Department of Public Health And Human Services Financial-Compliance Audit for the Two Fiscal Years Ended June 30 .. 2001

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Although department personnel matched expenditures to revenues for these grants, the affects of other activity impacting ending fiind balances were not considered. As a result, receivables and deferred revenue were overstated by approximately $10 million.
Expenditure amounts and vouchers payable of $700,890 were posted twice in the General Fund during fiscal year 1999-00. The error was not detected and corrected until the following year.
Department personnel recorded both the state and federal
...share of Medicaid reimbursement as revenue in fiscal year 1999-00 rather than just the federal share. In addition, accrued revenue from that fiscal year was recorded as revenue of the following fiscal year when it was collected. As a result, the department overstated current year reimbursement revenue and understated prior year revenue by $1,774, 622 in fiscal year 2000-01. The department could have Page 27 Findings and Recommendations Cash Transfers Nine Mill Levy Supplement Statewide Cost Allocation Plan Classincation of Administrative Costs detected these errors through a reconciUation of the SABHRS records to reimbursement billing spreadsheets maintained by department staff.

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