Department of Public Safety
November 18, 2014 · Read the full official report (PDF) ↗
Published November 18, 2014 Audit covers July 1, 2010 – December 31, 2012 Under Suzanne M. Bump · 2011–2023
source
“Based on our audit, we determined that DPS maintained adequate internal controls over amusement owner licensing, but it did not maintain adequate internal controls over the following activities: elevator inspections; collection of inspection fees; maintaining elevator inspection information; inventory control; maintenance of an adequate internal control plan; Criminal Offender Record Information and training record information for amusement device operators; qualification information pertaining to elevator mechanics, amusement device CMMs, and CIs; licensing and monitoring of ticket resellers; and reporting of revenue collection to the Commonwealth’s accounting system.”
Read the plain-English breakdown
This is a state performance audit of the Massachusetts Department of Public Safety covering July 1, 2010 through June 30, 2012, focused on how the agency handled inspections, licensing, money, and internal controls.
“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2010 through June 30, 2012.”
The auditor reviewed the agency to see whether parts of its elevator, amusement device, and ticket reseller work were being run properly and whether state government could improve.
“This audit was conducted as part of the Office of the State Auditor’s continuing efforts to assess the operation of state agencies and determine whether there are opportunities for improving state government.”
The problems matter because late elevator inspections can affect public safety, and weak controls can also mean the state misses money it should collect.
“In addition to the public safety risk posed by allowing elevators to operate without being inspected for extended periods, DPS is potentially forgoing the collection of a significant amount of revenue due the Commonwealth by not performing the required inspections on time.”
For an ordinary resident, this affects things like whether elevators and amusement rides are properly checked and whether ticket resellers are being monitored for fair practices.
“DPS oversight authority includes, but is not limited to, amusement and entertainment, architectural access, construction supervisors, building codes, elevators, nuclear plants, pipefitters, refrigeration, amusements, and ticket resellers.”
The auditor concluded that several serious problems from a prior audit were still not fixed, especially elevator inspections, asset inventory, and internal controls.
“Our current audit identified a number of problems with DPS’s inspection of elevators, as follows.”
The auditor recommended stronger procedures, better tracking, more timely inspections and collections, better documentation, and stronger oversight; the agency said it had started making changes.
“Since we completed our audit, DPS has distributed notification letters to all elevator owners identified in its elevator database as having expired inspection certificates.”
The scale was large: the audit found more than 14,000 registered elevators had expired inspection certificates, representing 36% of the state total in the database reviewed.
“Our analysis of the entire DPS database as of October 10, 2012 indicated that 14,211 (36%) of the 39,461 registered elevators in the Commonwealth were operating with expired inspection certificates (a possible threat to public safety), as indicated in the following table.”
Internal controls means the agency’s rules, checks, records, and review steps that help make sure work is done correctly and problems are caught.
“An internal control plan is a description of how a department expects to meet its various goals and objectives by using policies and procedures to minimize risk.”
3 figure(s) pending source verification - not shown
What the Auditor checked
- Did not comply Determine whether controls over elevator licensing and inspections were adequate and whether policies and procedures were followed.
- Did not comply Determine whether DPS effectively implemented fines for elevator owners operating elevators beyond inspection expiration dates.
- Partially Determine whether controls over amusement device licensing and inspection were adequate and whether policies and procedures were followed.
- Did not comply Determine whether controls over ticket reseller licensing and inspection were proper.
- Did not comply Determine whether controls over collecting, accounting for, and depositing fees and fines were adequate and whether revenue was maximized.
What the Auditor found
Why it matters: Elevators operated with expired certificates, creating a possible public safety risk and potential lost revenue for the Commonwealth.
Standard: Chapter 143, Section 64, of the Massachusetts General Laws ( Chapter 143, Section 64, of the General Laws )
3 recommendations
- Develop documented policies and procedures to strengthen controls over elevator inspections.
- Notify elevator owners before certificate expiration and shut down elevators where appropriate if owners have not applied and paid for inspection.
- Strengthen controls over quarterly elevator reporting to the Legislature.
Agency response & Auditor reply
Agency: "The Department recognizes that there is room for improvement in its elevator division."
Auditor: "Based on its response, DPS is taking measures to address our concerns related to performing timely inspection by implementing a new electronic permitting and inspection system that should provide greater accountability and efficiency in this area."
