1/ The net change is calculated on a comparable basm. The FY 2002 base includes adjustments for the consolidation of CMS's public affairs activities and Office of Legislation under DHHS. Further, the FY 2002 base has been adjusted to account for the effects of the Administration's proposal to accrue the full costs of retirement and annuitant health benefits. The FY 2003 costa tota! 530,416,000. These costs are fully-funded in this request. There is no absorption of these costs.

The fiscal years 2001 actual and 2002 current estimate columns reflect CMS's share of the allocated rescission for Labor/HHS/Education administrative expenses.

2/ in FY 2002, the CMS has available to obligate the remaining $20.5 million of no-year funds included in our FY 1998, FY 2008 and FY 2001 appropriations for the trosition to a single Part A and Pan B processing system and managed care redesign activities.

V In FY 2003, both the accrual for retirement and anquinant health benefits and the DHHS component consolidation have been added to our

current low request; Both items are displayed in fiscal years 2001 and 2002 for comparability purposes.

✔ Please see Exhibit 5 for the crosswalk from current law to proposed law to reflect the Asturin istration's proposal for full accrual retirement and beakh benefits.

1/ Does not include 80 CLIA FTEs which are funded solely from CLIA user fees.

2/ Fiscal year 2002 includes a -$5,523,000/-63 FTE comparability adjustment relating to the consolidation of CMS's Office of Public Affairs and Office of Legislation.

3/ Fiscal year 2003 personnel benefits includes $30,112,000 in accrued health benefits costs. Fiscal year 2002 is shown for comparability purposes.

SUPPORTING INFORMATION

PROGRAM MANAGEMENT

Table IV4 Budget Authority by Object (Continued)

1/ Fiscal year 2003 purchases of goods and services from Government accounts includes $304,000 in accrued retirement costs. Fiscal year 2002 is shown for comparability purposes.

I/ Fiscal year 2002 includes a -$5,523,000/-63 FTE comparability adjustment relating to the consolidation of CMS's Office of
Public Affairs and Office of Legislation.

2/ Fiscal year 2003 personnel benefits includes $30,112,000 in accrued health benefits costs. Fiscal year 2002 is
shown for comparability purposes.

3/ Fiscal year 2003 purchases of goods and services from Government accounts includes $304,000 in socrued retirement costs. Fiscal year 2002 is shown for comparability purposes.