Line Item Justifications for SA Direct and Indirect Costs

4611 - Line Item Justifications for SA Direct and Indirect Costs (Rev. 96, Issued, 12-13-13, Effective: 12-13-13, Implementation: 12-13-13) In making the entries for items under non-personal services (Other Direct Costs, lines 5 through 14, of Form CMS-435), the SA is required to justify the amounts approved by providing the rationale developed for each line item separately, using base period data and format as described in §4605. Specific guides and criteria are listed below. A. Retirement Contributions and Fringe Benefits The SA enters the estimated total of the employer’s share of social security taxes, State retirement system(s) contributions and other fringe benefits. Also, the SA indicates the percentage used to determine the level of funding for Retirement and Fringe Benefits. B. Travel The SA includes the estimated travel costs of its personnel, including, where appropriate, per diem or subsistence in lieu of per diem, applicable to the State survey program. The SA derives estimated costs based on provisions of State law, regulation and administrative procedures applicable to travel of State employees. The SA indicates in the budget estimate expected number, type and extent of trips, and purpose. For out-of- state travel, the SA indicates the number of trips, the purpose, and basis for charges to the State survey program. The SA includes the basis for charges for all out-of-State travel other than to meetings called by CMS. C. Communications In the budget estimate, the SA breaks out e-mail, telephone, telegraph, postage, and other communications separately. D. Supplies In the budget estimate, the SA breaks out all major items of supplies, i.e., any supplies comprising 20 percent or more of the total cost of supplies. E. Office Space 1 - Agency In Identifiable Space Analysis of base period expenditures and the budget estimate must contain these elements for each location: total rental costs, number of square feet of space, cost per square foot, and services included in rental. The SA identifies office space that is State-owned. 2 - Office Space - Agency In Shared Space SA analysis of base period expenditures and the budget estimate must contain these elements: • Total cost of space to the agency; • Basis of proration; • Office locations of SA staff; and • Estimate of square feet allocated to the State survey program. The SA identifies State-owned space. 3 - Office Maintenance In the budget estimate, the SA breaks out the major items of expense, e.g., light, heat, janitorial service, office equipment repair. If office maintenance, in whole or in part, is included in the SA rental contract, the SA notes this fact and the amount need not be separated. F. Equipment The SA enters costs of equipment to support specific personnel positions such as desks, chairs, typewriters, computers and computer-related equipment, file cabinets, tables, and other machines (fax machines, photocopiers, etc.) that are necessary for program operational, administrative and management needs. In addition to line item justification, the SA documents the budget estimate through use of Form CMS-1466 (Exhibit 54) for both LTC and non-LTC requirements. (See §4614.) G. Training The budget estimate should provide for the cost of training SA personnel. The SA includes the cost of travel and per diem associated with training sessions. H. Consultants The SA provides the estimated cost of consultants who are not State employees, but who are used on a part-time, temporary, or fee-for-service basis. I. Subcontracts The SA provides the estimated cost of subcontracts when part of its responsibilities are assigned to another State or local public agency. Subcontract costs attributable to State survey activities (e.g., State Fire Marshal) are allowable and payable at the FFP rate established for surveyors, i.e., 100 percent Federal payment for Medicare and 75 percent/25 percent FFP for Medicaid, with the exception of ICF/IID. The Federal matching rate for ICF/IID is 75 percent of FFP for salary, fringe benefits, travel and training. All other costs are matched at 50 percent FFP. J. Miscellaneous The SA provides the estimated cost of other items, which have not been reported in any of the preceding classifications. Also, the SA enters as a separate line item anticipated cost associated with the NAR and NATCEP, line 14A. (See §4543.) K.. Total Direct Costs Calculated sum total cost of all line items outlined here and in §4612. L. Indirect Costs The SA provides the rate negotiated and approved by the Director, Division of Cost Allocation and Liaison, DHHS, for use during the budget FY together with the line item base, against which it is applied. Expenditures included in this category must not be duplicated under direct costs. M. Total Budget Request Calculated total of all direct and indirect costs.