor Bump Finds Overall Improvement at Chelmsford Housing Authority

Boston — State Auditor Suzanne M. Bump today released an audit, which showed the Chelmsford Housing Authority was able to improve maintenance issues in the development and secure state funding for improvements.  However, the report also revealed a few accounting problems at the Authority

A 2008 audit criticized the authority for continued noncompliance with the state sanitary code in maintaining siding and renovating kitchens in its housing units. The authority maintained that it did not address the two issues because the Department of Housing and Community Development (DHCD) denied its funding requests. A review of operations between January 1, 2008 and June 30, 2010 showed the authority has addressed these maintenance issues and has secured DHCD funding for repairs for the next three years.

Today’s audit also acknowledged some deficiencies at the authority. The audit revealed that the authority did not maintain an up-to-date inventory listing of its furniture and equipment. Updated and inventory lists provide assurances that the authority’s property is safeguarded against theft or misuse.

The audit also found that clerical errors caused the authority to miscalculate the value of its assets, recommended that it correct its financial statements, and resubmit them to the appropriate agencies.

In addition, the audit revealed that the authority incorrectly withheld $1,407 in Medicare taxes from an employee’s salary and paid the matching tax for three years, despite his eligibility for an exemption from the tax. Auditors recommended that the authority reimburse the employee.

The authority indicated that it is working to remedy all findings of today’s audit.

The Chelmsford Housing Authority audit is available here.

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