EXECUTIVE SUMMARY:
This final audit report points out that Staff Builders, Inc. improperly claimed Medicare reimbursements for home office costs totaling approximately $3.4 million for Fiscal Year 1994. The improper claims were related to costs that were; improperly allocated, primarily related to private lines of business, not related to patient care, not reasonable, inadequately documented, and not properly offset by related rebates and interest income. We recommended a financial adjustment and procedural improvements to strengthen controls applicable to the preparation of future home office cost statements.