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The objective of this review was to determine whether the Oklahoma Health Care Authority (OHCA) had established adequate accountability and internal controls over the Medicaid drug rebate program. Our audit covered Medicaid drug rebates through June 30, 2002. However, the OHCA completed an information system conversion in December 2002, which resulted in a new accounts receivable system. Because of this change, we limited our review to the controls over cash receipts.
We found that OHCA had established adequate controls over cash receipts related to the drug rebate program, but inaccurate data was transferred into the new accounts receivable system from the old system. Until the records in the new accounts receivable system are adjusted to accurately reflect the billing and payment history, the OHCA cannot be assured that all rebates have been collected. The OHCA agreed with our finding and recommendation.