Gov't audit insider: Improper administrative costs strike again
Healthcare Auditing Weekly, May 18, 2004
An audit of administrative costs incurred by the intermediary, TrailBlazer Health Enterprises, LLC, revealed $600,000 in "questionable" costs related to executive compensation, compensation limits, unallowable costs, and returns on investments, the OIG said in an audit report released May 13.
The OIG's audit objective was to evaluate TrailBlazer's costs of administration and determinewhether these costs were reasonable and allowable.
To reach its objective, the OIG performed the following tasks:
- Reviewed applicable laws and regulations.
- Discussed administrative cost procedures with the intermediary's officials.
- Reviewed accounting policies and relevant procedures.
- Reconciled various financial statements.
- "Judgmentally" selected and reviewed invoices for unacceptable costs.
Click here to read the TrailBlazer audit report on inappropriate administrative costs.
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