Audit of MassVentures

This is a Massachusetts State Auditor performance audit of MassVentures, a state-created organization that helps fund Massachusetts startup companies.

“I am pleased to provide this performance audit of MassVentures.”

Auditors reviewed selected MassVentures activities, including jobs data, Open Meeting Law compliance, outreach, and grant awards, for July 1, 2017 through June 30, 2019.

“In this performance audit, we reviewed and assessed selected management activities of MV, including summarization and verification of employment data from companies that receive funding from its investment and grant programs, compliance with Chapter 30A of the General Laws (the Open Meeting Law), outreach reporting procedures for the purpose of reaching MV’s target audience, and administration of MV’s grant award processes.”

MassVentures uses public resources to support startups and job growth, so citizens need reliable records showing whether it is tracking results and following public rules.

“Since MV was initially established with government funding and operates as part of state government, it has an obligation to serve the greater good of all Massachusetts citizens.”

If you live in Massachusetts, this matters because MassVentures is meant to help grow local companies and jobs, and the audit checks whether it is managing that public mission responsibly.

“Chapter 497 of the Acts of 19781 established the Massachusetts Technology Development Corporation, now MassVentures (MV), as a quasi-public corporation to provide financial assistance to startup companies in Massachusetts, with the primary purpose of increasing employment in the state.”

Auditors found MassVentures generally did outreach and grant administration properly, but it needed better documentation for jobs data review and board Open Meeting Law certifications.

“Below is a list of our audit objectives, indicating each question we intended our audit to answer; the conclusion we reached regarding each objective; and, if applicable, where each objective is discussed in the audit findings.”

MassVentures said it has started or will start fixing both issues by documenting review procedures and board certification procedures.

“Based on its response, MV is taking measures to address this issue.”

The report also flags a broader governance issue: MassVentures should consider a formal strategic plan to define its mission, goals, outreach, and support for companies more clearly.

“MassVentures’ management and board of directors should consider preparing a comprehensive strategic plan.”

A debt instrument means paperwork showing a company owes money and promises to repay it; MassVentures may receive stock or this kind of debt when it funds companies.

“A debt instrument is a document that serves as legally enforceable evidence of a debt and the promise of its timely repayment.”