Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

Cause The condition found is due to the Department’s utilization of a third-party service provider to assist in the performance of the institutional cost reports of inpatient hospital facility audits. In order to secure a third-party service provider, the Department must comply with New York State procurement law. During the current fiscal year, such contracts had expired, and internal policies and procedures, including monitoring controls, were not established at a level of precision to ensure that procurement activities were undertaken to allow the contracting and related audits to be completed timely. Possible Asserted Effect Failure to perform timely audits of inpatient hospital facilities may result in payment of rates that are in excess of rates that are reasonable and adequate to meet the costs that must be incurred by efficiently and economically operated providers in accordance with Federal statutes, regulations, and the terms and conditions of the contract. Questioned Costs None Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend that the Department implement policies and procedures, including monitoring controls to ensure third-party service providers are timely procured to allow for periodic inpatient hospital facilities audits to be performed in accordance with the State’s Medicaid Plan. Views of Responsible Officials Recommendation accepted. Corrective action completed. The Department is taking necessary steps to avoid future delays.

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