Report Materials
EXECUTIVE SUMMARY:
The objectives of this review were to determine whether termination costs claimed by Horizon were allowable, allocable and reasonable. Our audit of Horizon's Medicare Part A termination costs claimed on six termination cost vouchers for the period August 2000 through May 2001, which totaled $3,736,186, disclosed that the reported costs were overstated by $1,832,896. Specifically, reported termination costs improperly included: $1,804,000 of unfunded post retirement benefits, $15,529 of unallowable legal fees, $11,367 of severance pay related to non-Medicare employee functions and, $2,000 of employee training that did not benefit Medicare. We recommended a financial adjustment for $1,832,896.
Notice
This report may be subject to section 5274 of the National Defense Authorization Act Fiscal Year 2023, 117 Pub. L. 263.