Press Release  Transition Audit Finds Some Improvements Needed at Office of the State Treasurer

Boston — State Auditor Suzanne M. Bump today released an audit, requested by Treasurer Deborah Goldberg, intended to identify how the Office of the State Treasurer can improve under the new Treasurer’s leadership. The audit reviewed functions of the office in the seven-month period prior to Treasurer Goldberg taking office.  

“Our audits are valuable tools that help make state government agencies more effective and efficient, and I appreciate that Treasurer Goldberg recognized, in requesting this audit, the role my office plays in helping state government work better,” said Bump. “It is my hope that this audit is an effective management resource for Treasurer Goldberg and her staff moving forward.”

"I want to thank the Auditor's Office for conducting this audit at my request," Goldberg said. "One of my goals when I was elected was to fully examine the policies and procedures of Treasury to identify any inconsistencies and ensure best practices. We have already resolved some of the audit's findings and are taking the steps to make all necessary changes."

The audit found that the office did not maintain an annual inventory of fixed assets, which puts items like computers and office furniture at risk for theft or misuse. The audit also found that the bank-account of the Alcoholic Beverages Control Commission (ABCC) was not completely reconciled in the MMARS – the state’s accounting and reporting system, which means issues may not be detected or corrected in a timely manner.

Additionally, the audit found that the Treasurer’s Office did not report missing unclaimed property to the Office of the State Auditor and did not provide a semi-annual list of banks qualified to do business with the Commonwealth. Both are required by state law.

Auditors also identified that none of the nine departments, boards, and commissions housed under the Treasurer’s Office had Internal Control Plans (ICPs) that addressed the method that should be used to report internal controls issues or department personnel to whom ICPs should be distributed.

The Treasurer’s Office is already taking steps to address the audit findings.

The Office of the State Auditor conducts technical assessments and performance audits of state government’s programs, departments, agencies, authorities, contracts, and vendors. With its reports, the OSA issues recommendations to improve accountability, efficiency, and transparency. The Office of the State Auditor has identified more than $1 billion in savings and potential recoveries for the Commonwealth since 2011 and auditees have implemented 95 percent of the OSA’s recommendations.

The Office of the Treasurer and Receiver General audit is available here.

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