The Office of the State Auditor improves the efficiency of state government by auditing the administration and expenditure of public funds and reporting the findings to the public. The State Auditor provides the Governor, the Legislature, departments, oversight agencies, and the general public with an independent and objective evaluation of the Commonwealth’s fiscal operations and financial management.

As mandated by the Massachusetts General Laws, the Office of the State Auditor conducts audits of state agencies, offices, commissions, courts, authorities, higher education institutions, and activities of the Commonwealth. The Office also makes determinations regarding the privatization of state services, performs audits of vendors and contractors that do business with the Commonwealth, and works with state and federal law enforcement authorities on various referrals, requests, and investigations.

Within the Office of the State Auditor, four divisions have specific auditing responsibilities. These divisions include: state agency audits, authority audits, contract/privatization audits, and audits of federally funded state-administered programs. The scope of audits extends beyond checking the accuracy of financial statements to include evaluation of agencies’ overall management and operations.

The State Auditor is also responsible for the Division of Local Mandates, which was created under Proposition 2½ and is principally charged with determining the financial impact of proposed or actual legislation and regulations on the Commonwealth’s cities and towns. The Division also performs cost studies and conducts financial impact reviews.

In Fiscal Year 2000, the State Auditor will pursue the following initiatives:

• conduct mandated audits for new and expanded state government initiatives, including county government takeovers and charter schools;

• assist agencies in evaluating Year 2000 compliance activities;

• work with the Public Employees Retirement Administration Commission to improve procedures and eliminate abuses in the public employee retirement system; and

• work with the Third Harbor Tunnel/Central Artery Oversight Commission to prevent and detect waste, fraud, and abuse at the Central Artery Project.

The amount recommended for Fiscal Year 2000 includes an additional $340,085 (0710-0000) to enable the Office of the State Auditor to achieve its missions as outlined above.

Budgetary Direct Appropriations

OFFICE OF THE STATE AUDITOR
0710-0000	For the operation of the office of the state auditor	14,038,092

DIVISION OF LOCAL MANDATES
0710-0100	For the operation of the division of local mandates	744,780
	Local Aid Fund 100%

Trust and Other Spending

0710-0066

AGREEMENTS WITH FEDERAL GOVERNMENT OR STATE AGENCIES FOR AUDIT PURPOSES

200,000