4/30/2020

Fall Finance Conference

October 26, 2000

Salim M. Alani Director, University Audit 1

Office of University Audit

 Mission Statement To provide audit and advisory services to the University Community by assessing risks, analyzing controls, and ensuring that business practices are effective, efficient, and compliant with University and regulatory policies.

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Office of University Audit Organizational Chart Audit Committee (Board of Trustees) President Senior Vice President for Administration and Finance and Chief Financial Officer Director University Audit Manager Manager Manager 4/30/2020 Auditor Auditor Auditor

Auditors will be assigned to different audit teams on project basis.

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UNIVERSITY AUDIT GOALS

 To get away from after the fact audits to a more proactive, pre emptive auditing model.

 Focus our effort on the essence of good management practices versus mechanics.

 Assist the institution in building the capacity to absorb change.

 Improve and validate performance, underwriting quality in the decision making process and asking questions which fresh eyes can do. 4/30/2020 4

What Is HIPAA?



Health Insurance Portability and Accountability Act of 1996

(Public Law 104-191) aka Kennedy-Kassebaum Act  Deals with issues like  Guarantees health insurance access, portability, and renewal  Tax provisions for medical savings accounts  Cost reductions 4/30/2020 6

Administrative Simplification

Requires  Improved efficiency in healthcare delivery by standardizing electronic data interchange (EDI), and  Protection of confidentiality and security of health data through setting and enforcing standards 4/30/2020 7

Applies To

 Health plans  Health care clearinghouses  Health care providers (who transmit or store information in electronic form) 4/30/2020 8

Costs

 DHHS: “rival and perhaps exceed the cost of fixing the Y2K problem”  33 cents of every healthcare dollar spent between now and 2002  Administration: $3.8 billion over 5 years  Insurance industry: up to 10 times that 4/30/2020 9

Purported Benefits

 Improved cash flow  Savings on administrative costs  Improved disease tracking and quality monitoring  Real-time access to eligibility, enrollment and claims status 4/30/2020 10

Justification

  Cost savings (?) “It’s the law”  Required to meet Medicare conditions of participation and accreditation  Sanctions (per calendar year):  Civil fines up to $25,000 per person per standard  Criminal penalties up to $250,000 per person per standard  Business partners will require it  Patients (customers) will want it 4/30/2020 11

Some Areas Involved

 Hospitals/Health Systems  Medical Schools  Dental Schools  Student Health/Counseling Services  Human Resources  Information Technology  Legal Affairs/General Counsel  University Audit  Compliance Finance Health System 12

Hot Audit Area

 COMPLIANCE  COMPLIANCE  COMPLIANCE 4/30/2020 13

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E-mail

Thinking defensively applies to all media

: paper, fax machine, computers - especially e-mail..

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E-mail

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Casual attitudes toward e-mail

allow thoughts off the top of your head to be sent without so much as a spell-check – let alone a

meaning-

check.

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E-mail

Treat all e-mail communications seriously,

like the official records they are. Think before you

write. Edit

before you

send.

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