DEPARTMENT OF THE STATE AUDITOR

M.G.L. pt. Part I, tit. Title II, ch. c. 11

in effect

M.G.L. c. 11, § 1 State auditor; supervision of department; bond and salary; income from other sources

c. 11, § 1. State auditor; supervision of department; bond and salary; income from other sources Section 1. (a) There shall be a department of the state auditor, under the supervision and control of the state auditor, which shall be organized as provided in this chapter. The state auditor shall receive a salary of $165,000 and an additional amount to be adjusted biennially to reflect the aggregate quarterly change in salaries and wages in the commonwealth for the most recent 8 quarters as determined by the Bureau of Economic Analysis in the United States Department of Commerce. The state auditor shall give to the state treasurer a bond for the faithful performance of the state auditor's official duties in a penal sum and with sureties approved by the governor and council. (b) The state auditor shall not receive earned income from any other source but may receive unearned or passive income.

M.G.L. c. 11, § 2 First deputy; appointment and removal; duties; bond

c. 11, § 2. First deputy; appointment and removal; duties; bond Section 2. The state auditor shall appoint a first deputy auditor who shall perform such duties as may be assigned him by the auditor and who may be removed by him for cause at any time. If, by reason of sickness, absence or other cause, the auditor is temporarily unable to perform the duties of his office, the first deputy shall perform the same until such disability ceases. In the event of a vacancy in the office of auditor, the first deputy shall be continued in office and shall perform all statutory duties of the auditor until an auditor shall be duly qualified. The first deputy shall give bond to the commonwealth for the faithful discharge of his duties, in a sum not exceeding five thousand dollars.

M.G.L. c. 11, § 5 Deputies and administrators; appointment and removal

c. 11, § 5. Deputies and administrators; appointment and removal Section 5. The state auditor may appoint and may for cause remove a second, third and fourth deputy auditor, administrator of field operations of state audits and an administrator of field operations of authority audits.

M.G.L. c. 11, § 6 Divisions; appointments; duties; compensation; tenure

c. 11, § 6. Divisions; appointments; duties; compensation; tenure Section 6. The state auditor may appoint and remove such employees as the work of the department may require. Said employees shall be organized in five divisions, namely, the division of state audits, the division of authority audits, the division of federal audits, the division of contract audits and the division of local mandates. The state auditor shall establish the salaries, duties and personnel regulations of all officers and employees within the department of the state auditor; provided, however, that the salaries of said officers and employees shall not exceed the sum annually appropriated therefor by the general court. The provisions of sections nine A and forty-five of chapter thirty, chapter thirty-one and chapter one hundred and fifty E shall not apply to officers and employees within the department of the state auditor.

M.G.L. c. 11, § 6A Annual personnel report

c. 11, § 6A. Annual personnel report Section 6A. The state auditor shall file an annual report not later than the first Wednesday in February with the senate and house committees on ways and means containing the job classification, duties and salary of each officer and employee within the department and all personnel regulations established pursuant to section six. The auditor shall file amendments to such report with the senate and house committees on ways and means, whenever any changes become effective.

M.G.L. c. 11, § 6B Division of local mandates; responsibilities and powers

c. 11, § 6B. Division of local mandates; responsibilities and powers Section 6B. The division of local mandates, as provided for in section six of this chapter, shall have the responsibility of determining to the best of its ability and in a timely manner the estimated and actual financial effects on each city and town of laws, and rules and regulations of administrative agencies of the commonwealth either proposed or in effect, as required under section twenty-seven C of chapter twenty-nine of the General Laws. The division shall have the power to require the chief officer of any appropriate administrative agency of the commonwealth to supply in a timely manner any information determined by the division to be necessary in the determination of local financial effects under said section twenty-seven C. The chief officer shall convey the requested information to the division with a signed statement to the effect that the information is accurate and complete to the best of his ability. The division when requested under the provisions of subsections (d) and (f) of said section twenty-seven C, shall update its determination of financial effects based on either actual cost figures or improved estimates or both. The division shall review every five years those laws and administrative regulations which have a significant financial impact upon cities or towns. For the purposes of this section ''Significant financial impact'' is defined as requiring municipalities to expand existing services, employ additional personnel, or increase local expenditures. Said division shall determine the costs and benefits of each such law and regulation, and submit a report to the general court of each session together with its recommendation, if any, for the continuation, modification or elimination of such law or regulation.

