Overview
MassVentures (MV) did not file its annual reports to the clerks of the Massachusetts House of Representatives and Senate on time. For fiscal year 2023, the annual report was filed 22 days late, and for fiscal year 2022, the annual report was filed 21 days late.
If MV does not submit its annual reports to the clerks of the Massachusetts House of Representatives and Senate on time, then these governing bodies will not have the information necessary to adequately review MV’s activities for the preceding year. Without this oversight, MV is at greater risk of inappropriate investments in companies that do not align with its mission. Further, failure to file these reports in a timely manner may deprive the Legislature of important information it needs to support its work.
Authoritative Guidance
According to Section 6 of Chapter 40G of the Massachusetts General Laws, “[MV] shall annually submit a complete and detailed report of the corporation’s activities within ninety days after the end of the fiscal year to the clerk of the house of representatives and to the clerk of the senate.”
Reasons for Issue
MV stated that it submitted the annual report to the clerks of the Massachusetts House of Representatives and Senate late because MV’s practice is to receive and present the audited financial statements to its board of directors first—before submitting the annual report to the House of Representatives and Senate.
Recommendation
MV should ensure that it submits its annual report to the clerks of the Massachusetts House of Representatives and Senate within 90 days after the end of the fiscal year, in accordance with Section 6 of Chapter 40G of the General Laws.
Auditee’s Response
- MV agrees that it did not file the report within 90 days as MV had to wait on audited financials.
- MV does annually submit a complete and detailed report of the corporation’s activities.
Auditor’s Reply
The purpose of our audit objective was to assess MV’s compliance with Section 6 of Chapter 40G of the General Laws. We understand that the annual report takes time to complete, given the reason MV states in its response above, but MV still submitted the fiscal year 2022 and fiscal year 2023 annual reports beyond the 90-day timeframe required by the General Laws. We encourage MV to find a way to complete this annual report within the timeframes required by law.
| Date published: | June 17, 2025 |
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