Content and Structure of the Medicare Cost Report Audit Report

70.1 – Content and Structure of the Medicare Cost Report Audit Report (Rev. 107, Issued: 09-22-06; Effective: 10-01-06; Implementation: 10-02-06) Complete the audit report on your letterhead paper specifying the name of the provider or provider complex whose Medicare cost report was audited. Include the provider and subprovider numbers for all components reported on the Medicare cost report for the provider complex. Also, include either a separate notice of program reimbursement (NPR) for each provider and subprovider component, or one NPR for the entire complex, identifying the provider/subprovider component name, number, and cost reporting period. In preparing the Medicare audit report, you will: y Ensure that the audit report complies with Government Auditing Standards (GAS) requirements (see Chapter Five of the “Government Auditing Standards” entitled “Reporting Standards for Financial Audits); y Incorporate statements of positive and negative assurance for compliance with Medicare laws, regulations and instructions; y Designate those individuals authorized to sign such reports; y Incorporate statements referring to your consideration of the provider's internal control structure in planning substantive audit tests; y Ensure that the audit report contains the following elements: − A statement that you audited the provider's Medicare cost report; − A statement that the audit was conducted in accordance with GAS; − If the report relates to a provider's Medicare cost report, a statement that those standards require the contractor to plan and perform the audit to obtain reasonable assurance about whether the cost report reflects payment amounts and financial data in accordance with Medicare laws, regulations, and instructions; − A statement that the Medicare provider is responsible for compliance with Medicare laws, regulations, and instructions. − Reference the Medicare cost report audit adjustment report. (See §70.4 of this chapter.) • Refer to areas selected for audit. ny areas selected for in-house or field audit must be listed. • Include a listing of the applicable internal control policy and procedure categories, as they affect Medicare payment. Use Exhibit VII in §170 of this chapter as an example of a Medicare audit report, including the report on the consideration of the internal control structure of the provider. Edit the audit report to fit the particular circumstances of the audit. or example, if you decided that a review of a provider's system of internal control was not applicable, use one of the alternative paragraphs to explain the basis for this decision. In this situation, the language pertaining to a review of internal control would not be applicable and should not be included in your audit report to the provider. Conversely, if you did perform a review of internal control, do not use the alternative paragraphs. Instead, use the language pertaining to the review of internal control system as appropriate.