Massachusetts College of Liberal Arts

This is a state performance audit of Massachusetts College of Liberal Arts covering selected activities from 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 State Auditor reviewed MCLA to check whether certain financial, inventory, reporting, travel, trust fund, campus safety reporting, and internal control practices were working properly.

“In this performance audit, we examined certain MCLA activities related to trust funds, administrative expenditures, inventory of property and equipment, Chapter 647 of the Acts of 1989, the federal Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act, and responses that MCLA provided to the Office of the State Comptroller on its Internal Control Questionnaires (ICQs) for fiscal years 2014 and 2015.”

These problems matter because weak controls can make it harder to prevent or detect theft, loss, misuse, or inaccurate reporting of public property and spending.

“As a result, the college cannot be certain that the correct value of its inventory, which had an estimated value of $5,109,886 as of September 29, 2015, is being recorded and reported or that these assets are adequately safeguarded against undetected loss, theft, and misuse.”

For an ordinary taxpayer or student, the issue is accountability: public college property and travel spending should be tracked, approved, and protected so public resources are not wasted or lost without follow-up.

“Without ensuring that all personnel obtain the required preapproval for travel expenses, MCLA is at risk of staff members incurring travel costs that are not appropriate and reimbursable under MCLA’s policies and state guidelines.”

The audit did not say everything was wrong, but it found important weaknesses in reporting losses, approving travel expenses, tracking assets, and answering control questions accurately.

“MCLA has not established adequate controls over recording, reporting, and monitoring of its inventory of furniture and equipment.”

The auditor recommended that MCLA create clearer procedures, fix travel approval rules, conduct proper annual inventories, improve asset tracking, and make sure future internal control answers are accurate.

“MCLA should develop formal procedures for filing reports of lost and stolen assets.”

An Internal Control Questionnaire, or ICQ, is a yearly form agencies use to report whether their internal safeguards are working; in this audit, MCLA’s answers about inventory were not accurate.

“The ICQ is a document designed by OSC that is sent to departments each year requesting information and department representations on their internal controls over 12 areas, including capital-asset inventory.”