oversight

Financial Audit: MedPAC's Fiscal Year 1998 Schedules of Expenditures and Budgetary Resources

Published by the Government Accountability Office on 1999-04-28.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                  United States General Accounting Office

GAO               Report to Congressional Committees




April 1999
                  FINANCIAL AUDIT

                  MedPAC’s Fiscal Year
                  1998 Schedules of
                  Expenditures and
                  Budgetary Resources




GAO/AIMD-99-134
      United States
GAO   General Accounting Office
      Washington, D.C. 20548                                                          Leter




      Accounting and Information
      Management Division                                                             Leter




      B-281534                                                                Letter

      April 28, 1999

      The Honorable William V. Roth, Jr.
      Chairman
      The Honorable Daniel Patrick Moynihan
      Ranking Minority Member
      Committee on Finance
      United States Senate

      The Honorable Bill Archer
      Chairman
      The Honorable Charles B. Rangel
      Ranking Minority Member
      Committee on Ways and Means
      House of Representatives

      The Honorable Thomas J. Bliley
      Chairman
      The Honorable John D. Dingell
      Ranking Minority Member
      Committee on Commerce
      House of Representatives

      This report presents the results of a financial-related audit of the Medicare
      Payment Advisory Commission’s (MedPAC) Schedules of Expenditures and
      Budgetary Resources for the year ended September 30, 1998. MedPAC is an
      independent federal advisory body established by section 4022 of the
      Balanced Budget Act of 1997 (Public Law 105-33) which advises and makes
      recommendations to the Congress on issues affecting the Medicare
      program. Section 4022 of the act subjects MedPAC to periodic audits by
      the Comptroller General.

      The General Accounting Office contracted with the independent public
      accounting firm of KPMG Peat Marwick LLP (KPMG) for the audit. The
      contract required that the audit be done in accordance with generally
      accepted government auditing standards. KPMG was not required to test
      compliance with laws and regulations except for compliance with the
      Anti-Deficiency Act which could have a direct and material effect on the
      schedules. KPMG’s auditors’ opinion is on page 6.

      In its audit of the schedules, KPMG found:




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B-281534




• The schedules were reliable in all material aspects.
• Material weaknesses related to the segregation of disbursement
  responsibilities and the recognition of expenses and obligations.
• There was no reportable noncompliance with the provision of the law it
  tested.

KPMG disclosed material weaknesses and reported them in a separate
management letter along with suggestions for improvement. In an exhibit
to the management letter, KPMG provided comments and suggestions to
MedPAC’s management on less significant internal control matters. We
have included the management letter on page 16. KPMG also requested
comments from MedPAC’s Executive Director on a draft of its audit report
and management letter. In commenting on the report and management
letter, MedPAC’s Executive Director agreed with KPMG’s findings and
provided responses to the recommendations. MedPAC’s responses are
included in the management letter.

In connection with the contract, we reviewed the KPMG report and related
working papers and, as necessary, made inquiries of KPMG representatives
and MedPAC’s management. Our procedures, as differentiated from an
audit in accordance with generally accepted government auditing
standards, was not intended to enable us to express, and we do not express
opinions on MedPAC’s schedules or compliance with the Anti-Deficiency
Act. KPMG is responsible for the attached auditors’ report, dated
January 25, 1999, and for the conclusions expressed in the report.
However, our review disclosed no instances in which KPMG did not
comply, in all material respects, with generally accepted government
auditing standards.


This letter is intended for use by the Congress, Department of Treasury,
Office of Management and Budget (OMB), and MedPAC’s management. We
are sending copies of this report to Senator Arlen Spector, Chairman, and
Senator Tom Harkin, Ranking Minority Member, Labor, Health and Human
Services, and Education Subcommittee, Senate Committee on
Appropriations; Representative John E. Porter, Chairman, and
Representative David R. Obey, Ranking Minority Member, Labor, Health
and Human Services, and Education Subcommittee, House Committee on
Appropriations; the Honorable Robert E. Rubin, Secretary of the Treasury;
the Honorable Jacob J. Lew, Director of OMB; and the Honorable Gail R.
Wilensky, Chairman of MedPAC. This letter is a matter of public record and
its distribution is not limited. Consequently, copies will be made available



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B-281534




to others upon request. Should you or your staffs have any questions
concerning our review of the audit, please contact me on (202) 512-4476 or
Steven Haughton, Assistant Director, on (202) 512-5999.




Gloria L. Jarmon
Director, Health, Education and Human Services Accounting
and Financial Management Group




Page 3                                 GAO/AIMD-99-134 MedPAC Financial Audit
Contents



Letter                                                                                         1


Audit of MedPAC’s
Schedules                                                                                      6
                        Independent Auditors’ Report                                           6
                        Medicare Payment Advisory Commission Annual Financial Report           8
                        Medicare Payment Advisory Commission Overview                          9
                        Schedule of Expenditures                                              11
                        Schedule of Budgetary Resources                                       12
                        Note to the Schedules                                                 13


Independent Auditors’
Management Letter                                                                             16




                        Abbreviations

                        MedPAC    Medicare Payment Advisory Commission
                        OMB       Office of Management and Budget




                        Page 4                             GAO/AIMD-99-134 MedPAC Financial Audit
Contents




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Audit of MedPAC’s Schedules


Independent Auditors’ Report




                               Page 6   GAO/AIMD-99-134 MedPAC Financial Audit
Audit of MedPAC’s Schedules




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                                       Audit of MedPAC’s Schedules




Medicare Payment Advisory Commission Annual Financial Report




                                       Page 8                        GAO/AIMD-99-134 MedPAC Financial Audit
                                      Audit of MedPAC’s Schedules




Medicare Payment Advisory Commission Overview




                                      Page 9                        GAO/AIMD-99-134 MedPAC Financial Audit
Audit of MedPAC’s Schedules




s




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                           Audit of MedPAC’s Schedules




Schedule of Expenditures




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                                  Audit of MedPAC’s Schedules




Schedule of Budgetary Resources




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                        Audit of MedPAC’s Schedules




Note to the Schedules




                        Page 13                       GAO/AIMD-99-134 MedPAC Financial Audit
Audit of MedPAC’s Schedules




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Audit of MedPAC’s Schedules




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Independent Auditors’ Management Letter




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Independent Auditors’ Management Letter




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Independent Auditors’ Management Letter




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        Independent Auditors’ Management Letter




Leter   Page 19                                   GAO/AIMD-99-134 MedPAC Financial Audit
                   Independent Auditors’ Management Letter




                   )




(916265)   Leter   Page 20                                   GAO/AIMD-99-134 MedPAC Financial Audit
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