Federal Reports

Audit Report

We found that Puerto Rico can improve its oversight of the Adult Education program to ensure that it (1) submits complete,supported, and accurate performance data to the Department, (2) uses funds in compliance with applicable laws and regulations, and (3) obtains and reviews single audit reports of subgrantees. Specifically, we found that Puerto Rico did not always: submit complete, supported, and accurate program performance data to the Department; provide sufficient documentation to demonstrate compliance with the approval process for personal services contracts; provide semiannual certifications for employees who worked full time on the Adult Education program; provide sufficient documentation to support nonpayroll payments; and obtain and review Office of Management and Budget Circular A-133 single audit reports for Adult Education program subgrantees that required a single audit.

EAC OIG, through the independent public accounting firm of Brown & Company, LLC, audited EAC's financial statements for fiscal year 2017. This letter conveys information concerning control weaknesses, identified during that audit, which do not risk to the level of a significant deficiency or material weakness.

Memorial University Medical Center complied with Medicare billing requirements for 92 of the 131 inpatient and outpatient claims we reviewed. However, the Hospital did not fully comply with Medicare billing requirements for the remaining 39 claims, resulting in overpayments of $599,530.

For the grant we reviewed, Association for Public Health Laboratories managed Global Health Security Agenda funds during the budget period July 1, 2015 through June 30, 2016, in accordance with Federal requirements. Accordingly, this report contains no recommendations.

The Patient Protection and Affordable Care Act gave States the option to expand Medicaid coverage to low-income adults without dependent children. It also mandated changes to Medicaid eligibility rules and established a higher Federal reimbursement rate for services provided to these beneficiaries, which led us to review whether States were correctly determining eligibility for these newly eligible beneficiaries. California was one of 31 States, along with the District of Columbia, that chose to expand Medicaid coverage.