Finding Text
Finding: 2025-006 Preparation and Submission of Medicare Cost Report Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Management is responsible for adhering to all requirements stipulated by contracts with various payers. One such requirement is the annual filing of the Medicare cost report as required by the Organization’s contracts with the Centers for Medicare and Medicaid Services (CMS). Condition: The Organization’s Medicare cost report for the year ended May 31, 2024 was not filed within five months of the fiscal year end. Cause: The Organization failed to file the Medicare cost report timely as required by contracts with CMS. Effect: CMS withheld outstanding payments due to the organization until the Medicare cost report was filed, resulting in large receivable balances and restricted cash flows. Due to the size and volume of the Organization’s transactions with CMS, this could have a detrimental effect on the Organization’s operations. Questioned Costs: None reported. Context/Sampling: None Repeat Finding from Prior Year: No Recommendation: Management should design and implement controls to ensure that the Medicare and Medicaid cost reports are filed on or before their annual due date to ensure timely collections of settlements and to prevent withholding of claim payments by CMS. Views of Responsible Officials: Management concurs. The Organization will design and implement controls to ensure that the Medicare and Medicaid cost reports are filed in a timely manner. Contact Person: Amanda Duke, COO Anticipated Date of Completion: January 31, 2026