New York Codes, Rules and Regulations
Title 14 - DEPARTMENT OF MENTAL HYGIENE
Chapter XIII - Office of Mental Health
Part 552 - Audits Of Office Of Mental Health Licensed Or Operated Facilities, Programs Or Units
Section 552.5 - Record retention, notification process and written representation

(a) All fiscal, statistical and programmatic records and reports and all underlying books, records, documentation and reports which formed the basis for the provider of service's fiscal, statistical and programmatic reports are subject to audit including records of a related party or holding company. Such information must be kept and maintained by the provider of service for a period of not less than six years of filing of the fiscal, statistical or programmatic report, or the date such records were required to be filed.

(b) Such information must be furnished upon request, to appropriate State, Federal or local agencies for audit and review.

(c) Prior to the initiation of any audit, the Office of Mental Health may choose to notify the provider of service verbally or in writing of the intent to audit and request an opening conference. At the opening conference, the nature and scope of the audit will be discussed.

(d) The Office of Mental Health shall determine the time, manner and place of the audit.

(e) The provider of service must cooperate with Office of Mental Health staff or agents of the Office of Mental Health by filing all financial reports required by the office, including but not limited to those required pursuant to section 43.02 (b) and (c) of the Mental Hygiene Law and the requirements of this Part making available all documentation and information requested in a timely manner. Failure to timely file such required financial reports may result in an enumerated withhold of Medicaid payments until such time as such reports are appropriately filed, in addition to any other penalties or administrative actions.

(f) Where feasible the Office of Mental Health may enter into an agreement with other agencies and organizations having audit responsibilities to assist in the execution of an audit. The Office of Mental Health reserves the right after entering into any such agreement, to use the findings of the combined audit or to perform an independent audit of either limited or comprehensive scope of the same fiscal period audited by the other agency or organization.

(g) Upon completion of an on-site field audit, the Office of Mental Health will afford the provider of service the opportunity for a closing conference at which time the findings will be reviewed and explanation and/or additional materials may be presented by the provider of service or auditor.

(h) At the conclusion of the audit, the auditors shall prepare, and the provider of service shall sign, a written representation letter to confirm that all pertinent records have been made available and that all relevant information has been disclosed to the auditors. Such written representations from the provider of service shall be used to confirm oral statements and to reduce the likelihood of misunderstandings between the provider of service and the auditors.