North Shore Community Action Programs, Inc.

This is a 2015 Massachusetts State Auditor performance audit of North Shore Community Action Programs, Inc., a Peabody nonprofit that serves low-income people and families on the North Shore.

“North Shore Community Action Programs, Inc. (NSCAPI), located in Peabody, Massachusetts, was incorporated as a not-for-profit corporation in 1965.”

The auditor wanted to see whether the nonprofit’s board was set up properly and was doing required oversight work under state rules and contract requirements.

“The purpose of this audit was to assess whether NSCAPI’s board of directors was constituted, and performed various oversight functions, in a manner consistent with applicable regulations, contractual terms and conditions, and other guidance.”

This matters because Massachusetts spends billions of dollars buying human services from private organizations, and boards are supposed to make sure those organizations are run responsibly.

“Each fiscal year, state agencies purchase more than $2.5 billion in services from private human-service organizations that are governed by boards of directors.”

If you live in or care about North Shore communities, this audit gives some assurance that this state-funded service provider’s board oversight did not show major issues in the areas checked.

“NSCAPI helps governmental and private agencies accomplish the purposes of the federal Economic Opportunity Act of 1964 and provides social services and programs to low-income families and individuals in 22 North Shore communities.”

For the topics reviewed, the auditor did not find significant weaknesses that needed attention from the board or state oversight agencies.

“For the areas reviewed that were related to our audit objectives, we did not identify any significant deficiencies warranting attention by those responsible for governance and state oversight agencies.”

The report does not list corrective actions, because the audit did not find significant reportable problems in the areas reviewed.

“Specifically, management personnel and their immediate families did not compose more than 30% of the voting members of the organization’s board of directors, and the board reviewed the executive director’s performance and voted to increase her salary during the audit period.”

The audit is significant because NSCAPI received millions of dollars from state contracts and provides basic services such as housing, energy, home care, education, and economic support.

“The services and programs include education and training, economic stabilization, housing and homelessness prevention, energy services, and home care.”

A UFR is a yearly financial filing that social-service organizations with state contracts must submit electronically to the state’s Operational Services Division.

“Each year, agencies that operate social programs and contract with various Commonwealth departments must prepare financial statements called Uniform Financial Statements and Independent Auditor’s Reports, or UFRs, and file them electronically with the Operational Services Division.”