Hudson Public School District

This is a Massachusetts State Auditor report on Hudson Public School District’s handling of selected federal stimulus education grants during 2010 and 2011.

“In accordance with Chapter 11, Section 12, of the General Laws, we have conducted an audit of certain activities of HPSD for the period August 10, 20101 to July 31, 2011.”

Auditors checked whether the Race to the Top and Education Jobs money was spent for the right purposes and reported correctly.

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

The concern was not that auditors found stolen money, but that weak written controls make it harder to prove the money is protected and used properly.

“Without ARRA-specific internal controls that identify risks and ways to mitigate them, HPSD cannot ensure compliance with applicable laws and regulations or that ARRA funds are adequately protected from loss, theft, or misuse.”

For residents, the money helped support school staffing: the district reported keeping about 4.7 full-time-equivalent positions and creating 1 more.

“In addition to reporting the uses of program funds, information reported to MRRO indicated that Education Jobs program expenditures allowed HPSD to retain approximately 4.7 FTE personnel positions and created 1 FTE personnel position as of June 30, 2011.”

Aside from the missing ARRA-specific control documentation, auditors said Hudson had adequate controls and followed the rules in the areas they tested.

“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 July 31, 2011, HPSD maintained adequate management controls and complied with applicable laws, rules, and regulations for the areas tested.”

The auditor recommended that Hudson create specific controls and risk checks for ARRA funds, and the district said it would document such a system.

“HPSD 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 assets.”

Race to the Top was a federal education reform grant; Education Jobs was a one-time federal program 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 DOE awarded to save or create education jobs that provide educational and related services for early childhood, elementary, and secondary education.”