Southern California Renal Disease Council, Inc., Claimed Unallowable and Unsupported Costs Under Medicare Contract Number 500-02-NW18CH

We reviewed $1.34 million of the $7.91 million that Southern California Renal Disease Council, Inc., claimed under Medicare contract number 500-02-NW18CH for the period September 30, 2002, through September 28, 2006. Of the $1.34 million we reviewed, $651,000 was allowable under the terms of the contract and pursuant to applicable Federal regulations. The remaining $687,000 consisted of $29,000 in salaries and wages, fringe benefits, travel costs, and other direct costs that we determined were unallowable and $658,000 that we set aside for CMS resolution.