CMS Pub. 100-16, ch. mc86c17a, § 110

Cost data developed by a cost-based HMO/CMP must be current, accurate, and in

sufficient detail for CMS to make a proper determination of the HMO/CMP's costs.

Records must be maintained in a consistent manner from one contract period to another.

However, a proper regard for consistency need not preclude a desirable change in

accounting procedures if the HMO/CMP makes a full disclosure to CMS of the

significant changes in advance and secures approval for the change.

At a minimum, the following financial records/ information must be maintained:

• Matters of ownership, organization, and operation of the HMO/CMP's financial,

medical, and other record keeping systems;

• Financial statements for the current and prior three contract periods (this will

include such things as management letter comments and access to related

workpapers);

• Federal income tax or information returns for the current and prior three contract

periods;

• Asset acquisition documents and leases;

• Agreements, contracts, and subcontracts;

• Franchise, marketing, and management agreements;

• Schedules of charges for the HMO/CMP's fee-for-service patients;

• Records pertaining to costs of operations;

• Amounts of income received by source and payment;

• Cash flow statements;

• Any financial reports filed with other Federal programs or State authorities;

• Minutes from the Board of Directors' meetings taking place during the contract

period.