Human Service Options Inc.

This is a Massachusetts State Auditor performance audit of Human Service Options Inc., a Weymouth human-service agency, covering July 1, 2013 through June 30, 2015.

“I am pleased to provide this performance audit of Human Service Options Inc.”

Auditors checked whether HSO followed rules for spending state contract money and reporting supplier diversity information.

“The purpose of this audit was to determine whether HSO 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.”

HSO received significant public contract money, so taxpayers have an interest in whether those funds were spent under proper controls and with enough competition.

“Approximately 47% of revenue for both fiscal years came from contracts with the state’s Department of Developmental Services.”

For an ordinary citizen, the main issue is accountability: the audit says HSO could not be sure it got the best value on some purchases, which matters when public contract funds are involved.

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

The audit’s main finding was not about HSO’s services, but about purchasing controls: credit cards were used for large purchases without competitive procurement and for staff personal items.

“HSO inappropriately allowed its staff to purchase personal items totaling $8,003 on a corporate credit card.”

The auditor recommended that HSO tighten its rules: require competitive purchasing above a set amount, ban personal use of corporate credit cards, and monitor compliance.

“HSO should implement monitoring controls to ensure that these policies are adhered to.”

The audit 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 contract activity by state agencies and to promote accountability, transparency, and cost-effectiveness in state contracting.”

“Competitive procurement” means seeking open competition when buying goods or services, so the organization has a better chance of getting fair value instead of just charging items to a card.

“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.”