Overview
The Bureau of the State House (BSH) could not always provide evidence that State House Special Events Fund (SEF) expenses over $1,000 had been approved by the Joint Committee on Rules. We selected and reviewed a sample of 20 expenses (totaling $162,044) out of a population of 56 expenses (totaling $206,399) paid by the SEF during the audit period. Nineteen of these transactions, totaling $161,317, were greater than $1,000. BSH could not provide approvals for 10 (totaling $63,948) of the transactions. The lack of approvals indicates that the Joint Committee on Rules may not have been aware of these expenditures, and other spending priorities may not have been met as a result.
Authoritative Guidance
Section 9A of Chapter 8, and Section 35P of Chapter 10, of the Massachusetts General Laws both state, “The superintendent may retain funds to be expended after consultation with the committee on rules of the two branches [of the General Court], acting concurrently.”
BSH incorporated this procedure into its internal control plan: “Purchases of supplies, maintenance, and services over $1,000 require approval by the Joint Committee on Rules of the House and Senate.”
Reasons for Issue
BSH told us that approvals by the Joint Committee on Rules were generally made by email and that hard copies of these emails were not maintained. When we requested the approvals, BSH could not find all of them in its email system. BSH indicated that the emails might have been lost because of computer hardware replacements and email consolidation by the Executive Office of Technology Services and Security. BSH also stated that in some cases it might have made an oversight by not requesting approval.
Recommendation
BSH should seek approval from the Joint Committee on Rules for all SEF expenditures over $1,000, save the approvals electronically, print them, and file them in its hardcopy vendor files.
Auditee’s Response
The Bureau of the State House has implemented a change to our retention process for purchases to include maintaining both electronic and hard copies of legislative approvals and filing them in the hardcopy vendor files.
Note the approvals are submitted to the House/Senate Business Managers not directly to the Joint Committee on Rules. The approvals are received by BSH from the House/Senate Business Managers not directly from the Joint Committee on Rules.
| Date published: | June 24, 2021 |
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