Massachusetts Bay Community College

This is a state performance audit of Massachusetts Bay Community College covering selected college activities from July 1, 2013 through June 30, 2015, with some testing of missing-inventory reporting going back to July 1, 2009.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2013 through June 30, 2015.”

The State Auditor reviewed whether the college was properly tracking property and equipment, reporting stolen or missing property, overseeing certain spending, and following campus safety reporting rules.

“In this performance audit, we examined certain MBCC activities related to inventory of property and equipment, Chapter 647, certain administrative expenditures, and the federal Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act.”

If equipment records are incomplete or outdated, public property can be lost, stolen, or misused without being noticed.

“As a result of these issues, there is no assurance that MBCC’s property and equipment are properly safeguarded from undetected theft, loss, and misuse.”

For residents, students, and taxpayers, the audit is about whether public college property and money are being protected and whether losses are handled transparently.

“This law requires agencies to file a report with OSA if they find any “unaccounted for variances, losses, shortages or thefts of funds or property.””

The college passed the audit areas on administrative spending and current Clery Act procedures, but failed on fixed-asset inventory and required reporting of missing property.

“Below is a list of our audit objectives, indicating each question we intended our audit to answer; the conclusion we reached regarding each objective; and, if applicable, where each objective is discussed in the audit findings.”

The auditor recommended that the college improve inventory controls and assign responsibility for immediately reporting missing funds or property; the college said it had begun taking corrective action.

“MBCC should develop and implement policies, procedures, and monitoring controls, including the designation of an individual with the responsibility of ensuring that all unaccounted-for variances, losses, shortages, and thefts of funds or property are immediately reported to OSA.”

The dollar amounts identified were not enormous, but the audit found a broader control problem: the college did not have reliable inventory records or consistent reporting of missing equipment.

“During the audit period, MBCC did not report to OSA four unaccounted-for losses of equipment, totaling $8,525.”

“Fixed assets” means college property and equipment that should be listed, tagged, located, and tracked, including when it is disposed of.

“MBCC should implement internal controls to ensure that its inventory is properly recorded, maintained, and updated, including, at a minimum, performing an annual physical inventory and creating a list that includes purchase dates, descriptions, costs, assigned tag numbers, locations, and dates of disposal.”