CMS Pub. 100-06, ch. 7, § 60.1

The financial reporting cycle memo shall include the following sections in the, “Table of

Contents”:

Section I. Objective

The objective of the cycle memo is to describe the preparation and reporting of financial

processes performed by the CMS contractor.

Section II. Introduction

The purpose of the introduction is to provide sufficient background on the process. An

example of an introduction would be: The CMS utilizes contractors to manage and

administer the Medicare program. Medicare contractor financial reports provide a

method of reporting financial activities by the contractors as required by the Chief

Financial Officers (CFO) Act of 1990. The CMS contractors are required to maintain

accounting records in accordance with government accounting principles and applicable

government laws and regulations.

Section III. Interface with Other Cycles

The contractor shall show what cycle memos interface or relate to other cycle memos

such as the accounts receivable, accounts payable, claims expense or other. Contractors

may combine related cycles such as the accounts payable and claims expense.

Section IV. Current Environment

The purpose of the current environment is to describe the processes in place and to

identify the controls within those processes. The Medicare contractor financial reporting

environment should show that it has established and maintained an effective commitment

to internal controls over financial reporting. Internal controls shall be established and

assessments shall be designed to provide reasonable assurance and confidence those

obligations and costs are in compliance with applicable laws and regulations. Funds and

other assets are safeguarded against waste, loss, unauthorized use, or misappropriation.

Revenues and expenditures applicable to the operations are properly recorded and

accounted for to permit the preparation of accounts and reliable financial and statistical

reports and to maintain accountability over assets.

End Sections 60.1 – CMS Contractor Cycle Memo Outline and 60 – CMS Contractor

Cycle Memo: Back to Table of Contents