Brockton Area Multi-Services, Inc.

This is a Massachusetts State Auditor performance audit of Brockton Area Multi-Services, Inc., a nonprofit human-services provider, covering July 1, 2011 through June 30, 2013.

“I am pleased to provide this performance audit of Brockton Area Multi-Services, Inc.”

Auditors checked whether BAMSI followed the rules for its state contracts, including billing, documentation, and allowable expenses.

“The purpose of our audit was to determine whether BAMSI complied with laws, regulations, and contract requirements pertinent to its state contracts.”

BAMSI received tens of millions of dollars from government contracts and grants, so weak documentation or improper charges affect public money.

“In fiscal year 2013, it received $404,964 from external contributions, $522,637 from grants, $61,782,248 from government contracts and grants, and $622,267 from other sources.”

If you are a taxpayer or rely on public services, this audit is about whether state-funded human-service money was properly tracked and spent.

“During our audit period, BAMSI employed approximately 1,700 people and operated a variety of programs serving approximately 25,000 individuals each year in Worcester, Middlesex, Norfolk, Bristol, Plymouth, and Barnstable Counties.”

Auditors said BAMSI needed better records, should fix its policies, and should pay back $18,593 in unallowable charges.

“BAMSI should reimburse the Commonwealth for the $18,593 of unallowable charges to state-funded programs that we identified.”

The state was told to work with BAMSI to decide how much of the roughly $1.4 million should be recovered, and BAMSI said it was updating policies and returning the $18,593.

“Additionally, the state’s Operational Services Division (OSD), in collaboration with DDS, should work with BAMSI to determine how much of the approximately $1.4 million BAMSI billed for the improperly documented services should be recouped.”

The audit points to a basic accountability issue: when a provider bills state contracts, it must be able to prove the services happened and that expenses are allowed.

“According to 808 CMR 1.04(1), adequate documentation includes “supporting documents, statistical records, and all other records which reflect revenues associated with and costs incurred in or allocated to any Program of services rendered under the Contract.””

“Supplemental services” means extra help for certain clients, such as one-to-one help with eating, personal care, nursing care, skill building, or behavior management.

“The supplemental services, billable in 15-minute increments, comprised services such as one-to-one staff assistance with eating/feeding, personal care, skill building, nursing care, and behavior management.”