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

This is a Massachusetts State Auditor report reviewing how Monson Public School District used certain federal stimulus education funds.

“In accordance with Chapter 11, Section 12, of the General Laws, we have conducted an audit of certain activities of MPSD for the period August 10, 20101 through June 30, 2011.”

Auditors checked whether the district used Race to the Top and Education Jobs stimulus money for the right purposes and followed accounting and reporting rules.

“The objectives of our audit were to determine whether ARRA funds awarded to MPSD for its RTT and Education Jobs 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, so the district needed controls to prevent loss, theft, misuse, or rule violations.

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

For residents, this report shows whether public education grant money was handled properly and whether mistakes were corrected.

“MPSD returned $1,616 to its Education Jobs program, and directed that future payments apply solely to teacher/instructor salaries.”

The district had three main problems: weak ARRA-specific controls, holding some federal cash too long before spending it, and $1,616 in spending that was not allowed.

“MPSD spent $1,616 from its Education Jobs program award on reimbursements to teachers and staff who took courses and trainings prior to the ARRA grant award start date which is contrary to regulations.”

The auditor recommended that the district create ARRA-specific controls, avoid excess federal cash, adjust budgets when needed, review Education Jobs payments, and better check payment support.

“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 assets.”

The report is significant because it found compliance weaknesses in how stimulus education money was controlled and timed, even though the district corrected the $1,616 error and began adding ARRA-specific guidance.

“MPSD has included ARRA-specific guidelines in its ongoing policy and procedure development.”

ARRA means the 2009 federal stimulus law; RTT means Race to the Top, an education reform grant; Education Jobs was money meant to save or create education jobs.

“During our audit period, in addition to other grant awards, MPSD received American Recovery and Reinvestment Act of 2009 (ARRA) grants from the Massachusetts Department of Elementary and Secondary Education (DESE) under the Race to the Top (RTT) and Education Jobs programs.”