Auditor Bump Releases Treasury Transition Audit
(Boston, MA)- State Auditor Suzanne M. Bump today released the results of a transition audit of the Office of the State Treasurer and Receiver General. OSA conducted the review of the Treasury’s financial activities, accounts and administrative operations leading up to January 19, 2011, the date newly elected State Treasurer Steve Grossman’s took office.
“I hope that our review of Treasury operations will help inform Treasurer Grossman and enhance the transition from the previous administration,” said Auditor Bump. “I look forward to working with his office to make government work better.”
The audit highlighted an internal control issue with the Unpaid Check Fund (UPCF), which contains out-dated checks issued by the Commonwealth that have not been cashed in over a year. Auditors found an $8.2 million variance in balances between the UPCF and the Massachusetts Accounting and Reporting System (MMARS). It was pointed out to the Treasurer’s Office during the audit process that monthly reconciliations should be done, which the Treasurer has already initiated.
“This information assists us in our efforts to run an accountable, transparent, and fiscally responsible Treasury,” said Treasurer Steven Grossman. “We have already addressed some of these findings, and we appreciate the benefit of Auditor Bump’s insight.”
The audit also cited the Treasury for exceeding its approved $100,000 budget to administer the Veterans’ Welcome Home Bonus Program by $65,417. In response, the Treasurer’s office filed for a supplemental budget which increased the programs expense ceiling to $205,000.
In a separate audit, OSA also reviewed the Treasury’s IT systems and recommended that the office strengthen its disaster recovery and business continuity plans should its systems go down.