Audit of the Department of Conservation and Recreation
June 14, 2018 · Department of Conservation and Recreation · Read the full official report on mass.gov ↗
Published June 14, 2018 Audit covers July 1, 2015 – June 30, 2017 Under Suzanne M. Bump · 2011–2023
source
“During our current audit, we found that DCR had taken measures to fully address only one of the seven issues we identified in our prior audit (one that dealt with the timing and method of payments by DCR employees who were participating in DRC’s Employee Housing program).”
Read the plain-English breakdown
This is a Massachusetts State Auditor performance audit of the Department of Conservation and Recreation, covering July 1, 2015 through June 30, 2017.
“This report details the audit objective, scope, methodology, findings, and recommendations for the audit period, July 1, 2015 through June 30, 2017.”
Auditors checked whether DCR had corrected problems found in an earlier audit of its long-term permits and leases programs.
“In this performance audit, we followed up on issues identified in our previous audit of DCR (No. 2012-0276-3S) to determine what measures, if any, DCR’s management had taken to address those issues.”
DCR manages public parks, forests, reservations, and recreational facilities, so weak controls can affect public money, public assets, and legal protections.
“It operates under the direction of the Executive Office of Energy and Environmental Affairs and is responsible for the administration and oversight of state parks, forests, reservations, and recreational facilities (e.g., campgrounds, swimming pools, and bike trails).”
If fees are not collected or agreements are not managed properly, the state may lose money that should support public resources and services.
“Our audit identified approximately $600,000 in current and past unpaid fees that DCR had not collected as of June 30, 2017 as a result of these problems.”
The auditor concluded DCR had not adequately fixed all prior problems in its permits and leases work.
“Did DCR implement corrective actions to adequately address all the issues identified in our previous audit report (No. 2012-0276-3S) pertaining to its Long-Term Permits and Leases (P&L) programs?”
The audit recommended stronger collection procedures, updated fees, current agreements, insurance documentation, and consideration of routine inspections.
“DCR should establish written policies and procedures for the collection and recording of its user fees and also establish monitoring controls to ensure that these policies and procedures are adhered to.”
The report is significant because it says old problems persisted, unpaid fees grew, and some public property was used without up-to-date agreements or proper insurance proof.
“In fact, the amount of unpaid fees owed to the Commonwealth increased from approximately $168,000 at the time of our last audit to approximately $600,000 as of the end of fiscal year 2017.”
“Use agreements” means the permits, leases, licenses, and similar arrangements that let outside groups use DCR property, such as rinks, cottages, concessions, boat clubs, and utility sites.
“In addition, the contractor manages an application called LandTracker that allows DCR employees to view P&L assets (e.g., boathouses, towers, skating rinks, and pools) and the use agreements (e.g., leases, licenses, legislatively authorized leases,2 and high-ground agreements3) that are associated with those assets.”
2 figure(s) pending source verification - not shown
What the Auditor checked
- Did not comply Did DCR implement corrective actions to adequately address all the issues identified in our previous audit report (No. 2012-0276-3S) pertaining to its Long-Term Permits and Leases (P&L) programs?
What the Auditor found
Why it matters: Uncollected fees increased and overdue receivables were not referred for collection, reducing revenue available to the Commonwealth.
Standard: Section 9.03(1), Section 9.05(2), and Section 9.04 of Title 815 of the Code of Massachusetts Regulations, and OSC's Receivable Recognition and Reconciliation Policy. ( Section 9.03(1) of Title 815 of the Code of Massachusetts Regulations; 815 CMR 9.04 )
2 recommendations
- DCR should refer all delinquent accounts receivable that are more than 120 days overdue to an agency for collection.
- DCR should establish written policies and procedures for the collection and recording of its user fees and also establish monitoring controls to ensure that these policies and procedures are adhered to.
Agency response & Auditor reply
Agency: "DCR has engaged in active efforts to reduce uncollected fees."
Auditor: "Based on its response, DCR is taking measures to address our concerns in this area."
Why it matters: There was inadequate assurance that DCR collected all potential revenue from utility providers.
Standard: DCR's fiduciary responsibility under its enabling legislation to properly administer programs related to state parks, forests, reservations, and recreational facilities.
2 recommendations
- DCR should continue to develop a method to determine fair user fees that should be included in new, updated agreements for all utility providers.
- DCR should develop written policies, procedures, and internal controls to ensure that fair user fees are charged to, and collected from, utility providers.
Agency response & Auditor reply
Agency: "In September 2017, DCR executed a contract amendment with TRA to specifically conduct a targeted utility review project, under which TRA is reviewing utility company agreements and uses of DCR property to: identify and confirm current uses and locations; make recommendations to DCR regarding a proposed fee structure to ensure that DCR is charging fair user fees that reflect industry-accepted and uniformly applied market rates; assist DCR in developing standard form permit agreements for the various types of utility occupancy; and assist DCR in notifying and working with utility companies to create new or update existing agreements to reflect the new pricing structure and any other changes to the standard permit agreement terms and conditions."
Auditor: "During our audit period, DCR had not established proper user fees for utility providers."
Why it matters: Without timely executed agreements, liability-related legal protections may not be in effect for all parties.
Standard: Prudent business practices for signed, current, and properly renewed use agreements.
2 recommendations
- DCR should follow up on, and resolve, all expired use agreements.
- DCR should develop and follow written policies and procedures to ensure that use agreements for all of its properties are properly executed and renewed before they expire.
Agency response & Auditor reply
Agency: "DCR agrees that it is important to have current agreements in place for users of DCR properties."
Auditor: "Based on its response, DCR is continuing to take measures to address our concerns in this area."
Why it matters: The Commonwealth and the public may not be properly protected, assets may not be maintained, and unauthorized use of DCR property may not be detected.
Standard: DCR use agreement requirements for liability insurance, certificates of insurance, and naming the Commonwealth/DCR as additional insured. ( Section 1 of Chapter 175L of the Massachusetts General Laws )
3 recommendations
- DCR should establish and implement the necessary policies and procedures to ensure that all required certificates of insurance are on file and meet use agreement requirements.
- DCR should keep a certificate of insurance on file for each agreement that has a user liability insurance obligation.
- DCR should consider establishing a formal requirement of periodic inspections of all of its leased properties.
Agency response & Auditor reply
Agency: "As discussed with OSA staff during the course of the audit, DCR does not have any obligation to conduct ”inspections” of its leased or permitted property, nor do staff have the appropriate credentials to perform certain types of inspections (such as plumbing, electrical work, etc.)."
Auditor: "Based on its response, DCR is continuing to take measures to address our concerns in this area."
Prior findings revisited
"During our current audit, we found that DCR had taken measures to fully address only one of the seven issues we identified in our prior audit (one that dealt with the timing and method of payments by DCR employees who were participating in DRC’s Employee Housing program)."
"DCR has not taken measures to fully address four of the issues we had previously identified."
More audits of this entity
Other Office of the State Auditor reports on Department of Conservation and Recreation , including the prior audits referenced above.
- Audit of the Department of Conservation and RecreationState Agency / Office · November 3, 2022
- The Department Of Conservation And Recreation's Use Of American Recovery And Reinvestment Act FundsState Agency / Office · MARCH 1, 2011
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Audit of Settlement Agreements and Confidentiality Clauses Across Multiple State Agencies - Department of Conservation and Recreation (January 28, 2025)State Agency / Office · January 28, 2025