Audit of Group Health Incorporated's Final Administrative Cost Proposal for Fiscal Year 2008

Group Health Incorporated's (GHI) reported expenditures in its fiscal year 2008 cost proposal substantially complied with the Federal Acquisition Regulation and Medicare contract provisions. However, GHI overstated its cost proposal by approximately $20,000. Specifically, GHI reported unallowable program costs totaling approximately $57,000 and understated overhead costs by approximately $37,000.