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

This is a Massachusetts State Auditor report on Middleborough Public School District's use of certain federal stimulus education grants from July 1, 2009 through January 31, 2012.

“In accordance with Chapter 11, Section 12, of the General Laws, we have conducted an audit of certain activities of MPSD for the period July 1, 2009 through January 31, 2012.”

Auditors checked whether the district spent ARRA money for the Education Jobs and IDEA-Part B programs as intended, followed rules, and met accounting and reporting requirements.

“The objectives of our audit were to determine whether ARRA funds awarded to MPSD 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 MPSD was complying with ARRA accounting and reporting requirements.”

The money came from federal stimulus programs meant to support school jobs and services for students with disabilities, so residents have an interest in whether it was spent correctly and tracked transparently.

“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.”

For a Middleborough resident, this report says the district received about $1.93 million in stimulus funds, with money budgeted for school salaries, benefits, special education support, transportation, training, and supplies.

“MRRO reported that the Town of Middleborough was awarded $1,932,598 to fund these ARRA programs operated by MPSD.”

The audit did not report misspending in the areas tested, but it did flag that the district lacked ARRA-specific internal controls and risk assessments.

“MPSD had not designed a system of internal controls that would provide reasonable assurance of compliance with applicable laws and regulations affecting its Education Jobs and IDEA-Part B awards funded by ARRA or ensure that federal stimulus funds received for these two ARRA programs were safeguarded from possible loss, theft, or misuse.”

The auditor recommended that the district create ARRA-specific controls and risk assessments covering compliance, reporting, fraud prevention, and safeguarding money and assets.

“MPSD 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 report is significant because it shows stimulus funds helped retain school positions, while also identifying a control weakness the district should fix for stronger accountability.

“In addition to reporting the uses of program funds, information reported to MRRO indicated that 25.13 FTE positions had been retained as of December 31, 2011.”

ARRA means the 2009 federal stimulus law; IDEA-Part B is funding to help provide appropriate education services for students with disabilities, including young children ages three through five.

“ARRA funding for the IDEA-Part B program provided by USDOE is to provide additional financial support in aiding MPSD’s existing IDEA-Part B program’s mission of providing students with disabilities, including children of ages three through five, with access to a free and appropriate education that meets their particular needs and prepares them for further education, employment, and independent living.”