DES-DDD June 30, 2000 ALTCS Contract-Report Highlights-Financial Audit

Office Of The Auditor General

Informations

• Publié par: Niphar
• Nombre de lectures: 51
• Langue: English

Extrait

Department of
Economic Security
Division of Developmental
Disabilities ALTCS Contract
REPORT
HIGHLIGHTS Financial Statement
FINANCIAL STATEMENT AUDIT Audit Summary
Subject
The Department of
Economic Security issues Arizona Health Care Cost
financial statements Containment System
annually for the Division of Auditor recommendations to (AHCCCS) Arizona Long-TTermDevelopmental Disabilities improve internal control and Arizona Long-Term Care Care System (ALTCS)
compliance— System Contract. The pprrooggrraamm——The Department of
Division is responsible for Economic Security’s Division ofpreparing the financial To help ensure computer system Developmental Disabilities (Division) is astatements, maintaining access controls prevent or detect
strong internal controls contractor with AHCCCS to provide unauthorized use, damage, loss, over financial reporting, medical and healthcare services to or modifications, and misuse of and demonstrating
eligible enrollees of the ALTCS program sensitive information, the Division accountability for its use
for the developmentally disabled. This should monitor and enforce the of public monies. As
auditors, our job is to following policies and program provides inpatient and
determine whether the procedures. outpatient medical and nursing services
Division has met its
o Retain computer access in addition to managed institutional andresponsibilities.
request forms with the home- and community-based long-term
Supervisor’s approval. Our Conclusion care services to the program’s eligible
o Eliminate all generic user
enrollees.The information in the accounts and assign each
financial statements is
user account to an individual fairly stated in all material Division Needs to Strengthen employee. respects, and the financial Internal Controls and Comply
o Limit access rights to those statements can be relied
with AHCCCS Contractualon. However, auditors compatible with each
noted one deficiency in RReeqquuiirreemmeennttss——The Division’s employee’s job
internal control over management is responsible for responsibilities. financial reporting, and
preparing accurate financial statements To comply with the ALTCS one instance of
and demonstrating compliance with Contract case management noncompliance with its
contractual agreements requirements, the Division should AHCCCS’ contractual requirements.
with AHCCCS. monitor and enforce its policies However, the Division did not always
and procedures to ensure meet these objectives as the Division
required information is included did not always adequately limit
in the member case files and that computer access to its claims payment
periodic on-site reviews occur system and did not always perform or
within specific time frames. document its case management
reviews during fiscal year 2009. Our2009
recommendations are in the summary
to the right.Year Ended June 30, 2009Condensed Financial Information
TO OBTAIN
MORE INFORMATTIIOONN
A copy of the full reportThe Division’s ALTCS Contract financial Balance Sheet
June 30, 2009 is available at:information is presented in a Balance Sheet
(In Millions) www.azauditor.govand Statement of Revenues, Expenditures,
and Changes in Fund Balance. Contact person:Assets:
Victoria FisherCash on deposit with the State Treasurer $ 8.0
Balance Sheet—This statement reports [phone]Due from other state funds 59.9
Due from providers 0.6 all assets and liabilities using the modified
Total assets $68.5 accrual basis of accounting. Fund balance,
the difference between assets and liabilities,
Liabilities and Fund Balance: is one way to measure the Division’s
Accrued administrative and payroll costs $ 4.7
financial health. The summary to the right Accrued medical and healthcare claims 70.5
presents the Division’s Balance Sheet at Due to other state funds 0.9
Total liabilities 76.1 June 30, 2009.
Fund balance-deficit (7.6)
Total liabilities and fund balance $68.5 Statement of Revenues,
EExxppeennddiittuurreess,, aanndd CChhaannggeess iinn
Statement of Revenues, Fund Balance—This statement
Expenditures, and Changes in Fund Balance
presents information showing how fund Year Ended June 30, 2009
balance changed during the most recent (In Millions)
fiscal year. The change in fund balance
Revenues: indicates whether the Contract’s financial
Capitation $884.4
health has improved or deteriorated as a Ventilator dependent 4.8
Fee for service 1.0 result of current-year operation. For the
Investment earnings 1.3 current year, the Contract’s fund deficit
Total revenues 891.5 increased by $4.2 million. The Contract is

required to provide all covered healthcareExpenditures:
Health and welfare: services to its members regardless of the
Aid to individuals 787.2 cost of care. The ALTCS Contract receives
Allocated administrative expenditures 29.2
fixed capitation payments based on certain
Case management 37.0
rates for each member enrolled in the Professional and outside services 6.5
Premium tax 18.8 Division’s ALTCS Contract program. If there
Total expenditures 878.7 are funds remaining, the Contract retains

the funds as profit; if the costs are higher Excess of revenues over expenditures 12.8
than the amount of capitation payments
Other financing uses: from AHCCCS, the Contract absorbs the
Transfer to other state funds (17.0) loss. The summary to the right presents
Net change in fund balance (4.2)
revenues and expenditures for the year Fund deficit—beginning (3.4)
ended June 30, 2009. Fund deficit—ending $ (7.6)
REPORT
HIGHLIGHTS
FINANCIAL STATEMENT AUDIT
Year Ended June 30, 2009
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