Mutual of Omaha's Medicare Final Administrative Cost Proposals for Fiscal Years 2004 Through 2006

Mutual reported expenditures that substantially complied with the Federal Acquisition Regulation and the Medicare contract provisions. However, Mutual reported, in its cost proposals, $1,266 that was not allowable. These costs were for entertainment ($840) and lobbying ($426), and as such, did not meet the criteria for Federal reimbursement. We recommended that Mutual refund to the Federal Government the $1,266 of unallowable costs. Mutual agreed with our findings.