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UFRAUDIT & PREPARATION MANUALUNDER 808 CMR 1.00Commonwealth of MassachusettsExecutive Office for Administration & FinanceOperational Services DivisionFiscal Year 2018Rev. 6/30/2018FY ’2018 UFR Audit & Preparation Manual1
UFR AUDIT AND PREPARATIONMANUALUNIFORM FINANCIAL STATEMENTS ANDINDEPENDENT AUDITOR’S REPORTTABLE OF CONTENTSFAIR INFORMATION PRACTICES ACT (FIPA) PROHIBITIONS . . . 6EOHHS/GUIDANCE FOR UFR FILERS RELATIVE TO THE IMPLEMENTATION OF CHAPTER257 OF THE ACTS OF 2008 . . 6SPECIAL INSTRUCTIONS FOR FISCAL YEAR 2018 FILING FROM THE CENTER FORHEALTH INFORMATION AND ANALYSIS (CHIA) . 13SPECIAL INSTRUCTIONS FOR FISCAL YEAR 2018 FILING FROM THE DEPARTMENT OFEARLY EDUCATION and CARE (EE&C) . 19UFR PREPARATION AND AUDIT CHECK LIST . . 23FILING REQUIREMENTS . 24Who Must File? .24What to File .25Consolidated and Combined Financial Statements .26Management Letters .27Alternate Reporting .27Refiling and Piecemeal Resubmission.29Audit Services .29Procurement of Audit Services .29Auditor Responsibility .30Auditor Qualifications.30Federal Single Audit OMB Circular A-l33 .31Major Pass-Through Agency Responsibilities.32OMB Circular A-133 Sanctions.33Auditor Access to Client Records Maintained by the Contractor.34UFR Template Submission .34Typed or Computer-Generated Submission .34Notification of Mergers and Other Organizational Changes.34When to File and Extensions .35Penalties and Sanctions .35Effective Date .36Where to File .36FY ’2018 UFR Audit & Preparation Manual2
EXCEPTIONS/EXEMPTIONS . 37EXCEPTIONS/EXEMPTION DOCUMENTATION REQUIREMENTS MATRIX .41KEY CONCEPTS . 43Responsibilities of Independent Auditor and Management for the Organization’s Financial Statement .43Management responsibilities for the financial statements .43The auditor’s responsibilities for the financial statements.43Program Service .44Full-Time Equivalents (FTEs) .46Service Unit .47INSTRUCTIONS TO THE PREPARER . 48General Instructions .48OVERVIEW OF THE REPORT AND PAGE-BY-PAGE INSTRUCTIONS . 50Cover Page.50Independent Auditor’s Report on the Financial Statements.53Audited Basic Financial Statements .54Balance Sheet (Statement of Position) .54Account Definitions Used With Balance Sheet (Statement of Position) .54Statement of Activities .55Classification of Revenues, Expenses, Gains, and Losses .55Statement of Cash Flows Direct and Indirect Method .56Statement of Functional Expenses .56Functional Classification of Expenses .56Costs Which Pertain to Various Functions (Charging and Allocating Procedures) .57Program and Supporting Services .59Sample of Daily Employee Time Report Sheet .62Sample of Annual Employee Time Allocation Summary .63Notes to Financial Statements .64Related Party Disclosures .64Definition of Related Party.65FASB 57 Guidance Concerning Transactions .66FASB 57 Related Party Definition.66The Field Work Standards for Financial and Performance Audits of GAGAS (“Yellow Book”) that GovernMateriality and/or Significance .67Liabilities to the Commonwealth .68SUPPLEMENTAL FINANCIAL SCHEDULES A, B, AND SUBSIDIARY SCHEDULE D1AND CENTER FOR HEALTH INFORMATION AND ANALYSIS SCHEDULES . 69Information not Required to be Audited .69Other Statements, Schedules and Information .69Organizational Supplemental Information Schedule A OSI .70Administration Revenue .70Compensation to Principals .70Management .70Revenue Account Definitions .71Expense Account Definitions .74Massachusetts Surplus Revenue Retention Calculation .79Commonwealth of Massachusetts Cost Reimbursement Overbilling.80Nonreimbursable Costs (See Nonreimbursable Costs Schedules A & B) .80Program Supplemental Information Schedule B PSI.81SERVICE STATISTICS .82MASSACHUSETTS PURCHASING AGENCY CONTRACT INFORMATION .82Subcontractor Defined.83FY ’2018 UFR Audit & Preparation Manual3
Allocating Administration .83Depreciation .85Schedule of Service Lives of Assets .87Procedures for Determining the Existence of Non-Reimbursable Costs .881. Initial Filing of the UFR: .902. Refiling of the UFR:.913. Resolution of Commonwealth Overpayments: .92Bad Debt Expense in Commonwealth Purchased Programs.94CRE Preliminary Calculation of Cost Reimbursement Excess Revenue .98Supplemental Psychiatric Day Treatment Services Schedule . 100FOR OUTPATIENT MENTAL HEALTH CLINICS . 101Supplemental Mental Health Class Rate Services Schedule . 101CERTIFICATION OF OUTPATIENT MENTAL HEALTH CENTER SERVICES THAT DONOT FURNISH NON-MEDICAID REIMBURSABLE SOCIAL SERVICES TOPURCHASING DEPARTMENTS OF THE COMMONWEALTH . 104REPORT ON T HE INT ERNAL CONT ROL ST RUCT URE BASED ON AN AUDIT OFFINANCIAL ST AT EMENT S PERFORMED IN ACCORDANCE WIT H GOVERNMENTAUDIT ING ST ANDARDS . .105REPORT ON COMPLIANCE . 106CONT RACT OR ORGANIZ AT ION’S RESPONSE T O AUDIT OR’S REPORT S ANDCORRECT IVE ACT ION PLAN . 107ACKNOWLEDGMENT OF T HE BOARD OF DIRECT ORS . 108AUDIT SERVICES CHECKL IST AND MANAGEMENT CERT IFICAT ION . 108AUDITING GUIDELINES . 109NONPROFIT ORGANIZATION REFERENCE CHECKLIST . 110APPENDICES . 112UFR PROGRAM COMPONENT AND TITLE DESCRIPTIONS. 113FY 2018 MMARS Activity Codes By Department. 125SURPLUS REVENUE RETENTION POLICY . 136BOARD OF DIRECTORS’ ACKNOWLEDGEMENT LETTER SAMPLE . 137CERTIFICATION OF OUTPATIENT MENTAL HEALTH CENTER SERVICES/RESULTS OFFINANCIAL OPERATIONS . 138AUDIT SERVICES CHECKLIST & MANAGEMENT CERTIFICATION . 1389FY ’2018 UFR Audit & Preparation Manual4
