Franklin County Sheriff’s Office - Finding 2

The Franklin County Sheriff’s Office should have documented internal policies or procedures regarding state employee settlement agreements and supporting records, as would be best practice.

Overview

We found that FCSO properly reported all instances of state employee settlement agreements to the Office of the Comptroller of the Commonwealth (CTR). However, during the audit, FCSO did not have a documented process to handle employee settlement agreements. We consider written policies to be best practice. We believe such policies and procedures should apply to the review, approval, processing, and reporting of employee settlement agreements, including the use of any non-disclosure, non-disparagement, or similarly restrictive clauses.

The table below details the date, amount, and payment method for the employee settlement agreements FCSO entered into during the extended audit period, July 1, 2019 through June 30, 2024.

Were Allegations Specified in the Agreement?	Settlement Date	Amount	Method of Payment	Did the Agreement Include Non-disclosure, Non-disparagement, or Similarly Restrictive Clauses?
No	December 27, 2021	$2,350	Settlement and Judgements Reserve Fund	No

A documented, written process to handle employee settlement agreements, especially for those containing non-disclosure, non-disparagement, or similarly restrictive clauses, can help ensure that employee settlement agreements are handled in an ethical, legal, and appropriate manner.

Authoritative Guidance

Section 5.09 of Title 815 of the Code of Massachusetts Regulations states,

(1)  Responsibility of assigned attorney or staff person: Preparation of Reports. When litigation involving a monetary claim against the Commonwealth covered by these regulation terminates in a final Settlement or judgment with regard to such a claim, the agency attorney or staff person assigned to handle or monitor the claim shall do the following:

(a)  Prepare a report indicating:

1. the principal amount of the settlement or judgment;
2. the amount of any attorney’s fee award;
3. the amount of any interest award or accrued, and whether the interest continues to accrue post-judgment;
4. a request for payment of the amount;
5. a description of the basis for the request, (e.g., Court order or settlement agreement); and
6. whether the assigned attorney desires to award the payment check to the claimant;

(b)  Forward the report with a copy of the settlement or judgment just described to the General Counsel of [CTR] within the time frames set forth in [Section 5.09(2) of Title 815 of the Code of Massachusetts Regulations]. . . .

(2)  Time for preparation of reports. The report . . . shall be sent by the agency attorney to the General Counsel of the Comptroller:

(a)  if based on a settlement agreement, within 15 days of signing of the final settlement papers.

Reasons for Issue

During an interview, the now-former FCSO Sheriff stated that, while they did not have documented internal policies or procedures over the process of entering into settlement agreements or the use of non-disclosure, non-disparagement, non-publication, or confidentiality clauses, it was their practice not to include these items. For settlement agreements that result in monetary payments, FCSO uses CTR’s “Settlements and Judgments Policy” as the default for handling settlement agreements.

Recommendation

FCSO should develop, document, and implement a written policy related to employee settlement agreements, including prohibiting the use of non-disclosure, non-disparagement, or similarly restrictive clauses in its agreements, as recommended in the Governor’s “Executive Department Settlement Policy,” issued January 27, 2025.

Auditee’s Response

As an agency of the Commonwealth, the FCSO is obligated to conform with settlement and judgment policies and procedures promulgated by relevant authorities, including the Office of the Comptroller and the Governor’s Office. As found, during the audit period, the FCSO complied with such authorities, including not entering into Non-Disclosure, Non-Disparagement, or similarly restrictive clauses. On May 21, 2025, the FCSO implemented a Directive—Settlements and Judgments . . . which outlines the processes for handling employee settlement agreements and addresses Non-Disclosure, Non-Disparagement and related clauses in a manner that is consistent with the relevant authorities and, upon information and belief, the written policies of other Commonwealth agencies.

Auditor’s Reply

Based on its response, FCSO is taking measures to address our concerns regarding this matter. As part of our post-audit review process, we will follow up on this matter in approximately six months.

Date published:	November 25, 2025