General Principles of Reimbursement for Administrative Costs -

370 - General Principles of Reimbursement for Administrative Costs - (Rev. 1, 08-30-02) A1-1100, B1-4100 The principles for determining allowable administrative costs are listed in Part 31 of the Federal Acquisition Regulation (FAR), as codified in Title 48 of the Code of Federal Regulations (CFR), along with the contract as interpreted and modified in Appendix B. Costs will be allocated separately by program management (PM) and Medicare integrity program (MIP) functions and activities. Notice is hereby given to all Medicare contractors that on-going operations and projects should be completed at or under budget. If a contractor exceeds either its PM or its MIP budget, the U.S. Government will be under no obligation to fund the cost overrun except in strict accordance with the Medicare contract/agreement. Contractors are required to provide CMS timely notice of at least 60 days prior to the date funds are exhausted, along with a fully documented and justified Supplemental Budget Request that provides CMS time to analyze and recommend action to avoid the projected cost overrun. In your assessment of when funds will be exhausted, PM and MIP must be evaluated separately. (See §240.)