State Auditor Diana DiZoglio on Tuesday charged that Massachusetts is relying on a “broken system” for both executing and tracking settlements with former and current employees.

Executive agencies also lacked policies to deal with confidentiality clauses, particularly nondisclosure agreements, which the audit warned could enable employers “to cover up harassment, discrimination,

State Auditor Diana DiZoglio released a report probing previous former Govs. Patrick, Baker Administrations spending of employee settlements and NDA policies.

Healey, whose administration was not subject to the auditor’s probe, preempted the report Monday by issuing a policy that would explicitly prohibit NDAs in settlements.