N.D. Admin Code 75-02-09-01 - Definitions

Current through Supplement No. 383, January, 2022

1. "Accrual basis" means the recording of revenue in the period when it is earned, regardless of when it is collected, and the recording of expenses in the period when incurred, regardless of when they are paid.

2. "Adjustment factor" means the inflation rate for psychiatric residential treatment facility services used to develop the legislative appropriation for the department for the applicable rate year.

3. "Allowable cost" means the facility's actual and reasonable cost after adjustments required by department rules.

4. "Cost category" means the classification or grouping of similar or related costs for purposes of reporting which are used in the determination of cost limitations and rates.

5. "Cost report" means the department-approved form for reporting costs, statistical data, and other relevant information to the department.

6. "Department" means the department of human services.

7. "Depreciation" means an allocation of the cost of an asset over its estimated useful life.

8. "Desk rate" means the rate established by the department based upon the cost report.

9. "Education" means the cost of activities related to academic and vocational training generally provided by a school district.

10. "Facility" means an entity that is a licensed psychiatric residential treatment facility for children under chapter 75-03-17.

11. "Fair market value" means value at which an asset could be sold in the open market in a transaction between informed, unrelated parties.

12. "Final rate" means the rate established after any adjustments by the department, including adjustments resulting from cost report reviews and audits.

13. "Fringe benefits" means workers' compensation insurance, group health, dental or vision insurance, group life insurance, payment toward retirement plans, uniform allowances, employer's share of Federal Insurance Contributions Act, unemployment compensation taxes, and medical services furnished at facility expense.

14. "Generally accepted accounting principles" means the accounting principles approved by the American institute of certified public accountants.

15. "In-house day" means a day that an individual was actually residing in the facility and was not on leave.

16. "Interest" means cost incurred for the use of borrowed funds.

17. "Leave day" means any day that an individual is not in the facility but is expected to return to the facility.

18. "Private-pay resident" means an individual on whose behalf the facility is not receiving medical assistance payments.

19. "Rate year" means the twelve-month period beginning the seventh month after the end of a facility's fiscal year.

20. "Reasonable cost" means the cost that must be incurred by an efficiently and economically operated facility to provide services in conformity with applicable state and federal laws, rules, and quality and safety standards. Reasonable cost takes into account that the facility seeks to minimize its costs and that its actual costs do not exceed what a prudent and cost-conscious buyer pays for a given item or service.

21. "Related organization" means an organization that a facility is, to a significant extent, associated with, affiliated with, able to control, or controlled by; and which furnishes services, facilities, or supplies to the facility. Control exists when an individual or organization has the power, directly or indirectly, to significantly influence or direct the policies of an organization or facility.

22. "Report year" means the facility's fiscal year.

23. "Resident day" means a day for which service is actually provided or for which payment is ordinarily sought.

24. "Special rate" means a desk rate or a final rate adjusted for nonrecurring or initial costs not included in the historical cost basis.


N.D. Admin Code 75-02-09-01
Effective May 1, 1994; amended effective October 1, 2011.

General Authority: NDCC 50-24.1-04

Law Implemented: 42 USC 1396 a(a)(30)(A)

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