Overview
We reviewed all conflict of interest material acknowledgment forms for all 14 board members during the audit period, as well as a sample of 50 out of the 772 employees who were employed by MCCA during our extended audit period, January 1, 2018 through December 31, 2022. MCCA did not ensure that all board members or all employees signed conflict of interest material acknowledgment forms, in accordance with Section 27 of Chapter 268A of the General Laws, as outlined in the tables below.
| Number of Board Members Who Signed Conflict of Interest Material Acknowledgment Forms with MCCA | Total Number of Board Members | Percentage of Completion* | |
|---|---|---|---|
| 2018 | 9 | 14 | 64% |
| 2019 | 13 | 14 | 93% |
| 2020 | 10 | 14 | 71% |
| 2021 | 9 | 14 | 64% |
| 2022 | 8 | 14 | 57% |
* In this instance, the percentage of completion relates to the number of individuals with a signed conflict of interest material acknowledgement form on file with MCCA.
| Number of Employees from Our Sample Who Signed Conflict of Interest Material Acknowledgment Forms with MCCA | Total Number of Employees in Our Sample Employed During the Corresponding Year | Percentage of Completion* | |
|---|---|---|---|
| 2018 | 27 | 32 | 84% |
| 2019 | 23 | 32 | 72% |
| 2020 | 20 | 29 | 69% |
| 2021 | 18 | 27 | 67% |
| 2022 | 13 | 27 | 48% |
* In this instance, the percentage of completion relates to the number of individuals with a signed conflict of interest material acknowledgement form on file with MCCA.
We then reviewed biennial conflict of interest training completion forms for all 14 board members who were on the board of directors during our audit period and for each of the employees in our same sample of 50. We found that board members and employees did not complete conflict of interest training during the audit period, in accordance with Section 28 of Chapter 268A of the General Laws, as outlined in the tables below.
| Number of Board Members with Documentation of Conflict of Interest Training on file with MCCA | Total Number of Board Members Required to Complete Conflict of Interest Training | Percentage of Completion* | |
|---|---|---|---|
| 2018 | 1 | 3 | 33% |
| 2019 | 5 | 11 | 45% |
| 2020 | 0 | 3 | 0% |
| 2021 | 0 | 11 | 0% |
| 2022 | 0 | 3 | 0% |
* In this instance, the percentage of completion relates to the number of individuals with a signed conflict of interest material acknowledgement form on file with MCCA.
| Number of Employees in Our Sample with Documentation of Conflict of Interest Training on file with MCCA | Total Number of Employees in Our Sample Required to Complete Conflict of Interest Training During the Corresponding Year | Percentage of Completion* | |
|---|---|---|---|
| 2018 | 2 | 12 | 17% |
| 2019 | 21 | 27 | 78% |
| 2020 | 0 | 6 | 0% |
| 2021 | 5 | 18 | 28% |
| 2022 | 1 | 11 | 9% |
* In this instance, the percent of completion relates to the number of individuals with a signed conflict of interest material acknowledgement form on file with MCCA.
MCCA’s assistant general counsel told us in an email dated May 2, 2024, “At the time the guidelines provided that proof of delivery was sufficient to demonstrate receipt of the summary of the conflict of interest law.” However, Section 3d of the State Ethics Commission’s “Education and Training Guidelines” states,
If an employer distributes the summary electronically, a return email from the employee will satisfy the statutory requirement of a written acknowledgment of receipt. If an employer distributes the summary electronically to employees using the employees’ work email accounts, the employer can request “read receipts” for its emails to employees, and the “read receipts” will satisfy the statutory requirement of a written acknowledgment of receipt.
MCCA should provide conflict of interest law materials to its board members and employees every year and collect acknowledgement forms regarding those materials. MCCA should also provide biennial conflict of interest law training to its board members and employees. Failure to do so can result in an elevated risk, as employees, including board members, may not be sufficiently trained to identify and avoid inappropriate and unethical behaviors.
Auditee’s Response
The MCCA provides the Summary of Conflict-of-Interest Laws to its employees and board members each year. The MCCA also notifies employees and board members of their obligation to complete the ethics training requirements on a biannual basis. The MCCA will send additional reminders to employees and board members regarding their obligations to acknowledge receipt of the Summary of Conflict-of-Interest Laws and training requirements.
Since the audit period, the MCCA has implemented the State Ethics Commission’s new online training system which allows the MCCA to better track employee and board member compliance with the training requirements. In addition, the MCCA is scheduling a State Ethics Commission Ethics Seminar for its employees.
Auditor’s Reply
Based on its response, MCCA is taking measures to address our concerns in this area.
| Date published: | August 19, 2024 |
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