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(4) Calculation and application of the indirect cost rate; and (5) Application of the appropriate FFP rate. b) Cost pool construction The Contractor must comply with all federal, state, HCA and CMS Regulations, the CAP, Manual, and this Agreement when constructing cost pools. ii. The Contractor is prohibited from including any unallowable costs in any cost pool. iii. The Contractor must include all costs used to calculate the FFP reimbursement to one of these six cost pools: (1) Cost Pool 1: MAC SPMP; (2) Cost Pool 2: MAC Non-SPMP; (3) Cost Pool 3a and 3b: Non -MAC; (4) Cost Pool 4: MAC Direct Charge — enhanced; (5) Cost Pool 5: MAC Direct Charge — non-enhanced; and (6) Cost Pool 6: Allocated. iv. Costs included in the calculation of an indirect cost rate are prohibited from being assigned to any of the six cost pools except by application of the indirect cost rate. V. All costs assigned to each cost pool must be allowable and comply with the descriptions in the CAP and Manual. c) Calculating allowable Medicaid Administrative Time The Contractor must only use the RMTS or the Direct Charge method to calculate the percent of reimbursable time. ii. The Contractor must use the RMTS for all eligible staff who are not certified as a Single Cost Objective. (1) The Contractor must use the RMTS results produced by the System. (2) The Contractor is prohibited from altering the RMTS results and certifies the accuracy of the data by signing the A19 by an authorized Contractor representative. iii. The Contractor may only use the Direct Charge method for staff who are certified as a Single Cost Objective. (1) These staff are required to document their daily work activities in fifteen (15) minute increments. Local Health Jurisdiction Page 52 of 59 Medicaid Administrative Claiming Washington State Health Care Authority Contract # K3069