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OJA Cost Reimbursement Cost Principles 22206 doc

OJA Cost Reimbursement Cost Principles 22206 doc 2025

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The document outlines the guidelines established by the Office of Juvenile Affairs (OJA) for determining allowable costs under cost reimbursement contracts. It provides a uniform approach to ensure effective program delivery and efficient management of funds by contractors. The guidelines detail general principles, definitions, basic criteria for cost allowability, and specific items of cost that are either allowable or unallowable. Additionally, it includes requirements for cost allocation plans and documentation necessary for compliance with OJA standards.

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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is reasonable cost reimbursement?

Under the reasonable cost reimbursement methodology, payment for both Part A and Part B services furnished by most providers was based on the lesser of the reasonable cost of the services, as determined under section 1861(v) of the Act, or the providers customary charges for the services.

What are the three cost principles?

(1) Reasonableness. (2) Allocability. (3) Standards promulgated by the CAS Board, if applicable, otherwise, generally accepted accounting principles and practices appropriate to the circumstances.

What is reasonableness of costs?

Reasonable Costs A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person in the conduct of competitive business.

What is the cost reimbursement basis?

Medicare Reasonable Cost: Reasonable cost includes all necessary and proper costs incurred in rendering the services, subject to principles relating to specific items of revenue and cost [PRM-I, Chapter 21, Section 2100].

What are reasonable cost payments?

Reasonable cost includes all necessary and proper expenses incurred in furnishing services, such as adminis- trative costs, maintenance costs, and premium payments for employee health and pension plans.

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