Toward Independent Living & Learning, Inc. Administration of Limited Unit Rate Service Agreements
August 6, 2013 · Read the full official report (PDF) ↗
Published August 6, 2013 Audit covers July 1, 2008 – June 30, 2011 Under Suzanne M. Bump · 2011–2023
source
“We found problems with all $528,681 of TILL’s accounts-payable-period LUSA transactions, including inadequate documentation to substantiate that LUSA services were properly authorized, inadequate documentation to support LUSA billings, and LUSA contract funding not being used for its intended purposes, as follows:”
Read the plain-English breakdown
The State Auditor was reviewing DDS human-service contracting to check accountability, transparency, and cost effectiveness.
“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 used LUSA contracts for purposes that did not match their intended use, which can lead to unnecessary or excessive payments to contractors.
“Instead DDS Regional and Area Office staff have used LUSA contracts to provide additional year-end funding to some DDS human-service contractors for various purposes, many of which are not consistent with the intended use of these funds and resulted in unnecessary and excessive compensation to contractors.”
For taxpayers and people who rely on disability services, the issue is whether public money for client services was properly approved, documented, and spent.
“The lack of adequate documentation violated provisions of the Commonwealth Terms and Conditions for Human and Social Services, and as a result, 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 audit found questionable use of the full $528,681 reviewed, including retroactive approvals, weak records, and payments for items that were not LUSA services.
“The unduplicated amount of questioned funding is $528,681.”
The auditor said oversight agencies should review the issues and TILL should put controls in place so future LUSA services are properly performed, documented, billed, and accounted for.
“In accordance with the recommendations of the overall report and the testing results specific to TILL, TILL should implement appropriate control measures to ensure that all LUSA services are performed, documented, billed, and accounted for in compliance with applicable requirements.”
LUSA means a flexible DDS contract meant for short-term, as-needed services for people with developmental disabilities when those services are not already covered by another contract.
“DDS’s Purchase of Service Manual states that LUSA contracts are “for purchasing intermittent, as-needed services for developmentally disabled individuals needing limited time placements.””
6 figure(s) pending source verification - not shown
What the Auditor checked
- Did not comply Obtain information required to assess the system of internal controls DDS has established over its administration of LUSA contract funding.
What the Auditor found
Why it matters: There was insufficient assurance that payments were properly authorized, not duplicative or excessive, accurately reported, or used for appropriate LUSA purposes.
Standard: DDS Purchase of Service Manual, DDS Authorization for Services Form requirements, Commonwealth Terms and Conditions for Human and Social Services, Operational Services Division policy, and Office of the State Comptroller expenditure classification requirements. ( Chapter 11, Section 12, of the Massachusetts General Laws; Section 7 of the Commonwealth Terms and Conditions for Human and Social Services; 808 CMR 1.00; OSD Procurement Policies and Procedures, “How to Draft a Request for Response”; DDS Purchase of Service Manual )
2 recommendations
- Responsible oversight agencies, including OSD and OSC, should review the issues and take appropriate action, including strengthening oversight over DDS transactions.
- TILL should implement control measures to ensure LUSA services are performed, documented, billed, and accounted for in compliance with requirements.agency: already implemented
Agency response & Auditor reply
Agency: "TILL followed the guidelines and policies set by DDS during this audit period with regard to LUSA expenditures."
Auditor: "The ASF process described in this report was in place throughout the DDS system during the entire audit period."
Verified dollar findings
Money paid out that the audit found should not have been - overpayments, unallowable and nonreimbursable charges, improper claims.
Identified dollar findings that do not fall in a named band.