Audit of Medicare Part A Administrative Costs Claimed For the Period October 1, 1998 Through September 30, 2001 - United Government Services, LLC, Milwaukee, Wisconsin

The objective of this audit was to determine whether United Government Services (UGS) had an effective system of internal controls and whether $197 million of administrative costs were claimed in accordance with the Federal Acquisition Regulation, as interpreted and modified by the Medicare contract. The UGS internal controls were generally adequate and we accepted $196.7 million in costs claimed. We recommended financial adjustments totaling $260,831 for excessive executive compensation increases, unallocable guarantee fees, and overcharged corporate overhead.