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Brought to you by the Council of the Inspectors General on Integrity and Efficiency
Financial statements of the Appalachian Regional Commission (ARC), which comprise the consolidated balance sheets as of September 30, 2015 and 2014, and the related consolidated statements of net cost, changes in net position, and combined budgetary resources for the years then ended, and the related notes to the financial statements (hereinafter referred to as “financial statements”)
High-Risk Security Vulnerabilities Identified During Reviews of Information System General Controls at Three California Managed-Care Organizations Raise Concerns About the Integrity of Systems Used To Process Medicaid Claims
We summarized the high-risk security vulnerabilities that we identified as audit findings in our previous reviews of information system general controls at three California Medi Cal managed-care organizations (MCOs). We identified 74 high-risk security vulnerabilities in the information system general controls at the 3 Medi-Cal MCOs we reviewed. We grouped these 74 vulnerabilities into 14 security control areas within 3 information system general control categories: access controls, configuration management, and security management. In 6 of the 14 security control areas, all 3 MCOs had vulnerabilities, which accounted for 53 of the 74 vulnerabilities. Accordingly, we determined that most of the 74 vulnerabilities were significant and pervasive.
During this period, we completed 74 investigations involving fraud or corruption related to the Department’s programs and operations, securing about $50 million in settlements, fines, restitutions, recoveries, forfeitures, and savings. In addition, as a result of our investigative work, criminal actions were taken against a number of people, including school officials and service providers who cheated the students they were in positions to serve. We also issued nine audit reports that contained recommendations to improve program operations.
