What should be included in an audit report for negotiation regarding overpayments and underpayments?

In the context of an audit report regarding overpayments and underpayments, including offsets is crucial as they serve as a method for adjusting any discrepancies identified during the audit process. Offsets are essentially adjustments made to account balances, which can directly affect the financial agreements between a provider and a payer. In cases of overpayments, these adjustments can help in determining how future payments will be managed, potentially reducing the amounts owed back to the payer. Conversely, for underpayments, offsets can determine how additional payments might be reconciled.

The inclusion of offsets in the audit report demonstrates a clear, transparent methodology for resolving payment discrepancies. It provides a basis for negotiation, showing both parties how the balances can be adjusted to reflect accurate payment obligations. Understanding and addressing offsets is vital in maintaining a positive financial relationship and ensuring compliance with billing regulations and contractual obligations.