Finding 13136 (2022-001)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-06-27

AI Summary

  • Core Issue: Expenditures for the Alabama Medicaid Administrative Claiming program included unsupported costs and duplication of federal funds, totaling $1,213,116 in questioned costs.
  • Impacted Requirements: Compliance with OMB guidelines and Alabama Medicaid Administrative Claim Program cost allocation standards was not met due to inadequate review processes.
  • Recommended Follow-Up: Implement reconciliation procedures and require annual training for MAC Program Coordinators to ensure proper claim submissions and compliance.

Finding Text

HHS Medical Assistance Program ? CFDA No. 93.778 ? Assistance Period: FYE September 30, 2022. Criteria: Compliance requirements for the program as shown on the Matrix of Compliance Requirements- OMB Compliance Supplement and Alabama Medicaid Administrative Claim Program (MAC) Public Assistance Cost Allocation Plan. Condition: Expenditures submitted for the Alabama Medicaid Administrative Claiming program included expenditures supported by federal funds and undocumented costs. Questioned Costs: $1,213,116. $10,648 relates to duplication of federal funds for individual participant salary and benefit costs. $235,937 relates to duplication of federal funds in the allocated costs reported on the claim. $966,531 relates to costs paid with non-federal funds that were not properly documented. This amount was determined by inspecting documents used to complete claim for reimbursement. Context: 5% of the school districts participating in the MAC program were examined. Of the 7 examined, 3 claimed expenditures that were supported by federal funds. The sample was a statistically valid sample. The claim quarters paid during the fiscal year were: July-September 2021, October-December 2021, January-March 2022 and April-June 2022. Effect: Duplication of federal funds. Ineligible costs. Cause: Lack of reconciliation and review procedures applied by participating school district MAC Program Coordinators to claim data prior to submission for payment. Recommendation: We recommend that Tallassee City Board of Education develop reconciliation and review procedures to be applied by the participating school districts prior to the quarterly claim submission. We also recommend that participating district MAC Program Coordinators be required to participate in training specific to the MAC claims process on an annual basis. New coordinators should be required to complete the training prior to submitting claims for reimbursement. Response: Tallassee City Board of Education agrees with the finding and will immediately begin to develop additional procedures and policies based on the recommendations and disseminate the information to the participating districts.

Corrective Action Plan

Expenditures submitted for the Alabama Medicaid Administrative Claiming program included expenditures supported by federal funds and undocumented costs. Contact Person: Dr. Brock Nolin, Superintendent Corrective Action: Claims will be adjusted to correct the duplication of federal funds and undocumented costs. Policies and procedures will be implemented according to the recommendations found in the Schedule of Findings and Questioned Costs. Proposed Completion Date: Prior to the submission of the July ? September 2023 claim.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Eligibility Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 589578 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $54.66M
84.010 Title I Grants to Local Educational Agencies $374,771
32.009 Emergency Connectivity Fund Program $252,000
10.553 School Breakfast Program $205,316
10.555 National School Lunch Program $82,318
84.367 Improving Teacher Quality State Grants $58,426
84.424 Student Support and Academic Enrichment Program $26,206
84.048 Career and Technical Education -- Basic Grants to States $22,868
84.027 Special Education_grants to States $13,500
10.559 Summer Food Service Program for Children $12,356
10.560 State Administrative Expenses for Child Nutrition $3,657
84.173 Special Education_preschool Grants $2,920
10.558 Child and Adult Care Food Program $1,257
10.649 Pandemic Ebt Administrative Costs $1,123
96.001 Social Security_disability Insurance $720
84.425 Education Stabilization Fund $474