Audit of the Holyoke Community College Foundation (HCCF)
September 18, 2020 · Holyoke Community College Foundation · Read the full official report on mass.gov ↗
Published September 18, 2020 Audit covers July 1, 2017 – March 31, 2019 Under Suzanne M. Bump · 2011–2023
source
“Our audit revealed no significant instances of noncompliance by the foundation that must be reported under generally accepted government auditing standards.”
Read the plain-English breakdown
This is a state performance audit of the Holyoke Community College Foundation covering July 1, 2017 through March 31, 2019.
“This report details the audit objectives, scope, and methodology for the audit period, July 1, 2017 through March 31, 2019.”
Auditors checked whether the foundation's spending was proper, documented, reasonable, and only for the college's benefit.
“In this performance audit, we examined the foundation’s expenditures to determine whether they were reasonable, properly documented, and made for the exclusive benefit of the college.”
The foundation handles large sums of money meant to support Holyoke Community College, so strong oversight matters.
“As of June 30, 2019, the foundation managed $19.3 million of assets that supported the growth and improvement of Holyoke Community College.”
For students and the community, this foundation helps fund college improvements, student support, and educational programs.
“To perform any and all services which will assist, promote, and improve the standard of education of the Holyoke Community College.”
The spending reviewed was for the college's benefit, but the auditor still found ways the foundation could tighten financial management.
“The expenditures of Holyoke Community College Foundation were used for the exclusive benefit of the college.”
The auditor recommended written accounting procedures and closer tracking of transactions involving people connected to the foundation.
“The foundation should closely monitor all financial transactions to ensure that all related-party transactions are identified and properly disclosed.”
The audit did not find reportable noncompliance, but it flagged that weak disclosure of connected-party payments could hurt trust in decisions.
“Not properly identifying and disclosing related-party transactions could adversely affect the integrity of the foundation’s decision- making process.”
A “related-party transaction” means business between the foundation and someone who has influence over it, such as a connected board member or business.
“A related-party transaction is a transaction between such an individual and the organization.”
2 figure(s) pending source verification - not shown
What the Auditor checked
- Complied Were the foundation’s expenditures budgeted, authorized, and made for the exclusive benefit of the college, in accordance with Section 37 of Chapter 15A of the General Laws?
What the Auditor found
Why it matters: Without documented accounting policies and procedures, the foundation has weaker succession training support and less transparency over daily accounting activities.
1 recommendation
- The executive director and board of directors should document accounting policies and procedures in a manual.
Why it matters: Not properly identifying and disclosing related-party transactions could adversely affect the integrity of the foundation’s decision-making process.
Standard: The foundation is required to disclose all related-party transactions in its financial statements.
1 recommendation
- The foundation should monitor all financial transactions to ensure that related-party transactions are identified and disclosed.