Audit of the Massachusetts Life Sciences Center

This is a state performance audit of the Massachusetts Life Sciences Center, covering its work from July 1, 2013 through June 30, 2017.

“I am pleased to provide this performance audit of the Massachusetts Life Sciences Center.”

The audit checked whether MLSC followed the rules when giving out and monitoring grants, loans, and tax incentives, and whether those programs supported its life sciences and economic development mission.

“In this performance audit, we examined MLSC’s administration of its capital and investment programs and its tax incentive program to determine (1) whether MLSC awards and monitors grants, loans, and tax incentives in accordance with applicable laws, contracts, and policies and (2) whether programs related to grants, loans, and tax incentives promote MLSC’s mission of encouraging innovation in the life sciences; commercializing health-related products, cures, and treatments; and fostering economic development and job creation.”

MLSC handles large public investments meant to support jobs, research, and life sciences growth in Massachusetts, so the public has an interest in whether that money and tax relief are managed properly.

“On June 16, 2008, Chapter 130 of the Acts of 2008 (the Life Sciences Act), which committed the Commonwealth to investing $1 billion in the life science industry over a 10-year period, was signed into law.”

For residents, these programs are supposed to help grow jobs, support scientific work, and strengthen the state’s life sciences sector.

“Critical objectives for this program are job creation, scientific advancement that will benefit patients and further growth of the Massachusetts life sciences ecosystem.”

The auditor answered yes to both main questions: MLSC properly administered its Capital and Investment Fund Programs and its Life Sciences Tax Incentive Program.

“Did MLSC properly administer its Life Sciences Tax Incentive Program?”

The report does not list corrective actions or recommendations, because it did not identify significant reportable noncompliance.

“Our audit revealed no significant instances of noncompliance by MLSC that must be reported under generally accepted government auditing standards.”

During the audit period alone, MLSC awarded 221 grants, loans, and tax incentives worth about $232.9 million, so this audit covered programs involving substantial public resources.

“Total 472 $ 717,964,914 221 $ 232,860,181”

A tax incentive is a state-approved tax benefit for life sciences companies, aimed mainly at encouraging them to create long-term jobs in Massachusetts.

“The primary goal of the program is to incentivize life sciences companies to create new long-term jobs in Massachusetts.”