Single Audit Report Fiscal Year Ended June 30, 2012 - State ...

State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Community Health did not obtain from DAS and DBHDD all of the appropriate eligibilitydocumentation for MFP participants in accordance with departmental policy and procedures.Effect:Recommendation:An indeterminate number of participants are inadequately documented in accordance withdepartmental policy and procedures to demonstrate eligibility for the Money Follows the Personprogram. The monetary effect is that federal funds used to fund the MFP program may be used toprovide benefits for participants who are not eligible for the program.The Department of Community Health should implement an eligibility determination review process toensure that DAS and DBHDD are appropriately determining participant MFP eligibility in accordancewith federal and departmental guidelines. In addition, the Department should improve the proceduresfor monitoring the participant file documentation received from DAS and DBHDD to ensure that allappropriate documents are received.Finding Control Number: FA-419-12-06MATCHING, LEVEL OF EFFORT, EARMARKINGMatching of Allowable Medicaid Benefit ExpendituresARRA - Survey and Certification Ambulatory Surgical Center Healthcare-Associated Infection (ASC-HAI) PreventionInitiative (CFDA 93.720)State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare (CFDA 93.777)Medical Assistance Program (CFDA 93.778)U.S. Department of Health and Human ServicesGrant Awards: Year 2012 - 05-1105GA5ADM; 05-1105GA5MAP; 05-1105GAARRA; 05-1105GAEXTN; 05-1205GA5ADM; 05-1205GA5MAP; 05-1205GAIMPL; 05-1205GAINCTCondition:Criteria:Questioned Cost:Information:Cause:Effect:Recommendation:The state matching rate for the Department of Community Health's Medicaid Benefit expenditures isdetermined in accordance with the federal matching rate for such expenditures, referred to as theFederal Medical Assistance Percentage (FMAP). The FMAP for federal fiscal year (FFY) 2012 is66.16 percent and the FMAP for FFY 2011 is 65.33 percent. During fieldwork, we noted three (3)instances in a sample of sixty (60) Medicaid administrative expenditures in which incorrect federalmatching rates were used. Specifically, three (3) expenditures were using the FMAP rate for a prioryear.The Department of Community Health is responsible for the State of Georgia's Medicaid program. TheMedicaid program is overseen by the U.S. Department of Health and Human Services through theCenters for Medicare and Medicaid Services (CMS). The Department of Community Health isresponsible for matching federal program expenditures at the federally determined rate.The Department of Community Health over paid the state portion. The dollar variance of theoverpayments is immaterial.The Department of Community Health has an extensive chart of accounts to separately denoteexpenditures funding sources and other details. If the funding and other account information isdocumented incorrectly and is not corrected during the review and approval process, the expenditurecould be recorded incorrectly.The Department of Community Health did not adequately monitor the matching rate applied toMedicaid Benefit expenditures.The Department of Community Health did not match Medicaid Benefit expenditures at the correctfederally determined rate.The Department of Community Health should improve the monitoring policy for the payment ofMedicaid Benefit expenditures to ensure expenditures are matched at the proper rate.95