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Audit

Audit  Audit of the Massachusetts Office of International Trade and Investment

The audit found MOITI’s process for collecting and recording information about small businesses in underserved small business communities (USBCs) applying to the State Trade Expansion Program (STEP) is ineffective. The audit also found that MOITI has not implemented requirements for graduating small businesses from STEP. The audit examined the period of September 30, 2018 through June 30, 2021.

Organization: Office of the State Auditor
Date published: June 30, 2022

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 the Massachusetts Office of International Trade and Investment (MOITI) for the period September 30, 2018 through June 30, 2021.

In this performance audit, we determined whether MOITI graduated small businesses from the State Trade Expansion Program (STEP), whether it collected required information from small businesses to which it awarded funding through STEP, whether it ensured that the financial assistance awards it gave to small businesses were only for allowable activities, whether these activities were supported by adequate documentation, and whether the small businesses that were given financial assistance awards provided the required cash match. When examining MOITI’s requirements for graduating small businesses from STEP, we extended the audit period back through May 1, 2012, the date MOITI issued its first financial assistance award as part of STEP.

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

Finding 1
 

MOITI’s process for collecting and recording information about small businesses in underserved small business communities (USBCs) applying to STEP is ineffective.

Recommendations
 
  1. MOITI should review the information it has for businesses that have received STEP financial assistance awards regarding their statuses as part of USBCs and correct any inaccurate information.
  2. MOITI should ensure that its employees are aware of the requirements of STEP.
  3. MOITI should revise its Massachusetts STEP Program Readiness Assessment and Application to include the federal Small Business Administration’s (SBA’s) definitions of the four USBCs and an area where a small business should document any of the four USBCs to which it belongs.
  4. MOITI should implement monitoring controls to ensure that it accurately records applicants’ reported USBC statuses on the Performance Progress Reports it submits to SBA.

Finding 2
 

MOITI has not implemented requirements for graduating small businesses from STEP.

Recommendation
 

MOITI should implement requirements for graduating small businesses from STEP.

 

A PDF Copy of the Audit of the Massachusetts Office of International Trade and Investment is available here.

Table of Contents

Appendix

Downloads

Open PDF file, 749.09 KB,  Audit of the Massachusetts Office of International Trade and Investment (English, PDF 749.09 KB)

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