Attention nonprofits: Are you up to speed on your UFR filing requirements? The deadline has been extended by 30 days for fiscal year ending 2021 filers. We have the details here.

More about UFR

The Uniform Financial Statements and Independent Auditor’s Report is a set of financial statements and schedules which human and social service organizations are required to complete. Specifically, it applies to organizations that deliver services to Massachusetts’ vulnerable consumers via contracts with state departments. New for fiscal year 2020, the Center for Health Information and Analysis (CHIA) now requires that Applied Behavior Analysis (ABA) Service Providers, including Intensive Early Intervention (IEI), must also file a UFR.

Deadline:

A properly completed UFR must be submitted via the UFR eFiling application on or before the 15^th day of the 5^th month after the close of your organization’s fiscal year. An organization with a fiscal year ending June 30^th must submit a UFR by November 15^th.

Good news! The UFR deadline has been Extended! Due to the COVID-19 Pandemic, the Operational Services Division (OSD) has granted a 30-day extension to the UFR filing deadline for the fiscal year ending 2021 filers. An extension does not need to be filed.

First Time Filers

Are you aware of the requirements necessary to complete a UFR? Some key areas to note:

• Audit Requirements: Your organization must obtain an audit conducted in accordance with generally accepted government auditing standards (GASAS), also known as a YellowBook Audit.
• Statement of Functional Expenses: Ensure proper allocation of your organization’s expenses by function and nature.
• Recordkeeping requirements: Personnel records must be maintained for each employee in accordance with generally accepted accounting principles. Included in the employee’s personnel file, an organization should maintain timesheets which adequately document an individual’s full-time equivalent (FTE) for each program they participate in. FTE’s are required to be actual hours worked in each department versus a percentage of their time.
• Non-Reimbursable Costs: Funds received from Departments may only be used for Reimbursable Operating Costs, as defined in 808 CMR 1.02. In addition, funds may not be used for costs specifically identified in 808 CMR 1.05 as non-reimbursable. Some examples?
  • Certain salaries and consultant compensation- Any compensation, as defined by the OSD shall be non-reimbursable under 808 CMR 1.05 to the extent that they exceed an annual rate previously approved by the OSD.
  • Bad debts- Amounts proven to be entirely uncollectible despite collection efforts (including legal action) and any related legal costs are non-reimbursable.
  • Related party transaction costs- Reimbursable ONLY to the extent that the costs do not exceed the lower of either the market price or the related party’s actual costs.
• Surplus Revenue Retention: Amounts that exceed the 20% Surplus Revenue Retention cap related to the organization’s contract or voucher agreement are required to be paid back to the Commonwealth.

Do you need assistance ensuring that your organization is in compliance with UFR requirements and standards? You’re in luck! Our Not-for-Profit Services Team is here and ready to help make sure your organization is in compliance with UFR regulations.

Contact any member of our Not-for-Profit Services Team for guidance on how to begin the filing process.