Land Court Department

This is a Massachusetts State Auditor performance audit of the Land Court Department covering July 1, 2014 through September 30, 2015.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2014 through September 30, 2015.”

Auditors checked whether the court handled cash properly and whether its spending followed the rules.

“The objectives of our audit were to determine whether LCD’s cash-management practices were appropriate and in accordance with applicable requirements and whether its expenditures were appropriate and recorded in accordance with applicable requirements.”

Public agencies must follow money-handling rules so funds are tracked, transferred when required, and services are bought fairly.

“Are LCD’s cash-management practices appropriate and in accordance with applicable requirements?”

For ordinary residents, the issue is basic accountability: public money and court services should be managed transparently, competitively, and with safeguards for personal information.

“Finally, without a written agreement, LCD lacks a formal mechanism to monitor the vendor’s performance, establish equitable terms and conditions for the use of the space and utilities, and protect itself from any legal claims that could arise.”

The auditors found LCD’s non-payroll spending was acceptable, but its cash management was not because of the escrow and photocopier issues.

“Are LCD’s non-payroll expenditures appropriate and recorded in accordance with applicable laws, rules, and regulations?”

The court said it transferred the old escrow money and started working with Trial Court procurement on a competitive bidding process for photocopy services.

“A competitive bidding process will occur, taking into account the recommendations included in the audit, and a file containing the agreement and accounts will be maintained by the court.”

The report is significant because the court had already corrected the escrow issue after the audit and acknowledged the need to fix procurement for photocopy services.

“On December 31, 2015, LCD remitted to OST the two escrow account balances (including accrued interest for October, November, and December 2015), which together totaled $123,831.”

Escrow accounts are money the court holds for cases; if that money goes unclaimed for too long after a case ends, it must be treated as abandoned and sent to the state treasurer.

“Monies paid into any court within the commonwealth for distribution, and the increments thereof, shall be presumed abandoned if not claimed within three years after the date of payment into court, or as soon after the three year period as all claims filed in connection with it have been disallowed or settled by the court.”