Fitchburg State University's Use of American Recovery and Reinvestment Act Funds

This is a state audit of how Fitchburg State University received and spent American Recovery and Reinvestment Act stimulus funds from August 7, 2009 through November 30, 2010.

“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, we have conducted an audit of the American Recovery and Reinvestment Act (ARRA) funds received and expended at FSU for the period August 7, 2009 through November 30, 2010.”

The auditor checked what stimulus money the university got, how it controlled and spent the money, whether it followed rules and reporting requirements, and how many jobs it said were created or kept.

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

The audit covered more than $10 million in federal stimulus funding, so it matters because public money was involved and the school had to show it was spent properly.

“Our audit scope was limited to a review of federal stimulus funds that FSU received under ARRA, which totaled $10,268,142 during the audit period.”

The money helped support academic positions, student aid, work-study payroll, debt payment, and solar panels that were expected to save the university money each year.

“The installation of solar panels on two campus buildings should save FSU $12,966 annually.”

The auditor found adequate controls and compliance for the parts of the university’s stimulus spending that were tested.

“Based on our review, we have concluded that, during the period August 7, 2009 through November 30, 2010, FSU maintained adequate management controls and complied with applicable laws, rules, and regulations for the areas tested.”

At the time of the report, university officials said the remaining stimulus funds would be fully spent by September 30, 2011.

“FSU officials stated that all of its ARRA funding will be fully expended by September 30, 2011.”

The key significance is that the audit did not find material weaknesses in the reviewed areas, meaning no major control problems were reported from the testing done.

“Our tests in the above-mentioned areas disclosed no material weaknesses.”

ARRA means the federal stimulus law; FTE means full-time equivalent jobs; TELP was a tax-exempt lease purchase loan; MMARS was the state accounting and reporting system used for required reporting.

“Massachusetts Management Accounting and Reporting System (MMARS) submissions and supporting documentation for required quarterly reporting of full-time equivalent (FTE) positions to ensure compliance with reporting requirements for jobs created and/or retained.”