Press Release  Executive Office for Administration and Finance Audit Identifies Gaps in Review Processes

Boston — Today, State Auditor Diana DiZoglio’s Office released an audit of the Executive Office for Administration and Finance (A&F), which reviewed the period from July 1, 2020, through April 30, 2022.

Our audit examined A&F’s Federal Funds Office (FFO) implementation of necessary review processes to ensure that federal funding from the Coronavirus Relief Fund was being spent properly. We also reviewed whether the office maintained a current list of vendors that are prohibited from being awarded state contracts, in accordance with Section 29F (b) of Chapter 29 of the Massachusetts General Laws. 

In 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $2.7 billion to the Commonwealth from the Coronavirus Relief Fund (CvRF). After receiving these funds, the Commonwealth allocated $502 million in three rounds, and FFO was responsible for managing and distributing these funds. The FFO was charged with monitoring the use of these funds by cities and towns to ensure proper spending.

During these municipal reviews, FFO did not collect all mandatory documentation to verify that expenditures of the CvRF money met the CARES Act requirements. Our audit also determined that while FFO relayed all reports of waste, fraud, and abuse of these funds to the proper agencies, they did not conduct thorough follow-ups to ensure municipalities understood the findings and implemented recommendations.

Lastly, A&F did not maintain a complete list of vendors who are barred from receiving public contracts, as required by law. Our review also found that the lists that the Division of Capital Asset Management and Maintenance linked on its website were missing relevant information and did not include the extent of debarment restrictions, cases involving suspensions, or hearing dates.

Accordingly, we recommended that (1) FFO conduct meetings with any municipality that had desk review findings and (2) FFO, as part of its formal remediation process, develop and document guidelines for conducting meetings with any municipality that had desk review findings.

“It is imperative that the Executive Office of Administration and Finance establish policies and procedures in order to sufficiently track all federal funding,” said Auditor DiZoglio. “In addition, A&F is required by law to establish and maintain a consolidated list of debarred contractors to help ensure accountability for state agencies and taxpayers. Not maintaining accurate lists of debarred contractors creates vulnerable circumstances for those seeking to hire a contractor in Massachusetts. We hope the Administration takes steps to address these challenges.”

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