Review of Pension Costs Claimed by Veritus, Inc. of Pennsylvania

EXECUTIVE SUMMARY:

The audit objective was to determine the allowability of pension costs claimed for Medicare reimbursement by Veritus for Fiscal Years (FY) 1993 through 1997.  Veritus claimed $594,806 of unallowable pension costs.  Veritus should revise its Final Administrative Cost Proposals for FYs 1993 through 1997 to eliminate unallowable pension costs of $594,806.  Veritus agreed with our recommendation.