Audit of Medicare Final Administrative Cost Proposals for the period October 1, 1998 through September 30, 2000

We have concluded that $118,199,816 of the $128,100,962 claimed under the contract is acceptable.  The balance of $9,901,146 represents costs set aside for pension costs ($801,140), home office indirect costs ($8,568,685), return on investment ($73,729), and the amount budgeted for forward funding ($457,592).