Schooner Ernestina Commission

This is a Massachusetts State Auditor report on the Schooner Ernestina Commission, covering July 1, 2008 through June 30, 2011.

“In accordance with Chapter 11, Section 12, and Chapter 6, Section 182C, of the Massachusetts General Laws, the Office of the State Auditor has conducted an audit of certain activities of the Schooner Ernestina Commission (SEC) for the period July 1, 2008 through June 30, 2011.”

State law requires the auditor to review the commission’s books and accounts each year.

“Furthermore, the law requires the Office of the State Auditor (OSA) to perform an annual audit of the SEC’s books and accounts.”

The Ernestina is not just any boat; it is Massachusetts’ official vessel and a National Historic Landmark, so its preservation and spending oversight are public responsibilities.

“The Schooner Ernestina, designated the official vessel of the Commonwealth and a National Historic Landmark by the U.S. Department of the Interior, is presently docked at the New Bedford State Pier.”

For residents, the issue is whether public oversight is strong enough to protect the ship, track money accurately, and support its continued operation and maintenance.

“If the SEC does not ensure that it develops its business and spending plans in conjunction with records maintained by the DCR, the SEC’s business plans could contain inaccurate information, which could hinder the continued operation, preservation, and maintenance of the Schooner Ernestina.”

Aside from the missing or late business and spending plans, the audit found adequate controls and compliance in the areas it tested.

“Based on our audit we have concluded that, for the period July 1, 2008 through June 30, 2011, except for the issue noted in the Audit Findings section of this report, the SEC and the DCR maintained adequate management controls and complied with applicable laws, rules, and regulations for the areas tested.”

The auditor said the commission should file the required plans, and DCR should make sure those plans are accurate and submitted on time; after fieldwork ended, DCR submitted plans for fiscal years 2011 through 2013.

“On October 23, 2012, subsequent to the end of our audit field work, the DCR submitted a copy of the SEC’s annual business and spending plan for fiscal years 2011 through 2013 to the Office of the State Auditor, the Secretary of Administration and Finance, and the Ways and Means Committees of the House and Senate.”

This was a repeat problem from a prior audit, meaning the commission had been told before that it needed to prepare and file these plans properly.

“Our prior audit report (No. 2008-1404-3A) found that the Schooner Ernestina Commission (SEC) did not establish a business and spending plan detailing revenues and expenses to ensure the continued operation, preservation, and maintenance of the Schooner Ernestina in accordance with Chapter 6, Section 182B(j), of the Massachusetts General Laws, which states, in part:”

A “business and spending plan” means a yearly document showing expected money coming in and going out, meant to support the ship’s operation, preservation, and maintenance.

“The commission is hereby further authorized and directed to establish a business and spending plan detailing revenues of and expenditures by said commission which plan shall ensure the continued operation, preservation and maintenance of the Schooner Ernestina.”