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Audit (A-06-10-00051)

Review of Arkansas' Reporting Fund Recoveries for Federal and State Medicaid Programs on the CMS-64 Report for State Fiscal Year 2009

Executive Summary

For State fiscal year 2009, the Arkansas Department of Human Services, Division of Medical Services (State agency), did not report or have supporting documentation for Medicaid overpayments totaling $129,000 ($95,000 Federal share). Of the 125 sampled overpayments we reviewed, 7 were partially reported or not reported on the CMS-64 report, and 13 were not supported by documentation that reconciled with the CMS-64 report. Also, the State agency did not report overpayments that were refunded to it on the CMS-64 report for the quarter ended March 31, 2009, resulting in an error of $3.8 million ($2.8 million Federal share). As a result of our audit, the State agency refunded the overpayments on the CMS-64 report for the quarter ended March 31, 2010.

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