Criterion Child Enrichment, Inc.

This is a state performance audit of a nonprofit that provides early childhood services in Massachusetts.

“Criterion Child Enrichment, Inc. (CCEI), headquartered in Milford, Massachusetts, was incorporated in 1984 as a private not-for-profit human-service agency providing various early childhood intervention, education, and support services to children and their families at locations throughout Massachusetts.”

The Auditor reviewed the organization to check controls, compliance, and spending tied to state-funded human services.

“The purpose of our audit was to review certain aspects of CCEI’s operations to determine whether the agency had established adequate internal controls and complied with applicable laws, regulations, and contractual requirements in the areas reviewed.”

Most of the organization’s money came from state agency contracts, so the public has an interest in whether it followed rules.

“During our audit period, CCEI had more than 200 staff members and received the majority of its funding from contracts with state agencies.”

If you are a taxpayer or a family using these services, the audit says the reviewed spending and controls were acceptable.

“Our audit found that CCEI had established adequate internal controls and complied with applicable laws, regulations, and contractual requirements in the areas reviewed.”

The Auditor answered yes to all four audit questions and reported no significant issues needing governance attention.

“For the areas reviewed related to our objectives, we did not identify any significant deficiencies warranting attention by those responsible for governance.”

The report does not describe required fixes or enforcement steps, because the reviewed areas did not produce significant deficiencies.

“For the areas reviewed related to our objectives, we did not identify any significant deficiencies warranting attention by those responsible for governance.”

The audit is significant because it was part of a broader state effort to make human-service contracting more accountable, transparent, and cost-effective.

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

A related-party transaction here means Criterion paid a connected management company for financial management and development services.

“According to its 2014 Uniform Financial Statement and Independent Auditor’s Report, in January 1990 CCEI entered into a management agreement with a related-party organization, Human Services Management Corporation (HSMC), to provide financial management and development services.”