Audit Finds Cultural Council Dedicated COVID-19 Funds Without Verification

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BOSTON — In an audit of the Massachusetts Cultural Council (MCC), the Office of State Auditor Suzanne M. Bump (OSA) found that MCC did not verify artists' eligibility prior to issuing grants totaling $1,456,000 from MCC's COVID-19 pandemic relief funding. 
 
The audit also found that MCC's Internal Control Plan (ICP) was not updated with a COVID-19 component. Additionally, the OSA found that MCC did not ensure all employees completed the required annual cybersecurity awareness training. The audit was conducted March 1, 2020 through March 31, 2021.
 
"It is critical that state agencies and state-funded organizations, like MCC, have policies in place to closely monitor the way COVID-19 relief dollars and any public dollar spent. I am pleased that MCC is committed to making necessary improvements to their existing internal controls plan to properly comply with standards moving forward," said State Auditor Suzanne M. Bump.
 
The audit recommends that MCC establish policies and procedures to ensure all eligibility requirements are met prior to awarding grants from its COVID-19 pandemic relief funding. The audit also advised MCC implement a policy and identify an employee responsible for ensuring cybersecurity awareness training requirements are met on an annual basis.  
 
The Massachusetts Cultural Council (MCC) was created by Section 15 of Chapter 653 of the Acts of 1989. This act added Section 52 to Chapter 10 of the Massachusetts General Laws, establishing MCC within the Office of the State Treasurer (OST), but not making MCC subject to OST's control.
 
The OSA has placed an emphasis on examining cybersecurity awareness training at government agencies. Recently, Auditor Bump has released audits of the Office of the Attorney General, Division of Banks, and Office of the Inspector General, Massachusetts Office of Victim Assistance, and the Division of Capital Asset Management and Maintenance, most of which called on these agencies to improve their cybersecurity awareness training practices. 
 
To learn more about the OSA's recent audits that have reviewed the spending of federal pandemic relief funding, visit: mass.gov/COVIDReliefAudits.
 
The audit can be viewed here.

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Lanesborough Looks to Dissolve Baker Hill Road District

By Breanna SteeleiBerkshires Staff

LANESBOROUGH, Mass. — The Select Board is looking to move forward with dissolving the Baker Hill Road District, which is hindering the Berkshire Mall sale.

On Friday, the Select Board heard from Vice Chair Juli Baker and Chair Deborah Maynard on how Tuesday negotiations went with Cypress Equities, JMJ Holdings, town counsel, the town administrator, and state Rep. John Barrett III. 

Baker said that during Tuesday's meeting, everyone agreed the goal was to have a successful sale of the mall for redevelopment as it’s in the best interest of the town.

Baker said Barrett assured them the state is willing to take the Connector Road and that the state is willing to provide grants to the town to renovate the water and sewer infrastructure, with an estimated total of $4.5 million, to facilitate the property's redevelopment.

"We have received assurances from Representative Barrett that the Commonwealth will provide the monies and will take the Connector," Baker said.

While buyer Cypress Equities saw some benefit in keeping the district, it now doesn't since the state is willing to provide the funds and renovate the infrastructure, according to Baker. 

Baker said that in the meeting, Cypress Equities prefers to enter into a tax increment financing (TIF) and will add to the agreement an amount of funding for public safety services, which would have come from the district. She said Cypress said it would rather enter into one agreement with the town than two agreements with the town and the district.

Mall owner JMJ Holdings is willing to pay $350,000 to the town upon closing, Baker said. 

The meeting Friday was to consider moving forward with a dissolution of the district.

"But the decision that it hinges on tonight is whether to move forward to the dissolution of the Baker Hill Road District in some manner," she said.

Baker said she has worked long and hard to see if there was another alternative to this, working closely with the district which has been "very cooperative and very helpful" in making changes.

The district had agreed to make changes to its governance and taxation; agreeing to have a cap for Cypress as well as agreeing to work to have the state take over the road, sending letters of support.

"What changed this for me is that I've always said it's important to have the special district because we get the public safety funding, and it's also important for the economic district to bring the features that an economic district brings because of what we're up against with the infrastructure problems, and the change at this point is that we have a buyer who is willing to supply that public safety money and commit to it over time, along with the TIF that the town would do, which is essential," she said.

"At this point, I feel like it's in the best interest of the town and protects the town the best in terms of a future where we can develop a mall and bring that economic benefit in. You definitely need to reduce taxes, and you cannot do that without a fully developed retail operation right there. So it's been, you know, deeply difficult decision making," Baker said.

Board members Jason Breault and Jeffery Walters agreed it was the best decision to move forward.

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