Standardbred Owners of Massachusetts, Inc. - Mass. Standardbred Breeding Program

This is a state audit of Standardbred Owners of Massachusetts, Inc., a nonprofit that runs a horse-breeding prize program in Massachusetts.

“Standardbred Owners of Massachusetts, Inc. (SOM) is a nonprofit organization whose purpose is to promote, develop, and encourage, through the Massachusetts Standardbred Breeding Program (SBP), the breeding of Standardbred horses in the Commonwealth by offering cash prizes to breeders of such horses.”

The audit was required under state law and looked at SOM’s activities during calendar year 2010.

“In accordance with Chapter 11, Section 12 and Chapter 128, Section 2(j), of the Massachusetts General Laws, we have conducted an audit of certain activities of SOM for the period January 1, 2010 through December 31, 2010.”

SOM receives money tied to racing at Plainridge Racecourse, so the audit checked whether that money was protected and used properly.

“According to various provisions in the law, a percentage of the handle of all live and simulcast racing at Plainridge Racecourse is to be transferred to SOM.”

For an ordinary citizen, the main takeaway is that public oversight found the tested spending and revenue handling to be reasonable, allowable, and in line with rules.

“The objectives of our audit were to review and analyze controls over cash receipts and cash disbursements to determine whether they are adequate to safeguard funds; conduct transaction testing to determine whether revenues and expenditures are reasonable, allowable, and applicable to the program and are in compliance with laws, rules and regulations; and determine whether the program is being operated and administered as intended by its enabling legislation, Chapters 128, 128A, and 128C of the General Laws.”

The audit did not find material weaknesses in the areas reviewed.

“Our tests in the above-mentioned areas disclosed no material weaknesses.”

The report does not list corrective actions or follow-up steps, because the auditor did not report material weaknesses in the tested areas.

“Our tests in the above-mentioned areas disclosed no material weaknesses.”

The audit covers a small, specific program: in 2010, SOM reported $282,610 in revenue and $262,278 in spending.

“For the period January 1, 2010 through December 31, 2010, SOM revenues totaled $282,610 and SOM expenditures totaled $262,278.”

“Purse awards” and “stallion awards” are cash awards connected to Massachusetts-bred Standardbred racehorses and qualified stallions.

“This legislation was enacted to promote, develop, and encourage the breeding of Standardbred horses in the Commonwealth by offering cash prizes to breeders and owners of Massachusetts-bred Standardbred racehorses and qualified stallions through sire stakes races.”