AUDIT SUMMARY

 

Our audit of the Department of Medical Assistance Services (Medical Assistance Services), including the Medicaid Cluster of federal grant programs, for the fiscal year ended June 30, 2025, found:

 

• proper recording and reporting of all transactions, in all material respects, in the Commonwealth’s accounting and reporting system, Medical Assistance Services’ financial systems, and supplemental information and attachments submitted to the Department of Accounts;

 

• two matters involving internal control and its operation requiring management’s attention, that also represent instances of noncompliance with applicable laws and regulations that are required to be reported under Government Auditing Standards; however, we do not consider them to be material weaknesses; and

 

• adequate corrective action with respect to the prior audit findings identified as complete in the Findings Summary included in the Appendix.

 

Additionally, our report includes two risk alerts that require the action and cooperation of Medical Assistance Services’ management and the Virginia Information Technologies Agency (VITA) regarding risks related to unpatched software and access to centralized audit log information.

 

In the section titled “Internal Control and Compliance Findings and Recommendations,” we have included our assessment of the conditions and causes resulting in the internal control and compliance findings identified through our audit as well as recommendations for addressing those findings.  Our assessment does not remove management’s responsibility to perform a thorough assessment of the conditions and causes of the findings and develop and appropriately implement adequate corrective actions to resolve the findings as required by the Department of Accounts in Topic 10205 – Agency Response to APA Audit of the Commonwealth Accounting Policies and Procedures Manual.  Those corrective actions may include additional items beyond our recommendation.