Complete
Text of Report is available in PDF format (1.38 MB). Copies can also
be obtained by contacting the Office of Public Affairs at 202-619-1343.Complete
Text of Report is available in PDF format (1.38 MB). Copies can also
be obtained by contacting the Office of Public Affairs at 202-619-1343.EXECUTIVE SUMMARY:
This final report points out that the California Department of Health Services (DHS) understated its third party liability (TPL) recoveries by $2,255,239 (Federal share of $1,127,620) for the period July 1, 1988 through March 31, 1991. Also, DHS did not maintain complete records which reconciled reported amounts to the subsidiary records. Since recoveries serve as credits which reduce net expenditures, DHS effectively overclaimed Federal funds for the Medicaid program by not reporting the $2,255,239 of recoveries. We recommended that DHS refund $1,127,620 to the Federal Government. We also recommended that DHS establish internal controls to ensure that: (1) documentation is retained to support reported TPL recoveries and (2) recoveries are accurately accounted for on Federal reports. The DHS concurred with our findings and recommendations.
