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

This is a Massachusetts State Auditor review of how Duxbury Public School District used certain federal stimulus education funds between July 1, 2009 and September 30, 2011.

“In accordance with Chapter 11, Section 12, of the General Laws, we have conducted an audit of certain activities of DPSD for the period July 1, 2009 through September 30, 2011.”

Auditors checked whether the federal money was spent for the right purposes, followed program rules, and was properly tracked and reported.

“The objectives of our audit were to determine whether ARRA funds awarded to DPSD for the Education Jobs and IDEA-Part B programs were used for their intended purposes and in compliance with program requirements, and to evaluate whether DPSD was complying with ARRA accounting and reporting requirements.”

The issue matters because public grant money needs safeguards so it is not lost, stolen, misused, or spent outside the rules.

“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, the money was tied to school services and jobs, including reported retention of 4.5 full-time-equivalent positions by September 30, 2011.

“In addition to reporting the uses of program funds, information reported to MRRO indicated that 4.5 FTE positions were retained as of September 30, 2011.”

The main concern was not that auditors found improper spending, but that Duxbury lacked ARRA-specific controls and held some federal cash far longer than immediate needs allowed.

“As a result, DPSD received some ARRA funding significantly in advance of its needs, which is contrary to federal regulations.”

The auditor recommended that Duxbury create ARRA-specific controls, return federal money it does not immediately need, and adjust budgets so automatic advances do not leave it holding excess cash.

“DPSD should develop ARRA-specific internal controls and risk assessments to address the objectives and risks that affect compliance with ARRA regulations, performance and reporting requirements, fraud detection and prevention, and safeguarding of assets.”

The audit covered more than $1.1 million in awarded stimulus funds for Duxbury school programs, with $856,802 reported as spent by September 30, 2011.

“MRRO reported that the Town of Duxbury was awarded $1,140,651 to fund these ARRA programs operated by DPSD.”

ARRA means the federal stimulus law; IDEA-Part B is federal support for special education; internal controls are written checks and procedures to prevent mistakes, rule violations, or misuse; excess cash means grant money kept before it is needed right away.

“Each department has a system of internal controls consisting of an Internal Control Plan that summarizes objectives, risks, controls, and a detailed set of control activities that mitigate risk.”