J Controls – Financial Reporting Review Requirements

50.10 – J Controls – Financial Reporting Review Requirements (Rev. 10614, Issued: 03-23-21, Effective: 10-01-20, Implementation: 04-22-21) Transactions for Medicare accounts receivable, payables, expenses shall be recorded and reported timely and accurately, and financial reporting shall be completed in accordance with CMS standards, Federal Acquisition Regulation (FAR), Financial Accounting Standards Advisory Board, Cost Accounting Standards, and Generally Accepted Accounting Principles (GAAP). For the following control objectives, the review shall focus on the following areas: • Cost Report Settlement Process; • Contractor Financial Reports: o Form CMS H751B (Status of Accounts Receivable – Excel Template) o HIGLAS-CMS Balance Sheets and Income Statements, o HIGLAS-CMS Treasury Report on Receivables (TROR), o HIGLAS-CMS CNC Eligibility, o HIGLAS-CMS MSP Recovery GHP/Non-GHP Receivables, o Reconcile the HIGLAS accounts receivable balance and activity to the following reports/registers:  CMS Beginning Balance Report,  CMS Transaction Register,  CMS Applied Collection Register,  CMS Adjustment Register,  CMS AR Overpayments Report,  CMS Interest and Late Charges,  CMS AR Balance Detail,  CMS Written-Off/CNC, • Form CMS 1521 (Schedule of Letter of Credit Draws – Excel Template) • Form CMS 1522 (Monthly Bank Reconciliation – Excel Template) • Reconciliation of Cash Balances and Cash Receipts. • HIGLAS-CMS Trial Balance and General Ledger, • HIGLAS-CMS Cash Management Reports, • HIGLAS-CMS Accounts Payable Reports: o AP Detail Schedule of Entitlement Payables Due & Payable- Refunds Payable (216006), o AP Detail Schedule of Entitlement Payables Due & Payable-Top Offsets (216097), o AP Detail Schedule of Entitlement Payables Due & Payable- Settlement Matching (216098), o AP Detail Schedule of Entitlement Payables Due & Payable- Third Party Payer (216099), • HIGLAS-Contractor’s Monthly Bank Reconciliation Worksheet. J – Control Number Control Objective – Financial J.1 Financial statements and reports should include all authorized transactions that occurred for the period reported. J.2 Valid financial transactions are prepared and approved by authorized personnel in accordance with management and CMS’ policies. J.3 Recorded and processed transactions are correctly classified, maintained, summarized and reconciled. In addition, transactions shall be properly supported. J.4 Segregation of duties exists and are implemented within the area of financial reporting (i.e., there shall be separate authorization, record keeping, and custody). J.5 All assets and liabilities exist, are properly valued, and are correctly recorded in the books/records of the contractor. J.6 Accounts receivable and accounts payable balances be properly valued and aged appropriately in accordance with CMS policies. J.7 Contractor Financial Reports are accurate, signed/certified by authorized individuals and presented timely to CMS in accordance with Publication (Pub) 100-06 of the Medicare Financial Management Manual, Chapter 5, Financial Reporting, Section 230 and/or the HIGLAS Certification Statement. J.8 Banking information relevant to Medicare processing is accurately stated and conforms to the tripartite agreement. J.9 Collection Reconciliation Acknowledgement Forms (CRAF) and/or facsimiles are accurate, correctly classified, maintained and reconciled. In addition, CRAFs and/or facsimiles shall be signed/approved by authorized individuals and timely sent to CMS in accordance with CMS’s policies. End Section 50.10 – J Controls – Financial Reporting Review Requirements: Back to Table of Contents