An audit of the Massachusetts Convention Center Authority has revealed “disturbing, unlawful practices” at the quasi-governmental agency in charge of some of the commonwealth’s largest venues, according to the State Auditor’s office.

State Auditor Diana DiZoglio said that her staff reviewed operations at the MCCA during the period two year period starting on January 1, 2021 and going through December 31, 2022, but then “extended the audit period back through January 1, 2018, to review certain issues raised to our office regarding MCCA’s procurement and employee complaint practices.”

“Our audit found that, under prior leadership, the Convention Center cherry-picked when it was convenient or not convenient to follow public records law, Chapter 30b, alongside its own policies and procedures with regard to state procurement and contracting. Deeply troubling is also the fact that prior leadership violated the law in executing a $1.2 million non-disclosure agreement – concealing allegations of racial discrimination,” DiZoglio said.

The MCCA, which oversees the Hynes Convention Center, Boston Common Parking Garage, Boston Convention & Exhibition Center, Lawn on D and the Lot on D, and MassMutual Center in Springfield, was found to be lacking in at least nine areas and to have potentially violated state regulations some instances, according to DiZoglio’s office.

Among the findings are that the Authority didn’t set or meet standard benchmarks for using diverse suppliers, that they could not demonstrate they’d sought quotes for all of their purchases between $10,000 and $50,000, that they’d awarded a more-than $100,000 media contract without following their own procurement processes and extended vendor contracts without board approval, and could not demonstrate that they’d “sent and retained pre-event security surveys to meet client needs in a consistent, fair, and equitable manner”

The authority did not, according to the auditor’s office, have an “adequate process” for responding to complaints from employees or have a “transparent or accountable” process for settlement arrangements with non-union employees. The Authority entered into a settlement for $1.2 million with an employee who alleged racial discrimination “in violation of Chapter 190 of the Acts of 1982 and Massachusetts Convention Center Authority Bylaws.”

A spokesperson for the MCCA said that the auditor’s findings come from a period when the Authority was operating under different leadership, and that they are “fully committed to leveraging the findings of this audit to drive further improvements and enhance our reputation as an employer of choice exemplifying the best that the Commonwealth has to offer.”

“The MCCA is dedicated to best practices and continuous improvement and has worked cooperatively with the Office of the State Auditor in responding to the audit. This comprehensive report examines a period of prior leadership from 2020 to 2022 and, in one instance, extends back to 2018. The audit reveals several areas where the MCCA’s previous management did not meet expected standards,” the spokesperson said.

“Since 2023, and under new leadership, the MCCA has already made significant progress in addressing these issues. Current leadership is continuing to conduct thorough reviews of organizational policies and practices. The findings from this audit will be instrumental in advancing these efforts,” they said.

DiZoglio thanked the MCCA for cooperating with her office through the auditing process, but stressed they’ll be checking up on progress there.

“Our office thanks Interim Executive Director, Gloria Cordes Larson, for working alongside our audit team to immediately begin addressing these and other very concerning issues identified in the report. Our office will continue to work alongside the MCCA to shine a light on areas for improvement through our post-audit review, which will be conducted in roughly six months,” she said.