Massachusetts State College Building Authority

This is a state audit report about the Massachusetts State College Building Authority, which finances and oversees construction and student housing-related facilities at several Massachusetts state colleges and universities.

“The Massachusetts State College Building Authority (MSCBA) was established under Chapter 703 of the Acts of 1963.”

The State Auditor reviewed MSCBA to check whether it had proper controls over contracts and project oversight, and whether it followed relevant laws and rules.

“Our audit objective was to evaluate the adequacy of the internal controls MSCBA has established over its contract administration and project oversight activities and its compliance with applicable laws, rules, and regulations governing these activities.”

MSCBA handles large building projects and debt for student facilities, so strong oversight matters for accountability and financial management.

“As of March 1, 2010, MSCBA had $812.7 million in total debt and during 2010 issued bonds totaling $60.4 million for six projects.”

If you are a student, parent, taxpayer, or resident, this matters because MSCBA works on dorms, dining facilities, and other campus buildings funded through rents, fees, and bonds rather than direct state appropriations.

“MSCBA is also authorized to collect student rents and fees for the operation of student living facilities.”

The auditor did not report problems in the areas reviewed; MSCBA’s controls and compliance were found adequate for the audit period.

“Based on our audit, we concluded that during our audit period, MSCBA maintained adequate internal controls to provide reasonable assurance that it would meet its control objectives regarding the financing, design, construction, oversight, and management of its projects and that it complied with applicable laws, rules, and regulations in the areas reviewed.”

The report was shared with MSCBA before being finalized, and any response from MSCBA was considered in the final version.

“MSCBA’s response was considered in the preparation of our final report, which was modified as necessary.”

This audit is significant because it reviewed how MSCBA manages construction-related responsibilities for multiple public higher education institutions, and found no compliance or control issues in the areas examined.

“Our audit scope included a review of the process that MSCBA uses to administer contracts and oversee projects from initiation to completion.”

Internal controls means the checks and procedures MSCBA uses to make sure contracts, projects, and payments are handled properly.

“In addition, we reviewed and evaluated the internal controls MSCBA has established over contract procurement and project oversight, contractor certification4 and debarment, construction management services, and contract change orders.”