Audit: financial statements materially correct but housing authority has limited liquid reserves

Pat Buell, the auditor from BOCPA, reported to the Hudson Housing Authority that the authority—s financial statements are materially correct but identified ongoing cash-flow constraints and a going-concern qualification tied to restricted funds and units that are offline.

Buell told the authority, “Your financials are materially correct,” and said the audit includes a going‑concern qualification related to cash flow and revenue lost from offline apartments. He reported the authority had $397,000 in cash, of which $276,000 is restricted by the voucher program and therefore not available for operations. Buell said that, after accounting for security deposit liabilities and current liabilities, the authority had “about $7,000 in cash reserves.”

The auditor said the authority recorded a net loss of about $111,000 for the year, of which approximately $97,000 was depreciation (a noncash item), leaving a reported cash loss on the order of the mid‑four figures. He also said unrestricted net position decreased by about $47,000 to a negative $564,000.

On internal controls and compliance, Buell reported no internal control deficiencies and issued a clean opinion on major programs, including tenant-file compliance checks. He summarized the audit materials and invited questions from the authority.

Why it matters: the authority—s limited operating cash and negative unrestricted net position heighten the need for revenue restoration (for example, returning offline units to service or securing additional funding) and careful budget planning.

Board response and next steps: board members thanked Buell and discussed the audit as evidence supporting the need for new housing and restoring units that are closed. No formal action was taken at the meeting based on the audit report; the audit was accepted as informational.

Ending: The authority concluded its audit discussion and proceeded to other agenda items and public comment.