Massachusetts College of Art and Design

This is a Massachusetts State Auditor performance audit of Massachusetts College of Art and Design covering July 1, 2010 through October 29, 2010.

“We conducted this performance audit, which covered the period July 1, 2010 through October 29, 2010, in accordance with generally accepted government auditing standards.”

The audit happened because the State Auditor received a complaint from a MassArt employee alleging problems with inventory, computer equipment, and purchasing of materials and supplies.

“The correspondence alleged irregularities at MassArt in the areas of inventory use and control, computer equipment usage, and materials and supplies procurement practices.”

The state has rules meant to protect public money and property, and the Auditor is responsible for checking what went wrong when state agencies report losses, shortages, thefts, or unexplained differences.

“Chapter 647 also requires the OSA to determine the internal control weaknesses that contributed to or caused an unaccounted-for variance, loss, shortage, or theft of funds or property; make recommendations to correct the condition found; identify the internal control policies and procedures that need modification; and report the matter to the appropriate management and law enforcement officials.”

For residents, the main takeaway is that auditors did not find fraud or abuse in the tested areas, but they did recommend better tracking of supplies to help protect public assets.

“We recommend establishing an inventory system for materials and supplies within the Facilities Department, in order to better monitor supply level.”

The complaint did not lead auditors to find fraud or abuse in the areas checked, but MassArt still needed stronger inventory and sign-out controls.

“MassArt officials indicated that they intended to do so, as well as develop and implement several new procedures to strengthen existing internal controls over equipment, including: a system for the utilizing and signing-out of laptops belonging to the Facilities Department, a procedure for requisitioning any purchase of laptop computers for staff, and a policy for accepted off-site use and signing-out of heavy equipment belonging to MassArt.”

MassArt said it planned to create a supply inventory system and add procedures for laptops, laptop purchases, and off-site use of heavy equipment.

“MassArt officials indicated that they intended to do so, as well as develop and implement several new procedures to strengthen existing internal controls over equipment, including: a system for the utilizing and signing-out of laptops belonging to the Facilities Department, a procedure for requisitioning any purchase of laptop computers for staff, and a policy for accepted off-site use and signing-out of heavy equipment belonging to MassArt.”

The report is significant because it responds to a whistleblower-type concern, checks whether public assets were being misused, and documents both the lack of found fraud and the need for stronger controls.

“In response to correspondence received by the Office of the State Auditor (OSA) from an employee of Massachusetts College of Art and Design (MassArt), we conducted a review in accordance with Chapter 647 of the Acts of 1989, An Act Relative to Improving Internal Controls within State Agencies.”

“Internal controls” means the policies and procedures an agency uses to keep track of assets, prevent losses, and make sure public property is handled properly.

“The purpose and scope of the review was to assess MassArt’s 1) inventory practices and procedures for equipment, including heavy equipment; 2) inventory practices and procedures for computer equipment, specifically laptop computers; 3) purchasing and inventory practices and procedures for materials and supplies; and 4) internal controls regarding the safeguarding of all assets, including materials and equipment.”