N.J. Admin. Code § 10:49A-3.2 - Audits of a facility

(a) The Department will provide 30 days' advance notice of its intent to conduct an audit of a facility, either by Department staff or by authorized representatives of the Department.

1. All audits will include an entrance conference at which the scope of the audit will be presented and an exit conference at which the audit findings will be discussed.

2. The Department will share its preliminary audit findings with the facility, which will then have 30 days to respond to such findings. The Department may extend, for good cause, the time for a facility to submit such a response.

3. If the facility does not dispute the preliminary findings, the audit findings will become final. Alternatively, if the facility responds to the preliminary findings, the Department will review and consider such response and finalize the audit findings.

4. The Department will send the facility a copy of the final audit findings, including any recommendations the facility must implement as a result of the audit findings. A plan of corrective actions must be submitted to the Department within 90 days of the issuance of the final report.

5. If the Department determines, as the result of an audit, that a facility has failed to pay rebates it is obligated to pay pursuant to this chapter, the Department may order the facility to pay those rebates in accordance with this chapter.

6. If another entity conducts an audit of a facility's PCR reporting and rebate obligations, the Department may, in the exercise of its discretion, accept the findings of that audit if the Department determines the following:

i. The entity's audit reports on the validity of the data regarding expenses and revenue that the facility reported to the Department, including the appropriateness of the allocations of expenses used in such reporting; and

ii. The entity submits final audit reports to the Department within 30 days of finalization.

7. If the Department accepts an audit conducted by another entity, and if the facility makes additional rebate payments as a result of the audit, then the Department shall accept those payments as satisfying the facility's obligation to pay rebates pursuant to this chapter.

Notes

N.J. Admin. Code § 10:49A-3.2

Adopted by 53 N.J.R. 1783(a), effective 10/18/2021