The Edinburg Center, Inc. Administration of Limited Unit Rate Service Agreements

The State Auditor reviewed these payments to check whether state human-service contracting money was being used properly, transparently, and cost-effectively.

“The overall audit of DDS was conducted as part of OSA’s ongoing efforts to audit human-service contracting activity by state agencies and to promote accountability, transparency, and cost effectiveness in state contracting.”

The report says DDS’s poor handling of these agreements contributed to problems at contractors, including Edinburg, and raised questions about whether public funds were used correctly.

“DDS’s practice of improperly administering and using LUSAs has led to the problems with the administration and use of these funds at various DDS contractors, such as Edinburg.”

If you are a Massachusetts resident, this matters because state money paid to human-service contractors needs to be supported by clear records showing what services were actually provided.

“Adequate documentation is required by the previously quoted provisions of the Commonwealth Terms and Conditions for Human and Social Services, and without it, there was insufficient evidence to show that these LUSA payments had been properly authorized and accounted for; that they were not duplicative or excessive; and that the contractor had actually provided the LUSA services billed.”

The Auditor’s bottom line was that Edinburg should tighten its controls so any LUSA services are real, documented, billed correctly, and properly accounted for.

“In accordance with the recommendations of the overall report and the testing results specific to Edinburg, Edinburg should implement appropriate control measures to ensure that all LUSA services are performed, documented, billed, and accounted for in compliance with applicable requirements.”

Edinburg said DDS had changed how it uses LUSA agreements and said it would make sure future LUSA services are handled properly.

“DDS has made several changes to its utilization of Limited Unit Rate Service Agreements, and The Edinburg Center will ensure that any services provided under LUSA agreements are performed, documented, billed, and accounted for appropriately.”

The amount questioned was a large share of Edinburg’s LUSA payments during the audited period: 63.1% of its total DDS LUSA payments.

“Approximately $477,555 (63.1%) of the payments to Edinburg was processed during the accounts-payable periods for fiscal years 2009 through 2011.”

A LUSA is a state contracting tool DDS can use to buy short-term or occasional services from an approved provider when a client is not already covered by another contract.

“LUSAs are a form of a master contract agreement that can be used by DDS to purchase services from a preapproved contractor on an intermittent, limited-time basis for clients who are not already covered through an existing contract.”