Hampshire Division of the Superior Court Department
February 20, 2014 · Read the full official report (PDF) ↗
Published February 20, 2014 Audit covers July 1, 2011 – March 31, 2013 Under Suzanne M. Bump · 2011–2023
source
“The audit was undertaken to determine whether HSC’s (1) financial records are accurate, up to date, and maintained in accordance with established criteria; (2) inventory systems are adequate to safeguard furniture and equipment; (3) evidence exhibits are appropriately tracked and secured by HSC’s Clerk of Courts’ Office (the Clerk’s Office); (4) internal controls over civil escrow fund and bail fund management are adequate; and (5) overall internal control structure is suitably designed and implemented to safeguard Commonwealth assets in compliance with Chapter 647 of the Acts of 1989, An Act Relative to Improving the Internal Controls within State Agencies.”
Read the plain-English breakdown
This is a state performance audit of the Hampshire Division of the Superior Court Department covering July 1, 2011 through March 31, 2013.
“I am pleased to provide this performance audit of the Hampshire Division of the Superior Court Department.”
The Auditor checked whether the court was properly handling money, property, evidence, bail, civil escrow funds, and internal controls.
“This report considers whether, during our audit period of July 1, 2011 through March 31, 2013, the Hampshire Division of the Superior Court Department (HSC) administered the applicable laws and policy directives to ensure that HSC had adequate controls over bail and civil escrow funds, cash management, inventory, and evidence.”
Weak controls can mean public property, court evidence, or money owed to the Commonwealth or crime victims may be lost, misused, delayed, or hard to account for.
“As a result, Commonwealth assets with an estimated historical cost of $40,974 may be at risk of loss, misuse, or misappropriation, and inventory may not be properly reported.”
For residents, this matters because court evidence, restitution for victims, fees, and public assets should be tracked carefully and handled according to law.
“As a result, reparation has not been made to the victims affected by the criminal actions as the judge who made the ruling intended, and some of the funds may be due the State Treasurer as unclaimed property.”
The audit found multiple control problems, but also noted progress since an earlier audit on revenue reconciliations and bail forfeiture controls.
“During our current audit, we determined that HSC performed monthly reconciliations of revenue remitted to the Commonwealth to revenue credited to HSC’s revenue accounts in the Commonwealth’s Massachusetts Management Accounting and Reporting System.”
The Auditor recommended that the court improve inventory procedures, secure and log evidence better, collect required fees, hold required probation fee hearings, reconcile bank accounts properly, pay or transfer restitution balances, and strengthen risk assessments.
“HSC should continue to improve its ICP and risk assessments.”
The report is significant because it says some court practices could affect evidence security, fee collection, victim restitution, and accountability for public resources.
“As a result, evidence may not be properly secured and accounted for, which may prevent the Clerk’s Office from locating it when it is needed for court cases; evidence could be misplaced or misappropriated and such losses may not be detected; and the Clerk’s Office faces an increased risk of theft or loss.”
A bail is money or security given to the court so a defendant can be released while promising to return to court.
“Bail is the security given to the court by defendants or their sureties to obtain release to ensure appearance in court, at a future date, on criminal matters.”
9 figure(s) pending source verification - not shown
What the Auditor checked
- Partially Were HSC's financial records accurate, up to date, and maintained in accordance with established criteria?
- Did not comply Were HSC's inventory systems adequate to safeguard furniture and equipment?
- Did not comply Were evidence exhibits appropriately tracked and secured by HSC's Clerk of Courts' Office?
- Partially Were internal controls over civil escrow fund and bail fund management adequate?
- Partially Was HSC's overall internal control structure suitably designed and implemented to safeguard Commonwealth assets in compliance with Chapter 647 of the Acts of 1989?
What the Auditor found
Why it matters: Commonwealth assets may be at risk of loss, misuse, or misappropriation, and inventory may not be properly reported.
Standard: Office of the State Comptroller Internal Control Guide and Trial Court inventory procedures in Fiscal Year 2004 Memo #16 and Fiscal Year 2009 Memo #8. ( Chapter 647 of the Acts of 1989 )
5 recommendations
- Establish historical cost values for all items on the inventory record.agency: partially agreed
- Consider increasing the $100 inventory threshold in consultation with the Trial Court.agency: disagreed
- Include all items of value, particularly high-value electronic equipment, on the inventory list.agency: partially agreed
- Follow Trial Court regulations for equipment disposal and report missing equipment when required.agency: partially agreed
- Request Trial Court training on inventory procedures.agency: partially agreed
Agency response & Auditor reply
Agency: "Probation will adopt and implement the five recommendations proposed . . . with the exception of the second recommendation."
Auditor: "Therefore, we again recommend that the Probation Office consider working with the Trial Court on increasing the inventory dollar-value threshold to eliminate items of lesser value."
Why it matters: Evidence may not be located when needed, could be misplaced or misappropriated, and losses may not be detected.
