Overview
SRA does not have a documented employee Settlements and Judgments Policy. Without a documented policy approved by the BOD, any settlements or judgments may not adhere to appropriate tax reporting, withholdings, or funding requirements, resulting in an undue financial burden on the Commonwealth and its taxpayers.
Authoritative Guidance
The Agency Counsel and Department Responsibilities Section of CTR’s Settlements and Judgments Policy 1779893, effective July 1, 2004, states,
The Agency Counsel, Department Chief Fiscal Officer and Payroll Director are responsible for ensuring that claims against the Commonwealth are negotiated and processed in compliance with [Section 5.00 of Title 815 of the Code of Massachusetts Regulations] and policies and instructions issued for Settlements and Judgments, and that all relevant staff are provided with access to these materials and training as appropriate.
Reasons for Issue
SRA management stated that SRA has never executed any settlements or judgments to past or current employees. Therefore, SRA was not aware that a policy guideline existed or was required by CTR.
Recommendation
SRA should adopt CTR’s Settlements and Judgments Policy 1779893 in its policies and procedures manual or create a new policy to keep current with executive branch policies and case law.
Auditee’s Response
The Authority adopted CTR’s Settlements and Judgments Policy in October 2024.
Auditor’s Reply
SRA states that it has already taken action regarding our recommendation for this finding.
| Date published: | December 20, 2024 |
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