Press Release  Audit Calls for Improved Accuracy of Financial Reporting at State’s College Building Authority

Boston — State Auditor Suzanne M. Bump today released an audit of the Massachusetts State College Building Authority (MSCBA) that calls on the agency to improve the accuracy of financial information it submits for publication on the Comptroller’s transparency website (CTHRU).

“Quasi-public state agencies, like the Massachusetts State College Building Authority, must be precise in their financial reporting to maintain transparency and public trust,” said Bump of the audit. “Overall, the MSCBA has been effective in overseeing construction projects at the Commonwealth’s state college and university facilities but can do more to assure residents of the state that it is spending money wisely. I’m encouraged that the Authority is taking action on our audit recommendations.”

The audit found the MSCBA, which oversees construction and design for many of the Commonwealth’s public college and university facilities, submitted inaccurate financial information for a number of projects during the audit period of July 1, 2016 through March 31, 2018. The audit points to duplicate entries and inconsistencies between CTHRU and the MSCBA’s own records. In its response, the MSCBA reports it has taken steps to ensure the accuracy of this information going forward.

The audit determined that MSCBA is properly administering its design and construction contracts and has an effective long-term plan to address the housing needs of students at Massachusetts state colleges and universities.

Finally, the audit also found the MSCBA’s internal control plan (ICP), an agency-wide document summarizing risks and controls for all business processes, was not fully developed. Bump recommends management immediately complete the ICP, as a way to mitigate risk and ensure business continuity.

The Massachusetts State College Building Authority, a quasi-public state agency, oversees the design and construction of dormitories, dining facilities, and other buildings at nine state universities and fifteen community colleges across the Commonwealth. The MSCBA is governed by a nine-member board appointed by both Governor Baker and the state’s Board of Higher Education. In fiscal year 2017, the agency spent $34,246,013 on land, construction, buildings and improvements, and furnishings and equipment. 

The audit of the MSCBA is available here.

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