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Auditor flags ‘‘going concern’’ for Hudson Housing Authority; board urged to seek emergency funding
Summary
An independent auditor told the Hudson Housing Authority board its management letter raises ‘‘going concern’’ questions after rental income fell and units remained offline; the board was advised to pursue emergency HUD or other funding and to address internal controls.
An independent auditor’s management letter presented April 21 warned that the City of Hudson Housing Authority faces ‘‘going concern’’ issues after a drop in rental income tied to units that cannot be re-rented, the authority’s executive director told the board.
The warning, summarized in a management letter dated March 18, 2025 from Buell, CPA, said that continuing conditions ‘‘raise substantial doubt’’ about the authority’s ability to continue without additional funding. The letter recommended the authority seek emergency funding from the U.S. Department of Housing and Urban Development or other sources.
The management letter was read to the board by Executive Director Jeffrey Dodson, who also told commissioners the authority has sought emergency HUD funds previously. Dodson said the authority received some emergency funding last year and that staff will continue to pursue other sources while pressing ahead with a planned redevelopment to stabilize revenue.
The auditor’s letter identified a number of recurring issues, including lapses in tenant-file documentation, missing required supplementary information under GASB 75 for other postemployment benefits (noted as a multi-year gap that will persist until fiscal 06/30/2027), and a need for formalized fraud-risk policies. The letter said the 10-year historical OPEB information required by GASB 75 was missing and explained this is partly a timing/cost issue tied to actuarial reporting.
Dodson read from the letter that the authority’s net position declined in fiscal year 06/30/2024 and recommended continued efforts to obtain emergency funding. He emphasized the urgency of the authority’s redevelopment project as a primary route to restore financial stability.
The board received copies of the audit and Dodson said the authority’s accountant will attend a later meeting to explain the findings in greater detail. Dodson said management and the auditor have already discussed many of the letter’s recommendations and that staff will provide the board with follow-up information when the accountant is available.
The board did not take formal action on the management letter at the April 21 meeting; Dodson said he would email the audit materials to commissioners and that the auditor will be available to answer questions when the accountant attends.
Ending
Dodson asked commissioners and residents to look for the emailed audit materials and to bring questions for the accountant when that presentation is scheduled.
