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 departments, 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 department audits, authority audits, contract/privatization audits, and audits of federally funded state-administered programs.

The State Auditor is also responsible for the Division of Local Mandates, which was created under Proposition 2 ½. This division is principally charged with determining the financial impact of proposed or actual legislation and regulations on the Commonwealth's cities and towns. The Division of Local Mandates also performs cost studies and conducts financial impact reviews.

Objectives

In Fiscal Year 1999, the State Auditor will pursue the following initiatives:

• conduct special audits of major expenditures, including capital improvements at Massport, the MBTA, and the Mass Highway Authority;
• assist departments in Year 2000 compliance activities; and
• work with the Public Employees Retirement Administration Commission to improve procedures and eliminate abuses in the public employee retirement system

Budget Recommendations

The amount recommended for Fiscal Year 1999 will enable the State Auditor to provide the same level of services as in Fiscal Year 1998.

Budgetary Direct Appropriations

OFFICE OF THE STATE AUDITOR
0710-0000	For the operation of the office of the state auditor	12,347,500

DIVISION OF LOCAL MANDATES
0710-0100	For the operation of the division of local mandates	709,798
	Local Aid Fund 100%

Trust and Other Spending

0710-0066

AGREEMENTS WITH FEDERAL GOVERNMENT OR STATE AGENCIES FOR AUDIT PURPOSES

300,000