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State Cost Allocations That Deviate from Acceptable Practices

Previous OIG reviews of school- and community-based administrative claims found significant unallowable payments that were based on random moment sampling systems. Such systems must be documented to support the propriety of the costs assigned to Federal awards (OMB Circular A87, Cost Principles for State, Local, and Indian Tribal Governments, Attachment A, § C.1.j). A State must claim Federal financial participation for costs associated with a program only in accordance with its approved cost allocation plan. (45 CFR § 95.517(a).) We will review public assistance cost allocation plans and processes for selected States to determine whether the States claimed Medicaid costs that were supported and allocated on the basis of random moment sampling systems that deviated from acceptable statistical sampling practices.

Announced or Revised Agency Title Component Report Number(s) Expected Issue Date (FY)
Completed Centers for Medicare & Medicaid Services State Cost Allocations That Deviate from Acceptable Practices Office of Audit Services A-02-17-01006;
A-07-18-04107;
A-04-17-00113;
W-00-17-31467; various reviews		 2021