Audit: MBTA not collecting, reconciling outstanding balances of $1,863,103
Boston — An audit of the Massachusetts Bay Transportation Authority (MBTA), released on Tuesday, Nov. 22, by Auditor Suzanne M. Bump, found that the entity has left long overdue accounts receivable balances on its books without collecting them or writing them off as uncollectable. In total, $1,863,103 in funds due to the agency’s accounts receivable were more than 90 days past due, with approximately half of that amount more than a decade past due.
Additionally, the audit determined the agency did not efficiently process transactions to its accounts receivable, or ensure proper approval was provided before balances were adjusted or written-off as uncollectable. These deficiencies mean that the MBTA is missing out on funds due to it, and that collectable funds could be lost due to inappropriate write-offs and adjustments.
The audit examined activities of the MBTA from July 1, 2012 through June 30, 2015.
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Casino workforce guidelines not being met, audit finds
Boston — An audit of the Massachusetts Gaming Commission (MGC), released on Monday, Nov. 21, by Auditor Suzanne M. Bump, found that it did not ensure that Plainridge Park Casino reached its workforce development goals.
As a condition of its license, Plainridge is required to hire 90 percent of its workforce from Plainville where the casino is based, and the surrounding communities of Foxborough, Mansfield, Wrentham, and North Attleboro. Ten percent of the workforce must be comprised of individuals from ethnic minority groups. Under state law, MGC is charged with providing oversight to gaming establishments to ensure they are meeting the conditions of their license.
The audit found that, despite MGC having the ability to examine if Plainridge was meeting its hiring benchmarks, it had not done so. In a strategic plan unveiled in August 2014, the casino indicated it would meet the benchmarks by February 2015. However, as of June 15, 2015, Plainridge stated that it had hired only 36 percent of its employees from its host and surrounding communities. The audit also shows that, even considering all employees who were Massachusetts residents (77 percent of the casino’s workforce), the casino was still not reaching the 90 percent benchmark. The casino did indicate that 14 percent of its staff was from ethnic minority groups, which exceeds the benchmark established by its license, but could not provide detail in support of that assertion.
In the audit, Bump recommends that MGC strengthen its processes for ensuring that Plainridge meets workforce requirements. The audit suggests establishing further target dates for benchmarks, and monitoring procedures to ensure Plainridge’s compliance.
Additionally, the audit found that a technological failure caused Plainridge to not properly intercept and remit approximately $65,000 in winnings for delinquent taxes and child support payments as required under the law. It also found that MGC did not correct funding errors in certain trust funds under its control. Both of these deficiencies were resolved as a result of the audit. Finally, the audit found that management, administrative and consulting expenses were appropriate to the operations of MGC, and that it had adequate internal controls over cash at Plainridge.
