This final audit report points out the results of our review of the Health Care Financing Administration's (HCFA) implementation of the Federal Managers' Financial Integrity Act (FMFIA) for Fiscal Year 1993. We found that the HCFA continues to make progress in improving the FMFIA process and establishing effective controls. However, improvements are needed. We recommended that HCFA modify its plan that covers the Medicare contractors' management controls and financial management systems to ensure that it has adequate coverage of the contractors under the FMFIA. We also recommended that HCFA review the functions of the Office of the Actuary, reclassify all management control areas with pending material weaknesses of Office of Management and Budget high-risk designation as a high risk, expand financial management system reviews, reestablish the cost allocation system material weakness until all components have properly implemented the system, perform corrective action reviews on all corrected material weaknesses, and reevaluate the corrective action plan for the Medicare secondary payer high-risk area.