Implementing a Common Audit Program - (Rev. 1, 08-30-02)

490.6 - Implementing a Common Audit Program - (Rev. 1, 08-30-02) A1-1603.6 The CMS has contracted with intermediaries to perform certain functions required under title XVIII. The title V and XIX programs, which use State funds in conjunction with Federal funds, are administered by the States; therefore, an agreement should be executed between the intermediaries and the State agencies or their fiscal agents, whoever has the responsibility for auditing providers under titles V and XIX, to delineate the procedures to be followed, costs to be shared, method of payment for services, coordination necessary, and such other items as may be necessary for a complete understanding of what is expected of each party. A model agreement (Exhibit l) is furnished as a guide in the preparation of the agreement. Where the intermediary is also the fiscal agent for the State and responsible for the audit of providers under title V and/or title XIX, a common audit agreement is still necessary and should be submitted to CMS for review before being effectuated. In all cases, two copies of the executed agreement should be forwarded to the CMS regional office. The regional office will forward one of the copies to the Division of Contractor Operations so the common audit program can be monitored on a nationwide basis to assure consistent application of policy.