Massachusetts State Auditor Issues New Audit of Fall River Line State Pier: Here’s What It Found

A newly released audit by the Massachusetts State Auditor’s office is raising some serious questions about how the Fall River Line Pier, Inc. (FRLP) has been managing its finances. The audit, which covers a three-year period from January 2016 to December 2018, highlights several concerns, including questionable financial decisions, potential conflicts of interest, and misuse of public funds. Here’s what the auditors found—and what it means for the future of the Pier.

Key Findings of the Audit

Undisclosed Conflicts of Interest

One of the most eye-catching findings of the audit is the discovery of undisclosed related-party transactions. The audit revealed that FRLP made nearly $122,000 in payments to companies tied to board members, without properly disclosing those relationships. These transactions, the auditors said, raise red flags about potential conflicts of interest.

In fact, the audit found that three of the board members had financial stakes in these companies, but there was no conflict-of-interest policy in place to ensure transparency. “This kind of oversight is concerning,” said Massachusetts State Auditor Donna O’Brien. “Public trust is built on transparency, and when you have board members benefiting financially without proper disclosures, that trust is undermined.”

Misuse of Funds for Non-Essential Expenses

Another major issue the audit uncovered was the misuse of funds. The auditors found that FRLP spent more than $19,000 on activities that had little to do with the Pier’s mission. One example: $2,500 was donated to a board member’s business for a charity boat race. In another instance, $17,125 was spent on a conference in Miami, attended by six board members. The auditors questioned the relevance of these expenses, considering FRLP’s primary purpose is to maintain and operate the Pier, not to fund personal events or non-business-related conferences.

“The spending raised eyebrows because it didn’t seem to align with the public interest,” explained O’Brien. “Taxpayer money should be used wisely and for the benefit of the community, not for private events.”

Missed Opportunities to Collect Overdue Rent

The audit also pointed out that FRLP failed to collect overdue payments from two major tenants, allowing significant balances to accumulate without taking prompt action. This led to an outstanding balance that could have been addressed with a more structured approach to managing accounts receivable. The lack of timely follow-ups on unpaid rent was seen as another area where FRLP could have done better in handling its financial responsibilities.

What the State Auditor Recommends

In light of these findings, the Massachusetts State Auditor has made a series of recommendations to improve how FRLP operates. Chief among them is the need to implement clear and effective policies regarding conflicts of interest, financial spending, and the management of accounts receivable.

“Setting clear guidelines and sticking to best practices is crucial for restoring public confidence,” O’Brien said. “The Pier needs to show it’s serious about accountability.”

FRLP’s Response

In response to the audit, FRLP acknowledged some of the issues but defended others. They explained that some of the related-party transactions were longstanding and necessary to promote their services. As for the non-mission-related expenses, the organization argued that attending the Miami conference was part of a broader effort to boost tourism and create awareness for the Pier. However, the audit was skeptical about whether such events were truly aligned with FRLP’s mission to operate and maintain the waterfront.

“We understand that some of the spending looks questionable, but we believe the intention was always to benefit the Pier and its future,” said FRLP spokesperson Claire Simmons. “We’ll be reviewing our processes to ensure we meet the high standards the community expects.”

What’s Next for the Fall River Line Pier?

While the audit highlights serious missteps, it also serves as a wake-up call for FRLP. For the Pier to move forward, it will need to take the audit’s findings seriously and implement the suggested changes. The goal is to rebuild trust and make sure taxpayer dollars are used effectively to benefit the community.

“Now it’s about moving forward,” said O’Brien. “The Pier has the potential to be an important asset for Fall River, but it has to be managed with integrity and in the public’s best interest.”

The community is also watching closely to see how FRLP handles these issues. Local residents who rely on the Pier for jobs, events, and tourism are hoping for changes that will make the operations more transparent, efficient, and aligned with the needs of Fall River.

For now, the next steps for FRLP are clear: address the problems head-on, implement stronger policies, and prove to the public that it can be trusted with the resources it has.