Institutional Federal Compliance Report 2021

ANDREWM. CUOMO Governor ROBERT F. MUJICA JR. Director of the Budget

SANDRA L. BEATTIE Deputy Director

2017-18 Prior-Year Finding Summary-

State Fiscal Year Ended March 31, 2017

Prior-Year Audit Period:

Department of Health

State Agency:

Lori Conway

Single Audit Contact:

Associate Accountant

Title:

Telephone:

518-473-3920

E-mail Address:

Lori.Conway@health.ny.gov

Prior-Year Audit Report Page Reference:

73

Prior-Year Finding Number:

2017-027

Status Report on Prior-Year Finding:

A subset of HARP-related claim s was missed and had to be invoiced at a later point in time. To ensure that this does not re-occur the Division of Finance and Rate Setting, responsible for rebate invoicing, will now be notified by the Division of Health Plan Contracting & Oversight when any new program/plan type is scheduled to be implemented in order to inform decisions relative to rebate concerns. The State's contractor has also been made aware of the issue and will work with the Department to make sure required system updates are implemented in a timely manner. Progress Update: The Department sent retroactive invoices to manufacturers on January 12th, 2018 for the uncollected HARP drug rebates in the amount of $204 M for the retroactive period of October 1, 2015 through March 31, 2017. As of June 15th, $177 M has been collected. The State's contractor continues to work to collect the remaining balance owed to the State.

Anticipated Completion Date: Corrective action taken and implemented.

State Capitol, Albany, NY 12224 │ www.budget.ny.gov