Skip to main content
Find a Lawyer

Arkansas Code Title 20. Public Health and Welfare § 20-10-2404. Review and auditing

Current as of March 28, 2024 | Updated by Findlaw Staff

(a)(1) The Department of Human Services shall, directly or through a qualified contractor, review or audit each cost report.

(2) This review or audit of each cost report may include desk reviews, desk audits, and onsite financial audits of any assisted living facility and the home office of any assisted living facility.

(3) In addition to independent audits conducted under subsection (c) of this section, the department shall audit comprehensively and timely the cost reports and financial reports and records of all assisted living facilities, consistent with generally accepted auditing standards, according to the following standards:

(A) At least fifty percent (50%) of all assisted living facilities or assisted living facility owners filing a cost report for the first time; and

(B) At least twenty-five percent (25%) of all assisted living facilities with each facility receiving a comprehensive field audit at least every four (4) years.

(b) An assisted living facility shall provide the following organizations with full and complete access to inspect and copy all records and data pertaining to the operations and finances of the facility, the facility's home office, or multi-facility operation, including cost reports, budgets, expenses, revenues, accounting and financial management practices, audits, staffing, and contracted services:

(1) The department and designated contractors of the department;

(2) Any independent auditor designated by the department;

(3) The Office of Medicaid Inspector General;

(4) The office of the Attorney General;

(5) The United States Office of the Inspector General;

(6) The United States Government Accountability Office; and

(7) The Centers for Medicare & Medicaid Services.

(c)(1) At any time, the department may order and enforce the performance of a comprehensive independent financial audit of any assisted living facility participating in Medicaid.

(2) Once ordered in writing by the department, the independent audit shall be initiated within twenty (20) days of the order of the department unless the department authorizes additional time in writing.

(3) The independent audit shall be:

(A) Performed at the expense of the department;

(B) Conducted by a qualified audit firm that is procured by the department, with the audit team led by a certified public accountant and including other qualified professional staff as necessary;

(C) Completed consistent with a schedule provided by the independent audit firm and procured by the department, with consultation with the facility, and weekly written status reports to the department; and

(D)(i) Performed consistent with generally accepted auditing standards and applicable federal and state cost-finding standards identified by the department and include an audit of the accuracy and completeness of the facility's cost reports.

(ii) If directed by the department, the scope of the audit may include a forensic accounting examination.

(4) The audit firm and members of the audit team shall have no conflicts of interest with the facility, the facility owners, facility management or finance staff, or related parties.

(d)(1) The department shall have complete access to all work papers and findings of the independent auditor.

(2) All work papers, reports, and findings shall be submitted to the department no later than they are received by the facility.

(3) The independent auditor may provide a separate, confidential report to the department, with a copy to the Office of Medicaid Inspector General.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Arkansas Code Title 20. Public Health and Welfare § 20-10-2404. Review and auditing - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-20-public-health-and-welfare/ar-code-sect-20-10-2404/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard