Single Audit of the Commonwealth - Massachusetts Rehabilitation Commission (MRC)
May 17, 2012 · Massachusetts Rehabilitation Commission · Read the full official report (PDF) ↗
Published May 17, 2012 Audit covers July 1, 2010 – June 30, 2011 Under Suzanne M. Bump · 2011–2023
source
“Based on these tests, we have concluded that, except as reported in the Audit Results section of this report, for the period July 1, 2010 through June 30, 2011, the MRC had adequate internal controls in place and complied with the requirements of the federal Department of Education; the Social Security Administration; OMB Circular A-133 and the Compliance Supplement; and other applicable laws, rules, and regulations for the areas tested.”
Read the plain-English breakdown
This is a state audit of the Massachusetts Rehabilitation Commission, focused on programs that help people with disabilities get services, jobs, training, and disability benefit decisions.
“The agency operates two programs that were the subject of this audit: the Vocational Rehabilitation (VR) Program, which provides education opportunities, job placement, and training for individuals who are capable of becoming gainfully employed; and the Disability Determination Services (DDS) program, which determines initial and continued eligibility for federal Supplemental Security Income and Social Security Disability Insurance public benefits.”
The State Auditor reviewed MRC as part of Massachusetts' required statewide audit for the fiscal year ending June 30, 2011.
“We conducted our audit in conjunction with the Single Audit of the Commonwealth of Massachusetts for the fiscal year ended June 30, 2011.”
MRC handled large amounts of public money, mostly federal funds, so weak controls could mean money, records, or services are not managed properly.
“For fiscal year 2011, the MRC received approximately $109.4 million in appropriations, approximately $90.3 million of which consisted of federal funds, including approximately $3.5 million in VR American Recovery and Reinvestment Act (ARRA) funding.”
If you use or fund these services as a taxpayer, the audit matters because late eligibility decisions and inaccurate records can affect whether people get help on time and whether public money is tracked correctly.
“If the determination of client eligibility is not conducted as specified by regulations, the MRC cannot ensure that individuals requesting vocational rehabilitation services are advised of their eligibility status on a timely basis.”
One earlier problem was fixed, but several others were not fully fixed, and the audit found new concerns about equipment tracking and eligibility decisions.
“Our follow-up review disclosed that the MRC has taken the necessary corrective action to resolve this issue.”
MRC said it was training staff, improving payroll controls, writing procedures for federal reports, fixing its asset inventory, and updating its client information system.
“The Agency is in the process of designing, developing and implementing policies and procedures as well as internal controls for fixed asset management.”
The most serious dollar issue was that MRC could not account for some computers and printers bought with vocational rehabilitation funds, leading auditors to question $105,959 in costs.
“As a result, our audit disclosed $105,959 in questioned costs due to MRC’s inability to account for EDP equipment (computers and printers) purchased in FY 2011 with VR funds.”
In plain terms, 'internal controls' means the checks an agency uses to make sure records are accurate, spending is allowed, equipment is tracked, and decisions are made correctly.
“Our audit disclosed that the MRC did not have the necessary policies, procedures, and control system in place to ensure that eligibility determinations performed for individuals applying for VR services are carried out within the 60-day timeframe required by state and federal regulations.”
9 figure(s) pending source verification - not shown
What the Auditor checked
- Partially Did the Massachusetts Rehabilitation Commission have adequate internal controls in place during the review period?
- Partially Did the Massachusetts Rehabilitation Commission comply with requirements of the Compliance Supplement, the federal Department of Education, the Social Security Administration, and the Office of the State Comptroller?
- Partially What was the status of prior audit results from audit No. 2011-0054-16S?
What the Auditor found
Why it matters: Unauthorized or inappropriate payroll transactions may not be detected timely, and management lacks assurance that payroll expenditures are valid, accurate, and properly approved.
Standard: Title 2 CFR Chapter 2, Part 225, Appendix B, Section 8; Commonwealth of Massachusetts Human Resources Division Time and Attendance Policy; MRC Administrative Bulletin: Payroll. ( Commonwealth of Massachusetts Human Resources Division’s Time and Attendance Policy )
2 recommendations
- The MRC should continue to improve and strengthen its existing internal controls to ensure that all payroll transactions are reviewed and approved by signature in accordance with prescribed procedures.
- The MRC should reinstate its prior payroll policy requiring Unit Supervisor or Manager review, approval, and signing of bi-weekly payroll reports.
Agency response & Auditor reply
Agency: "The Agency continues to train staff to ensure that its Payroll Policy and Procedures are understood and followed."
Why it matters: Fixed assets may be at risk of theft, loss, or misuse, and the MRC could not account for EDP equipment purchased with VR funds.
Standard: OSC MMARS Accounting and Management Policy on Fixed Assets; 34 CFR 80.32(d); Chapter 647 of the Acts of 1989. ( OSC MMARS Accounting and Management Policy on Fixed Assets; 34 CFR 80.32(d) )
2 recommendations
- The MRC should implement corrective action to ensure fixed asset management complies with state and federal regulations and safeguards assets against loss, theft, or misuse.
- The MRC should conduct a complete physical inspection and reconciliation of all EDP equipment to its EDP database.
Agency response & Auditor reply
Agency: "The Agency is in the processes of correcting its fixed asset inventory."
Why it matters: Individuals requesting vocational rehabilitation services may not receive timely eligibility decisions, and management may not be able to rely on MRCIS reports to monitor compliance.
Standard: 34 CFR 361.41(b)(1); 107 CMR 4.07(11); OSC Internal Control Guide. ( 34 CFR 361.41(b)(1); 107 Code of Massachusetts Regulations 4.07(11); OSC Internal Control Guide )
2 recommendations
- The MRC should establish policies, procedures, and controls to ensure eligibility determinations are made within the timeframe required by state and federal regulations.
- The MRC should strengthen controls so client data is timely and accurately entered into MRCIS and noncompliant cases are identified and reported for management review.
Agency response & Auditor reply
Agency: "MRC has made outstanding gains in making eligibility determinations in a timely manner."
Verified dollar findings
Costs the audit could not support as allowable, pending the entity's response.
Identified dollar findings that do not fall in a named band.
Prior findings revisited
"Our follow-up review disclosed that the MRC has taken the necessary corrective action to resolve this issue."
"Our follow-up review disclosed that the MRC continues to make progress in ensuring that all employee timesheets are properly reviewed and approved by the employee’s supervisor."
"Our follow-up review disclosed that the MRC continues to improve documentation regarding financial and statistical data reported in its annual RSA-2 report; however, additional improvements are needed."
More audits of this entity
Other Office of the State Auditor reports on Massachusetts Rehabilitation Commission , including the prior audits referenced above.
- Massachusetts Rehabilitation CommissionAuthority / Commission · May 12, 2011
- Audit of the Massachusetts Rehabilitation CommissionAuthority / Commission · July 3, 2018
- Audit of the Massachusetts Rehabilitation CommissionAuthority / Commission · January 6, 2023