U.S. flag

An official website of the United States government

Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.


The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of Medicare Part A Administrative Costs Claimed For the Period October 1, 1998 Through September 30, 2001 - United Government Services, LLC, Milwaukee, Wisconsin," (A-05-02-00047)

June 12, 2003

Complete Text of Report is available in PDF format (609 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The objective of this audit was to determine whether United Government Services (UGS) had an effective system of internal controls and whether $197 million of administrative costs were claimed in accordance with the Federal Acquisition Regulation, as interpreted and modified by the Medicare contract.  The UGS internal controls were generally adequate and we accepted $196.7 million in costs claimed.  We recommended financial adjustments totaling $260,831 for excessive executive compensation increases, unallocable guarantee fees, and overcharged corporate overhead.