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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Audit of Medicaid Family Care Administrative Costs Claimed For the Period October 1, 1999 Through December 31, 2002 - Wisconsin Department of Health and Family Services, Madison, Wisconsin," (A-05-03-00067)

June 30, 2004

Complete Text of Report is available in PDF format (513 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 administrative costs claimed by the State agency for the Medicaid Family Care waiver program were identified and separately reported, properly allocated, and reasonable and allowable.  Although the State agency generally exercised adequate control over administrative costs claimed amounting to $10.2 million (Federal share), it needs to improve (1) segregating and reporting of waiver administrative costs, (2) updating of county cost allocation rates for information and assistance costs, and (3) screening for unreasonable and unallowable county expenditures.  We also recommended financial adjustments for unallocable and unallowable costs totaling $129,663 (Federal share).  State agency officials generally concurred with the recommendations, except for separate reporting of administrative costs by waiver program.