Middlesex Human Service Agency

The audit checked whether the agency had proper controls and whether the costs it charged to the state were allowed, documented, approved, and recorded correctly.

“Reviewing the expenses that MHSA billed against its state contracts funding these two shelter programs and determining if these expenses were reasonable; allowable; properly allocated; properly authorized and recorded; and in compliance with applicable laws, rules, and regulations.”

Public money was supposed to reimburse only real shelter-program costs, but the audit found costs charged to the state that were not supported and should be paid back.

“This $37,949 in expenses represents nonreimbursable costs against these contracts and MHSA should return these funds to the Commonwealth.”

If you are a Massachusetts resident, this report is about whether taxpayer-funded shelter services were billed properly and whether the state had enough records to monitor services.

“However, this attendance information is used by the DTA to monitor program information including the overall demand for shelter program services.”

The agency admitted the accounting mistake, said it hired a CPA to help with accounting, and agreed to pay back the $37,949 when asked.

“MHSA also agrees to submit the payment of $37,949, to the State when requested to do so.”

The auditor recommended repayment and stronger controls, and the agency said it changed procedures for keeping daily bed lists for seven years.

“Based on their recommendations on September 13, 2010, we have implemented a new Policy and Procedure for the daily bed lists at both shelters.”

The audit is significant because it found both a specific dollar amount that should be returned and a recordkeeping problem that affected the state’s ability to verify shelter attendance.

“Specifically, it could not provide us with documentation to support the number of consumers it reported it served in its Bristol Lodge Men’s Shelter program during our audit period.”

“Nonreimbursable costs” means costs the state should not pay back because they were not properly documented or did not belong to the program.

“Costs which are not adequately documented in the light of the American Institute of Certified Public Accountants statements on auditing standards for evidential matters.”