Office of Consumer Affairs & Business Regulations - Examiniation of Annual Internal Control Questionnaires

This is a limited-scope performance audit of a Massachusetts state agency’s answers on an annual questionnaire about internal controls for the period July 1, 2013 through June 30, 2014.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2013 through June 30, 2014.”

The State Auditor checked whether certain answers OCABR gave to the State Comptroller on its fiscal year 2014 Internal Control Questionnaire were accurate.

“The objective of our audit was to determine whether certain responses provided by OCABR to OSC in its fiscal year 2014 ICQ were accurate.”

Accurate internal-control reporting matters because the Comptroller uses it to judge whether the agency has adequate controls, especially for financial reporting.

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

For ordinary residents, this matters because OCABR is supposed to protect consumers and regulate businesses fairly, and weak or poorly documented controls can make it harder for the agency to do that effectively.

“OCABR’s mission is to advocate for, inform, and protect consumers and ensure fair and sound regulation of businesses and professionals while working to strike a balance between the needs of businesses and those of consumers.”

The main issue was not that money was proven missing, but that OCABR’s paperwork and answers about its controls were not reliable enough in several key areas.

“Some of the information that the Office of Consumer Affairs and Business Regulation (OCABR) reported in its Internal Control Questionnaire (ICQ) to the Office of the State Comptroller (OSC) for fiscal year 2014 was inaccurate or not supported by documentation.”

The auditor recommended that OCABR fix the problems, follow Comptroller requirements, and ask the Comptroller for help if needed.

“If necessary, OCABR should request guidance from OSC on these matters.”

An Internal Control Questionnaire is a yearly form state departments complete to show how well their safeguards, procedures, and checks are working.

“Each year, the Office of the State Comptroller issues a memo (Fiscal Year Update) to internal control officers, single audit liaisons, and chief fiscal officers instructing departments to complete an Internal Control Questionnaire designed to provide an indication of the effectiveness of the Commonwealth’s internal controls.”