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Allowability of Costs Claimed for Reimbursement Under Florida's Bioterrorism Hospital Preparedness Program for the Period September 1, 2004, Through August 31, 2006

Of the $53.4 million that the State claimed for reimbursement under the Bioterrorism Hospital Preparedness Program for the period September 1, 2004, through August 31, 2006, approximately $52 million was allowable, allocable, and reasonable. However, the State agency claimed $51,000 in unallowable costs that were improperly charged to the program. In addition, $1.3 million may be unallowable because the costs may not be authorized by Florida statutes.

We recommended that the State refund $51,000 for costs that were improperly charged to the program; determine whether the State's initiation of staffing contracts bypassed the position limitations imposed by the Florida Legislature and, if so, refund the $1.3 million in unallowable costs and stop initiating staffing contracts; and improve policies and procedures to ensure that all costs claimed for reimbursement comply with applicable laws, regulations, and program guidance. The State agreed with our findings regarding the $51,000 in unallowable costs. With respect to the $1.3 million in potentially unallowable costs, the State agency said that it was pursuing this issue with the State's Department of Management Services.

Filed under: Center for Medicare and Medicaid Services