The Commonwealth of Massachusetts is currently receiving its share of funding under the American Recovery and Reinvestment Act of 2009 (ARRA). As of June 30, 2011 over $7.4 billion had been awarded to Commonwealth agencies and $6.6 billion had been expended. The total federal economic stimulus infusion paid to the Commonwealth is expected to total $6.1 billion for state agencies. This vital funding must be strictly monitored in order to prevent waste, fraud and abuse. The Auditor was asked by Governor Patrick to take a major role in providing this oversight and in response has made this effort a top priority of the Office of the State Auditor. The Auditor has also joined with the Attorney General, the Inspector General and federal officials to form the Stimulus Oversight and Prevention (STOP) of Fraud Task Force to assure coordinated and collaborative stimulus funding oversight.

As part of this effort, the Auditor has created a new audit division which under his direction has developed a work plan for OSA recovery activities. These include identification of all programs where funds have been received or are expected, the timing and specific flow of funding, the applicable compliance requirements, and possible areas of vulnerability. As an important aspect of providing guidance to agencies on preventive controls, the OSA will evaluate internal controls at designated agencies to assess whether they are capable of handling significantly increased expenditures; providing performance and financial reporting; and mitigating risks of fraud, waste, and abuse. Auditors are also considering past relevant OSA findings, including Single Audit findings, and determining whether these have been adequately addressed. In addition to in-depth audit work at selected state programs such as the Summer Jobs and Youth Programs, the OSA is conducting audits at housing authorities, regional transit authorities, community and state colleges, community action agencies, and other selected state agencies. This effort will continue throughout fiscal year 2012.

This page will provide regularly updated information on this oversight effort as it moves forward. Questions and suggestions are welcome by contacting the Office of the State Auditor at (617) 727-6200, or by e-mail at auditor@sao.state.ma.us