Bourne Public School District's Use of Certain American Recovery and Reinvestment Act Funds
December 17, 2012 · Bourne Public School District · Read the full official report (PDF) ↗
Published December 17, 2012 Audit covers August 10, 2010 – June 30, 2011 Under Suzanne M. Bump · 2011–2023
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“Based on our audit we have concluded that, except as reported in the Audit Findings section of this report, for the period August 10, 2010 through June 30, 2011, BPSD maintained adequate management controls and complied with applicable laws, rules, and regulations for the areas tested.”
Read the plain-English breakdown
This is a Massachusetts State Auditor review of how Bourne Public School District handled certain federal stimulus funds for Race to the Top and Education Jobs programs.
“In accordance with Chapter 11, Section 12, of the General Laws, we have conducted an audit of certain activities of BPSD for the period August 10, 20101 through June 30, 2011.”
The audit checked whether the district spent the federal money for the right purposes and followed accounting and reporting rules tied to ARRA funds.
“The objectives of our audit were to determine whether ARRA funds awarded to BPSD for its RTT and Education Jobs programs were used for their intended purposes and in compliance with program requirements, and to evaluate whether BPSD was complying with ARRA accounting and reporting requirements.”
Federal stimulus money needed stronger documented safeguards because weak controls can make it harder to prevent or detect misuse, reporting problems, or rule violations.
“Without ARRA-specific internal controls that identify risks and ways to mitigate them, BPSD cannot ensure compliance with applicable laws, rules, and regulations or that ARRA funds are adequately protected from loss, theft, or misuse.”
For Bourne residents, this matters because the money supported local school jobs and services, and the public needs confidence that school resources are protected and spent as intended.
“Education Jobs funds were budgeted to pay a portion of the salaries for staff who may have otherwise been terminated.”
The main problem was not a finding that money was stolen or misspent; it was that the district lacked ARRA-specific written controls and risk assessments.
“However, our audit found that BPSD had not developed an internal control plan addressing controls related to its ARRA activities.”
The auditor recommended that the district keep working with the town to create ARRA-specific internal controls and risk assessments.
“BPSD should continue working with the town to develop internal controls and risk assessments specific to ARRA as a way to address the objectives and risks of handling ARRA funds.”
The district received $540,823 in ARRA awards for these programs, so the control weakness applied to a meaningful amount of public education funding.
“MRRO reported that the Town of Bourne was awarded $540,823 to fund these ARRA programs operated by BPSD.”
ARRA means the 2009 federal stimulus law; RTT means Race to the Top; Education Jobs was a one-time federal program to save or create education jobs.
“The Education Jobs program is a one-time appropriation, which may be used through September 30, 2012, that USDOE awarded to save or create education jobs that provide educational and related services for early childhood, elementary, and secondary education.”
What the Auditor checked
- Complied Determine whether ARRA funds awarded to BPSD for Race to the Top and Education Jobs programs were used for their intended purposes and in compliance with program requirements.
- Partially Evaluate whether BPSD was complying with ARRA accounting and reporting requirements.
What the Auditor found
Why it matters: Without ARRA-specific controls identifying risks and mitigation steps, BPSD could not ensure compliance or adequately protect ARRA funds from loss, theft, or misuse.
Standard: ARRA guidance from the U.S. Office of Management and Budget, U.S. Department of Education, and Office of the State Comptroller emphasized the need for internal controls, including updated internal control plans and risk assessments covering ARRA funds. ( Chapter 11, Section 12, of the Massachusetts General Laws; ARRA Internal Control Guidance )
2 recommendations
- BPSD should continue working with the town to develop internal controls and risk assessments specific to ARRA as a way to address the objectives and risks of handling ARRA funds.
- The internal control documents should focus on compliance with ARRA regulations, performance and reporting requirements, fraud detection and prevention, and safeguarding assets.
Agency response & Auditor reply
Agency: "We brought this matter to the attention of BPSD officials, who indicated that they were unaware of the need for ARRA-specific internal controls and relied on BPSD’s long-standing policies and procedures for grant management."