Northampton Housing Authority

This is a state performance audit of the Northampton Housing Authority covering July 1, 2010 through June 30, 2012.

“I am pleased to provide this performance audit of the Northampton Housing Authority.”

Auditors checked whether the Authority had proper controls over buying goods and services and whether it followed state housing procurement rules.

“The objectives of our audit were to review and analyze the Authority’s internal controls over its procurement of goods and services and to determine whether its procurement activities were efficient and in compliance with the Department of Housing and Community Development’s (DHCD’s) procurement guidelines and laws, rules, and regulations applicable to state-aided housing programs.”

Competitive bidding helps protect public money by showing whether taxpayers got a fair price and good value.

“As a result, the Commonwealth cannot be certain that it received the best value for these services.”

If you live in or help fund public housing, this matters because procurement rules are meant to make sure housing agencies spend public money carefully.

“The Authority manages both federal and state-aided units within the city of Northampton, including the city’s Florence section.”

Aside from the bidding problems, auditors said the Authority’s tested controls and purchasing were generally adequate and compliant.

“Based on our audit, we have concluded that, except for the issue addressed in the Detailed Audit Results and Findings section of this report, for the period July 1, 2010 through June 30, 2012, the Authority maintained adequate internal controls in the areas tested and conducted its procurements in an efficient manner in compliance with DHCD guidelines and laws, rules, and regulations applicable to state-aided housing programs.”

The Authority should strengthen its controls so it uses competitive purchasing when total yearly spending for the same vendor and service reaches state limits.

“The Authority should establish internal controls that ensure that it complies with all applicable laws and regulations when procuring goods and services, including using competitive procurement practices when it can reasonably determine that the total purchases from a single vendor for the same services within a single year will meet or exceed the procurement limits established by state law.”

The audit covered more than just one small purchase: the Authority’s response says the review looked at over 25 contracts and $978,000 in spending over two fiscal years.

“The Northampton Housing Authority (NHA) appreciates the thorough work of the State Auditor’s Office (SAO) in reviewing the Northampton Housing Authority’s compliance with the bidding and administration of more than 25 Personal Services, Goods and Services, and Construction contracts representing $978,000 dollars in spending over the two fiscal years audited.”

“Procurement” means how the Authority buys goods and services; here, the issue was not getting quotes or bids when the law required them.

“Chapter 30B of the General Laws, the Uniform Procurement Act, requires the use of competitive bidding in obtaining goods and services.”