February 12, 2021
Honorable Michael J. Rodrigues Honorable Aaron Michlewitz
Senate Ways and Means Committee House Ways and Means Committee
State House, Room 212 State House, Room 243
Boston, MA 02133 Boston, MA 02133
Secretary Michael Heffernan Attorney General Maura Healey
Executive Office for Administration and Finance Office of the Attorney General
State House, Room 373 One Ashburton Place, 20th Floor
Boston, MA 02133 Boston, MA 02108
Dear Chair Rodrigues, Chair Michlewitz, Secretary Heffernan and Attorney General Healey:
Pursuant to M.G.L. c. 29, § 2TT, the Office of the Comptroller hereby submits this report of the
activities of the Liability Management and Reduction Fund to the House and Senate Committees
on Ways and Means, the Secretary of Administration and Finance, and the Attorney General.
This report was not submitted at the end of December as the report required the issuance of the
audited Commonwealth Statutory Basis Financial Report (SBFR) was delayed. This report
contains the Fund’s financial statement for FY 2020 (see attachment 1), as published on page
115 in the SBFR. Revenues consist of interest income from investments, categorized as
miscellaneous revenue and departmental premiums, derived from each department’s five-year
average for tort payments and litigation costs from FY 2015 through FY 2019 (see attachment
2).
If you have any questions regarding this information, please contact Kevin McHugh, Assistant
Comptroller at (617) 973-2335 or me at (617) 655-3535. Thank you.
Sincerely,
William McNamara
Comptroller of the Commonwealth
WM/sp
Liability Management & Reduction Fund
February 12, 2021
Page 2
Enc.
cc: Christopher Marino, Budget Director, Senate Ways and Means Committee
David Bunker, Budget Director, House Ways and Means Committee
Catharine Hornby, Undersecretary, Executive Office for Administration and Finance
Anne Sterman, Government Bureau Deputy Chief, Office of the Attorney General
Jeffrey Shapiro, Esq., First Deputy Comptroller, Office of the Comptroller
Amy Nable, General Counsel/Assistant Comptroller, Office of the Comptroller
Kevin McHugh, Assistant Comptroller, Office of the Comptroller
 Non-Budgeted Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Statutory Basis
Fiscal Year Ended June 30, 2020
(Amounts in thousands)
Non-Budgeted Other Funds
Liability
Management
and Reduction
REVENUES AND OTHER FINANCING SOURCES
Revenues:
Taxes...................................................................................... $ —
Assessments........................................................................... —
Federal grants and reimbursements....................................... —
Departmental......................................................................... 2,035
Miscellaneous........................................................................ 22
Total revenues..................................................................... 2,057
Other financing sources:
Issuance of current refunding bonds...................................... —
Bond premiums/(discounts) on current refunding bonds..... —
Operating transfers in............................................................ —
Medical assistance transfer.................................................... —
Total other financing sources.............................................. —
Total revenues and other financing sources........................ 2,057
EXPENDITURES AND OTHER FINANCING USES
Expenditures:
Judiciary................................................................................ —
Inspector General................................................................... —
Governor and Lieutenant Governor....................................... —
Secretary of the Commonwealth........................................... —
Treasurer and Receiver-General............................................ —
Attorney General................................................................... 48
District Attorney.................................................................... —
Office of Campaign and Political Finance............................ —
Sheriffs’ Departments............................................................ —
Disabled Persons Protection Commission............................. —
Board of Library Commissioners.......................................... —
Massachusetts Gaming Commission..................................... —
Comptroller............................................................................ 1,947
Administration and Finance.................................................. —
Energy and Environmental Affairs........................................ —
Health and Human Services.................................................. —
Executive Office of Technology Services and Security........ —
Massachusetts Department of Transportation....................... —
Office of the Child Advocate................................................ —
Executive Office of Education.............................................. —
Public Safety and Security..................................................... —
Housing and Economic Development................................... —
Labor and Workforce Development...................................... —
Debt service:
Principal retirement............................................................. —
Interest and fiscal charges................................................... —
Total expenditures............................................................. 1,995
Other financing uses:
Principal on current refundings............................................. —
Fringe benefit cost assessment.............................................. 33
Lottery operating reimbursements......................................... —
Lottery distributions.............................................................. —
Operating transfers out.......................................................... —
Stabilization transfer.............................................................. —
Total other financing uses................................................... 33
Total expenditures and other financing uses....................... 2,028
Excess/(deficiency) of revenues and other financing
sources over/(under) expenditures and other financing
uses...................................................................................... 29
Fund balances/(deficits) at beginning of year..................... 2,538
Fund balances/(deficits) at end of year................................ $ 2,567
Commonwealth of Massachusetts Excerpt From Statutory Basis Financial Report Pages 114-115