FY ’17 Policy Guidance/Regulatory Interpretation of 808 CMR 1.05(24) Salaries of Officers andManagers 140FY ’18 Policy Guidance/Regulatory Interpretation of 808 CMR 1.05(24) Salaries of Officers andManagers 141····INDEPENDENT AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS (See Instructions)NOTES TO THE FINANCIAL STATEMENTS (See Instructions)INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROLS (See Instructions)INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE (See Instructions)FY ’2018 UFR Audit & Preparation Manual5
FAIR INFORMATION PRACTICES ACT (FIPA) PROHIBITIONS:In accordance with the Fair Information Practices Act (FIPA) pursuant to M.G.L. Chapter 66A, theOperational Services Division (OSD) is providing notification to all Uniform Financial Statement andIndependent Auditor’s Report (UFR) preparers and Users of the Internet–based UFR eFiling Systemand database that certain provisions of FIPA prohibit the use of an individual’s social security numberas an identifying number on any of the statements, notes or schedules contained in a UFR filing or in aprofile for access to the UFR eFiling System. Excluded from this prohibition are identifying numbersthat are currently contained in a “public record” as defined M.G.L. Chapter 4 sec. 7.For additional information on FIPA prohibition’s possible effects on your organization’s and yourindependent auditor’s (CPA) UFR eFiling profiles, and UFR filings including the identificationnumbers utilized in completing the subcontractor detail sections on the UFR Supplemental B PSISchedules see OSD’s notice of April 11, 2008 at: RTING REQUIREMENTS FOR CERTAIN HEALTH ANDSOCIAL SERVICES PROGRAMSI. SOCIAL SERVICE PROGRAMS: CHAPTER 257 of the ACTS of2008Chapter 257 of the Acts of 2008 places authority for determination of reimbursement rates for socialservices, other than special education programs, with the Executive Office of Health and HumanServices (EOHHS) under MGL Chapter 188G. Information on Chapter 257 rate regulations completedand projects to be completed by June 30, 2018 can be found at: www.mass.gov/hhs/chapter257The UFR, while not the sole resource for information to be considered, plays a key role in the ratedetermination and rate review process. Particular emphasis is placed on the UFR ProgramSupplemental Information Schedule B, which represents costs directly associated with individualprogram operations.Following is a list of activity codes that were rate regulated as of July 1, 2014 or were rate regulated inFY2015 under Chapter 257. The activity codes associated with an individual contract can be found onthe POS Attachment 1, in a Statement of Work or Service Summary Form, or in the RFR issued whenthe service was procured. UFR information associated with codes noted in the following table is not tobe merged or co-mingled with any other activity codes unless otherwise noted in the chart.Reporting requirements for activity codes supported through Mass Health and fall under “Health” mayhave additional requirements which can be found under CHIA Requirements for Reporting of CertainHealth Services.FY ’2018 UFR Audit & Preparation Manual6
AgencyActivity 6831703180318131823196327432853664Program NameAdoption ManagementComprehensive Foster Care/Family ResComprehensive Foster CareComprehensive Emergency ServicesProtective Investigations (Conflict)Caring Together ContinuumCaring Together Group HomesCaring Together Residential SchoolsCaring Together STARRCaring Together Teen ParentCaring Together Teen ParentDV ResidentialMDATFamily Based Services / Supportive Preventive ProgramsIntensive Foster CareComprehensive Foster CareFamily Network Lead AgencyFamily Networks Supp & StabIntensive Foster CareComprehensive Foster Care/Family ResFoster Care ManagementFamily Resource CenterFamily Resource Center - FullFamily Resource Center - MicroCaring Together Teen ParentResidential Shelter (ALP)Placement ServicesAdult Long Term Residential: OperationalBlanket ResidentialCommunity Based Day SupportsAdult Day Health ServicesIndividual Supported EmploymentClinical TeamComprehensive Integrated Employment ServicesGroup Supported EmploymentEmergency StabilizationTransportationCorporate Rep PayeeDay Hab Supplemental ServicesDay Habilitation ServicesFY ’2018 UFR Audit & Preparation Manual7
7370937103712Family Support NavigationRespite in Recipients Home -DayRespite In Care Giver's HomeIndividualized Home SupportsChild's Respite in Caregiver's Home - DayAdult CompanionCommunity & Residential Family TrainingBehavioral Supports & ConsultationStabilization In Caregiver's HomeDDS3716Community Peer Support/Residential Peer 37
Jul 11, 2018 · DDS 3776 Family Leadership Program DDS 3777 Nursing Facility Active Treatment DDS 3781 Financial Assistance Administration DDS 3798 In Home Supports DDS 6700 Family Support Navigation AWC DDS 6701 Respite In Recipient's Home AWC DDS 6703 Individualized Home Supports AWC DDS
