Review of Oregon State's Administrative Cost Claimed for Medicaid School-Based Health Services in State Fiscal Year 2000

EXECUTIVE SUMMARY:

The objective of this review was to determine whether the administrative expenditures claimed by the Oregon State Department of Health Services, Office of Medical Assistance Programs (Oregon), for school-based health services for the period July 1, 1999 through June 30, 2000 (state fiscal year (SFY) 2000) were reasonable, allowable, and adequately supported.  We found that Oregon did not properly monitor the school-based health services administrative match program (Program).  As a result, in SFY 2000, Oregon:  (1) did not ensure that unallowable costs were excluded from claims submitted for Program reimbursement; and (2) allowed invalid time studies to be used to claim federal reimbursement.

However, due to Program reimbursement limits by Oregon, it appears that the unallowable costs were not claimed for federal financial participation.  Oregon would have been reimbursed between $3.5 million and $5.3 million in unallowable costs if it had not limited reimbursement for SFY 2000.  We recommended that Oregon:  (1) ensure Program expenditures are reasonable, allowable, and adequately supported; and (2) ensure time studies are properly conducted and that results are a valid representation of the activities performed.