Developing Budget Recommendations - RO Procedures

4629 - Developing Budget Recommendations - RO Procedures (Rev. 1, 05-21-04) It is the RO’s responsibility to ensure that only necessary and reasonable funding is approved. In negotiations and final recommendations of the SA’s budget and planned workload, it is important to ensure that the SA has a full understanding of established CMS policies. The following items are to assist the RO in the final recommendations of the SA’s budget. A. Base Data The number of facilities the SA is required to survey and the staff-years required to accomplish the survey activity is the basis for approving the line item budget. These include any additional workload projected in the ensuing FY, e.g., newly-established provider expenditures for the 12-month period ending March 31 may also serve as a guide in determining expected increases or decreases for each line item for the budget year. The RO will inform the State that funds provided as a result of the budget approval can only be used for the necessary expenses in carrying out the survey and certification activity. B. Significance of Categorical Budget Recommendations The budget recommendation is a detailed concurrence or revision to State estimated survey program costs. The RO negotiates the budgets by line item, according to the category of the proposed expenditure. The RO explains the adjustment of any category with respect to program objectives and the methods used to compute each amount. The CMS places strong emphasis on training of State surveyors. Therefore, the budget approval must include the request that States not reprogram training funds without prior RO approval. C. Line Item Justification The projected workload, together with the impact of expected program developments and emphasis, the SA’s own plans, and the experience of the 12-month period ending March 31 are the primary factors to consider when approving the line item budget. The RO considers these factors in its approval of the SA’s budget request. The rationale for any change by the RO of the State’s proposal should where possible: ● Show the revised estimate; ● Explain the rationale for the change; and ● Provide the basis for computing the revised estimate. D. State Agency Budget List of Positions (Form 1465(A) - RO Recommendations The RO will review and validate the list of positions to determine if the staff-years and salary costs reported on Form CMS-435 are correct. A limit on the number of full-time equivalents chargeable to the Federal program budgets will be set by the RO. The RO is responsible for monitoring all staffing and analyzing State requests and requirements for additional support staff. No costs associated with the NAR/NATCEP are to be included on this form. All costs relating to NAR/NATCEP are to be reported as Miscellaneous, line 14A. (See §4543.) E. State Agency Schedule for Equipment Purchases (Form CMS-1466) - Recommendations This form has a two-fold purpose: It is used when requesting budget approval of equipment purchases, and it is to be completed and notification given to the RO when an actual purchase is completed. The RO reviews the list for the necessity of items requested, comparing it to inventories of the State’s existing equipment.