Official Audit Report – July 17, 2013 Department of Conservation and Recreation Long-Term Permit and Lease and Employee Housing Programs For the period July 1, 2010 through June 30, 2011 State House Room 230 Boston, MA 02133
[email protected] www.mass.gov/auditor 2012-0276-3S TABLE OF CONTENTS TABLE OF CONTENTS INTRODUCTION AND SUMMARY OF FINDINGS AND RECOMMENDATIONS .................................................................. 1 OVERVIEW OF AUDITED AGENCY .................................................................................................................................. 5 AUDIT SCOPE, OBJECTIVES, AND METHODOLOGY ........................................................................................................ 7 AUDIT FINDINGS ......................................................................................................................................................... 10 1. INADEQUATE INTERNAL CONTROLS OVER THE BILLING AND COLLECTION OF USER FEES, RESULTING IN UNPAID FEES, INADEQUATE LATE-PAYMENT PENALTIES, AND QUESTIONABLY LOW FEE PROVISIONS ......................... 10 a. Use Agreement Fees Are Not Being Effectively Administered, Resulting in Unpaid Fees ................................ 10 b. DCR Did Not Properly Establish or Enforce Late-Payment Penalties ................................................................ 18 c. User Fees Are Not Being Established in Accordance with State Requirements or Do Not Reflect Fair Rates, Resulting in Lost Revenue to the Commonwealth ...........................................................................................