Railroad Retirement Board Did Not Calculate Reimbursed Medicare Costs in Accordance With Federal Requirements

Submitting OIG:

Railroad Retirement Board OIG

Short / Alternative Report Title:

RRB Did Not Calculate Reimbursed Medicare Costs in Accordance With Federal Requirements

Date Issued:

Monday, August 22, 2016

Agency Reviewed / Investigated:

Railroad Retirement Board

Submitting OIG-Specific Report Number:

16-10

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

$64,200,000

Funds for Better Use:

$19,500

Number of Recommendations:

View Document:

Attachment	Size
Audit Report 16-10 RRB OIG.pdf	470.03 KB

Recommendation Number	Recommendation Status	Significant Recommendation
16-10, 1	Open	No
The Executive Committee should perform a time study of Medicare work performed by all agency staff.
16-10, 2	Open	No
The Executive Committee should establish an Office of Management and Budget Circular A-87 compliant and Centers for Medicare and Medicaid Services approved personnel activity report based system that will ensure the capture and reporting of actual Medicare work performed.
16-10, 3	Open	No
The Executive Committee should update the Railroad Retirement Board employee direct labor profiles to represent actual work performed based on an Office of Management and Bduget Circular A-87 compliant system methodology.
16-10, 4	Open	No
The Bureau of Fiscal Operations should adopt and implement Office of Management and Budget Circular A-87 as an agency requirement.
16-10, 5	Open	No
The Bureau of Fiscal Operations should work with the Centers for Medicare and Medicaid Services to update the Medicare interagency agreement and establish procedures for maintaining and updating the agreement.
16-10, 6	Open	No
The Bureau of Fiscal Operations should re-evaluate the Railroad Retirement Boards’s cost allocation plan and implement an Office of Management and Budget Circular A-87 compliant methodology for future Medicare direct labor costs using appropriate specialists and expertise.
16-10, 7	Open	No
The Bureau of Fiscal Operations should utilize and maintain Office of Management and Budget Circular A-87 compliant personnel activity reports and employee certifications through authorization by the Railroad Retirement Board’s Executive Committee to ensure that reimbursed Medicare direct labor costs represents costs for actual and allowable Medicare work performed.
16-10, 8	Open	No
The Bureau of Fiscal Operations should work with the Centers for Medicare and Medicaid Services to determine, adjust, and correct any erroneous reimbursement of Medicare direct labor costs beginning with fiscal year 2010 to current based on actual work performed.
16-10, 9	Open	No
The Bureau of Fiscal Operations should develop and certify an indirect cost methodology and rate that complies with Office of Management and Budget Circular A-87 using appropriate specialists and expertise.
16-10, 10	Open	No
The Bureau of Fiscal Operations should obtain Centers of Medicare and Medicaid Services approval for the indirect cost methodology and rate developed based on the recommendations in this report.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

16-10, 1

Open

The Executive Committee should perform a time study of Medicare work performed by all agency staff.

16-10, 2

Open

The Executive Committee should establish an Office of Management and Budget Circular A-87 compliant and Centers for Medicare and Medicaid Services approved personnel activity report based system that will ensure the capture and reporting of actual Medicare work performed.

16-10, 3

Open