M.G.L. c. 11, § 12 Audits; access to accounts; production of records; response to findings; exceptions

c. 11, § 12. Audits; access to accounts; production of records; response to findings; exceptions Section 12. The department of the state auditor shall audit the accounts, programs, activities and functions directly related to the aforementioned accounts of all departments, offices, commissions, institutions and activities of the commonwealth, including those of districts and authorities created by the general court and the general court itself, and including those of the income tax division of the department of revenue, and for such purposes, the authorized officers and employees of the department of the state auditor shall have access to such accounts at reasonable times and the department may require the production of books, documents, vouchers and other records relating to any matter within the scope of an audit conducted under this section or section 13, except tax returns. In determining the audit frequency of a covered entity, the department shall consider the materiality, risk and complexity of the entity's activities as well as the nature and extent of prior audit findings. Each entity may be audited separately as a part of a larger organizational entity or as a part of an audit covering multiple entities; provided, however, that each entity shall be audited at least once every 3 years and an entity shall be subject to audit as often as the state auditor determines it necessary. The superior court shall have jurisdiction to enforce the production of records that the department requires to be produced pursuant to this section, and the court shall order the production of all such records within the scope of any such audit. All such audits shall be conducted in accordance with the standards for audits of governmental organizations, programs, activities, and functions published by the Comptroller General of the United States. In any audit report of the accounts, funds, programs, activities, and functions of any agency, department, office, commission, or institution of the commonwealth, including those of districts and authorities created by the general court, issued by the department of the state auditor, wherein there appears adverse or critical audit results, the state auditor may require a response, in writing, to such audit results. Such response shall be forwarded to the department of the state auditor within fifteen days of notification by the state auditor. A copy of the response shall be filed with the appropriate secretariat, the secretary of administration and finance, the cognizant executive board in the case of an authority, and the house and senate committees on ways and means. The state auditor shall notify the appropriate secretariat, the secretary of administration and finance, the cognizant executive board in the case of an authority, and the house and senate committees on ways and means in the event of an agency's failure to respond or of the filing of unresponsive answers. This section shall not apply to those accounts which the director of accounts of the department of revenue is required by law to examine; provided, however, that in a town following a majority vote by the board of selectmen or school committee that is ratified by a special or annual town meeting, or in a regional school district following a two-thirds vote of the regional school district committee members, or in a city following a majority vote of the city council and approval by the mayor, or in a county following a majority vote of the county commissioners, the department of the state auditor may make an audit of the accounts, programs, activities and other public functions of said town, district, regional school district, city or county to the extent determined necessary by the state auditor; provided, further, that the expenses incurred for any such audit shall be borne by the city, town or regional school district and the state auditor may charge for the cost of said audit; provided, further, that all funds received for any such audits of said city, town, district, regional school district or county shall be deposited with the state treasurer in a separate account and expended solely for audits of any city, town, district, regional school district or county. On or before April 1 of each year, the state auditor shall submit a report to the house and senate committees on ways and means which shall include, but not be limited to, (i) the number of audits performed under this section; (ii) a summary of findings under said audits; and (iii) the cost of each audit. The department of the state auditor shall, in any audit of the executive office of health and human services or any agency thereof, refer to the fraudulent claims commission any case coming to its attention in the course of such audit which appears to involve fraud. The department of the state auditor is hereby authorized to inspect, review or audit, in conformity with generally accepted government auditing standards, the accounts, books, records and activities of vendors contracting, having contracted, or agreeing to provide services or materials of any description, or any other thing of value pursuant to any and all contracts or agreements between the commonwealth, its departments, agencies, bureaus, boards, commissions, institutions, or authorities and said vendors to the extent necessary to determine compliance with the provisions and requirements of such contracts or agreements and the laws of the commonwealth. Said access shall include access as defined above, to any grant, contract or agreement between said vendors and any other entity, provided the grant or contract to provide goods or services is specifically related to and funded by the vendor's contract with the commonwealth. Any grant or contract entered into between an entity, including vendors, and a state agency shall include a clause providing the state auditor with access as intended by this section. In addition, any grant, contract or agreement between said vendors and any other entity providing goods or services to said vendors, that is specifically related to and funded by, the vendor's direct contract with the commonwealth, shall include a clause providing the state auditor with access to said other entity's accounts, books, records and activities, except tax returns, as related to the provision of such goods or services to the vendor. The department of the state auditor is hereby authorized to conduct audits, in accordance with generally accepted governmental auditing standards, of the accounts, funds, programs, activities, and functions, of any program or activity funded in whole or in part by state grants, loans or reimbursements and carried out by cities, towns, counties, districts, or regional school districts, and for said purpose the authorized officers and employees of said department of the state auditor shall have access to such records at reasonable times and said department may require the production of books, documents, vouchers, reports and other records relating to any matter within the scope of such audit. The department of the state auditor is hereby further authorized to inspect, review, or audit the accounts, funds, books, records, and activities, including audit reports relating to any matter within the scope of the audit, of any vendor contracting, having contracted, or agreeing to provide services or materials of any description, or any other thing of value, with a city, town, county, district, or regional school district pursuant to a contract or agreement funded in whole or in part directly or indirectly with state financial assistance. Said inspection, review, or audit shall be conducted to the extent necessary to determine compliance with the provisions and requirements of the contract or agreement, the grant, and the laws of the commonwealth. The examination of the accounts of districts and authorities required by this section shall be made in addition to any audit required by the law creating such district or authority.

