Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

June 12, 2017

Northwest Louisiana Human Services District Not Collecting All the Revenue Due from Its Clients

The Northwest Louisiana Human Services District did not collect all of the self-generated revenue it earned for services provided to its clients, the Legislative Auditor said in a report released today.

Auditors found that the District did not consistently bill Medicaid, Medicare, and private insurance companies in accordance with the insurers’ contract terms. As a result, it did not collect all the money it was owed for services.

In addition, auditors found that the District did not always bill clients for claims that were denied. Most of the denials occurred because pre-authorizations were not obtained, services were provided by a licensed master social worker who did not have the required clinical credentials, services were not covered by contract, or the reason was not specified.

District officials performed their own analysis of denied claims as of March 31, 2017, and identified approximately $255,000 that was not collected in fiscal years 2016 and 2017, mostly because of a lack of pre-authorizations and a lack of required clinical credentials for services performed.

Auditors also evaluated District transactions related to cash receipts for fees, movable property, LaCarte card expenditures, travel expenditures, Fueltrac card expenditures, contract expenditures, and payroll expenditures. No problems were found.

For more information contact:

Legislative Auditor
225.339.3800



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