Review of the Do Not Forward Initiative

EXECUTIVE SUMMARY:

The objective of the review was to evaluate the accounting controls and processes for recording and reporting expenses, liabilities and cash expenditures for checks returned or withheld from Medicare providers under the "Do Not Forward (DNF) Initiative."  The review identified system limitations and weaknesses in the implementation of the DNF guidelines that resulted in misstatements totaling $4,845,530 in Region II carriers' financial reports.  We recommended that the Centers for Medicare and Medicaid Services (CMS) regional office work with its contractors to effectively implement the DNF guidelines, assure that the misstatements of the financial reports have been properly resolved, and follow up with the contractors to ensure that their financial reports are accurately prepared.  The CMS regional office concurred with the recommendations.  Since the system limitations identified by this review could affect contractors outside Region II, this matter has also been referred to the CMS central office for further consideration.