Standard: Clerk's Office internal control plan, Trial Court Internal Control Guidelines, and Massachusetts General Laws on evidence retention. ( Chapter 94C, Chapter 276, and Chapter 278A of the Massachusetts General Laws )
2 recommendations
- Create a centralized evidence log with defendant name, docket number, location, amount, detailed description, and evidence type.agency: disagreed
- Request a safe from the Trial Court for high-risk evidence, including guns, drugs, and money.agency: agreed
Agency response & Auditor reply
Agency: "While respecting the Auditor’s suggestion to create a centralized evidence log, it would be an endeavor that I deem unnecessary and duplicative."
Auditor: "Consequently, we again recommend that the Clerk’s Office create a centralized evidence log to adequately address the Trial Court’s Internal Control Guidelines for evidence."
Why it matters: The Commonwealth may not receive all money to which it is entitled.
Standard: Chapter 211D of the Massachusetts General Laws. ( Chapter 211D of the Massachusetts General Laws )
2 recommendations
- The Probation Office should report unpaid legal counsel fees not paid within 60 days to the Clerk's Office.agency: agreed
- The Clerk's Office should review case files before releasing bail and not return bail until the legal counsel fee is paid in full.agency: agreed
Agency response & Auditor reply
Agency: "Probation will adopt and implement the recommendation proposed. . . ."
Auditor: "Therefore, we reiterate our recommendation that bail not be returned to the surety until after the legal counsel fee is paid in full."
Why it matters: Probationers may not comply with probation conditions, the Commonwealth may not receive required fees, and the Probation Office cannot readily determine community-service status.
Standard: Chapter 276, Section 87A, of the Massachusetts General Laws and the Office of the Commissioner of Probation directive on collecting probation supervision fees. ( Chapter 276, Section 87A, of the Massachusetts General Laws )
3 recommendations
- Comply with Chapter 276 for imposing and waiving probation supervision fees and document whether a probationer will pay a fee or has received a finding of fact for waiver.agency: agreed
- Hold administrative hearings after two consecutive months of nonpayment or failure to perform required community service.agency: agreed
- Ensure supervising probation officers promptly report community-service hours and consider a centralized tracking system.agency: agreed
Agency response & Auditor reply
Agency: "Probation will adopt and implement the recommendation. . . ."
Why it matters: Errors in fiscal records may go undetected and uncorrected for an extended period.
Standard: Trial Court Fiscal Systems Manual and Chapter 647 of the Acts of 1989. ( Chapter 647 of the Acts of 1989 )
3 recommendations
- Complete and review Monthly Bank Account Reconciliation forms in a timely manner.agency: partially agreed
- Request Trial Court training on monthly bank-account reconciliations for primary and backup personnel.agency: partially agreed
- Reconcile Detail Account Trial Balances to ledger cards and Monthly Summary Trial Balances, investigate unreconciled balances, and file Chapter 647 reports when required.agency: partially agreed
Agency response & Auditor reply
Agency: "The Probation Department will implement the recommendations outlined. . . . with one exception."
Why it matters: Victims have not received court-ordered reparation, and some funds may be due to the State Treasurer as unclaimed property.
Standard: Chapter 276, Section 93, of the Massachusetts General Laws. ( Chapter 276, Section 93, of the Massachusetts General Laws )
1 recommendation
- Collaborate with the District Attorney's Office to identify victims, addresses, and amounts owed, pay restitution when practical, and transfer unavailable or undeliverable balances to the State Treasurer by court order.agency: agreed
Agency response & Auditor reply
Agency: "Probation will adopt and implement the recommendation proposed. . . ."
Why it matters: Important risks, including unauthorized use of a signature stamp and unsegregated inventory duties, may not be mitigated.
Standard: State law, Trial Court rules and regulations, and Trial Court Internal Control Guidelines.
1 recommendation
- Continue improving the internal control plan and risk assessments, review Trial Court Internal Control Guidelines, and perform risk assessments after management or fiscal-operation changes.agency: partially agreed
Agency response & Auditor reply
Agency: "While accepting the findings of the Auditor in continuing to improve the internal control plan with regard to potential risks in the Clerk’s Office, I do not consider access during normal business hours of my signature stamp (any signature stamp is kept in a locked vault overnight) a significant risk."
Auditor: "The Clerk of Courts should formally update the risk assessment by identifying the risk of the signature stamp, along with the controls developed as a way to mitigate any errors or irregularities involving its unauthorized use."
Verified dollar findings
Estimated or sample-projected amounts - shown separately because they are not a hard-identified dollar figure.
Prior findings revisited
"During our current audit period, HSC developed an ICP and performed a risk assessment."
"During our current audit, we determined that HSC performed monthly reconciliations of revenue remitted to the Commonwealth to revenue credited to HSC’s revenue accounts in the Commonwealth’s Massachusetts Management Accounting and Reporting System."
"During our current audit, we determined that, as of March 31, 2013, none of the 24 bails held by HSC applied to criminal cases where the defendants were in default or where the bails had been ordered forfeited in open court."