Funds to monitor COVID relief go unspent

By Christian M. Wade

» Statehouse Reporter

BOSTON — The state’s watchdogs have spent little of the $6.5 million in funding they received more than four years ago to provide fiscal oversight of billions of dollars in federal pandem-ic related aid that flowed into the state.

Data from the state Executive Office of Administration and Finance shows that the Attorney General’s Office, comptroller, state auditor, and inspector general’s office have only spent about $1 million of the money the Legislature allocated in 2021 to fund audits, investigations and other oversight of COVID19 spending.

The Inspector General’s Office has spent the most out of the four agencies as of June 30 at $751,891 of its $1.6 million share; while the State Auditor Diana DiZoglio’s office has spent only $13,700, according to the figures.

The state Comptroller’s office has used $280,267 of the $1.6 million it received from the oversight reserve fund, while the Attorney General’s office hasn’t used any of the funding it was allocated by lawmakers, records show.

The oversight money was allocated by the Legislature in 2021 as billions of dollars in pandemic aid were flowing into the state from the American Rescue Plan and other pandemic programs. The funds were available initially until Dec. 31, 2022, but lawmakers extended the deadline to use the oversight money.

Senate Minority Leader Bruce Tarr said the data raise questions about how much oversight the state has provided to billions of dollars in federal funding received since the outset of the pandemic.

“When such a large amount of federal money comes into the commonwealth, we need to know how it is being spent,” the Gloucester Republican said. “We need to account for these dollars, not only to maintain the integrity of state spending, but also our relationship with the federal government.”

Tarr pointed to revelations that the state Department of Unemployment Assistance wrongly used $2.1 billion in federal money to fund state unemployment benefits. He said the mistake is an example of how lax oversight of federal aid can end up costing the state more money.

“There are serious ramifications to misspending these federal dollars and we have to do everything possible to make sure that they have been properly,” he said.

The watchdog agencies defend the lack of spending from COVID-19 oversight funds, and say they are being cautious about the use of taxpayer dollars The agencies say they have been conducting investigations, audits and other activities related to pandemic funds, much of it from their own budgets.

Inspector General Jeffrey Shapiro’s office said it has been conducting investigations and reviews of pandemic relief funds since fall 2020 through its oversight unit that coordinates with state and local governments, companies and individuals on reviews and investigations. The agency is using a mix of oversight money and general budgetary funds.

To date, the agency said it has spent $779,879 from the fund as of June 30, according to its latest pandemic oversight quarterly report. Much of the money has gone to payroll costs, the IG’s office said. The report didn’t disclose specific information about spending on oversight.

But the agency has publicly disclosed several investigations, including the case of Florida woman who was charged with defrauding a Massachusetts housing agency where she worked in 2022, and defrauding the U.S. Small Business Administration in connection with the pandemic Paycheck Protection Program.

In March, Alihea Jones, 51, of Brandon, Florida, was sentenced to 10 months in prison, to be followed by three years of supervised release, according to the IG’s office. She was also ordered to pay $222,074 in restitution and to forfeit $222,074, the agency said.

Stephen Lisauskas, the state’s executive deputy auditor, said the office has tapped federal American Rescue Plan Act and COVID-related funds to review COVID-related spending as part of 28 audits covering several years.

“However, there are some ongoing reviews that may require access to this funding source,” he said in a prepared statement. “As with all taxpayer money, we will only use what is truly necessary to be able to conduct such reviews.”

A spokesperson for Attorney General Andrea Campbell confirmed that it hasn’t used any of the funding, but said the office’s Insurance and Unemployment Fraud and False Claims divisions are focused on identifying and prosecuting fraud, “including but not limited” to the use of COVID-19 funds.

Beacon Hill’s independent watchdogs say the state needs to provide more oversight of COVID-19 spending, pointing out that fiscal accountability doesn’t end after the pandemic relief money is allocated.

“It’s clear to many that the role of taxpayer watchdog in state government is a function that doesn’t exist,” said Paul Craney, executive director of the Massachusetts Fiscal Alliance. “Instead, many in state government are interested in making political headlines in DC or taking vacations on the taxpayer dime with a conference mixed in.

“People at the top of state government need to get serious about watching out for the taxpayers and this only shows that is not happening.”

Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.