[Code of Federal Regulations]

[Title 42, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR433.40]



[Page 79]

 

                         TITLE 42--PUBLIC HEALTH

 

  CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF 

                  HEALTH AND HUMAN SERVICES (CONTINUED)

 

PART 433_STATE FISCAL ADMINISTRATION--Table of Contents

 

    Subpart A_Federal Matching and General Administration Provisions

 

Sec.  433.40  Treatment of uncashed or cancelled (voided) Medicaid checks.



    (a) Purpose. This section provides the rules to ensure that States 

refund the Federal portion of uncashed or cancelled (voided) checks 

under title XIX.

    (b) Definitions. As used in this section--

    Cancelled (voided) check means a Medicaid check issued by a State or 

fiscal agent which prior to its being cashed is cancelled (voided) by 

the State or fiscal agent, thus preventing disbursement of funds.

    Check means a check or warrant that a State or local agency uses to 

make a payment.

    Fiscal agent means an entity that processes or pays vendor claims 

for the Medicaid State agency.

    Uncashed check means a Medicaid check issued by a State or fiscal 

agent which has not been cashed by the payee.

    Warrant means an order by which the State agency or local agency 

without the authority to issue checks recognizes a claim. Presentation 

of a warrant by the payee to a State officer with authority to issue 

checks will result in release of funds due.

    (c) Refund of Federal financial participation (FFP) for uncashed 

checks--(1) General provisions. If a check remains uncashed beyond a 

period of 180 days from the date it was issued; i.e., the date of the 

check, it will no longer be regarded as an allowable program 

expenditure. If the State has claimed and received FFP for the amount of 

the uncashed check, it must refund the amount of FFP received.

    (2) Report of refund. At the end of each calendar quarter, the State 

must identify those checks which remain uncashed beyond a period of 180 

days after issuance. The State agency must refund all FFP that it 

received for uncashed checks by adjusting the Quarterly Statement of 

Expenditures for that quarter. If an uncashed check is cashed after the 

refund is made, the State may file a claim. The claim will be considered 

to be an adjustment to the costs for the quarter in which the check was 

originally claimed. This claim will be paid if otherwise allowed by the 

Act and the regulations issued pursuant to the Act.

    (3) If the State does not refund the appropriate amount as specified 

in paragraph (c)(2) of this section, the amount will be disallowed.

    (d) Refund of FFP for cancelled (voided) checks--(1) General 

provision. If the State has claimed and received FFP for the amount of a 

cancelled (voided) check, it must refund the amount of FFP received.

    (2) Report of refund. At the end of each calendar quarter, the State 

agency must identify those checks which were cancelled (voided). The 

State must refund all FFP that it received for cancelled (voided) checks 

by adjusting the Quarterly Statement of Expenditures for that quarter.

    (3) If the State does not refund the appropriate amount as specified 

in paragraph (d)(2) of this section, the amount will be disallowed.



[51 FR 36227, Oct. 9, 1986]