Review of Illinois Medicaid School-Based Administrative Costs For State Fiscal Year 2001

EXECUTIVE SUMMARY:

Our objective was to determine whether Medicaid administrative costs claimed by Illinois for school-based services at two local education agencies for State fiscal year (SFY) 2001 were reasonable, allowable, and adequately supported in accordance with applicable Federal and State requirements.  We determined that the Chicago local education agency claimed unallowable Federal financial participation of $22,976 for enhanced reimbursement.  In addition, time study documentation at both the Chicago and the Peoria local education agencies was generally not sufficient for us to verify that skilled professional medical personnel expertise was required to perform the activities claimed at the enhanced 75 percent rate.  We recommended that Illinois refund the $22,976 and work with the local education agencies to ensure that sufficient documentation is maintained to allow independent verification that skilled professional medical expertise is required to perform all activities claimed at the enhanced rate.  Illinois agreed.