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Special Education Listserv

Subject: Medicaid/Mo Healthnet/OIG Audit Finding Related to School District Administrative Claiming (SDAC)

Source: Ian McCaslin, Director MO Healthnet, Department of Social Services and Heidi Atkins Lieberman, Assistant Commissioner of Division of Special Education, Department of Elementary and Secondary Education

Intended Audience: School District Administrators and School District Finance Staff

Date: April 9, 2010

Recently, Missouri received an audit finding by the U. S. Office of Inspector General (OIG), related to the School District Administrative Claiming (SDAC) program.  The full report can be found on the OIG website at

As you know, many of the activities performed by school district staff meet the claimable criteria for MO HealthNet school district administrative claiming. The primary purpose of school district administrative claiming is to reimburse school districts for these activities, where allowed.

The OIG finding focused on what it determined to be billing of disallowable charges, based on a sampling of two large Missouri school districts.  OIG uses information obtained from the sampling in a formula to calculate non-compliance on a state-wide basis.  This calculation could amount to as much as $20 million in reimbursement by Missouri to the federal government.  MO HealthNet has been carefully reviewing documentation and billing procedures and disputes a large part of the amount identified in the finding.  A demand for the money had not yet been received.  Once received, the state will consider the remedies available, including possible appeal of the finding. 

At this time, no action is needed from districts, we just wanted you to be aware of the situation.  We will keep you posted.