Texas OIG Updates Audit & Inspection Plan for Fiscal Year 2027

AUSTIN, Texas—The Texas Office of Inspector General (OIG) released its latest Audit and Inspections Plan, summarizing planned audit and inspection topics for fiscal year (FY) 2027.

The Texas OIG said audits and inspections assess the effectiveness, efficiency and compliance of programs, contractors, providers and information technology within the Texas Health and Human Services Commission (HHSC), the Department of State Health Services (DSHS) and the Texas Department of Family and Protective Services (DFPS).

The OIG Audit and Inspections Division uses a continuous risk assessment process to identify topics. The risk assessment looks to emphasize subjects that present an elevated risk for fraud, waste or abuse. Staff also consider topics of specific interest to the legislature, HHSC and OIG executive management teams and public stakeholders. After compiling the list of potential topics, it considers additional factors, such as current oversight activities, public interest, available resources and potential financial and client impact.

Audit Topics

• HHSC, DFPS and DSHS contractors
• Behavioral Health, Disability and Aging Services
• Local Mental and Behavioral Health Authority performance
• Peer and Recovery Support Services
• Managed care organizations (MCOs)
• Financial statistical reports
• MCO Directed Payment Program reporting
• MCO information technology (MCO application controls)
• MCO reporting of provider overpayments and recoveries
• MCO special investigative units
• MCO subcontracted networks
• Nonemergency medical transportation services
• Medicaid and Children’s Health Insurance Program Services
• Programs for All-Inclusive Care of the Elderly
• Medicaid providers
• Behavioral health providers
• Dental providers
• Durable medical equipment providers
• Home health service providers
• Inpatient hospitals
• Follow-up on selected recommendations from prior audits
• Limited scope audits

In addition to audits, the OIG will inspect programs, contractors and providers based on current and emerging priorities. Inspections may occur for multiple entities for the same subject to provide a systemic review of a specific topic.

Inspection Topics

• Home and community based services—adult mental health program
• Federally Qualified Health Centers—rural health clinics cost reporting
• Qualified Incentive Payment Programs
• Trust funds in nursing facilities
• Follow-up on selected recommendations from prior inspections

The OIG Audit and Inspections Plan summarizes potential audits and inspections. However, as ongoing risk assessments reveal emerging topics, additional audits and inspections may occur.