Audit of the Massachusetts Convention Center Authority (MCCA)

This is a state performance audit of the Massachusetts Convention Center Authority, focused on how it oversaw the MassMutual Center in Springfield from July 1, 2017 through June 30, 2019.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2017 through June 30, 2019.”

The auditor first looked broadly at whether the Authority was overseeing its facilities for long-term financial stability, then narrowed the review to the MassMutual Center because of risk concerns.

“After a risk analysis, we narrowed our topic to focus on the financial stability of the MassMutual Center (MMC) in Springfield.”

The MassMutual Center relies more heavily on public support than the Authority’s other facilities, so weak oversight can affect public money and confidence in how the center is run.

“During this period, the MMC’s coverage ratio was significantly lower than those of the Authority’s other facilities.”

If you are a Massachusetts taxpayer, visitor, or Springfield-area resident, this matters because the center is publicly owned, supports events and economic activity, and may need public funds when its own revenue does not cover costs.

“The Massachusetts Convention Center Authority is an independent public authority of the Commonwealth that owns and operates several public facilities primarily for conventions, tradeshows, and industry meetings.”

The auditor concluded that the Authority did not effectively manage the MGM Springfield agreement according to the contract and the Authority’s own procurement guidelines.

“Did the Authority effectively administer its management services agreement with MGM Springfield to operate the MassMutual Center (MMC) in accordance with the agreement’s terms and the Authority’s “Procurement Guidelines: Goods and Services”?”

The report recommends that the Authority strengthen oversight: finish billing procedures, monitor billing and settlements, make sure maintenance reports are provided, and document contract-renewal assessments.

“The Authority should establish monitoring controls over the MMC contract to ensure that the contract administrator documents the required assessments in accordance with Authority policy.”

The audit is significant because the problems were not just paperwork issues; the auditor said they could allow billing or other errors to happen without being caught.

“However, the numerous exceptions we identified indicate significant control deficiencies that could result in material billing errors and other errors occurring and going undetected.”

A coverage ratio is a basic measure of how much of a facility’s operating costs are paid by the money the facility brings in, instead of needing outside support.

“The Authority’s management uses the coverage ratio, an industry standard performance metric, to measure the extent to which its gross operating revenue covers its operating expenses.”