HOMEMAKER SERVICE OF THE METROPOLITAN AREA, INC.Non-Profit

Condition: Accounts receivable and corresponding revenue were not reconciled on a timely basis. The receivables during the period were overstated as a result of current year rejected claims. Adjustments to audit year unpaid claims were necessary. Prior year unpaid claims over a year old were indeed written-off accordingly. Consequently, the monthly reporting of revenue and receivables were not accurately presented and analyses of rejected claims were not effectuated in a timely manner. Criteria: Internal controls and procedures should be in place to provide that dates and units of service are appropriate and accurately reflect the service provided; that all rejected claims be investigated and submitted on a timely basis; that prior year rejected claims be recorded to bad debt expense; and that current year claims deemed to be uncollectible and rejected by the State be removed from revenue and receivables on a timely basis (both from the general ledger and the subsidiary ledger). Further, a schedule should be maintained specifically identifying all bad debts written off during the year. Effect: Receivables remaining from a prior period were indeed written off during the period. However, current year revenue and receivables required adjustments for billings determined to be uncollectible subsequent to year end, thus overstating the revenue for Board review during the fiscal year. Context: Cash collections were recorded within the subsidiary system by client and accounts receivable by client were identified. The general ledger did not reflect on a timely basis the status of receivables and corresponding revenue with changes resulting from rejected claims. The rejected claims should be adjusted through revenue during the year and the evaluation performed on a more timely basis. Questioned Cost: None Recommendation: We recommend that rejected claims should be analyzed regularly and resubmitted as applicable on a timely basis?within two months of the original rejection. If found to be ineligible, such claims should be removed from revenue and receivable as soon as identified on both the subsidiary ledger and the accounting general ledger. We further recommend that specific listings be maintained of all uncollectible accounts (those either rejected by the Commonwealth for payment or those over one year old).

Condition: In home visits were not conducted in some cases as required. Further, client files were not always current with requisite documentation. Criteria: Internal controls and procedures should be in place to ensure that requisite in home visits are performed on a regular basis. Further, supervisors should ensure that all case workers? files have current information and are complete. Effect: Files were incomplete and certain clients did not have the required caseworker visitations Context: Certain compliance requirements were not met Questioned Cost: None Recommendation: We recommend that supervisors establish checklists and time lines to ensure caseworkers obtain the necessary documentation on a timely basis and that ?tickler files? be established to ensure home visitations are performed timely.

GSA_MIGRATION

GSA_MIGRATION