California Withdrew Excessive Federal Medicaid Funds for Fiscal Year 2010 

Of the $27.6 billion in Federal Medicaid funds that the California Department of Health Care Services (State agency) obtained for fiscal year (FY) 2010, $20.3 million was not supported by net expenditures. Specifically, the State agency (1) refunded less to its FY 2010 Payment Management System (PMS) accounts for certain adjustments to reduce its expenditures than it reported for those adjustments on the CMS 64s and (2) obtained funds for expenditures that it did not report on the CMS 64s. After reconciling the FY 2010 PMS accounts, the State agency did not take appropriate corrective actions for the $20.3 million because it did not have specific policies and procedures to resolve the differences identified or because it chose not to take action.