No, while an RMTS is typically used to identify and allocate cost, it is not the only option. States also have the flexibility to utilize an alternative methodology for reimbursement and/or allocation, provided there is appropriate documentation for CMS review of the chosen methodology. Regulations on personnel expenses in 45 C.F.R. § 75.430(i) require that charges to federal awards must be based on records that reflect the actual work performed. The records must:
- be supported by a system of internal controls that provides reasonable assurance charges are accurate, allowable, and properly allocated,
- reflect the total activity for which the employee is compensated,
- encompass both federally assisted and all other activities for which the employee is compensated, and
- support the distribution of the employee's salary or wages among specific activities or cost objectives.