Department of Mental Health - Northeast Area - Dr. Harry C. Solomon Mental Health Center

This is a 1999 Massachusetts State Auditor report about how the Dr. Harry C. Solomon Mental Health Center handled client money through its Representative Payee Program.

“Our review of the center’s client funds and Representative Payee Program operations for the period July 1, 1997 to December 31, 1998 disclosed that improvements are needed in the center’s internal controls to provide reasonable assurance that client funds are properly accounted for and to ensure compliance with applicable state and federal regulations.”

The audit happened because the center and the Department of Mental Health reported possible problems with client funds, including alleged misuse by a case manager.

“Accordingly, the Department of Mental Health notified the Office of the State Auditor of the alleged improprieties involving client funds.”

The clients involved were people who may not have been able to manage their own money, so weak oversight put vulnerable people’s benefits at risk.

“Through the comprehensive assessment, professional staff identify individuals deemed incapable of handling their finances because of mental or physical limitations, necessitating the appointment of a representative payee to be responsible for managing the client’s funds and ensuring those funds are properly utilized to meet the needs of the client.”

If you or someone you care about depends on a public agency or contractor to manage benefits, this report shows why receipts, signatures, supervision, and clear rules matter.

“As a result of the absence of controls over client funds including policies and procedures and the lack of supervision, client funds were susceptible to loss, theft, and misuse.”

The center did not have strong enough written rules, documentation, supervision, or separation of duties to protect client money properly.

“Specifically, our audit revealed that the center: (a) lacked written policies and procedures for the administration of client funds, (b) did not ensure that adequate documentation to support disbursements made from clients’ accounts were being maintained and retained, (c) lacked effective supervisory and monitoring controls over the center’s case managers and the Representative Payee Administrator activities, and (d) lacked adequate segregation of duties.”

The center said it accepted the audit findings and began corrective actions, including new policies, clearer contract language, and ending the practice of cashing client checks at a pharmacy.

“As a result of the written recommendations as well as conversations . . . during the review process, the following corrective actions have been taken;”

The report points to possible misuse serious enough that one case manager lost his job and the matter was sent to the Attorney General’s Office for possible further review.

“Additionally, the Director informed us that the matter was referred by DMH to the Attorney General’s Office for possible further review and action.”

A representative payee is someone appointed to manage a person’s benefit money and use it for that person’s care and needs.

“Per Social Security’s Guide for Representative Payees, the duty of a representative payee is to keep informed of an individual’s needs to choose alternatives for maximum benefits to be used for the individual’s personal care and well-being.”