Review of Vermont Medicaid School-Based Services for the Period October 2001 Through September 2002

EXECUTIVE SUMMARY:

The objective of this audit was to determine whether costs that Vermont claimed for school-based child health services were allowable and adequately supported in accordance with Federal regulations and the Medicaid State plan.  We found that, of the 1,087 claims in our statistical sample, 240 were not allowable or adequately supported.  As a result, we estimated that the State improperly claimed $1,463,395 in Federal funds for school-based services.  In addition to recommendations to correct procedural weaknesses, we recommended that the State refund the $1,463,395 in Federal funds.  The State commented that it had made some significant improvements in the program that addressed our procedural recommendations.  Although the State agreed with our findings for a number of the sampled claims reviewed, it believed that the dollar impact of the errors included in the report were overstated. 

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