2022?032 ALLOWABILITY OF EXPENDITURES Federal Program Information: Federal Agency and Program Name Assistance Listing # U.S. Department of Health and Human Services Children?s Health Insurance Program (CHIP) 93.767 Grant Award 2005WV5021 Grant Award 2105WV5021 Grant Award 2205WV5021Criteria: 2 CFR 200.302(a) states, ?Each state must expend and account for the Federal award in accordance with state laws and procedures for expending and accounting for the state?s own funds. In addition, the state?s and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR 200.403(g) states costs must ?Be adequately documented.? 2 CFR 200.456 states ?Participant support costs as defined in 200.1 are allowable with the prior approval of the Federal awarding agency.? Condition: During our testing of the allowability it was noted that for four out of 60 tested, the West Virginia Department of Health and Human Resources (WVDHHR) did not perform the quarterly updates to the wage index for the Outpatient Prospective Payment System (OPPS). Questioned Costs: $841.58 ? Assistance Listing #93.767 Context: The four expenditures represent $841 of the 60 expenditures selected for testing of $140,069. The federal expenditures for the CHIP program for the fiscal year ended June 30, 2022, were $75,615,993. Cause: WVDHHR did not update wage index for OPPS payments for four of the 60 expenditures. Effect: Incorrect payments may have been made for procedure codes. Recommendation: Management should develop an effective corrective action plan to address this matter in a timely manner. Views of Responsible Officials: Management concurs with the finding and has developed a plan to correct the finding.
2022?032 ALLOWABILITY OF EXPENDITURES Federal Program Information: Federal Agency and Program Name Assistance Listing # U.S. Department of Health and Human Services Children?s Health Insurance Program (CHIP) 93.767 Grant Award 2005WV5021 Grant Award 2105WV5021 Grant Award 2205WV5021Criteria: 2 CFR 200.302(a) states, ?Each state must expend and account for the Federal award in accordance with state laws and procedures for expending and accounting for the state?s own funds. In addition, the state?s and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR 200.403(g) states costs must ?Be adequately documented.? 2 CFR 200.456 states ?Participant support costs as defined in 200.1 are allowable with the prior approval of the Federal awarding agency.? Condition: During our testing of the allowability it was noted that for four out of 60 tested, the West Virginia Department of Health and Human Resources (WVDHHR) did not perform the quarterly updates to the wage index for the Outpatient Prospective Payment System (OPPS). Questioned Costs: $841.58 ? Assistance Listing #93.767 Context: The four expenditures represent $841 of the 60 expenditures selected for testing of $140,069. The federal expenditures for the CHIP program for the fiscal year ended June 30, 2022, were $75,615,993. Cause: WVDHHR did not update wage index for OPPS payments for four of the 60 expenditures. Effect: Incorrect payments may have been made for procedure codes. Recommendation: Management should develop an effective corrective action plan to address this matter in a timely manner. Views of Responsible Officials: Management concurs with the finding and has developed a plan to correct the finding.