M.G.L. c. 11, § 13 Federally funded programs; mutual financial audits; agreements

c. 11, § 13. Federally funded programs; mutual financial audits; agreements Section 13. The state auditor may enter into agreements or contracts with the federal government or its agencies, or state agencies, acting in behalf thereof for the purpose of conducting mutual financial audits of programs funded in whole or in part by the federal government and carried out by agencies of the commonwealth. Such audits shall be undertaken only after related contracts or agreements between the parties have been filed with the joint legislative committee on federal financial assistance and funds received in accordance with such agreements have been deposited with the state treasurer into a separate account and expended solely for the purpose of this section. The costs of these audits shall not exceed the amount of funds received therefor and for these purposes may be expended without appropriation and providing further that the commonwealth shall receive the maximum reimbursement for the cost of providing group insurance, workers' compensation and retirement benefits. The term of employment of any individual hired by the state auditor under the provisions of this section shall be expressly limited in duration by the availability of federal funds. The term of employment shall expire on the date of expiration of the federal funds.

M.G.L. c. 11, § 16 Bureau of special investigations; director; duties

c. 11, § 16. Bureau of special investigations; director; duties Section 16. There shall be in the office of the state auditor a bureau of special investigations, headed by a director, who shall be appointed by the state auditor, and who shall be a person of ability and experience and shall devote his entire time to the duties of the office. Said auditor may appoint such other experts and officers as he deems necessary to carry out the work of the bureau. Employees of the bureau shall not be members of a collective bargaining unit. The director may expend, subject to appropriation, for legal, investigative, clerical and other assistance and expenses such sums as may be available therefor by the general court. Nothing in this section shall be construed as extending the audit authority of the auditor.

