OAR 411-070-0310: Auditing

(1) All Nursing Facility Financial Statements are subject to desk review and analysis within six months after proper completion and filing. (2) The desk review will determine, to the extent possible: (a) That the provider has properly included its costs on the Nursing Facility Financial Statement in accordance with generally accepted accounting principles and the provisions of these rules; and (b) That the provider has properly applied the cost finding method specified by the Department to its allowable costs determined in subsection (2)(a) of this rule; and (c) Whether further auditing of the provider's financial and statistical records is needed. (3) All filed Nursing Facility Financial Statements are subject to a field audit, normally to be completed within one year from the date of filing. (4) The field audit will, at a minimum, be sufficiently comprehensive to verify that in all material respects: (a) Generally accepted accounting principles and the provisions of these rules have been adhered to; and (b) Reported data are in agreement with supporting records; and (c) The Nursing Facility Financial Statement is reconcilable to the appropriate IRS report and payroll tax reports.