Overview
The Devens Enterprise Commission (DEC) did not have a written contract with the Nashoba Associated Boards of Health (NABH) during the audit period. DEC has had an agreement with NABH since 2000 to provide services for Devens; however, this agreement was never formalized with a written contract.
Without a written contract in place, several possible outcomes could occur, including the following:
- NABH could overlook performing services that it verbally agreed to perform, or it could perform at a substandard level, potentially impacting the health and safety of Devens residents and businesses.
- NABH could overcharge DEC, which could lead to DEC’s inability to provide other services to Devens residents and businesses.
- A dispute between DEC and NABH could result in a cessation of services, which would negatively impact DEC and those it serves. Alternatively, it could result in costly litigation, which would negatively impact DEC’s finances and could lead to DEC’s inability to provide other services to Devens residents and businesses.
Authoritative Guidance
Section 22 of Chapter 498 of the Acts of 1993 states, “The Commission shall have the right to establish a department or contract for services for inspections relating to public health and safety and inspection services.”
We believe it to be a best practice to have a written contract.
Reasons for Issue
DEC has had an agreement with NABH since 2000.14 Once we asked for documentation of this agreement, DEC sent this agreement and a scope of services to NABH detailing the services that NABH provides to Devens and stating that DEC would like to formalize a contract. NABH agreed with the agreement and the scope of services provided, and the director of NABH stated in an email on July 25, 2024 that “the District is currently looking to revise our bylaws, and to recognize that we serve Devens,” then NABH would be able to formalize a contract. However, as of March 25, 2025, this has not happened.
Recommendation
DEC management should develop and execute a contract with NABH that details the services provided for Devens, as well as oversight responsibilities, the payment schedule, performance expectations, and penalties for not fulfilling the conditions of the contract.
Auditee’s Response
The existing scope of services was verified by the current NABH Director. DEC Management is in agreement with this recommendation and is currently working with NABH to address this.
Auditor’s Reply
Based on its response, DEC is taking measures to address our concerns regarding this matter. As part of our post-audit review process, we will follow up on this matter in approximately six months.
| Date published: | June 16, 2025 |
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