General

4500 - General (Rev. 1, 05-21-04) Any class or kind of administrative expenditure that is properly chargeable to Federal funds under plans approved by the Department of Health and Human Services (DHHS) could generally be properly chargeable to State provider certification program funds provided the expenditure is essential to certification functions and in a proper amount. The SA exercises due care in the expenditure of funds, as these funds must be effectively and economically used in carrying out the provisions of the Social Security Act (the Act) for survey and certification activities. Necessary expenses can include a portion of the cost of operations that serve the certification program and one or more other programs. The SA is required to submit a specific plan for determining the certification program’s cost for such multi-program activities as part of the overall plan and budget. Include in the budget both the basis on which the certification program share or ratio is determined and the expenses to which this ratio is applied. The CMS’ current policy is that the total survey costs must be allocated to each benefiting program or activity to determine the payable costs for that program or activity. Knowledge of the State’s licensure requirements is necessary in formulating the budget to ensure that cost shares are equitable and in line with current CMS policy. (See §4514.D and E.) In many States, two or more programs are served by the SA activities, e.g., those relating to certification versus licensure. However, there may be activities that are required by the State survey program only. Under these circumstances, the total cost of these activities would be an appropriate charge to the State survey program. A State is entitled to receive FFP for Medicaid activities by way of payment or advances to support the reasonable cost of performing services provided for in the agreement with the Secretary or State plan. The “reasonable cost” includes all necessary expenses involved, i.e., expenses that are in accord with these standards and within the limits of the approved SA budget.