Conclusion Do OCY’s non-payroll purchase-of-service (POS) state contract expenses comply with Sections 1.04(1) and 1.05 of Title 808 of the Code of Massachusetts Regulations (CMR)? Yes
To achieve our audit objective, we gained an understanding of the internal controls we determined to be relevant to the objective by reviewing agency policies and procedures, as well as conducting interviews with OCY’s staff and management. We evaluated the design and implementation, and tested the operating effectiveness, of controls over non-payroll expenditures associated with OCY’s POS contracts. We also conducted further audit testing, as described below. Non-payroll POS State Contract Expenses Our total population included 39,681 non-payroll POS expenditures, totaling $15,690,025. We judgmentally selected a sample of 30 non-payroll POS contract expenditures, totaling $55,804, that included all expenditures greater than or equal to $1,000 from three expense categories: training, conferences and meetings, and promotion. From the remaining population of 39,651 expenditures, totaling $15,634,222 (including the transactions under $1,000 from the expense categories in the previous test), we selected a statistical, random sample (with a confidence level