Massachusetts Rehabilitation Commission

This is a state audit of the Massachusetts Rehabilitation Commission, covering July 1, 2009 through June 30, 2010.

“In accordance with Chapter 11, Section 12, of the General Laws, the Office of the State Auditor conducted an audit of the MRC for the period July 1, 2009 through June 30, 2010.”

The State Auditor reviewed whether MRC had proper controls, followed federal and state rules, and fixed issues from a prior audit.

“Specifically, our objectives were to:”

The agency handles major public funds and programs for people with disabilities, so weak controls can mean payroll or grant money is not properly checked.

“Without supervisory approval signatures, management lacks an appropriate level of assurance that payroll expenditures are valid and accurate, that programs are being charged only for the time an employee works on the program, and that payroll transactions are being approved in accordance with prescribed procedures.”

For residents, this matters because MRC’s work affects people with disabilities who need help living independently, getting jobs, or qualifying for disability benefits.

“Chapter 6, Section 74, of the Massachusetts General Laws established the Massachusetts Rehabilitation Commission (MRC), whose primary mission is to help permanently disabled individuals live as independently as possible.”

MRC improved on eligibility decisions, but the audit still questioned costs tied to missing approvals and incorrect cost allocations.

“As a result, our audit disclosed $16,170 in questioned costs due to the incorrect allocation of central supportive services to the VR grant.”

The report says MRC should keep improving controls, train staff, document procedures, and make sure costs and reports are handled correctly.

“The MRC must continue to improve and strengthen its internal controls to ensure the accuracy of VR program accounting and reporting and compliance with federal requirements.”

The report is significant because MRC received about $97.1 million in fiscal year 2010, mostly federal money, so mistakes could affect federal compliance and public trust.

“For fiscal year 2010, the MRC received approximately $97.1 million in appropriations, approximately $78.8 million of which consisted of federal funds, including approximately $1.4 million in VR American Recovery and Reinvestment Act (ARRA) funding.”

In plain terms, “internal controls” are the checks that make sure records are reviewed, costs are charged correctly, and reports are accurate before money is spent or reported.

“Additionally, all reports should be reviewed by management for accuracy, completeness, support for reported financial and statistical information, and overall reasonableness.”