Resolution of Audit Findings on States' Beneficiary Eligibility Determinations for Medicaid and the

Off~ce of Inspector General DEPARTMENT OF HEALTH & HUMAN SERVICES Wash~ngton.D C 20201 MAY - 2 2006 Mark B. McClellan, M.D., Ph.D. TO: Administrator Centers for Medicare & Medicaid Services FROM: Daniel R. Levinson Inspector General Resolution of Audit Findings on States' Beneficiary Eligibility Determinations for SUBJECT: Medicaid and the State Children's Health Insurance Program (A-07-06-03073) Attached is a copy of our final report on the Centers for Medicare & Medicaid Services (CMS) resolution of Office of Management and Budget (OMB) Circular A-133 audit findings on States' beneficiary eligibility determinations for Medicaid and the State Children's Health Insurance Program (SCHIP). OMB Circular A-133 states that each Federal awarding agency is responsible for issuing a management decision on audit findings that relate to its Federal awards. A management decision is the evaluation of the audit and the proposed corrective action plan and the issuance of a written decision on what corrective action is necessary. CMS is the Federal awarding agency for grants under Medicaid and SCHIP. According to the Department of Health and Human Services (HHS) "Grants Administration Manual," section 1-105-30(B)(1), action officials must resolve audit findings within 6 months of the end of the month of issuance or release of the audit report by the HHS Office of Inspector General. Our objective was to determine, as of November 1,2005, whether CMS had ...