Bill > H7

This bill aims to improve internal financial controls and oversight within Massachusetts state agencies by establishing new requirements and reporting mechanisms. Specifically, the bill requires the state comptroller, in consultation with the state auditor, to publish regulations that define minimum quality standards for internal control systems across state agencies. Each agency must now develop and maintain a comprehensive internal control system that includes an internal control plan, risk assessment, policies, procedures, and training requirements. The bill mandates that each agency designate a high-ranking official responsible for documenting, evaluating, and updating the agency's internal control system annually. Furthermore, the bill requires immediate reporting of any financial discrepancies, losses, or potential violations to the state auditor's office, which will review and assess the matter based on its materiality and risk. The state auditor will have the power to investigate such reports, make recommendations for corrective actions, and require agency management to implement preventive measures. Additionally, the bill extends these internal control requirements to commonwealth authorities that perform public functions but do not receive direct state appropriations, ensuring broader financial accountability across government entities.

Budget and Finance, Government Affairs

https://malegislature.gov/Bills/194/H7