Fall Finance Conference
October 26, 2000
Salim M. Alani
Director, University Audit
7/1/2016
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.
7/1/2016
2
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
7/1/2016
Auditor
Manager
Auditor
Manager
Auditor
Auditors will be assigned to different audit teams on project basis.
3
UNIVERSITY AUDIT GOALS

To get away from after the fact audits to a more proactive, preemptive 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.
7/1/2016
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

7/1/2016
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
7/1/2016
7
Applies To
 Health
plans
 Health care clearinghouses
 Health care providers (who transmit or store
information in electronic form)
7/1/2016
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
7/1/2016
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
7/1/2016
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

7/1/2016
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
7/1/2016
 Finance Health System

12
Hot Audit Area
 COMPLIANCE
 COMPLIANCE
 COMPLIANCE
7/1/2016
13
7/1/2016
14
7/1/2016
15
E-mail
Thinking defensively applies to all
media: paper, fax machine,
computers - especially e-mail..
7/1/2016
16
E-mail
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 meaningcheck.
7/1/2016
17
E-mail
Treat all e-mail communications
seriously, like the official records
they are. Think before you write.
Edit before you send.
7/1/2016
18