Audit of Palmetto Government Benefits Administrators' Durable Medical Equipment Regional Carrier Final Administrative Cost Proposals for Fiscal Year 2007

Palmetto Government Benefits Administrators (Palmetto), a Medicare contractor, reported expenditures in its Final Administrative Cost Proposal (FACP) that substantially complied with the Federal Acquisition Regulation and Medicare contract provisions. However, contrary to the Centers for Medicare & Medicaid Services guidelines, Palmetto (1) did not submit a budget for its contract termination costs and (2) incorrectly claimed on its FACP certain contract termination costs that should have been claimed on a termination voucher.