Worcester State University's Use of American Recovery and Reinvestment Act Funds

This is a Massachusetts State Auditor report on Worcester State University's use of federal American Recovery and Reinvestment Act funds from August 6, 2009 through November 30, 2010.

“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, we have conducted an audit of certain activities of WSU for the period August 6, 2009 through November 30, 2010.”

The audit checked whether Worcester State had good controls over the stimulus money, spent it for allowed purposes, met accounting and reporting rules, and accurately identified jobs created or kept.

“The objectives of our audit were to evaluate WSU’s controls over American Recovery and Reinvestment Act (ARRA) expenditures; determine whether ARRA funds were expended for their intended purposes and in compliance with applicable laws, rules, and regulations; determine whether WSU is complying with ARRA accounting and reporting requirements, as well as other grant requirements; and identify the number of jobs that WSU reported as created and/or retained.”

This matters because the money was federal stimulus funding meant for specific public purposes, including employee compensation, utilities, technology, student aid, supplies, renovations, and work-study payments.

“WSU’s budget for these funds included amounts for state employee compensation; energy costs/utilities; consultant service contracts; information technology expenses; student financial aid; equipment and programmatic operational supplies; library remodeling/renovation and classroom adaptation; and Federal Work Study payments.”

For residents and students, the report indicates the university used tested stimulus funds appropriately, including money connected to financial aid, campus operations, renovations, and jobs.

“As of November 30, 2010 WSU expended $5,491,999 of its awards and received federal reimbursements totaling $5,491,999 for these expenses.”

The auditor did not report problems in the areas tested; Worcester State had adequate controls and complied with applicable requirements.

“Based on our review we have concluded that, for the period August 6, 2009 to November 30, 2010, WSU maintained adequate management controls and complied with applicable laws, rules, and regulations for the areas tested.”

Some stimulus funds were expected to be fully spent by September 30, 2011, while the National Science Foundation grant was set to continue until August 31, 2012.

“WSU officials stated that all of its State Fiscal Stabilization Fund (SFSF) ARRA monies will be fully expended by September 30, 2011.”

The main significance is that the audit found Worcester State complied with ARRA reporting requirements and properly documented the jobs impact reviewed by the auditor.

“Our audit, which included a review of supporting documentation received from the MRRO, found that WSU was in compliance with ARRA reporting requirements.”

ARRA means the federal stimulus law; FTE means full-time equivalent jobs. The report says Worcester State reported 25.93 FTEs tied to these funds.

“In addition to SFSF, WSU officials reported a total of 4.0 FTEs for the Federal Work Study program, and 0.74 FTE for the NSF grant, for a grand total of 25.93 FTEs.”