N.D. Admin Code 75-02-09-06 - Allowable costs by cost category

Current through Supplement No. 383, January, 2022

1. Administration costs are those allowable costs of activities performed by the staff in which the direct recipient of the activity is the organization itself, including fiscal activities, statistical reporting, recruiting, and general office management indirectly related to reimbursable services provided. Administration personnel includes administrators, regional directors, program directors, accounting personnel, clerical personnel, secretaries, receptionists, data processing personnel, purchasing personnel, and security personnel. Administration costs directly assignable to the facility must be reported as facility administration. Administration costs not directly assignable to the facility must be reported as other administration. Costs for administration include:
a. Salary and fringe benefits for individuals who provide services administrative in nature or who are not included specifically in any other cost category;
b. Office supplies;
c. Insurance, except property insurance and insurance included as a fringe benefit;
d. Postage and freight;
e. Professional fees for services such as legal, accounting, and data processing;
f. Central or home office costs;
g. Personnel recruitment costs;
h. Management consultants and fees;
i. Dues, license fees, and subscriptions;
j. Travel and training for employees;
k. Interest on funds borrowed for working capital;
I. Startup costs;
m. Telephone service not included in other cost categories; and
n. All costs not specifically identified in other cost categories.
2. Direct care costs are those allowable costs incurred for providing services for the maximum reduction of physical or mental disability and restoration of a resident to the best possible functional level and for providing for the personal needs of the resident. Those services may include any medical or remedial service recommended by a physician or other licensed practitioner of the healing arts, within the scope of the practitioner's practice under state law. Direct care costs include:
a. Salaries and fringe benefits for individuals providing treatment or supervision of residents;
b. Personal supplies used by an individual resident;
c. Clothing necessary to maintain a resident's wardrobe;
d. School supplies and activity fees, when not provided by or at the expense of the school;
e. Costs incurred for providing recreation to the residents including subscriptions, sports equipment, and admission fees to sporting, recreation, and social events;
f. All costs related to transporting residents, and transportation costs that may include actual expenses of facility-owned vehicles or mileage paid to employees for use of personal vehicle; and
g. The cost of services purchased and not provided at the facility, including case management, addiction, psychiatric, psychological, and other clinical evaluations, medication review, and partial care or day treatment.
3. Dietary costs are those allowable costs associated with the preparation and serving of food. Dietary costs include:
a. Salaries and fringe benefits for all personnel involved with the preparation and delivery of food;
b. Food; and
c. Dietary supplies and utensils including paper products and noncapitalized dietary equipment.
4. Laundry costs are those allowable costs associated with gathering, transporting, sorting, and cleaning of linen and clothing. Laundry costs include:
a. Salaries and fringe benefits of personnel who gather, transport, sort, and clean linen and clothing;
b. The cost of laundry supplies; and
c. Contracted laundry services.
5. Plant and housekeeping costs are those allowable costs related to repairing, cleaning, and maintaining the facility's physical plant. Plant and housekeeping costs include:
a. Salaries and fringe benefits of personnel involved in cleaning, maintaining, and repairing the facility;
b. Supplies necessary to maintain the facility, including such items as cleaning supplies, paper products, and hardware goods;
c. Utility costs, including heating and cooling, electricity, water, sewer, garbage, and cable television;
d. Local telephone service to the living quarters and long distance telephone service directly related to providing treatment; and
e. Routine repairs and maintenance of property and equipment, including maintenance contracts and purchased services.
6. Property costs are those allowable capital costs associated with the physical plant of the facility. Property costs include:
a. Depreciation;
b. Interest;
c. Lease costs on equipment and buildings;
d. Property taxes; and
e. Property insurance on buildings and equipment.


N.D. Admin Code 75-02-09-06
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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