Review of Escheated Warrants for the State of Maryland's Department of Health and Mental Hygiene

EXECUTIVE SUMMARY:

The objective of this audit was to assess the effectiveness and efficiency of  Maryland's procedures for identifying, crediting and reporting the federal financial participation (FFP) of escheated warrants.  Our review covered July 1, 1998 through June 30, 2001.  We determined that for this period, Maryland's Department of Health and Mental Hygiene did not reimburse FFP of:  (1) $62,265 in unpresented checks; (2) $10,441 in undeliverable checks; and 3) $6,248 for canceled or deleted checks.  We calculated accrued interest of $23,499 for the FFP portion on the escheated warrants.