- Office of the State Auditor
Media Contact for Audit Shows Need for Tighter Controls over State Funds and Inventory at Brockton Area Multi-Services, Inc.
Boston — In an audit released today, the Office of State Auditor Suzanne M. Bump (OSA) recommended several changes at the nonprofit human services organization Brockton Area Multi-Services, Inc. (BAMSI) in the areas of financial management and governance. BAMSI was found to have charged more than $11,000 in non-reimbursable expenses to its state contracts and did not properly maintain an accurate inventory of assets. In addition, it did not ensure that its board member application process was followed and could not provide acknowledgment letters for all cash donations received by the organization, while other donations were misclassified. The audit, which examined the period of July 1, 2017 through June 30, 2019, makes recommendations to BAMSI on how to address each of these issues, all of which are being acted on by the nonprofit moving forward.
“It is always our goal through audits to help entities identify opportunities to put in place better controls and systems that promote compliance, good governance and accountability,” said State Auditor Suzanne M. Bump. “BAMSI is a local nonprofit that provides valuable services to the Brockton community, but there are areas in which we recommend improvement. This is a matter of public trust. I commend BAMSI for taking this process seriously and for taking steps to address our findings.”
During the audit period, BAMSI charged $11,311 in expenses to state contracts that were non-reimbursable because they were undocumented, unallowable, or not related to BAMSI’s social service program activities. This included a $2,189 charge for vehicle insurance for the president and CEO’s leased vehicle, a $2,000 charge for three life insurance policies for the president and CEO, and a collective $6,295 charged for vehicle fuel that was determined to be for personal use. To address this issue, the audit recommends that BAMSI should reimburse the Commonwealth and implement controls to ensure the president and CEO’s expenses are reviewed ahead of time.
The audit also identified that BAMSI did not maintain an inventory of furniture and equipment purchases, and its existing inventory lacked key information on each asset, including purchase amount, serial numbers, purchase dates, model numbers, and information regarding disposals. As a result of these issues, fixed assets are at a higher risk of theft and misuse. Further, auditors note BAMSI could not provide letters acknowledging receipt of all donations. In its response, BAMSI indicated that it is taking steps to resolve these issues.
BAMSI was established in 1975 as a not-for-profit human service organization that has a mission to “empower people and enrich their lives, through compassionate support and diverse services.” It operates adult, child and family services, assisting approximately 30,000 individuals each year in Worcester, Middlesex, Norfolk, Bristol and Plymouth Counties. During fiscal years 2018 and 2019, BAMSI received $90,964,769 and $95,067,197, respectively, in revenue from a combination of private and public sources.