ALLOWABLE ADMINISTRATIVE COSTS Sample Clauses
The Allowable Administrative Costs clause defines which administrative expenses are eligible for reimbursement or inclusion under a contract or agreement. Typically, it outlines specific categories of costs—such as salaries of administrative staff, office supplies, or overhead expenses—that can be charged, and may set limits or require documentation for these charges. This clause ensures clarity and consistency in cost allocation, preventing disputes over which administrative expenses are permissible and helping both parties manage budgets effectively.
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ALLOWABLE ADMINISTRATIVE COSTS. As is noted in C.1 above, administrative costs cannot exceed a total of 10 percent (10%) of total program expenses (including program expenses paid through premiums) over the life of the contract and no more than the amount set forth in its cost proposal over the first performance period, absent advance approval of HHS. The allowable administrative costs include those associated with implementing the high risk pool program, including expenses directly related to the tasks outlined in B.3 as well as other expenses including, but not limited to the use of actuarial services, accounting and auditor fees, agent referral fees, assessment operations, bank charges, board of director expenses, staff salary and expenses, legal expenses, marketing and outreach, office rent, equipment and supplies, postage, and printing and other administrative costs as approved by HHS consistent with OMB Circular A-87, “Cost Principles for State, Local, and Indian Tribal Governments.” This includes administrative costs incurred before the effective date of the contract directly pursuant to negotiation with HHS and in anticipation of contract award, when such incurrence is necessary to comply with the proposed contract delivery schedule. These costs are allowable to the extent that they would have been allowable if incurred after the date of the contract (see FAR 31.205- 32). On at least a monthly basis, the Contractor shall submit a Statement of costs indicating:
1. The contract line item number;
2. The administrative expenses of the Contractor;
3. The number of high risk pool program enrollees and the claims paid on behalf of high risk pool enrollees;
4. The amount of premiums billed and the amount of premiums collected; and
5. A summary of amount of Federal funds drawn down during that month. The Contractor’s Statement shall not contain personally identifiable information describing the enrollees in the high risk pool.
ALLOWABLE ADMINISTRATIVE COSTS. Administrative costs claimed under the Demonstration will be directly charged to the reporting category established for the program (4435).