Audit of the Massachusetts School Building Authority (December 24, 2025)
December 24, 2025 · Massachusetts School Building Authority · Read the full official report on mass.gov ↗
Published December 24, 2025 Audit covers July 1, 2022; Green Schools Program verification extended – January 1, 2020 to June 30, 2024; Green Schools Program verification extended to December 31, 2024 Under Diana DiZoglio · 2023–present
source
“MSBA did not submit the required annual report regarding the condition and improvement needs of school buildings to the Governor and other legislative committees.”
Read the plain-English breakdown
This is a state performance audit of the Massachusetts School Building Authority, the agency that helps fund public school construction and repair projects.
“The Massachusetts School Building Authority (MSBA), established under Section 1A of Chapter 70B of the Massachusetts General Laws, is a quasi-public agency that was created to reform and administer the funding process for capital improvement projects in the Commonwealth’s public schools.”
Auditors checked whether MSBA confirmed green-building promises before making final payments and whether it had written rules for reviewing school districts’ funding requests.
“The purpose of our audit was to determine the following:”
School buildings affect students, teachers, taxpayers, and local budgets, so the state needs current information to plan repairs and construction wisely.
“This could impair oversight, planning, and funding decisions related to school construction and renovation needs across the Commonwealth.”
If you live in Massachusetts, this matters because MSBA helps pay for school building projects with dedicated sales tax revenue, and those decisions can affect local schools and public spending.
“MSBA is funded through a dedicated 1% statewide sales tax (drawn from the statewide 6.25% sales tax).”
MSBA passed the two main audit questions, but the auditor still found two management problems: missing required annual reporting and an outdated internal control plan.
“We did not identify any exceptions in our testing.”
MSBA said it is working on the issues, and the auditor plans to check back in about six months.
“As part of our post-audit review process, we will follow up on this matter in approximately six months.”
The biggest risk is that lawmakers and the public may not have up-to-date information about the condition and cost needs of school buildings across Massachusetts.
“If MSBA does not submit required annual reports, then the Legislature and other stakeholders may lack up-to-date, statutorily required information on the statewide condition and financial needs of school facilities.”
A Statement of Interest, or SOI, is the first form a city, town, or regional school district files to ask MSBA for school building funding.
“An SOI is an electronic form submitted by cities, towns, or regional school districts to request funding from MSBA.”
What the Auditor checked
- Complied Did MSBA ensure that school districts that committed to green building standards under its Green Schools Program had fulfilled those commitments before MSBA disbursed final grant payments?
- Complied Did MSBA develop and implement written policies and procedures for evaluating and prioritizing Statements of Interest (SOIs) submitted by school districts for its Core Program and Accelerated Repair Program (ARP), as recommended by the prior OSA audit (Audit No. 2022-1461-3A)?
What the Auditor found
Why it matters: Legislators and stakeholders may lack current information needed for oversight, planning, and funding decisions about school facilities.
Standard: Section 17(a) of Chapter 70B of the General Laws requires MSBA to submit an annual report by June 30 with detailed school facility condition and needs information. ( Section 17(a) of Chapter 70B of the General Laws )
1 recommendation
- MSBA should either prepare and submit the required annual reports using School Survey and internal system data or collaborate with the Legislature to amend the reporting requirement to match the five-year School Survey cycle.
Agency response & Auditor reply
Agency: "The MSBA understands the importance of providing the most current information available to the Governor’s office, the Legislature and other stakeholders, and the MSBA prides itself on maintaining consistent communications with State officials and Legislative partners."
Auditor: "However, the materials cited by MSBA do not meet the specific reporting requirements established in Section 17(a) of Chapter 70B of the General Laws."
Why it matters: MSBA may be less able to identify vulnerabilities and may face heightened operational risk.
Standard: Chapter 647 of the Acts of 1989 and the Office of the Comptroller of the Commonwealth’s Internal Control Guide are cited as best practices for annual internal control plan review and updates. ( Chapter 647 of the Acts of 1989; Office of the Comptroller of the Commonwealth’s Internal Control Guide )
2 recommendations
- MSBA should review and update its internal control plan whenever significant changes occur in objectives, risks, or management structure, and at least annually.agency: agreed
- MSBA should communicate the updated internal control plan to all employees and use it in operations.agency: agreed
Agency response & Auditor reply
Agency: "The MSBA appreciates the recommendations made by the Office of the State Auditor and is underway with its review of the Internal Control Plan."
Auditor: "Based on its response, MSBA is taking measures to address our concerns regarding this matter."
Prior findings revisited
"We did not identify any exceptions in our testing."
"This issue was also identified and discussed during our previous audit (Audit No. 2022-1461-3A); however, it has still not yet been resolved."
More audits of this entity
Other Office of the State Auditor reports on Massachusetts School Building Authority , including the prior audits referenced above.
- Audit of the Massachusetts School Building AuthorityAuthority / Commission · September 6, 2022
- Massachusetts School Building AuthorityAuthority / Commission · June 28, 2017