Have you ever lost something? Of course you have–we all have had experiences where we can’t find that paper we need. Of course, just after we get the second copy of the paper we find the original (Murphy’s Law at work). I’m sure most of us have misplaced some money or your wallet. However, I doubt that most of us have misplaced $67 million.
Earlier this week TIGTA, the Treasury Inspector General for Tax Administration, issued an audit on the Affordable Care Act. The report, dated September 18th, was sent out on the 25th and is titled, “Affordable Care Act: Tracking of Health Insurance Reform Implementation Fund Costs Could be Improved.”
I put the report aside until this morning, and was stunned when I read this paragraph:
Some Affordable Care Act Implementation Costs Were Inaccurate or Not Tracked and Supporting Documentation Was Not Always Maintained
Our review found that the tracking of costs related to the ACA implementation could be improved. Specifically, we found that costs charged to HIRIF funding relating to direct labor were sometimes inaccurate and not always substantiated by reliable supporting documentation. We also found that the IRS did not track all costs associated with implementation of the ACA, including costs not applied to the HIRIF. Specifically, the IRS did not account for or attempt to quantify approximately $67 million of indirect ACA costs incurred for FYs 2010 through 2012. Indirect costs include, for example, providing employees with workspace and information technology support.
There’s more, too. “The IRS did not track all costs associated with the implementation of the ACA.” Those indirect costs were not tracked. The IRS, which is not flush with funds, had the ability to get funding for indirect ACA costs by using funds from a $1 billion Health Insurance Reform Implementation Fund (HIRIF). However, IRS management did not believe that indirect costs should be recovered from HIRIF…so the IRS (and we, the taxpayers) are out those funds.
On the bright side, the IRS agreed with TIGTA’s recommendations in the report and will be tracking these costs in the future. Unfortunately, the HIRIF is likely gone for future years.
This is yet another black eye for the IRS.
Tags: HealthCareLegislation