An accounts payable audit of the Ohio Department of Developmental Disabilities has uncovered a $1.3 million documentation discrepancy, according to the Columbus Dispatch. When the department sought reimbursement by Medicaid, questions were raised about the money, which was paid to Advocacy & Protective Services in 2009.
The AP audit found that the department appeared to be paying the company for administrative costs regularly without detailing what the payments were for.
"With this lack of detail, it is difficult, if not impossible to determine if the required minimum of 90 percent of total expenditures are direct costs as required by the personal service contract," said the audit, as quoted by the news source.
However, despite the lack of documentation, a department spokeswoman said the agency produced invoices to support the expenditures at a recent meeting with auditors.
If the invoices include a description of services performed and hours worked, along with a date, a signature of an authorizing agent and other information, the state's Medicaid program will reimburse the administrative costs, according to the news source.
Carrying out regular internal audits can help organizations identify insufficient documentation or other inconsistencies before the external auditors come in.