Audit Operations manages the majority of the work the State Auditor's Office is mandated to perform under state law. A diverse team of professionals--auditors, lawyers, technology specialists and government analysts--is tasked with reviewing how Massachusetts state government utilizes taxpayer funding and protects public money from fraud, waste and abuse. Audit staff conduct financial, performance and technical assessments of state programs, departments, agencies, authorities and vendors in accordance with "Government Auditing Standards" issued by the Comptroller General of the United States. Audits are performed with different objectives, including:

• Determining whether the Commonwealth's resources are properly safeguarded;
• Determining whether these resources are properly and prudently used;
• Evaluating internal controls to help ensure integrity in financial management systems;
• Determining whether computer systems and the corresponding IT environment are secure, maintain integrity and are consistently available;
• Determining and evaluating a program's results, benefits, or accomplishments; and
• Ensuring that audit results are fully disclosed to the public and the auditees.

While the State Auditor's Office may uncover a variety of issues and problems, our audits and reports contain important recommendations that state government can use to improve accounting, internal controls, security and outcomes. In many cases, audits highlight good practices which can then be shared among other programs. Auditor Bump believes increased oversight and use of the Office’s resources only serves to make state government more efficient, accountable and transparent for the citizens of the Commonwealth.

Another important function of the Division is to serve as a resource for cities and towns. Communities, by vote of the governing body, can request an audit of any local municipal program, contract or vendor.

Auditors of the Division of Audit Operations work independently and with federal and state law enforcement officials such as the United States Attorney, the Massachusetts Attorney General and ten regional district attorneys to uncover fraud and other violations of federal and state law. Over the past 20 years, the Division has identified billions of dollars in unnecessary and unallowable costs and those recommendations have helped the Commonwealth recover hundreds of millions of dollars.

Each year, OSA auditors also partner with a private accounting firm to perform the "Single Audit of the Commonwealth", a federally mandated comprehensive audit that encompasses accounts and activities of state agencies.

Audit Reports

The Bureau of Special Investigations is another important function of the State Auditor's Office. It is charged with investigating complaints of fraudulent claims or wrongful receipt of payment or services from public assistance programs. BSI examiners work out of five offices throughout the state investigating referrals from the Department of Transitional Assistance and its programs-- Transitional Assistance to Families with Children, Emergency Aid to Elders, Disabled and Children and the Supplemental Nutrition Assistance Program as well as MassHealth and the Department of Early Education and Care.

During fiscal year 2010, BSI received over 2,000 complaints of suspected fraud in such programs as Medicaid, cash assistance, employment services, food stamps and personal care attendants. Of the cases examiners completed, they identified nearly $4.1 million in fraudulent claims which are subject to recovery by the Commonwealth.

BSI examiners work with dozens of state agencies in tracking fraudulent claims. Investigations where examiners document illegal activity are turned over to the State Attorney General, ten District Attorneys' Offices and the U.S. Attorney for potential criminal action and recovery of funds.

While the bulk of cases are referred from state agencies, the general public plays a vital role in reporting fraud. The State Auditor's Office has an online form to report public assistance fraud. All complaints are kept confidential.

Bureau of Special Investigations Reports

The Division of Local Mandates is another critical resource for cities and towns, lawmakers and the Courts. Enacted in 1984 as part of the Proposition 2 1/2 tax initiative, the Local Mandate law gives the State Auditor's Office the authority to determine if a proposed or existing state mandate imposes any direct service or costs on a city or town and provide an analysis of the financial impact. Elected municipal leaders, appointed managers, school or educational collaborative officials, as well as lawmakers and legislative committees, may petition DLM for an opinion and request a cost impact analysis.

When the Auditor issues a mandate determination, the petitioner has several options for resolution:

• Ask the local Representative or Senator to pursue state funding in order for the community to comply with the law or pursue local option language which gives the community the option of complying with the law.
• Seek an exemption from the law in superior court. Only the courts can declare that a law is ineffective in any city, town or regional school district. The court does consider a DLM determination as primary evidence in these cases.
• Get ten residents who pay taxes to file a class action suit in superior court which asks the state for reimbursement of funds to comply with the law.

There are several exemptions and court decisions that guide DLM in determining if a law or regulation is an unfunded state mandate. See DLM Frequently Asked Questions for more information.

Mandate Determinations

Municpal Impact Studies

The Communications, Inter-Governmental Affairs and External Affairs departments work to educate and promote the Auditor's goals and mission, audit findings, reports, reviews, investigations and employees. Each department has a specialized outreach program to its constituency in order to raise the profile of the work of the Office and make outcomes and services more transparent to the general public, media, lawmakers, advocacy groups and municipal leaders.