Massachusetts State Auditor issues new audit of Fall River Line State Pier, here is what it found

Diana DiZoglio, the current Massachusetts State Auditor since 2023, has issued a follow-up audit of the Fall River Line Pier.

The audit, published on Wednesday, examined the period from July 1, 2020, to June 30, 2023, and built on a previous audit from 2020 conducted under her predecessor, Suzanne Bump.

Previous audits, such as one conducted for January 1, 2016, to December 31, 2018, and published in June 2020, identified financial management issues, including conflicts of interest and inadequate oversight.

FRLP has been operating as an agent of MassDevelopment without a formal contract since its 50-year lease agreement with the Commonwealth expired in 2014. FRLP coordinates the day to-day operations, security, and general maintenance of the Pier, located at 1 Water Street in Fall River.

The more recent audit uncovered several issues, including:

• Payments totaling $187,921 to five companies without disclosing financial interests of board members or their families, suggesting potential conflicts of interest.
• Failure to retain meeting minutes for all board meetings, which could undermine governance integrity and accountability.
• Inaccuracies in recording check numbers for 33 transactions, increasing the risk of financial misstatements and fraud.

To address these findings, the audit recommended that FRLP:

• Establish formal policies for financial activities, requiring board members to declare conflicts of interest and certify no conflicts per vote.
• Ensure the retention of meeting minutes and define clear record retention periods.
• Implement better internal controls, including segregating duties, monitoring checks, and reviewing financial data in QuickBooks.

To read the full audit report, click here.