Audit Warns of Inadequate Oversight of MGM Springfield's Management of the MassMutual Center

Audit found deficiencies in billing and settlement records for MassMutual Center

Boston, MA (February 16, 2021) -- In an audit released today, State Auditor Suzanne M. Bump warns that the Massachusetts Convention Center Authority (MCCA) has not provided adequate oversight of MGM Springfield's management of the MassMutual Center (MMC). The audit examined the period of July 1, 2017 through June 30, 2019.

The audit found deficiencies in MGM Springfield's billing and settlement records relative to the use of the facility that went undetected by MCCA. These undetected deficiencies included missing or incomplete invoice approval forms, insufficient insurance, late client payments, as well as discrepancies in billable hours for third-party vendors, among others. The audit also shows that the Authority did not receive required facility maintenance information from MGM Springfield or document its performance before extending its contract.

Finally, the report notes that the Authority's contract with MGM Springfield lacks key performance metrics that can be used to determine if established management expectations were achieved.

"It may make sense for the Massachusetts Convention Center Authority to enter into a contract with a company, like MGM Springfield, that has expertise in the day-to-day operations of the MassMutual Center. However, without adequate oversight of the contractor's performance, any potential savings from this arrangement can be easily squandered by improper billing or poor facility maintenance," Bump said. "The Authority must take steps to ensure it can hold MGM Springfield accountable for effective management and operation of the facility."

To address these issues, Bump recommends that the MCCA improve monitoring of settlement and billing practices, ensure MGM provides it with contractually required maintenance reports, document its assessment of contractor performance, and establish specific key performance indicators in its contract for the operation of the MMC.

The Massachusetts Convention Center Authority is an independent public authority of the Commonwealth that owns and operates several public facilities primarily for conventions, tradeshows, and industry meetings. It is governed by a 13-member board of directors. During the audit period, it was responsible for the operations of the John B. Hynes Veterans Memorial Convention Center, the Boston Common Parking Garage, the Boston Convention and Exhibition Center, and the MassMutual Center. The MassMutual Center, located in Springfield, contains 100,000 square feet of space, including a ballroom, five meeting rooms, a 40,000-square-foot exhibit space, and an 8,000-seat area.

The full audit report is available here.

Bureau of Special Investigations Identifies Over $8 Million in Public Benefit Fraud in FY20

Boston, MA – State Auditor Suzanne M. Bump today released the Fiscal Year 2020 (FY20) annual report for her office's Bureau of Special Investigations (BSI), which investigates allegations of public benefit fraud. The report notes that BSI identified $8,164,438.85 in public assistance fraud during the past year.

In FY20, BSI closed 490 cases with identified fraud. The report provides a series of maps that show the total number of fraud instances the Bureau identified in each county. With 241 cases, Hampden is the county in which Bump's office identified the most cases of fraud in FY20.

"In Massachusetts, we recognize the value of a strong social safety net to help people put food on the table, access medical care, and more. While fraud makes up a small portion of total public assistance spending, it has a disproportionate negative impact on public trust in these programs," Bump said. "At a time when more people are relying on this assistance because of economic hardships, my office remains committed to ensuring these programs are run with integrity and fraud is quickly identified and stopped."

The report highlights notable activity surrounding BSI's cases during the year including:

• Multiple indictments in US District Court for theft of government benefits;
• The guilty verdict for a Lowell woman who defrauded the Department of Early Education and Care; and
• The sentencing of a North Attleboro woman for larceny and public assistance fraud.

The Office of the State Auditor's Bureau of Special Investigations investigates allegations of public assistance fraud throughout the Commonwealth. Its work ensures taxpayer dollars are used effectively and that benefits are available to residents who truly need and qualify for them. BSI investigates programs administered by DTA, and the Division of Medical Assistance (which administers MassHealth). In addition, BSI has an agreement with the Department of Early Education and Care (EEC) to investigate fraud in that program as well. BSI receives referrals for investigation from its agency partners, public tips, referrals from federal agencies, and through the use of its data analytics tools. The public can report potential fraud to BSI at: https://www.mass.gov/how-to/report-public-benefit-fraud-to-the-office-of-the-state-auditor

The BSI Annual Report for FY20 is available here