Audit  Audit of the Massachusetts Office of Business Development

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 the Massachusetts Office of Business Development (MOBD) for the period November 1, 2020 through June 30, 2022.

The purpose of our audit was to determine the following:

• whether MOBD encouraged businesses owned by people within minority groups,¹ women, veterans, and people with disabilities to apply for tax credits through the Economic Development Incentive Program (EDIP) and/or the Massachusetts Vacant Storefront Program (MVSP), as stated in the “Goals & Initiatives” section of MOBD’s EDIP Fiscal Year 2020 and 2021 Annual Reports;
• whether MOBD tracked diversity-related metrics that helped it measure its success in meeting its goal to encourage businesses owned by people within minority groups, women, veterans, and people with disabilities to apply for tax credits in the EDIP and/or the MVSP, as stated in the “Goals & Initiatives” section of MOBD’s EDIP Fiscal Year 2020 and 2021 Annual Reports;
• whether MOBD ensured that EDIP awardees submitted an equal opportunity employment / affirmative action statement or plan, as required by Section 1(d) of Part V of the EDIP Supplemental Application; and
• whether MOBD provided annual cybersecurity awareness training to its employees, as required by Sections 6.2.3 and 6.2.4 of the Executive Office of Technology Services and Security’s Information Security Risk Management Standard IS.010.

Below is a summary of our findings and recommendations, with links to each page listed.

1.   Section 2.02(1) of Title 425 of the Code of Massachusetts Regulations lists Minority Business Enterprise as one of its certification categories. In order for a business to be certified as a Minority Business Enterprise, it must be either owned or controlled by a person(s) who identifies as being part of one or more minority groups. In this context, the minority groups in question are the following: Native American, Asian, Black, or Hispanic.