DEPARTMENT OF HEALTH CARE SERVICES

1. DEPARTMENT OF HEALTH CARE SERVICES Audits & Investigations – Financial Audits Branch Presented by: Gary Diffenderffer, CIA Health Program Audit Manager

2. Introduction: • Financial Audits Branch (FAB) • Cost Report Process: • Submission • Acceptance • Approval

3. Financial Audits Branch (FAB) • Responsible for providing program integrity of healthcare programs administered by the California Department of Health Care Services • Performs financial audits of Medi-Cal Providers (includes TCM) to ensure compliance with applicable laws, regulations, and program intent.

4. Cost Report Flow: Submission of Cost Report Acceptance Acceptance Letter Approval Approval Letter Begin Invoicing TCM Program

5. TCM Cost Reports - Submission • TCM Cost Reports due November 1st Hard Copy Audit Review and Analysis Section (ARAS) Soft Copy dhsaitcm@dhcs.ca.gov (Audits Section – Sacramento)

6. TCM Cost Reports - Submission • Hard Copy* – Includes, but not limited to the following: • Cover Letter • Certification Statement • Cost Report (Signed) / Including Funding Schedule • Time Survey Template • List Worksheet • Totals Worksheet • Time Sheets • Cost Report Review Tool • Supporting Documentation *Refer to TCM Cost Report Instructions - 2009

7. TCM Cost Reports - Submission • Soft Copy – Includes the following completed items: • Cost Report Template • Survey Template • List Worksheet • Totals Worksheet • Time Sheets • Funding Schedule • Cost Report Review Tool Template

8. TCM Cost Reports - Acceptance • Acceptance Process : • Responsibility of ARAS: • Completion of five page checklist: • Reconcile reported amounts on “hard copy” to “soft copy” of the filed TCM cost report Hard Copy Soft Copy • Ensure cost report is “complete” in accordance with the current TCM Cost Report Instructions

9. TCM Cost Reports - Acceptance • Acceptance Process: • Contact designated LGA Coordinator for missing and/or incorrect items. • Via email: Hello TCM Coordinator: Please send the requested information via email within the next 24 hours. Thanks, ARAS

10. TCM Cost Reports - Acceptance • Acceptance Process : • Acceptance Letterissued by ARAS Acceptance LetterLGA • For each TCM Cost Report (LGA, CBO, and LPE) • Identifies “postmark date” to establish 36-month audit period

11. TCM Cost Reports - Acceptance • Top reasons cost report was not accepted upon first review: • Did not include “TCM encounters by month” • IRS Form 990 not included • Electronic copy of Worksheet A did not match hard copy • Complete Table of Contents not included • Financial statements for CBO not included • Electronic copy of Cost Report not submitted

12. TCM Cost Reports - Acceptance • Top reasons cost report was not accepted upon first review: • All pages of the Cost Report Review Tool not submitted • Hard copies not signed • Incomplete CBO contract (need to include all pages) • Certification statements not signed • Funding Scheduled not included

13. TCM Cost Reports - Approval • Approval Process : • Responsibility of Audits Section - Sacramento • Review of checklist completed by ARAS • Identification of “potential” audit issues for future audits • Issuance of Approval Letter

14. TCM Cost Reports - Approval • Approval Process : • Approval Letter issued by Audits Section – Sacramento • Approval Letter • One letter issued for each target population served by an LGA • Purpose of the letter is to establish: • TCM Rate Period (2009/2010) • Rate Per TCM Encounter • TCM Maximum Amount

15. TCM Cost Reports - Approval Approval Process : (Excerpt from an Approval Letter) TCM Program Type (06): Public Health Rate Per TCM TCM Rate Period TCM EncounterMaximum Amount FY 2009-2010 $250.55 $100,220.00

16. TCM Cost Reports - Approval • Approval Process : • Approval Letter issued by Audits Section – Sacramento LGA Approval Letter TCM Program* *The Approval Letter authorizes the TCM Program to accept an LGA’s invoice(s), and establishes, both, the approved rate per encounter and maximum amount.

17. FAB Contact Information • Audit Review & Analysis Section (ARAS) • Robert Kvick, Chief • (916) 650-6673 • Robert.Kvick@dhcs.ca.gov • Audits Section - Sacramento • Gary Diffenderffer, Supervisor • (916) 650-6963 • Gary.Diffenderffer@dhcs.ca.gov

18. DEPARTMENT OF HEALTH CARE SERVICES Audits & Investigations – Financial Audits Branch Presented by: Gary Diffenderffer, CIA Health Program Audit Manager