Federal Reports

The State agency claimed costs under Federal fiscal years 2010 through 2013 Centers for Disease Control and Prevention (CDC), Prevention and Public Health Fund (PPHF), awards that were not always in accordance with Federal requirements. Of the 135 sample items with transactions totaling $3.43 million in our statistical sample, 126 totaling $3.4 million were allowable, but 9 totaling $27,000 were not. In addition, of the 156 subgrantee transactions totaling $847,000 in our judgmental sample, 152 totaling $824,000 were allowable, but 4 totaling $23,000 were not. The State agency claimed unallowable costs under CDC PPHF awards because it did not have adequate controls to ensure that all costs charged to the awards were allowable.

Although the Montana Department of Public Health and Human Services (State agency) generally complied with Federal Medicaid requirements for invoicing manufacturers for rebates for physician-administered drugs, it claimed unallowable Federal reimbursement for some of these drugs. The State agency did not invoice manufacturers for rebates associated with $24,000 ($16,000 Federal share) in physician-administered drugs. Of this amount, $19,000 ($13,000 Federal share) was for single-source drugs, and $5,000 ($3,000 Federal share) was for top-20 multiple-source drugs. Because the State agency's internal controls did not always ensure that it invoiced manufacturers to secure rebates, the State agency improperly claimed Federal reimbursement for these single-source drugs and top-20 multiple-source drugs

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