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DocuSign Envelope ID: 4166FC64-6496-4305-8555-38A174BDAA73 <br />(4) Calculation and application of the indirect cost rate; and <br />(5) Application of the appropriate FFP rate. <br />b) Cost pool construction <br />I. The Contractor must comply with all federal, state, HCA and CMS Regulations, the <br />CAP, Manual, and this Agreement when constructing cost pools. <br />ii. The Contractor is prohibited from including any unallowable costs in any cost pool . <br />iif. The Contractor must include all costs used to calculate the FFP reimbursement to one <br />of these six cost pools: <br />(1) Cost Pool 1: MAC SPMP; <br />(2) Cost Pool 2: MAC Non-SPMP; <br />(3) Cost Pool 3a and 3b: Non-MAC; <br />(4) Cost Pool 4: MAC Direct Charge -enhanced; <br />(5) Cost Pool 5: MAC Direct Charge -non-enhanced; and <br />(6) Cost Pool 6: Allocated. <br />iv. Costs included in the calculation of an indirect cost rate are prohibited from <br />being assigned to any of the six cost pools except by application of the indirect <br />cost rate. <br />v . All costs assigned to each cost pool must be allowable and comply with the <br />descriptions in the CAP and Manual. <br />c) Calculating allowable Medicaid Administrative Time <br />I. The Contractor must only use the RMTS or the Direct Charge method to calculate <br />the percent of reimbursable time. <br />ii. The Contractor must use the RMTS for all eligible staff who are not certified as a <br />Single Cost Objective. <br />(1) The Contractor must use the RMTS results produced by the System. <br />(2) The Contractor is prohibited from altering the RMTS results and certifies <br />the accuracy of the data by signing the A 19 by an authorized Contractor <br />representative. <br />iii. The Contractor may only use the Direct Charge method for staff who are certified <br />as a Single Cost Objective. <br />(1) These staff are required to document their daily work activities in fifteen (15) <br />minute increments. <br />Local Health Jurisdiction <br />Washington State Health Care Authority <br />Page 52 of 59 Medicaid Administrative Claiming <br />Contract # K3069