N.J. Admin. Code § 10:49A-2.5 - Required reported expenses: facility operating expenses

(a) A facility must report amounts paid, or accrued, during the PCR reporting year in order to secure facility space and maintain it in habitable and licensable condition. Amounts must be reported in the aggregate for each of the following distinct categories:

1. A single aggregate amount must be reported for all equipment, maintenance, telecommunications, and utility expenses attributable to buildings and equipment used for resident living, activities, services, and support functions, including, but not limited to, food service and transportation. If administrative offices are attached to these buildings, expenses for similar items may be included in this total if they are dedicated solely to the operations of the reporting facility. Expenses for areas that are not used solely by, or for, residents may only be reported in this category if the amount is allocated on a pro rata basis, based on the proportion of actual resident use, as calculated over the course of the PCR reporting year;

2. A single aggregate amount must be reported for all depreciation and rent expenses attributable to property, plant, and equipment (PP&E) used for resident living, activities, services, and support functions, such as food service and transportation. PP&E that are not used solely by, or for, residents may only be reported in this category if the amount is allocated on a pro rata basis, based on the proportion of actual resident use, as calculated over the course of the PCR reporting year;

3. Depreciation must match the amount that would be recognized on a facility's income statement in accordance with GAAP, as defined by the Financial Standards Accounting Board for the reporting year. Facilities may not report the total cash outlay or balance sheet asset generated by a capitalized expenditure. Facilities shall not report accelerated depreciation used for internal reporting or tax filing; and

4. No amount shall be reported for all other facility operating expenses. Other facility operating expenses means amounts not allowable under any other category.

Notes

N.J. Admin. Code § 10:49A-2.5

Adopted by 53 N.J.R. 1783(a), effective 10/18/2021