Definition

20.1 – Definition (Rev. 107, Issued: 09-22-06; Effective: 10-01-06; Implementation: 10-02-06) The desk review is an analysis of the provider’s cost report to determine its adequacy, completeness, and accuracy and reasonableness of the data contained therein. It is a process of reviewing information pertaining to the cost report without detailed verification and is designed to identify problems warranting additional review and, where appropriate, to resolve some of those problems/exceptions. The objective of the desk review is to determine whether the cost report can be settled without an audit or whether an in-house or field audit is necessary. For this purpose, every desk review should contain a summary of the review results (see Exhibit I in §170 of this chapter) and a decision as to the next step (e.g., settle without additional review, complete desk review exception resolution, perform in-house or field audit). If a decision is made to audit the cost report, a properly completed desk review is essential for planning the audit and establishing the audit objectives. Desk reviews are required for all providers filing a Medicare cost report except Hospice and low/no Medicare utilization providers. However, if your professional judgment dictates, you may perform an appropriate desk review (see §§20.2.C-E) on a low Medicare utilization cost report. Use the specific CMS Uniform Desk Review program that is in effect at the time you are performing the desk review for each provider. The following information, as appropriate, may assist you in completing the specific desk review steps and later in planning the audit (see §50.1 of this chapter). y Permanent File; y Correspondence Files; y PS&R; y Current and Prior Year Medicare Cost Reports; y Working Trial Balance; y Financial Statements; y Provider Cost Report Questionnaire (Form CMS-339); y Prior Year Audit Notes; y Prior Year Audit Adjustment Report; and Prior Year Audit Working Papers.