Overview
MLSC did not ensure that all of its annual reports were submitted to the House and Senate Committees on Ways and Means before the December 1 deadline. Specifically, the 2023 annual report was not submitted.35
If MLSC does not submit its annual reports to the House and Senate Committees on Ways and Means on time, then these governing bodies may not have the information necessary to adequately review MLSC’s funding and activities for the preceding year. This may impact their funding decisions and result in the underfunding or overfunding of key programs that serve the Commonwealth and its underrepresented and low-income residents. Also, this could negatively affect MLSC’s achieving its mission.
Authoritative Guidance
Section 6(c)(9) of Chapter 23I of the Massachusetts General Laws states, “To otherwise further the public purposes set forth herein; provided further, that [MLSC] shall file an annual report, not later than December 1, with the house and senate committees on ways and means.”
Reasons for Issue
MLSC management stated that, while the 2023 annual report was completed and uploaded to MLSC’s website by October 5, 2023, the annual report was not sent to the House and Senate Committees on Ways and Means. This oversight happened due to organizational changes that occurred around the same time.
Recommendation
MLSC should develop and implement policies and procedures, including a monitoring component, to ensure that annual reports are delivered no later than the December 1 deadline.
Auditee’s Response
MLSC’s audited financial statements and component reports were filed with the Executive Office for Administration and Finance and the Office of the Comptroller on time. MLSC’s annual report includes the financial information relative to the HSAC and was completed by a separate process. The Economic Development Bill (Mass Leads Act) removed the reporting requirements specific to the HSAC and extended the annual report requirements to December 31.
With the Mass Leads Act update, MLSC’s annual reporting requirements are now aligned and subject to one deadline. MLSC is implementing a standard operating procedures and policies regarding the preparation, review and filing of the annual report which includes review by the Finance Team, Legal Team, Government Relations Team and the President and [Chief Executive Officer] to monitor and ensure compliance.
Auditor’s Reply
Based on its response, MLSC has taken 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: | June 12, 2025 |
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