Audit of the Baker Hill Road District

This is a state performance audit of the Baker Hill Road District, a local district connected to maintaining US-7/SR-8 Connector Road in Lanesborough.

“BHRD’s purpose is to own, monitor, and maintain US-7/SR-8 Connector Road (formerly Berkshire Mall Drive), and BHRD has the autonomy to purchase goods and services to help maintain the road.”

The auditor checked whether the district followed required rules for annual reports, annual budgets, and payments for contracted services during 2019 and 2020.

“In this performance audit, we reviewed BHRD’s compliance with Chapter 41 of the Acts and Resolves of 1989—specifically Section 4, which requires BHRD to file an annual report of receipts and expenditures, and Section 6, which requires BHRD to prepare and approve an annual budget.”

If required reports are not filed, the oversight committee may not have the information it needs to judge what the district did and how money was handled.

“As a result, the prudential committee did not have the information necessary to adequately review and assess BHRD’s activities.”

If you pay taxes to the district or use the road, this affects whether public money for road upkeep and related services is being tracked, reviewed, and spent under clear terms.

“Revenue to pay for the district’s operations is derived from taxes levied on the property owners in BHRD.”

The district met the auditor’s tests for budgeting and contracted-service payments, but it failed to file the 2019 annual report and had several management practices the auditor said should be improved.

“Below is a summary of our finding and recommendation, with links to each page listed.”

The district said the missing 2019 report was later approved and filed, and it said it would look at improving its legal-services contract, ethics compliance, and road maintenance bidding.

“With regard to the 2019 Annual Report, it has been approved and filed.”

The finding is narrow but important: the district’s main legal reporting lapse was one missing annual report, while the other issues were presented as matters the auditor believed should be improved to protect transparency and value.

“BHRD should file its report annually with the prudential committee.”

A “prudential committee” is the district’s three-person oversight board. It supervises the district and appoints a treasurer who cannot also sit on the committee.

“The district is overseen by a three-member prudential committee, which consists of two members appointed by the Town of Lanesborough and another member appointed by the owners of property in BHRD.”