Department of Health and Human Services

Office of Inspector General -- AUDIT

Complete Text of Report is available in PDF format (728 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

EXECUTIVE SUMMARY:

The Senate Finance Committee requested that we assess the fiscal integrity of the Medicare Quality Improvement Organizations with respect to six specified fiscal integrity areas.  Of the $7.7 million of costs reviewed, $7.6 million appeared reasonable for Federal reimbursement.  Of the remaining costs, Ohio KePRO Inc. incurred $11,874 for costs that were unallowable and $78,267 for costs that may not have complied with Federal requirements.

We recommended that Ohio KePRO (1) refund $1,622 identified as unallowable direct conference-related costs; (2) reduce the indirect cost pool by $10,252 identified as unallowable indirect costs; (3) work with the CMS contracting officer to determine what portion of the $78,267 incurred for unsupported subcontractor labor and conference costs should be excluded from Federal reimbursement; and (4) maintain all Government-owned equipment in accordance with Federal Acquisition Regulation requirements, including performing periodic reconciliations of inventories, keeping complete inventory records, and reporting any excess equipment.  Ohio KePRO generally disagreed with the recommendations.