Review of Medicare Part A Costs Claimed For Y2K Activities For The Period October 1, 1997 Through September 30, 1999 - United Government Services, LLC, Milwaukee, Wisconsin

The audit objective was to determine whether costs claimed by UGS for Medicare Y2K remediation were allowable and properly allocated.  Our review showed UGS improperly charged Y2K for $45,278 of compensation for supervisors working less than 100 percent on Y2K; could not support other compensation costs of $3,724; and claimed unallowable employee meal costs of $921.  We recommended UGS amend its FACP to charge supervisor compensation of $45,278 to non-Y2K Medicare activities and make a financial adjustment for the remaining $4,645.