| Organization: | Office of the State Auditor |
|---|---|
| Date published: | June 17, 2025 |
Executive Summary
In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of certain activities of MassVentures (MV) for the period July 1, 2021 through June 30, 2023.
In this performance audit, we reviewed and assessed selected management activities of MV, including whether (1) MV submitted annual reports in accordance with the guidelines set by Section 6 of Chapter 40G of the General Laws, (2) whether MV monitored its investments to ensure that it met the requirements of Section 4(9)(2)(a) of Chapter 40G of the General Laws, and (3) whether MV established a formal strategic plan as recommended in our prior audit (Audit No. 2019-0136-3A).
Below is a summary of our findings, the effects of those findings, and our recommendations, with hyperlinks to each page listed.
| Finding 1 | MV did not file its annual reports to the clerks of the Massachusetts House of Representatives and Senate in a timely manner. |
| Effect | If MV does not submit its annual reports to the clerks of the Massachusetts House of Representatives and Senate on time, then these governing bodies will not have the information necessary to adequately review MV’s activities for the preceding year. Without this oversight, MV is at greater risk of inappropriate investments in companies that do not align with its mission. Further, failure to file these reports in a timely manner may deprive the Legislature of important information it needs to support its work. |
| Recommendation | MV should ensure that it submits its annual report to the clerks of the Massachusetts House of Representatives and Senate within 90 days after the end of the fiscal year, in accordance with Section 6 of Chapter 40G of the General Laws. |
| Finding 2 | MV did not disclose some required information in its annual report. |
| Effect | If the annual report does not contain information about the activities of MV investees, then the Legislature will not have the information necessary to adequately review MV activities for the preceding year. Further, failure to file these reports in a timely manner may deprive the Legislature of important information it needs to support its work. |
| Recommendation | MV should ensure that all investees provide all of the information required to prepare the annual report, and MV should include all of the required information in its annual report. |
In addition to the conclusions we reached regarding our audit objectives, while conducting our audit work, we noted an issue regarding annual cybersecurity training compliance. See Other Matters for more information.
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Open PDF file, 420.46 KB, Audit Report - MassVentures (English, PDF 420.46 KB)