Department of the State Police's Use of American Recovery and Reinvestment Act Funds

This is a state audit of how the Massachusetts State Police used federal Recovery Act grant money from May 2009 through November 2010.

“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, we have conducted an audit of certain activities of DSP for the period May 1, 2009 through November 30, 2010.”

Auditors checked what federal stimulus money the State Police received, how it was spent, whether rules were followed, and whether jobs funded by the money were reported.

“The objectives of our audit were to obtain and review a listing of the type and amount of all ARRA funds the DSP has applied for, plans to receive, or has received and expended; to review and evaluate DSP’s internal controls over ARRA expenditures and determine whether ARRA funds are being expended for the intended purposes and in compliance with applicable laws, rules, and regulations; to determine whether the DSP is complying with ARRA accounting and reporting requirements as well as other grant requirements; and to ensure that DSP has identified and reported the number of jobs created/retained with ARRA funds.”

Good risk planning helps prevent public money from being mishandled or spent without enough safeguards.

“Without the additional risk assessments, DSP and the Commonwealth cannot be assured that all potential risks have been considered and controls to minimize potential risks have been fully developed and implemented.”

The money supported things residents may notice indirectly, including fuel for police vehicles, patrol boats, and work related to internet crimes against children.

“State Fiscal Stabilization Funds were utilized to pay for vehicle fuel costs.”

The main problem was not misuse of funds; it was that the State Police had not fully documented the specific risks tied to managing ARRA money.

“Although DSP has updated this ICP to include additional control and monitoring activities for ARRA as required by the OSC, it has not fully identified and documented the specific risks associated with managing ARRA funds.”

The auditors told the State Police to update its internal control plan with ARRA-related risk assessments and controls.

“We recommend that DSP update its ICP to include risk assessments associated with ARRA grants and ensure that proper controls are in place to eliminate or reduce those identified risks.”

The State Police received more than $5.3 million in federal stimulus grants, so even a documentation issue mattered because the amount of public money was substantial.

“During our audit period, DSP was awarded four separate grants through the American Recovery and Reinvestment Act (ARRA) totaling $5,368,142.”

A risk assessment means looking for things that could keep an agency from meeting its goals, then planning controls to reduce those risks.

“One of the components in developing an ICP is a risk assessment, which is a process to identify and analyze factors that may affect the achievement of a goal.”