Cambridge Public School District's Use of Certain American Recovery and Reinvestment Act Funds

This is a Massachusetts State Auditor review of how Cambridge Public School District handled certain federal stimulus grants for Race to the Top and Education Jobs programs.

“The objectives of our audit were to determine whether American Recovery and Reinvestment Act of 2009 (ARRA) funds awarded to CPSD for Race to the Top and Education Jobs programs were used for their intended purposes and in compliance with program requirements, and to evaluate whether CPSD was complying with ARRA accounting and reporting requirements.”

Auditors checked whether the district spent the ARRA money for the right purposes and followed the required accounting and reporting rules.

“The objectives of our audit were to determine whether ARRA funds awarded to CPSD for its RTT and Education Jobs programs were used for their intended purposes and in compliance with program requirements, and to evaluate whether CPSD was complying with ARRA accounting and reporting requirements.”

Federal stimulus funds needed special oversight so they would be spent properly and protected from loss, theft, or misuse.

“Agencies charged with administering ARRA programs have a responsibility to establish an adequate system of internal controls that will provide reasonable assurance of compliance with applicable laws, rules, and regulations and will ensure that funds are safeguarded from loss, theft, and misuse.”

For residents, this report gives a check on whether public education stimulus money in Cambridge was tracked, reported, and protected properly.

“In order to comply with ARRA requirements and provide transparency on stimulus projects for which Commonwealth agencies distribute funds, the Massachusetts Recovery and Reinvestment Office (MRRO) gathers summary information and reports on what stimulus projects are funded and how stimulus funds are being spent.”

The main problem was not that auditors found misspending; it was that the district lacked ARRA-specific controls and risk assessments.

“However, our audit found that CPSD had not developed an internal control plan addressing controls related to its ARRA activities.”

The auditor recommended that the district create ARRA-specific internal controls and risk assessments focused on compliance, reporting, fraud prevention, and protecting assets.

“CPSD should develop internal controls and risk assessments specific to ARRA as a way to address the objectives and risks of handling ARRA funds.”

ARRA was federal stimulus funding; RTT was Race to the Top, an education reform grant; Education Jobs was money meant 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.”