M.G.L. c. 11, § 17 Director; investigations; authority

c. 11, § 17. Director; investigations; authority Section 17. The director shall initiate investigations and investigate complaints, including complaints initiated by recipients, which indicate the possibility of either a fraudulent claim for payment or services under any assistance program administered by the department of transitional assistance, the department of children and families, the division of medical assistance or any other program administered by said departments or the receipt of payment or services by a person not entitled thereto. The director, in conformity with the rules and regulations of the auditor, shall: (1) initiate investigations and review procedures in order to discover any fraudulent claim or wrongful receipt under any assistance program administered by the department of transitional assistance, the executive office of health and human services, in its capacity as the single state agency for the purposes of Title XIX of the Social Security Act or any program administered by the department of social services; (2) examine the records and accounts of the department of transitional assistance, department of children and families, the division of medical assistance, the division of industrial accidents, the state retirement board, the department of employment and training and the executive office of veterans' services and, for such purposes, the director shall have access to such records and accounts at reasonable times and may require the production of books, documents and vouchers relating to any matter within the scope of the investigation; (3) examine, upon written request to the commissioner of revenue, the tax returns, wage reports, papers or other documents on file with said commissioner, including information which appears in child support enforcement files maintained by the IV–D agency as set forth in chapter 119A concerning dates and amounts of income received, employer, last known address and other information relevant to the investigation of fraud concerning any person where there is reason to believe that such person has committed fraud under any assistance program administered by the department of transitional assistance, the executive office of health and human services, in its capacity as the single state agency for the purposes of Title XIX of the Social Security Act or the department of social services, and may require the production of such returns, reports, papers and other documents. Nothing herein shall be construed to authorize the examination or disclosure, directly or indirectly, of any information, returns or their records received from the Internal Revenue Service; (4) examine the records and accounts of any vendor claiming or receiving payment for services rendered under any program administered by the department of transitional assistance, the executive office of health and human services, in its capacity as the single state agency for the purposes of Title XIX of the Social Security Act or the department of social services insofar as such records and accounts relate to any matter within the scope of such investigation; (5) examine any information contained on the warrant management system established by section 23A of chapter 276 and receive information from the department of transitional assistance in accordance with clause (e) of the last paragraph of subsection (D) of section 2 of chapter 18; (6) report to the attorney general, a district attorney, the department of state police, or any of their agents, each case referred to the bureau of special investigations by the department of transitional assistance pursuant to said clause (e), and arrange for a proper place and time for the arrest of an applicant or beneficiary and refer any dependents of the applicant or beneficiary to the department of social services for appropriate action pursuant to chapter 18B and section 23A of chapter 119. The bureau shall not report any information other than the information referred to in this clause or on the warrant management system; (7) report to the attorney general or a district attorney, for such action as they may deem proper, any case in which, after investigation, he finds there is probable cause to believe that a fraudulent claim or payment has been made; (8) report in writing to the governor and the general court the nature and extent of his activities for each calendar year, the report to be made not later than 90 days after the expiration of the calendar year, which report shall be made available to the public. (9) examine the records and accounts of any person domiciled or doing business in the commonwealth and any state, county or municipal department, agency, office, bureau, board, commission or division which employs or had employed an individual who is the subject matter of an investigation insofar as those records and accounts pertain to dates, hours and nature of employment or services rendered and the amounts of salary, wages, or other things of value paid and deductions therefrom, including information concerning the prior employment history of the individual who is the subject matter of the investigation; (10) examine the records and accounts of any bank, as defined in section 1 of chapter 167, national bank, federal savings and loan association, benefit association, insurance company, safe deposit company or loan company authorized to do business in the commonwealth relative to individuals who are the subject matter of an investigation insofar as the records and accounts pertain to deposits, withdrawals, loans, insurance transactions, claims settlements and payments; (11) examine the student records of any school or institution of higher education within the commonwealth relative to a student who is the subject matter of an investigation or the child, ward or dependent of the subject matter of an investigation insofar as those records pertain to enrollment, attendance, and family history but excluding academic, medical, and evaluative records; and (12) a written request of the director, or of an authorized representative of the director, for examination of information, records or accounts as provided in clauses (4), (9), (10) and (11) shall be complied with within a reasonable period of time. (13) be authorized, in any investigation conducted pursuant to this section, to utilize the lien provisions set forth in section 29 of chapter 18. Nothing in this section shall be construed as extending the audit authority of the auditor.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleII/Chapter11Fetched: 10/20/2026