National Government Services Properly Claimed Allowable Administrative Costs for the Last Three Quarters of Fiscal Years 2011 and 2012 Under Medicare Contract 00450

The Centers for Medicare & Medicaid Services (CMS) contracted with National Government Services (NGS) to process Part A claims under Medicare contract 00450. CMS requested that we perform an audit of NGS's Medicare Part A final administrative cost proposal for the last three quarters of fiscal years 2011 and 2012.

We reviewed 310 samples from 8 cost pools to determine whether the costs claimed were reasonable, allowable, and in compliance with Federal Acquisition Regulations and other applicable criteria. We limited our internal control review to those controls related to the recording and reporting of costs on the cost proposals. The $69.9 million in costs covered by our review was allowable under the terms of the Medicare contract and applicable Federal regulations. This report contains no recommendations.