Report Materials
EXECUTIVE SUMMARY:
Allied Services, Inc. reported general and administrative costs totaling approximately $7 million, as subject to allocation to Medicare for the year ended June 30, 1991. Our final report points out that this amount included $207,352 which were not allowable for allocation to Medicare. The unallowable costs included $105,695 for marketing activities, $28,447 for unallowable travel, $23,741 for charitable contributions, and $49,469 for miscellaneous unallowable costs. These costs were not related to patient care. The inclusion of the $207,352 of unallowable costs in the FY 1991 cost reports resulted in increased Medicare reimbursement of $85,848. We are recommending that AS remove these costs from its FY 1991 cost report and implement controls to prevent the inclusion of such costs in the future.
Notice
This report may be subject to section 5274 of the National Defense Authorization Act Fiscal Year 2023, 117 Pub. L. 263.