Massachusetts Convention Center Authority

This is a state audit of the Massachusetts Convention Center Authority, which runs major convention and public event facilities in Massachusetts.

“The Massachusetts Convention Center Authority (MCCA) is an independent public authority of the Commonwealth of Massachusetts that owns and operates several public facilities primarily for the use of conventions, tradeshows, and industry meetings.”

The audit looked at whether MCCA had proper controls over spending, leases, employee pay, contracts, revenue collection, and money owed to it.

“The objective of our audit was to review the adequacy of MCCA’s management controls over administrative costs and expenses, the leasing of MCCA facilities, employee compensation, contract management, and the collection and deposit of revenue, including a review of accounts receivable.”

MCCA handles public facilities and receives state-backed funding, so its spending and controls matter to taxpayers.

“MCCA’s enabling legislation, as amended by Section 439 of Chapter 26 of the Acts of 2003, created the Massachusetts Convention Center Fund to provide funding for the activities of MCCA.”

If you use or benefit from convention centers, parking, tourism, or local events, this audit says the reviewed parts of MCCA were being managed properly.

“The Hynes generates event-related revenue primarily from the sale and use of meeting and exhibition space; the sale of services that support the use of that space, such as cleaning, electricity, security, and telecommunications; and commissions on food and beverage sales at the facility.”

The audit did not report findings requiring corrective action for the tested areas.

“Based on our review we have concluded that, during the period July 1, 2008 through June 30, 2010, MCCA maintained adequate management controls and complied with applicable laws, rules, and regulations for the areas tested.”

The report was finalized after MCCA had a chance to comment on a draft.

“At the conclusion of our review, we provided MCCA officials with a draft report for comment and considered their responses in the preparation of this final report.”

The audit covered a large public authority responsible for major Boston and Springfield facilities, including convention centers and a parking garage.

“It 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, to oversee the construction and operation of the Boston Convention and Exhibition Center, and to acquire and operate the Springfield Civic Center.”

A ground lease means someone rents land for a long time, can build on it, and later the land and improvements go back to the owner.

“A ground lease is a long-term lease of land in which the tenant is allowed to occupy and develop the land during the lease period, after which the land and all improvements are turned over to the property owner.”