Supplier Diversity Office - Other Matters 1

The Supplier Diversity Office’s ability to monitor Supplier Diversity Program spending is limited to that of only executive branch state agencies.

Overview

The Supplier Diversity Office’s (SDO’s) ability to monitor Supplier Diversity Program (SDP) spending is limited to that of only executive branch state agencies. This is because SDO only has access to executive branch state agencies’ spending in the Massachusetts Management Accounting and Reporting System (the state’s accounting system). However, SDO does not have access to non-executive branch state agencies, constitutional offices, and quasi-public entities.

SDO has been encouraging non-executive branch state agencies, constitutional offices, and quasi-public entities to voluntarily participate in the SDP. In fiscal year 2021, 12 non-executive branch state agencies, constitutional offices, and quasi-public entities submitted Narrative Reports to SDO.¹¹ In fiscal year 2022, this number increased to 14 non-executive branch state agencies, constitutional offices, and quasi-public entities.

For SDO to provide an accurate picture of SDP spending across Massachusetts, SDO should increase its efforts to encourage all non-executive branch state agencies, constitutional offices, and quasi-public entities to participate in its SDP.

Auditee’s Response

The SDO has already begun to increase its outreach to encourage non-executive branch state agencies, constitutional offices, and quasi-public entities to participate in its reporting processes. As stated above, over several fiscal years the number of organizations voluntarily participating in the SDP and [the Small Business Purchasing Program] and SDO’s Annual Report has steadily increased since this effort started in [fiscal year] 2016. In SDO’s last-issued annual report ([fiscal year] 2013), 15 non-executive branch state agencies, constitutional offices, and quasi-public entities submitted Narrative Reports in SDO’s [fiscal year] 2023 Annual Report. In November of 2024, SDO hosted a “Supplier Diversity Roundtable” discussion, at which quasi-public entities, non-executive agencies, and constitutional offices were welcomed and given information regarding how the SDO can help them increase their supplier diversity and showcase their achievements in our Annual Report.

Auditor’s Reply

We commend SDO on its increased efforts to get more agencies to participate in the SDP, and we will follow up on this issue in approximately six months as part of our post-audit review.

11.   Regarding Narrative Reports: According to SDO’s fiscal year 2021 annual report, SDO allows SDP partners to voluntarily submit a short narrative explaining their efforts to meet the spending benchmarks and may include any other information about their efforts to advance diversity and inclusion in procurement.

 

Date published:	December 23, 2024