Berkshire Community Action Council, Inc.

This is a Massachusetts State Auditor performance audit of Berkshire Community Action Council, a nonprofit community action agency in Pittsfield, covering October 1, 2010 through April 30, 2013.

“I am pleased to provide this performance audit of the Berkshire Community Action Council, Inc.”

Auditors reviewed whether some administrative costs charged to state contracts were allowed, whether contract rules were followed, and whether the board was properly overseeing the agency.

“The objectives of our audit were to (1) analyze certain administrative expenses BCAC charged against its state contracts to determine whether they were reasonable and allowable, (2) assess BCAC’s policies and procedures for the administration of its contracts to determine whether applicable laws and regulations were being followed, and (3) assess whether BCAC’s board of directors was providing appropriate oversight over agency operations.”

BCAC serves low-income, elderly, and working-poor residents of Berkshire County, so weak financial controls could affect services people rely on.

“It was formed for the purpose of eliminating poverty by helping the low-income, elderly, and working poor of Berkshire County achieve sustainability and self-sufficiency.”

If you live in Berkshire County or use BCAC services, this audit is about whether public money for programs like fuel assistance, weatherization, housing help, food distribution, and transportation was handled properly.

“BCAC’s programs serve the 32 cities and towns in Berkshire County.”

The auditor said the state should recover $24,533 for the severance payment, and BCAC should follow competitive bidding rules when leasing vehicles.

“OSD should recover the $24,533 in unallowable costs that BCAC charged against its state contracts for the severance compensation it provided to its former executive director.”

BCAC said it changed its practices: its current executive director contract does not include severance, and the agency says it revised procurement policies and trained staff.

“It has taken measures to assure that this will not reoccur in the future.”

The report shows BCAC had serious financial trouble in 2011, then improved under new management, but still had compliance problems involving public funds.

“A new management team was brought in during early 2012, and a number of changes were made that enabled BCAC to close out its fiscal year ended September 30, 2012 with an operating profit of $111,080.”

“Competitive procurement” means seeking open competition before buying or leasing, so the agency has a better chance of getting a fair price.

“All procurements of furnishings, equipment and other goods and services by or on behalf of a contractor shall be conducted in a manner to provide, to the maximum extent practical, open and free competition.”