Inspector General's Reconciliation Testing of the March 2003 Monthly Contractor Financial Reports Submitted by United Government Services

EXECUTIVE SUMMARY:

The objective of this review at United Government Services' (UGS) was to determine if the Medicare Part A funds drawn and funds expended reported to the Centers for Medicare & Medicaid Services (CMS) on the March 2003 CMS-1521 and CMS-1522 forms reconciled to UGS' financial records and paid claims tapes. UGS reported $2.29 billion in funds drawn, and $2.34 billion in funds expended, on its March 2003 CMS- 1521 and CMS-1522 forms in accordance with CMS instructions for preparing the CMS forms and the guidelines set forth by the CMS. Accordingly, we were able to reconcile funds drawn and funds expended to UGS's financial records and paid claims tapes. However, we found that UGS misclassified certain reported amounts and did not always deposit cash receipts timely due to isolated internal control weaknesses. These weaknesses did not impact funds drawn and funds expended. UGS concurred with our finding and recommendations and has initiated corrective action.

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