U.S. flag

An official website of the United States government

Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.


The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Department of Health and Human Services

Office of Inspector General -- AUDIT

"Cahaba Government Benefit Administrators Final Administrative Cost Proposals for Depreciation for Fiscal Years 2001 Through 2004," (A-04-07-05055)

April 18, 2007

PDF File Complete Text of Report is available in PDF format (1.29 mb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


Although Cahaba Government Benefit Administrators, LLC (Cahaba GBA) generally claimed over $14 million in depreciation expense that was reasonable, allowable, and allocable during fiscal years 2001 through 2004, it inappropriately claimed approximately $36,152 in unallowable depreciation expenses. 

Cahaba GBA’s unallowable claims for depreciation expenses were caused by insufficient controls over depreciation and associated assets. During our audit period, Cahaba GBA significantly improved its controls over depreciation. However, further upgrades are necessary to integrate the system for tracking assets with the system for tracking the depreciation claimed for those assets. We recommended that Cahaba GBA reimburse the Medicare program $36,152 for unallowable depreciation expenses and establish controls that integrate depreciation costs with accountability of the assets being depreciated. Cahaba concurred with our recommendations.