Massachusetts Convention Center Authority

This is a state audit of the Massachusetts Convention Center Authority, the public body that runs the Hynes Convention Center, Boston Common Parking Garage, and helps oversee convention center projects in Massachusetts.

“The Massachusetts Convention Center Authority (MCCA) was established by Chapter 190 of the Acts of 1982 and Chapter 152 of the Acts of 1997 to acquire and operate the John B. Hynes Veterans Memorial Convention Center and the Boston Common Parking Garage, as well as to oversee the construction and financing of additional convention and exhibition centers in the Commonwealth.”

Auditors reviewed whether the authority was operating efficiently, had proper controls over money, contracts, inventory, rentals, costs, and employee costs, and whether it fixed problems from an earlier audit.

“The objectives of this performance audit were to determine the efficiency and effectiveness of the MCCA’s operations over cash management systems, inventory control, contract management systems, rental of the convention center facilities, operations costs, and employee costs, and to follow-up on prior audit results.”

The authority handles major public facilities and public money, including large convention center projects, so weak controls can affect taxpayers, public services, and confidence in state oversight.

“The Acts of 1997 appropriated $609,400,000 for the Commonwealth’s share of the planning, financing, development, and construction of the South Boston Convention Center Project and $48,500,000 for the expansion, renovation, and construction of a civic and convention center located on the site of the present Springfield Civic Center.”

For residents, the main concern is whether public agencies follow fair bidding rules, avoid unnecessary costs, and protect public assets from loss or misuse.

“As a result, the MCCA was unable to ensure the validity of its perpetual inventory records or to ensure that its fixed-asset inventory was safeguarded against loss, theft, or misuse.”

The auditors said the authority should follow its own bidding and vacation policies, and improve how it tracks its fixed assets.

“The MCCA should improve its fixed-asset inventory controls by performing annual physical inventory inspections to verify the existence of its fixed assets, and by implementing a computerized system for tracking fixed assets and updating inventory records.”

The authority said it had completed a new food-service bidding process, would formalize vacation carryover approvals, and was continuing work on inventory controls.

“Since the completion of your field work, we have conducted and completed the bidding process for a new food services contract.”

The report shows mixed progress: old issues involving free event space, marketing spending, and retained earnings were resolved, but inventory controls remained unresolved and new problems were found in bidding and vacation buybacks.

“Our follow-up review revealed that the MCCA’s controls over its fixed-asset inventory were still deficient.”

“Perpetual inventory records” means the authority’s ongoing list of property it owns; the audit found that this list was not reliable enough because physical checks had not been done properly.

“MCCA officials stated that, with the exception of convention floor tables and chairs, the MCCA did not conduct periodic physical inspections of fixed assets to verify its perpetual inventory records.”