The Commonwealth of Massachusetts AUDITOR OF THE COMMONWEALTH STATE HOUSE, BOSTON 02133 SUZANNE M. SUMP, eso TEL: 617-727-2075 auoiron March 30, 2018 Mayor Alex B, Morse 536 Dwight Street Holyoke, MA 01040 Dear Mayor Morse, am writing to respond to the inquiry you made relative to the Holyoke City Couneil’s March 20" vote to request my office to conduct an audit of city finances. ‘As you know, Massachusetts General Law Chapter 11, Section 12 precludes my office from conducting municipal audit work. That law, however, does provide for exceptional circumstances where a city council and a mayor may jointly support a request, and funding for, a state audit at the discretion of the State Auditor. My staff has been actively engaged since the first news article appeared on February 16 regarding a potential City Couneil request. Since that time, in an effort to gain a better understanding of the city’s current fiscal state, we have had multiple discussions with the City Council President in addition to discussions with the Massachusetts Department of Revenue’s Director of Accounts and a principal at Melanson Heath, the city’s independent audit firm. We reviewed Melanson’s most recent city audit from fiscal year 2016, Lastly, we spoke with you on March 23. Based on the information we gathered from these discussions and from reviewing the last city audit, in addition to our understanding that the CliftonLarsonAllen reconciliation showed that all municipal funds are accounted for, I do not believe the circumstances in Holyoke rise to the level of warranting a state audit. I believe our work would be repetitive, if not duplicative, of Melanson’s 2016 fiscal audit which raised issues that appear to be at the core of the current state of affairs and should be addressed,Mayor Alex B. Morse March 30, 2018 Page two In discussing the city's affairs with the Council President, we suggested there may be many ways to assist Holyoke whether it be through an audit, technical assistance from my office, ot resources ftom other organizations. While I do not believe a state audit would be a prudent use of ny office's, or the city’s, limited resources, and likely would not bring new information to the table, I am formally extending the offer made verbally to both you and the Council President of technical assistance from my staff. Upon further discussion to work out logistics, I would be pleased to provide the City of Holyoke with audit staff who could review controls, policies, procedures and audit findings to then assist in making improvements in the city’s fiscal operations. Additionally, both DOR and Melanson have indicated they stand ready to help and I would recommend taking them up on the offers, 1 join you, the City Council and all the residents of Holyoke in wanting the best for the city. 1 look forward to continuing our conversation to achieve that goal. Sincerely, 44 f anne M. imp Auditor of the Commonwealth cc: Todd McGee, City Council President Mary Jane Handy, Director of Accounts, Department of Revenue Patrice Squillante, Principal, MclansonHeath