[read complete report - pdf]

Audit Objective

Determine whether claims were adequately documented, were for appropriate purposes and were properly audited and approved prior to payment.

Key Findings

• We reviewed 100 claims totaling $886,642 and found the claims auditor did not audit two claims totaling $251,601 for health insurance and Medicare reimbursement. In addition, two claims totaling $17,848 were improperly paid prior to audit.
• The claims auditor did not audit and approve any of the District’s health insurance claims and Medicare reimbursement payments, which totaled $3.5 million.
• The claims auditor did not audit and approve 13 scholarship disbursements totaling $5,700.

Key Recommendations

• Ensure that all claims for health insurance, Medicare reimbursements and scholarship payments are presented to the claims auditor for audit and approval prior to payment.
• Ensure no claims, other than those allowed by Law, are paid prior to the claims auditor’s audit and approval.

District officials agreed with our findings and indicated they plan to initiate corrective action.