Massachusetts Port Authority (MassPort)

This is a State Auditor report on the Massachusetts Port Authority, the public authority that runs Logan Airport, Hanscom Field, Worcester Regional Airport, and the Port of Boston facilities.

“MassPort owns and operates the Boston Logan International Airport, the Lawrence G. Hanscom Field, the Worcester Regional Airport and the facilities comprising the Port of Boston.”

The audit was done to check whether MassPort had good controls over spending, property revenue, consultants, and homeland security purchases and whether it followed laws and its own policies.

“The objectives of this audit were to assess the adequacy of MassPort’s internal controls over its administrative costs and expenses, property management and revenues, consultant services and homeland security procurements and expenditures and to conduct testing in these areas to assess MassPort’s compliance with applicable laws, regulations, and its own internal policies and procedures.”

MassPort handles major transportation assets and hundreds of millions of dollars in yearly revenue and expenses, so its financial controls affect public infrastructure and regional economic activity.

“During fiscal year 2011, MassPort generated approximately $537.6 million in operating revenues from these departments, which represented an increase of $9.7 million, or 1.8%, compared to fiscal year 2010.”

If you use Logan Airport or rent a car there, this matters because MassPort’s costs and projects are funded through fees such as parking, landing, terminal, concession, passenger, and rental car charges, not state taxes.

“MassPort has no taxing power and is not taxpayer-funded.”

The audit did not report problems in the areas reviewed; it concluded that MassPort’s controls were adequate and that it complied with applicable requirements.

“Based on our audit, we have concluded that, for the period July 1, 2008 through June 30, 2011, MassPort maintained adequate internal controls and complied with applicable laws, regulations, and its own internal policies and procedures in the areas reviewed.”

The report does not list corrective actions or recommendations, because the audit found MassPort was complying in the reviewed areas.

“Based on our audit, we have concluded that for the period July 1, 2008 through June 30, 2011, MassPort maintained adequate internal controls and complied with applicable laws, regulations, and its own internal policies and procedures in the areas reviewed.”

The main significance is that an outside government audit found no compliance or control issues in the reviewed spending, revenue, contracting, vehicle-use, and homeland security areas for the audit period.

“The scope of our audit was to review the adequacy of MassPort’s management controls over administrative costs and expenses, property management and revenues, consultant services, and homeland security procurements and expenditures.”

PFCs are passenger ticket fees that airports can use for approved projects related to capacity, security, safety, noise, and airline competition.

“The Aviation Safety and Capacity Expansion Act of 1990 authorized certain airports to collect PFCs to fund projects that preserve or enhance airport capacity, security, and safety; mitigate aircraft noise; and enhance airline competition.”