Why it matters: DPS could not be certain that its fixed assets were adequately safeguarded against abuse or misuse.
Standard: OSC and OSD Fixed Assets policies and 802 CMR 3.05(1) ( 802 Code of Massachusetts Regulations 3.05(1) )
1 recommendation
- Develop policies and procedures with OTIS to maintain and annually reconcile a complete computer-related inventory.
Agency response & Auditor reply
Agency: "The Department recognizes that an updated inventory is essential to the efficient management of its resources, and has established lines of communication with OTIS to better coordinate this."
Auditor: "Based on its response, DPS is taking measures to address our concerns on this matter."
Why it matters: The absence of a complete and comprehensive internal control plan places DPS at risk of not achieving all its objectives.
Standard: Chapter 647 of the Acts of 1989 and OSC Internal Control Guide ( Chapter 647 of the Acts of 1989 )
2 recommendations
- Update the internal control plan using a department-wide risk assessment and incorporate ERM components.
- Ensure annual Internal Control Questionnaires submitted to OSC are accurate.
Agency response & Auditor reply
Agency: "A significant reason that the internal control plan process was delayed was due to the incoming new permitting and inspection system which would completely change the business practices of the Department’s programs."
Auditor: "Based on its response, DPS is taking measures to address our concerns on this matter."
Why it matters: DPS lacked adequate assurance that amusement device owners complied with safety-related CORI and training requirements.
Standard: 520 CMR 5.02(9)(b), 520 CMR 5.04(16), and 520 CMR 5.04(6)(h) ( 520 CMR 5.04(16); 520 CMR 5.04(6)(h) )
2 recommendations
- Regularly review amusement ride owner operations for required criminal background checks.
- Increase monitoring of operator training records and required license, permit, and certification displays.
Agency response & Auditor reply
Agency: "The Department will continue to monitor this matter and instruct industry professionals to achieve 100% compliance."
Auditor: "Based on its responses, DPS is taking measures to address our concerns on this matter."
Why it matters: DPS could not document that personnel met requirements for experience, education, testing, and license issuance.
Standard: 520 CMR 5.02 and Chapter 143, Section 71C, of the General Laws ( Chapter 143, Section 71C, of the General Laws )
3 recommendations
- Implement scanning, indexing, and retention procedures for license documentation.
- Use verification forms or checklists for each license file.
- Establish supervisory review procedures before issuing licenses.
Agency response & Auditor reply
Agency: "Since the Audit, the Department has changed its procedures in this area and now receives most of its license renewals through a lockbox."
Auditor: "Based on its response, DPS is taking measures to address our concerns on this matter."
Why it matters: DPS could not assure the public that ticket prices charged by resellers were fair and appropriate.
Standard: Chapter 140, Sections 185A through 185G, of the General Laws and 520 CMR 8.01 ( Chapter 140, Section 185A, of the General Laws; Chapter 140, Section 185E, of the General Laws )
2 recommendations
- Establish formal policies, procedures, and internal controls for ticket reseller licensing and oversight.
- Perform site visits to ticket resellers to review books and records.
Agency response & Auditor reply
Agency: "The Department acknowledges that it does not regularly conduct compliance visits to ticket resellers due to lack of resources and the fact that the vast majority of them are not brick and mortar storefronts."
Auditor: "Based on its response, DPS is taking measures to address many of our concerns on this matter."
Why it matters: Errors or misuse of funds could go undetected and materially affect the accuracy of revenue reported in MMARS.
Standard: OSC MMARS Accounts Receivable Cash Recognition and Reconciliation Policy ( OSC’s MMARS Accounts Receivable Cash Recognition and Reconciliation Policy )
4 recommendations
- Immediately reconcile fiscal year 2011 cash receipts to MMARS.
- Reconfigure daily reconciliation to include non-automated receipts and detailed refund and bad-check tracking.
- Remit cash receipts to MMARS timely and complete cash receipt transactions daily.
- Strengthen internal controls with a formal cash receipt and reconciliation process.
Agency response & Auditor reply
Agency: "The Department recognizes the importance of reconciling every cent of the total amount of revenue it collects."
Auditor: "Based on its response, DPS is taking measures to address our concerns on this matter."
Verified dollar findings
Estimated or sample-projected amounts - shown separately because they are not a hard-identified dollar figure.
Prior findings revisited
"Prior audit result unresolved—DPS’s internal control plan does not comply with OSC guidelines."