Introduction of Activity Level Budget and Cost Reporting - (Rev. 1,

40 - Introduction of Activity Level Budget and Cost Reporting - (Rev. 1, 08-30-02) A1-1203, B1-4203 Costs are allocated and reported separately by PM and MIP functions and activities. Contractors and CMS are not allowed to co-mingle the PM and MIP funding that is appropriated separately by Congress. PM provides funding for claims processing functions, and MIP provides funding for payment safeguard functions. A function is a unique operation that is separately identifiable, such as Claims Payment or Appeals. An activity is defined as a subcategory of a Medicare function. The activities available to a contractor may vary depending upon the functions performed by that contractor. A listing of activities is available within the CAFM II reporting system utilized for Medicare contractor budget and cost reporting.