Audit of Palmetto Government Benefits Administrators' Medicare Part B Final Administrative Cost Proposals for Fiscal Years 2004 Through 2006

Palmetto Government Benefits Administrators (Palmetto) reported expenditures in its Final Administrative Cost Proposals that substantially complied with the Federal Acquisition Regulation and Medicare contract provisions for fiscal years 2004 through 2006. However, we recommended that Palmetto refund to the Federal Government $32,000 of unallowable costs that it was unable to support with adequate documentation. Palmetto said that it would continue to search for proper documentation of these costs and, when located, submit it to the Centers for Medicare & Medicaid Services.