OIG Publishes New State Audits of School-Based Medicaid Programs

The federal Office of Inspector General (OIG) has published new audit reports of school-based administrative and health services programs in North Carolina and Michigan.

Random Moment Time Sampling (RMTS) continues to be a focus of OIG school-based program audits but the impact of these findings vary from state to state, as they do in the two reports released earlier this month. Concerns have also been raised about the implications of findings issued by OIG against program components that were approved in a state’s claiming plan by another federal agency, the Centers for Medicare and Medicaid Services (CMS).

North Carolina Report Summary

Program Audited: Medicaid Administrative Claiming (MAC)


  • Random Moment Sampling Was Statistically Invalid
  • Supporting Documentation Was Inadequate
  • Cost Allocation Plan Amendment Not Promptly Submitted or Approved


Recommendation: Refund $53.7 million in Federal Financial Participation (FFP) received, 100% of the total claimed during the audited period.

State Response: The State agency disagrees with OIG’s findings and recommendations, stating that they submitted an independent statistical review of their RMTS methodology to prove validity and that it maintained all sampling documentation required of the agency.

Read the OIG North Carolina Audit Report, published October 6, 2016…

Michigan Report Summary

Program Audited: School-Based Health Service Program


  • Random Moment Sampling Universe Incomplete


Recommendation: Refund $954,408 in FFP received, just 0.4% of the total claimed during the audited period.

State Response: The State agency concurred with OIGs findings and recommendations.

Read the OIG Michigan Audit Report, published September 30, 2016…