Audit of Palmetto GBA's Railroad Retirement Board Final Administrative Cost Proposals for Fiscal Years 2007 and 2008

Palmetto GBA claimed administrative costs on its Final Administrative Cost Proposals for fiscal years 2007 and 2008 that substantially complied with Federal Acquisition Regulations (FAR) and the Medicare contract. Of the approximately $28.2 million in costs that we reviewed, $28 million was allowable, allocable, and reasonable in accordance with part 31 of the FAR and the Medicare contract. However, Palmetto GBA claimed approximately $223,000 that was not allowable.