Schooner Ernestina Commission

This is a Massachusetts State Auditor performance audit of the Schooner Ernestina Commission for July 1, 2013 through December 31, 2015.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2013 through December 31, 2015.”

The auditor checked whether the commission and its oversight agency had proper controls and followed relevant laws and rules.

“The purpose of our audit was to determine whether SEC and its oversight agency, the Department of Conservation and Recreation (DCR), maintained adequate management controls and complied with applicable laws, rules, and regulations for the areas tested.”

The Schooner Ernestina-Morrissey is a historically important public vessel, and the audit looked at public oversight of money and restoration work tied to it.

“The Schooner Ernestina Commission (SEC) was established under Sections 182A–182C of Chapter 6 of the Massachusetts General Laws for the preservation and operation of the Schooner Ernestina, which was a gift from the people of Cape Verde and has been designated the official vessel of the Commonwealth and a National Historic Landmark by the US Department of the Interior.”

As a resident, this matters because the audit checked whether public agencies were properly tracking costs, credits, donations, and plans for a state-owned historic vessel.

“DCR appropriations and the SEC trust account fund all expenditures for SEC, including maintenance and repairs to the Schooner Ernestina-Morrissey as well as payroll costs for DCR employees who work on SEC-related activities.”

The auditor concluded that revenue controls were adequate, but expenses and required planning had problems.

“Did DCR, on behalf of SEC, ensure that expenses were accurately calculated, recorded, and reported in accordance with applicable laws and regulations and SEC’s established business and spending plan?”

The report recommends that DCR account for the lead and keep proper records in similar transactions, and that SEC and DCR submit required plans on time.

“SEC and DCR should submit the business and spending plan on time.”

The most concrete financial concern was that missing documentation made it unclear whether the state received a credit worth up to about $50,000 for reused lead.

“As a result, DCR may have paid more than necessary for this project.”

A business and spending plan is the annual document that lays out the commission’s financial and operating information, including plans for the next fiscal year.

“This document details business and other pertinent information for the fiscal year up to the date it was prepared, as well as a spending plan for the next fiscal year.”