Massachusetts Military Division Examination of Annual Internal Control Questionnaire

This is a state audit of how the Massachusetts Military Division, which includes the Massachusetts National Guard, reported its internal controls for fiscal year 2015.

“I am pleased to provide this performance audit of the Massachusetts Military Division: Massachusetts National Guard.”

The auditor checked whether selected answers the agency gave on its annual internal control questionnaire were true.

“The objective of our audit was to determine whether certain responses that MMD provided to OSC on its fiscal year 2015 ICQ were accurate.”

Bad reporting on internal controls can make it harder for the state to know whether money, property, and operations are being properly managed.

“Further, inaccurate information on the ICQ prevents OSC from effectively assessing the adequacy of MMD’s internal control system for the purposes of financial reporting.”

For taxpayers, this matters because the agency managed a large budget, facilities, employees, and Guard programs, so weak controls can affect public resources.

“MMD had a fiscal year 2015 budget of $55,180,834.”

The agency said it had key controls and inventory practices in place, but auditors found several of those claims were not accurate.

“MMD’s 2015 ICQ had inaccurate responses on the subjects of its internal control plan (ICP), risk assessment, and capital-asset inventory.”

The auditors told the agency to fix the problems, follow Comptroller rules, check answers before submitting them, and ask for help if needed.

“MMD should take the measures necessary to address the issues we identified during our audit and should ensure that it adheres to all of OSC’s requirements for developing an ICP and accurately reporting information about its ICP, risk assessment, and capital-asset inventory on its ICQ.”

The report matters because missing or inaccurate controls can weaken oversight of fraud risk, assets, and official financial reporting.

“In addition, without performing and documenting an annual physical inventory, MMD is not ensuring that its capital assets are properly safeguarded against loss, theft, and misuse and that its inventory records are complete and accurate.”

An ICQ is the annual questionnaire agencies fill out about their internal controls; an ICP is the agency’s plan for those controls; GAAP and non-GAAP are categories used for accounting and asset reporting.

“The ICQ is designed to provide an indication of the effectiveness of the Commonwealth’s internal controls.”