Comprehensive Mental Health Systems Inc.

This is a Massachusetts State Auditor performance audit of Comprehensive Mental Health Systems Inc., a nonprofit human-service agency, covering July 1, 2013 through June 30, 2015.

“In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor (OSA) has conducted a performance audit of certain activities of CMHS for the period July 1, 2013 through June 30, 2015.”

The audit checked whether CMHS followed state contract rules when spending public contract money and whether it met Supplier Diversity Program reporting requirements.

“The purpose of this audit was to determine whether CMHS complied with applicable regulations and the terms and conditions of its state contracts when spending state contract funds and whether it complied with the reporting requirements of the Commonwealth’s Supplier Diversity Program.”

Most of CMHS’s money came from Massachusetts state contracts, so taxpayers have a stake in whether the organization spends that money properly and cost-effectively.

“CMHS’s total revenue amounts for fiscal years 2014 and 2015 were $7,867,451 and $9,214,772, respectively, of which approximately 95% came from contracts with the Commonwealth.”

If you are a Massachusetts resident, this report is about whether public money going to human services was spent under rules meant to encourage fair pricing and accountability.

“This audit was conducted as part of OSA’s ongoing efforts to audit human-service contract activity by state agencies and to promote accountability, transparency, and cost-effectiveness in state contracting.”

CMHS generally had policies for purchases, but those policies did not require competitive bidding, which led to a finding about computer-related purchases.

“Although CMHS had established policies and procedures for the procurement of goods and services, the policies and procedures did not require the agency to use a competitive bidding process.”

The auditor recommended that CMHS change its purchasing rules to require competitive procurement, and CMHS said it had amended its policies starting July 1, 2016.

“CMHS should amend its procurement policies and procedures so that they require competitive procurement in compliance with OSD regulations.”

The specific risk was that CMHS spent money on computers and cloud services from one vendor without competition, leaving uncertainty about whether the price and value were the best available.

“As a result, CMHS cannot be certain that it obtained the best value in the procurements.”

Competitive procurement means seeking open competition, such as bids or quotes, so a contractor has a better chance of getting good value for goods and services.

“All procurements of furnishings, equipment and other goods and services by or on behalf of a Contractor shall be conducted in a manner to provide, to the maximum extent practical, open and free competition.”