State Operations Manual (Pub. 100-07), Ch. 4 § 4542.3
Miscellaneous SA Expenses
4542.3 - Miscellaneous SA Expenses
(Rev. 1, 05-21-04)
Items illustrative of this category are bonding and public liability, equipment rental, SA
cost (not employee’s share) of workmen’s compensation, group insurance,
unemployment insurance, proportionate share of merit system of civil service charges,
etc.
4542.3A - Bonding
(Rev. 1, 05-21-04)
Where a new bond or an amendment to an existing bond is required in relation to
receiving and handling Federal funds, the cost of such bond, when borne by the State, or
the additional cost attributable to an amended bond is a proper charge.
4542.3B - Public Liability
(Rev. 1, 05-21-04)
An appropriate share of the cost to a SA for protection against financial responsibility for
injury to person(s) or property is properly charged to CMS when such expenses are in the
form of premiums for public liability or property damage insurance. The cost of awards,
judgments, or settlements arising from injury to person(s) or property are not chargeable
to CMS.
The share of public liability and property damage insurance costs properly chargeable to
CMS, in the case of motor pool or personally-owned vehicles used in the discharge of a
State’s official business will be proportionate to that share of all agency personnel which
is devoted to activities directly concerned with the State survey program.
The other items mentioned above may be prorated or charged directly, as appropriate. If
prorated, the method of prorating should be appropriate and acceptable to the State and to
CMS. Thus, the costs of workmen’s compensation, group insurance, or unemployment
insurance would usually be charged directly for employees whose salary costs are
prorated in the same ratio as salary costs.