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Contract #K3069 for Medicaid Administrative Claiming Recitals This contract, number K3069, supersedes and replaces contract number K1407 in its entirety. IN CONSIDERATION of the mutual promises as set forth in this Contract, the parties agree as follows: STATEMENT OF WORK (SOW) The Contractor will provide the services and staff as described in Schedule A: Statement of Work. 2. DEFINITIONS "A19 -1A" or "A19" means the State of Washington Invoice Voucher used by contractors and vendors to submit claims for payment in return for goods and/or services provided to HCA or its Clients. "Activity Code" or "Code" means the code assigned to the daily activities performed by Contractor staff in order to identify the percentage of time spent on any given activity. "Administrative Fee" means the dollar amount charged to the Contractor by HCA based on a percentage of each Contractor's billing for Federal Financial Participation claimed at the federally approved match rate, to offset HCA's costs incurred in administering this Agreement. "Allocated" or "Allocated Cost" means an Operating Expense that is allocated across more than one cost pool. "Allowable Expense" means an expenditure which meets the test of the appropriate OMB Circular (see Attachment 1, Federal Compliance, Section I). The most significant factors affecting allowability of expenses are: 1) they must be necessary and reasonable, 2) they must be allocable, 3) they must be authorized or not published under state or local laws and regulations, and 4) they must be documented. "Authorized Representative" means a person to whom signature authority has been delegated in writing acting within the limits of his/her authority. "Billing Quarter" means a calendar quarter consisting of three (3) consecutive calendar months beginning with the first date of the calendar quarter during which this Agreement starts. The Contractor shall use Billing Quarters as the time periods for which claims for Federal Financial Participation are made. Local Health Jurisdiction Page 4 of 59 Medicaid Administrative Claiming Washington State Health Care Authority Contract # K3069