Audit finds inconsistent PILOT agreements, recommends assessor billing and formal policy in Springfield

Auditor Young Ngo told the Springfield City Audit Committee that a review of the city’s payment‑in‑lieu‑of‑taxes (PILOT) program found inconsistent agreements, no formal billing process and small but recurring payment errors.

The audit, which covered fiscal year 2024 through May 2025, found 15 active PILOT agreements and estimated annual PILOT revenues at approximately $300,000. Ngo said the city’s exempt property value is large relative to other Massachusetts municipalities and that only a small share of exempt property value participates in PILOTs: “out of the $4,800,000,000 in exempt value, only $19,400,000 or about 1% partake in pilots,” Ngo said.

The audit detailed procedural risks and testing results. Ngo said the assessors’ office relies on entities to remit payments and has not generated formal invoices, creating “a risk for missed payments or delayed payments or potential for under or overpayments.” The audit identified several incorrect payments when testing FY2024 and FY2025: three underpayments totaling about $6,100 and one overpayment of about $3,000 in one year, and similar but smaller errors in the prior year (three underpayments totaling about $3,602 and overpayments totaling…