Review of Kansas Medicaid Payments for the School District Administrative Claiming Program During the Period April 1, 2006, Through March 31, 2009

Not all of the Medicaid administrative costs that the Kansas Division of Health Care Finance (State agency) claimed for school-based health services for the Wichita, Topeka, and Olathe school districts during the period April 1, 2006, through March 31, 2009, were reasonable, allowable, and adequately supported pursuant to applicable Federal regulations and the State plan. Specifically, of the $2.02 million (Federal share) that the State agency claimed in administrative costs for the School District Administrative Claiming (SDAC) program for the Wichita, Topeka, and Olathe school districts for this period, $101,000 (Federal share) was unallowable for Federal reimbursement. An additional $21,000 (Federal share) in administrative costs related to incorrectly calculated materials and supplies costs, claimed for the Topeka school district, may not have been allowable for Federal reimbursement.

In addition, two errors identified during our review of the audited (Wichita, Topeka, and Olathe) school districts impacted not only these school districts, but also all other participating Kansas school districts. As a result of these errors, the three audited school districts and all other participating Kansas school districts received a total of $1.97 million (Federal share) in unallowable Medicaid payments for the period April 1, 2006, through March 31, 2009.