George Fingold Library-State Library of Massachusetts
August 12, 2016 · Read the full official report (PDF) ↗
Published August 12, 2016 Audit covers July 1, 2013 – June 30, 2015 Under Suzanne M. Bump · 2011–2023
source
“The George Fingold Library’s internal controls over inventory and payroll were not sufficient, although they had been reported as such to the Office of the State Comptroller.”
Read the plain-English breakdown
This is a state performance audit of the George Fingold Library, also known as the State Library of Massachusetts, covering July 1, 2013 through June 30, 2015.
“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2013 through June 30, 2015.”
The Auditor reviewed the library because it is a state agency that must be audited at least once every three years.
“We undertook this performance audit because GFL is a state agency that is required to be audited by OSA at least once every three years.”
For ordinary residents, this matters because the library holds important public records and historical materials, and the audit is about whether public resources are being properly tracked and protected.
“GFL is the custodian of important historical and government documents, photographs, and maps.”
The Auditor found problems with fixed-asset inventory, payroll procedures, state control reporting, and donated-item tracking, and recommended written policies and better recordkeeping.
“GFL should establish and implement a formal asset-management program and related policies and procedures that cover all phases of an inventory process, adequately track and identify individual items by practices such as tagging assets with identification numbers, ensure that fixed assets are properly and accurately recorded, require an accurate list of fixed assets, and require an annual physical inventory and reconciliation of fixed assets.”
The library said it would adopt the recommendations, including creating asset and time-attendance policies, checking future control reports for accuracy, and keeping signed copies.
“The Library will incorporate the recommendations from this report.”
The report does not say money was stolen or assets were missing. Its significance is that weak controls made it harder to prove that public property, payroll, and donated items were fully and accurately managed.
“Inaccurate information prevents OSC from effectively assessing the adequacy of GFL’s internal control system for the purpose of financial reporting.”
An ICQ is a state internal-control questionnaire. In plain English, it is a yearly self-check where an agency tells the Comptroller whether its financial and management controls are working.
“The purpose of the ICQ is to provide an indication of the effectiveness of the Commonwealth’s internal controls.”
2 figure(s) pending source verification - not shown
What the Auditor checked
- Complied Does GFL maintain adequate controls over holdings such as books and publications, including management, storage, security, visibility, and accountability?
- Complied Did GFL maintain adequate controls over revenue and non-payroll expenditures?
- Did not comply Did GFL have adequate controls over payroll, were these controls complied with, and was payroll accurately calculated?
- Did not comply Does GFL have effective inventory controls over its fixed assets?
- Did not comply Does GFL have effective controls over assets donated to it?
What the Auditor found
Why it matters: GFL could not be sure that fixed assets were safeguarded against loss, theft, and misuse or that inventory records were complete and accurate.
Standard: OSC's Internal Control Guide and the Fixed Assets policies jointly issued by OSC and OSD require policies and procedures, annual inventories, and a formal asset-management program. ( Internal Control Guide of the Office of the State Comptroller; Fixed Assets—Accounting and Management Policy and Fixed Assets—Acquisition Policy )
1 recommendation
- GFL should establish and implement a formal asset-management program and related fixed-asset policies and procedures.agency: agreed
Agency response & Auditor reply
Agency: "The Library will institute an asset policy that will define the process for the yearly inventory process and what should be included in the list of assets."
Auditor: "Based on its response, we believe that GFL is taking appropriate measures to address the concerns we identified."
Why it matters: There was no assurance of the accuracy of GFL's payroll transactions.
Standard: HRD's Time and Attendance Policy requires each agency to have its own written policy for time and attendance. ( Time and Attendance Policy of the Commonwealth’s Human Resources Division )
1 recommendation
- GFL should develop its own written employee time and attendance policy.agency: agreed
Agency response & Auditor reply
Agency: "The Library will develop an employee time and attendance policy which will define the procedures for vacation, personal, sick time, and any other absences."
Auditor: "Based on its response, we believe that GFL is taking appropriate measures to address the concerns we identified."
Why it matters: Inaccurate information prevented OSC from effectively assessing the adequacy of GFL's internal control system for financial reporting.
Standard: OSC's Internal Control Questionnaire instructions require department officials to certify the responses provided in the ICQ Representations section.
2 recommendations
- GFL should ensure that its annual ICQ submission to OSC is accurate.agency: agreed
- GFL should retain a printed, approver-signed copy of its ICQ certification.agency: agreed
Agency response & Auditor reply
Agency: "The Library will verify that the ICQ that is submitted to OSC each year is accurate."
Auditor: "Based on its response, we believe that GFL is taking appropriate measures to address the concerns we identified."
Why it matters: GFL could not ensure that donated art and historical treasures were fully accounted for and safeguarded from theft.
Standard: OSC and OSD Fixed Assets—Acquisition Policy requires all works of art and historical treasures acquired or donated after July 1, 2001 to be entered in MMARS. ( OSC and OSD Fixed Assets—Acquisition Policy; OSC and OSD Fixed Assets—Acquisition Policy )
1 recommendation
- GFL should develop policies and procedures for identifying, valuing, and recording donated works of art and historical treasures in MMARS.agency: partially agreed
Agency response & Auditor reply
Agency: "The items that have been donated to the Library since 2001 should not be defined as “works of art,” or “national treasures.”"
Auditor: "GFL should seek guidance and clarification from OSC on whether any of the items in question are works of art or historical treasures for MMARS purposes."