Barnstable County
August 10, 2017 · Read the full official report (PDF) ↗
Published August 10, 2017 Audit covers July 1, 2013 – June 30, 2015 Under Suzanne M. Bump · 2011–2023
source
“Barnstable County did not properly administer the leasing of its properties.”
Read the plain-English breakdown
This is a state performance audit of selected Barnstable County operations from July 1, 2013 through June 30, 2015.
“In this performance audit, we reviewed and assessed certain aspects of the County’s administration of the leasing of its property, its capital expenditure program, and its non-payroll expenditures.”
The audit was done because the Barnstable County Commissioners requested it.
“In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, at the request of the Barnstable County Commissioners, the Office of the State Auditor has conducted an audit of certain aspects of Barnstable County’s operations for the period July 1, 2013 through June 30, 2015.”
Weak controls can mean lost revenue, unclear responsibilities, unpaid rent, and spending that is hard to verify.
“As a result, the County lost a substantial amount of revenue that it could have used to fund its operations and capital projects.”
If you live in Barnstable County, this matters because county services and finances depend on good records, proper leases, and careful spending of public money.
“According to its website, the County’s mission is to “promote and sustain a pro-active open government that enhances the quality of life for the citizens of Barnstable County.””
The county needed stronger written rules, monitoring, and documentation for leases, debt, capital projects, and non-payroll spending.
“Barnstable County should develop an overall internal control system and plan.”
The county told auditors it would write policies, review leases, improve capital budgeting, and set up monitoring controls.
“The County will also establish and implement monitoring controls that will ensure policies and procedures are consistently followed.”
A capital project is a big, costly purchase or improvement, such as major equipment or technology, that is useful for more than one year.
“Capital project expenditures are purchases of large-scale and high-cost goods or services with multiple years of useful life (as opposed to operating costs that are expended for shorter terms, usually a year).”
3 figure(s) pending source verification - not shown
What the Auditor checked
- Did not comply Did leases and uses of County property during the audit period comply with applicable General Laws, other authoritative pronouncements, and the Barnstable County Home Rule Charter?
- Did not comply Did the County properly administer its Capital Expenditure Program to ensure that expenditures were authorized and funded in compliance with applicable General Laws and the Barnstable County Home Rule Charter and were formally approved by the board of County commissioners?
- Did not comply Were certain County-identified expenditures that were made during the audit period properly authorized, documented, and allowable in accordance with applicable General Laws and other authoritative guidance?
What the Auditor found
Why it matters: The County lost revenue it could have used for operations and capital projects, and it lacked formal terms defining tenant responsibilities and liabilities.
Standard: Section 14 of Chapter 34 of the Massachusetts General Laws; Section 2-8(d)(vii) of the Barnstable County Home Rule Charter; Section 10 of Chapter 34 of the General Laws ( Section 14 of Chapter 34 of the Massachusetts General Laws; Section 2-8(d)(vii) of the Barnstable County Home Rule Charter; Section 10 of Chapter 34 of the General Laws )
3 recommendations
- The County should establish formal written policies and procedures regarding the leasing of its properties.agency: agreed
- County administrators should establish monitoring controls to ensure that these policies and procedures are followed after they have been established and implemented.agency: agreed
- If the County believes that some agreements with tenants are not in its best interest, it should consider legal advice on renegotiating or terminating them.agency: agreed
Agency response & Auditor reply
Agency: "These written policies and procedures will be monitored by the County Administrator upon the approval of the County Commissioners."
Why it matters: Many capital projects were not completed, the Capital Project Fund had an approximately $8 million deficit, and the County lost the opportunity to invest excess General Fund money.
Standard: Division of Local Services best-practice statement, “Understanding Municipal Debt” ( Division of Local Services best-practice statement, “Understanding Municipal Debt” )
1 recommendation
- The County should develop and document policies and procedures regarding the issuance of debt, including steps to identify debt type, assess whether debt can be issued, determine how and to whom debt should be issued, and monitor the process.agency: agreed
Agency response & Auditor reply
Agency: "The County, through its Finance Director and County Administrator will develop a comprehensive set of policies and procedures which will expand and improve the Capital budgeting process."
Why it matters: There was a higher-than-acceptable risk that funds could be misappropriated or spent on unallowable goods or services without detection.
Standard: Section 2 of Article XVIII of the Massachusetts Constitution; Section 11 of Chapter 35 of the General Laws ( Section 2 of Article XVIII of the Massachusetts Constitution; Section 11 of Chapter 35 of the General Laws )
2 recommendations
- The County should establish written policies and procedures regarding non-payroll expenditures.agency: agreed
- County administrators should establish monitoring controls to ensure that these policies and procedures are followed after they are established.agency: agreed
Agency response & Auditor reply
Agency: "The County will undertake a comprehensive review and analysis of non-payroll expenditures."
Verified dollar findings
Estimated or sample-projected amounts - shown separately because they are not a hard-identified dollar figure.