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

This is a Massachusetts State Auditor report on how Milford Public Schools handled certain federal stimulus grants for education jobs and special education programs.

“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 wanted to see whether the ARRA money was spent for the right purposes, followed program rules, and was reported and accounted for properly.

“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.”

Federal stimulus money was supposed to be protected from loss, theft, misuse, and rule violations, especially because it had special oversight and reporting requirements.

“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 Milford residents and families, the money supported school jobs and special education services, including services for students with disabilities.

“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 age three through five, access to a free and appropriate education that meets their particular needs and prepares them for further education, employment, and independent living.”

The main problems were not that auditors found improper spending, but that Milford lacked ARRA-specific written controls and held some federal cash too long before returning it.

“Our review of ARRA funds advanced to MPSD for its Education Jobs program noted that MPSD did not spend all the funds advanced, causing it to be in an excess cash position.”

The auditor recommended that Milford create ARRA-specific controls, return excess federal cash when it has more than it immediately needs, and adjust grant budgets when spending plans change.

“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 Milford was awarded more than $2 million in ARRA funds, and the audit found weaknesses in how the district documented controls and managed cash timing.

“MRRO reported that the Town of Milford was awarded $2,037,444 to fund these ARRA programs operated by MPSD.”

ARRA means the 2009 federal stimulus law; in this report, the money went through education programs including Education Jobs and IDEA-Part B, a special education program.

“During our audit period, in addition to other grant awards, MPSD received from the Massachusetts Department of Elementary and Secondary Education (DESE) and the Massachusetts Department of Early Education and Care (EEC) American Recovery and Reinvestment Act of 2009 (ARRA) grants under the Education Jobs and Part B of the Individuals with Disabilities Education Act (IDEA-Part B) programs.”