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Overview
During our audit period, Brockton Area Multi-Services, Inc. (BAMSI) charged $11,311 in expenses to its state contracts that were nonreimbursable because they were undocumented, unallowable, or not related to BAMSI’s social service program activities. BAMSI did not report these costs as nonreimbursable in the Uniform Financial Statements and Independent Auditor’s Reports (UFRs) it filed with the state Operational Services Division (OSD); this indicates that state contract funds were used to pay for them. BAMSI could have used this $11,311 to pay for reimbursable expenses to benefit the clients in its state-funded programs.
During our testing of nonreimbursable expenses, we determined that certain program expenses and expenses incurred by, or for the benefit of, the president and chief executive officer (CEO) were improperly charged as reimbursable to state contracts on the UFRs. Two of the 70 expenses we reviewed should have been charged as nonreimbursable. One ....

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