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

This is a Massachusetts State Auditor report on Plymouth Public School District’s use of certain federal stimulus education funds from July 1, 2009 through September 30, 2011.

“In accordance with Chapter 11, Section 12, of the General Laws, we have conducted an audit of certain activities of PPSD for the period July 1, 2009 through September 30, 2011.”

The audit checked whether the district used ARRA money for the right purposes, followed program rules, and met accounting and reporting requirements.

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

The money was federal stimulus funding, so the district needed controls to prevent loss, theft, misuse, and rule violations.

“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 residents, this report explains how much stimulus money was involved, what it was meant to support, and whether safeguards were strong enough.

“MRRO reported that the Town of Plymouth was awarded $3,582,464 to fund these ARRA programs operated by PPSD.”

The main problem was not a finding that money was stolen or misspent; it was that Plymouth Public Schools had not created ARRA-specific internal control documentation.

“However, our audit found that, although PPSD had developed an internal control document in calendar year 2008, the document had not been updated to include a system of internal controls designed specifically for ARRA funds that would (a) provide reasonable assurance of compliance with applicable laws, rules, and regulations or (b) ensure that federal stimulus funds were safeguarded from loss, theft, and misuse.”

The auditor recommended that the district create ARRA-specific controls and risk assessments, and the district said it would document such a system.

“PPSD should develop internal controls and risk assessments specific to ARRA as a way to address the objectives and risks of handling ARRA funds.”

The audit highlights that even when spending appears mostly compliant, public agencies still need grant-specific safeguards so taxpayers can trust the money is tracked and protected.

“ARRA guidance issued by the U.S. Office of Management and Budget, the U.S. Department of Education (USDOE), and the Office of the State Comptroller (OSC) emphasize the importance of a proper system of internal controls for ensuring that ARRA funds are adequately administered and used in ways that comply with specific program requirements.”

ARRA means the 2009 federal stimulus law, and the audited grants included Education Jobs funds and IDEA-Part B special education funds.

“During our audit period, in addition to other grant awards, PPSD received, from the Massachusetts Department of Elementary and Secondary Education and the Massachusetts Department of Early Education and Care, 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.”