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Posted by Janet O'Neill on Thu, Aug 28, 2014 @ 08:48 AM

osdlogoThe Operational Services Division (OSD) has released the FY 2014 version of the Uniform Financial Statements and Independent Auditor's Report (UFR) Audit & Preparation Manual, Compliance Supplement and FY 2014 Excel UFR Template. The UFR eFile system allows human and social service contractors to electronically file their annual financial statements through the OSD eFiling website. The Massachusetts Executive Office for Administration and Finance (EOHHS) offers information about how to file electronically through its Uniform Financial Reports Resource Center.

Human and social service contractors can expect four major changes in the FY2014 UFR Audit & Preparation Manual and Compliance supplement, which we have highlighted below.

  1. The UFR audit & preparation manual includes specific guidance related to rate regulation per Chapter 257 of the Acts of 2008 (“Chapter 257”)

    Under Chapter 257, EOHHS has the authority to determine the reimbursement rates for human and social services. It works with the Center for Health Information Analysis to help determine the rate. As part of the determination process, the EOHHS also considers the costs directly associated with individual program operations, which are recorded on UFR Program Supplemental Information Schedule B.

    The most recent UFR guidance includes a list of activity codes that were rate regulated by the EOHHS in FY 2014 and stipulates that the UFR information related to the codes cannot mix with any other activity codes unless otherwise specified in the guidance.

    This guidance also notes that “revenue and expenses associated with any activity codes that came under rate regulation during FY 2014…can be combined under Program Type 26, Other Non-Negotiated Unit Rates. A separate schedule B will not be required for partial year contracts in place during FY 2014 that were reimbursed according to individually negotiated rates prior to moving to regulated rates.”

    The EOHHS will be working with purchasing agencies to develop detailed reporting guidance. This information will be forwarded to providers as it is developed and will be posted on the EOHHS Chapter 257 website. Please share any guidance that you receive with your audit team so that we can assist you in reporting this information appropriately.

    Providers should continue to accumulate costs in their general ledgers in sufficient detail to be able to report the required information based on the rates being set.
  2. Staff Salary Snapshot Report

    The rate determination process also requires organizations to provide information associated with payroll and associated taxes and fringe benefits. In an effort to gather reliable salary data to assist in the setting and review of rates, providers are now required to complete a Staff Salary Snapshot report on an annual basis–separate from the UFR filing– which must be reported to EOHHS by November 15. For more information and resources regarding the Staff Salary Snapshot Report, click here.
  3. Supplier Diversity Program (SDP)

    Purchase of Service (POS) providers are now required to submit an annual report with their UFR submission that provides information on SDP commitments for FY 2015 and actual expenditures for FY 2014. This SDP Plan Form is included on the Uniform Financial Reports Resource Center website under Templates.
  4. FY 2014 Policy Guidance for Salaries of Officers & Managers

    UFR guidance included a memo from the Operational Services Divisions (OSD) pertaining to 808 CMR 1.05(24) - salaries for officers and managers. The memo states: “…the salaries of officers & managers as defined by OSD shall be non-reimbursable under OSD regulations 808 CMR 1.05 (24) as amended to the extent that they exceed an annual rate of $163,682.38. Contractors must maintain justification for the selection of a salary reimbursement rate up to $163,682.38.”

    If managers and officers do not work full-time with state programs, their levels of reimbursement should be prorated accordingly. The OSD considers officers and managers people who are tasked with achieving the organization’s objectives. These decision-makers typically include the chief executive officer, chief operating officer and members of the board of directors.

If you have any questions related to this UFR update, please contact your local CBIZ Tofias & Mayer Hoffman McCann advisor or you may reach us here.


JanetJanet O'Neill is a Shareholder in the New England Not-For-Profit & Education Practice. She can be reached at 617.761.0554 or





Tags: Janet O’Neill, OSD, UFR, Massachusetts Executive Office for Administration

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