In addition, three previously issued directives, Definitions, Applicability, and HHS Responsibilities, will require reevaluation and updating for reissuance during FY 1998. This function has increased in importance as certain organizations have started using specialized studies to increase their federal indirect cost reimbursements. We accomplished . . . HHS has identified practices used by organizations to optimize federal reimbursements. Organizations also use special information studies to identify data processing and telecommunications costs assigned to federal grant programs.
State governments operate numerous types of self-insurance funds.
Due to the significant amounts of federal dollars involved, HHS engaged an actuarial firm to assess the reasonableness of the premiums charged and the related accumulated cash reserve balances for two funds. Based on the actuary's assessment, HHS reduced the federal claims. Additional work relating to State self-insurance funds is currently being performed by the actuarial firm. We plan to . . . HHS negotiators, specifically the Division of Cost Allocation within the PSC, are responsible for negotiating indirect costs between the Federal Government and approximately 3,000 organizations.