Review of Accounts Receivable Balances and Debt Management Activities at the Centers for Medicare and Medicaid Services, Region III Regional Office

EXECUTIVE SUMMARY:

This final report presents the results of our Review of Accounts Receivable Balances and Debt Management Activities at the Centers for Medicare and Medicaid Services (CMS), Region III Regional Office (RO-III).  Accounts receivable represent funds owed by medical providers to the Medicare program.  We found that financial adjustments and procedural improvements were needed to prevent the misstatement of the CMS financial statements.  The RO-III non-Medicare Secondary Payer accounts receivable balance as reported by CMS Central Office (CO) was overstated and the currently not collectible balance was overstated.  We attributed the inaccuracy of the reported accounts receivable balances to weaknesses in the CMS debt management system.  The RO-III made corrections to adjust these balances as of December 31, 2000.