Purpose of Audit

The purpose of our audit was to evaluate Board oversight of certain financial activities for the period July 1, 2013 through January 5, 2016.

Background

The City of Olean Housing Authority is located in the City of Olean, Cattaraugus County. The Authority, which provides low-rent housing for qualified individuals, is governed by a seven-member Board of Commissioners. Appropriations for the operating budget for the 2015-16 fiscal year totaled approximately $2.2 million.

Key Findings

• The Board has not adopted written policies or procedures to monitor its consultant’s performance in administering the Authority’s Capital Fund Program (CFP), use of CFP grant funds or financial reporting of CFP activity.
• The Board has not adopted a comprehensive investment policy.
• The Authority does not have a written agreement with the brokerage firm that assists the Director in managing the Authority’s investment activities.

Key Recommendations

• Establish formal written procedures to monitor the performance of the consultant and administration of the CFP.
• Develop a written, comprehensive investment policy that, as a minimum, identifies the types of permissible investments and requirements for safeguarding investments.
• Enter into a written agreement with the brokerage firm specifying, among other things, the services to be provided by the firm and the consideration to be paid by the Authority.