Review of Medicare Contractor's Pension Segmentation, AdminaStar Federal of Kentucky

This final report provides the results of our review of Medicare Contractor's Pension Segmentation, AdminaStar Federal of Kentucky. Our review showed that Kentucky understated Medicare segment pension assets of October 1, 1994 by $1,236,890. The understatement primarily occurred because Kentucky did not make the correct transfer adjustment. We recommend that Kentucky increase the October 1, 1994 assets of the Medicare segment by $1,236,890. The auditee did not provide a response to our report.