Cost Classification Categories - (Rev. 1, 08-30-02)

180.5 - Cost Classification Categories - (Rev. 1, 08-30-02) A1-1221.5, B1-4221.5 A. Salaries and Wages See §90.9. B. Fringe Benefits See §90.9. The contractor shall include the portion of fringe benefits allocated for contributions to employee pension plans. Also, it shall separately identify pension plan expense. C. Facilities and Occupancy The contractor shall include: Rent-leasehold; Amortization-leasehold improvements; Depreciation or rental of company-owned buildings; Real estate and property taxes; Insurance on property; Power, heat and light; Personal service costs and/or facility service agreements related to general maintenance, janitorial and security; Repairs; and Other - licenses or permits related to buildings or their components. D. EDP Equipment See §90.9. E. Subcontracts See §90.9. F. Outside Professional Services The contractor shall include charges for professional services rendered by outside consultants. This includes medical and management-type consultants. G. Telephone and Telegraph Self explanatory H. Postage and Express Self explanatory I. Furniture and Equipment, Other Than EDP The contractor shall include: Rental or depreciation; Expense items under $500; Maintenance and repairs; and Use charges. Examples of items that fall within the category of furniture and equipment are: Desks and chairs; Office machines--typewriters, calculators; Filing cabinets; and Microfilm equipment. The contractor shall capitalize and depreciate furniture and equipment costing $500 or more per item and with a useful life of more than 1 year. It shall not include the expense of leased and company-owned autos. J. Materials and Supplies The contractor shall include all expendable items such as general office supplies and EDP supplies. K. Travel The contractor shall include costs for transportation, meals, and lodging. It shall include the cost of leased autos and all costs associated with company-owned vehicles. It shall not include personal service costs related to individuals in travel status. L. Return on Investment (ROI) If applicable, the contractor shall include charges related to application of the investment rate of return to the average undepreciated balance of capitalized assets for the period. It shall calculate ROI using the portfolio rate of return for the contract period instead of the treasury rate. It shall include the following ROI schedule. ROI Calculations FY: Average undepreciated balance of assets allocable to Medicare. ( $ A) Contractor's portfolio rate of return for the contract period (B) % Total ROI (A x B). $ ______ M. Miscellaneous The contractor shall include: Taxes, other than personnel and real property; Insurance, other than that included in §§180.2, 180.3, and 180.4; Dues to professional, trade, and business associations; Net food service costs (cafeteria and subsidized eating facilities); and All other costs not specifically identified elsewhere. Contractor shall specifically identify all other costs over $2,500 in Remarks. N. Other The contractor shall identify in Remarks Section. This is reserved and should not be used without explicit approval of CMS. O. Credits The contractor shall include the applicable portion of any income, rebate, allowance, or other credits related to total operations. This includes, but is not limited to, Medicare data used for complementary health insurance and/or Medicaid claims processing by it or another organization. The credits reported must equal the total COB credits reported on the certification schedule, plus the sum of non-COB credits included on the activity forms. (See §§90.9G and 190.C.) P. Forward Funding See §90.9. The contractor shall use this category only with the FACP.