In June 2001, Inspector General Robert A. Cerasoli issued a report entitled Privatization of Wastewater Facilities in Lynn, Massachusetts. The report concerned the Lynn Water and Sewer Commission's (Commission) design-build contract with U.S. Filter for the East Lynn Combined Sewer Overflow Project. By letter to then-Treasurer Shannon O'Brien pdf format of Letter to then-Treasurer Shannon O'Brien, June 2001 the Office urged her to require the Commission and its design-build contractor to justify the high cost of this project in order to receive financial assistance from the State Revolving Fund Program administered by the Massachusetts Water Pollution Abatement Trust (Trust).

On July 1, 2001, Gregory W. Sullivan was designated Acting Inspector General. Shortly thereafter, the Office received the Commission's response to the final report pdf format of Lynn Water & Sewer Commision Response, June 2001 file size 3MB .  The Office also received a request from Luke Thompson, Executive Director of the Trust, requesting that the Office provide additional guidance as to whether the Trust should authorize $10,223,510 in financial assistance for the first phase of the project. The Trust had held up funding pending a review.

At that time, the Acting Inspector General reviewed the Commission's response to the final report. The draft report had not been submitted to the Commission for comment before being issued. In December 2001, as a result of the review of the data submitted by the Commission, the Acting Inspector General wrote to the Executive Director of the Trust regarding provision of funding by the Trust to Lynn. Shortly thereafter, the Trust released the financial assistance to Lynn. Letter to Luke Thompson Executive Director MA Water Pollution, December 2001  pdf format of MA Water Pollution, December 2001