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. Massachusetts General Law mandates the State Auditor to audit state agencies, offices, commissions, courts, authorities, higher education institutions, and activities of the Commonwealth.

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 State Auditor audits extends beyond checking the accuracy of financial statements to include evaluation of agencies' overall management and operations.

The State Auditor also has authority to audit the thousands of vendors and contractors that do business with the Commonwealth. Furthermore, the State Auditor works with state and federal law enforcement authorities on various referrals, requests, and investigations.

The State Auditor is responsible for the Division of Local Mandates, which was created under Proposition 2 1/2 and is principally charged with determining the financial impact of proposed or actual legislation and regulations on the Commonwealth's cities and towns. This division also performs cost studies and conducts financial impact reviews.

In Fiscal Year 1998, the State Auditor will pursue special audits to examine billing, collections, and fiscal controls in the Medicaid program and will also review the implementation of the Education Reform Act.

Budget Recommendations

The Fiscal Year 1998 recommendation is $13.38 million. This amount includes an increase of $400,000 for the implementation of information systems improvements and other staffing needs. In Fiscal Year 1998, the account for the review and monitoring of privatization contracts will be consolidated with the main administration account to better reflect the use of staff and funding.

Budgetary Direct Appropriations

OFFICE OF THE STATE AUDITOR
0710-0000	For the office of the state auditor	12,641,828

DIVISION OF LOCAL MANDATES
0710-0100	For the operation and administration of the division of local mandates	740,933
	Local Aid Fund 100%

Trust and Other Spending

0710-0066

AGREEMENTS WITH FEDERAL GOVERNMENT OR STATE AGENCIES FOR AUDIT PURPOSES

300,000