Audit of the Department of Fish and Game (DFG)

This is a state performance audit of the Massachusetts Department of Fish and Game covering July 1, 2016 through December 31, 2018.

“This report details the audit objectives, scope, methodology, finding, and recommendations for the audit period, July 1, 2016 through December 31, 2018.”

Auditors checked whether the department charged and reported money from fees, licenses, and permits the right way.

“In this performance audit, we determined whether DFG properly charged and reported revenue from fees, licenses, and permits.”

When one person controls too many steps in handling revenue, the state has less protection against mistakes, theft, loss, or misuse of public money.

“As a result, the Department of Fish and Game (DFG) cannot be certain that funds are adequately protected from potential theft, loss, or misuse.”

If you buy fishing, hunting, trapping, boating, or related permits, this audit is about whether the state properly handles and records that money.

“According to DFG’s website, MFH is “the official licensing and harvest reporting system for Massachusetts, [used] to purchase and print saltwater and freshwater fishing, hunting, and trapping licenses, permits, and stamps [and] report a harvest.””

The department was only partly meeting the rule for charging and reporting this revenue because of weak controls in the Boston marine fisheries revenue process.

“Does DFG charge and report revenue from fees, licenses, and permits in accordance with Sections 4.02(321) and (322) of Title 801 of the Code of Massachusetts Regulations (CMR)?”

The auditors recommended written procedures, separating money-handling jobs, and making sure each system user has their own login after the Fish system is upgraded.

“DFG should segregate duties for collecting funds, reconciling transactions, and preparing daily deposits.”

The issue was important enough that the department took corrective steps, including publishing new policies after audit fieldwork ended.

“On December 16, 2019, after our fieldwork ended and in response to an informal conference in which we discussed our preliminary recommendations with the agency, DFG published two policies to address our recommendations:”

“Segregation of duties” means no single employee should control every key step of a financial transaction, such as collecting money, checking records, and preparing deposits.

“Management should divide or segregate key duties and responsibilities among different people to reduce the risk of error, misuse, or fraud.”