Audit shows RVC Housing Authority out of compliance

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The Rockville Centre Housing Authority, which provides affordable-rent housing for qualified village residents, was out of compliance with various bylaws, according to an audit by the state comptroller’s office.

The RCHA’s 2015-16 operating costs were $755,829, which was funded mainly by rental income from tenants and subsidies from the U.S Department of Housing and Urban Development. The authority manages 204 apartment units at two building complexes in the village.

The report, released by Comptroller Thomas DiNapoli’s office on June 30, which examined the housing authority’s claims auditing and cash receipts processes from Oct. 1, 2015 to Oct. 31, 2016, found that the director of the authority was auditing all claims, signing checks and approving purchases and that the treasurer was not reviewing all the bills.

The director audited 50 claims, totaling $25,144, and approved related purchases, according to the report, and signed checks for 48 of the claims. In addition, purchase orders to obtain goods and services were not attached to 47 claims worth $24,371, and warrants were not always provided to the authority’s Board of Commissioners — comprising five appointed by the village’s mayor and one elected by the tenants — for review.

“Although all these claims were for legitimate Authority purposes, when the Board does not ensure that an independent audit of claims is performed, purchases are approved before items are ordered and warrants are incomplete, there is an increased risk that improper purchases and payments could be made without detection,” the audit stated.

The report stated that RCHA officials must also improve their processing of cash receipts — which totaled about $573,000 during the audit period — by adopting policies and written procedures to safeguard the authority’s assets. For example, the report said, the clerk’s responsibilities “were not adequately segregated,” as she collected receipts, recorded transactions and made bank deposits, among other duties.

“While our review of rental receipts did not disclose any discrepancies, these lack of segregation of duties increase the risk that discrepancies in the cash receipts process could occur and remain undetected and uncorrected,” the report reads.

In a letter responding to the report, Jamie L. Morrison, executive director of the RCHA, outlined a corrective action plan that addressed implementing policies and written procedures for processing cash receipts and taking some duties away from the finance manager, or clerk. He wrote, though, that “it is not always practical for the treasurer to view ‘all’ bills before they are paid,” adding that the clerk and treasurer prepare a warrant to be reviewed by the housing authority’s board at monthly meetings.

In addition, a monthly audit is conducted by the agency’s fee accountant, Morrison wrote, and annual audits of the housing authority are done by an outside firm.

“Basically it was a good report,” Morrison told the Herald. “I always take any recommendations I got into account and look at that. Anything I can do, and we can do then to enhance and improve our productivity, we definitely do.”