230-07-040 - Defining "supporting service expenses."

230-07-040. Defining "supporting service expenses."

(1) "Supporting service expenses" means those expenses relating to activities that are essential to the general operation of the licensee's programs, but which are not directly identifiable to a specific program. Supporting service expenses typically include:

(a) Management; and

(b) General overhead; and

(c) Any expenses related to soliciting contributions.

(2) We consider the following supporting service expenses:

(a) Wages and benefits for persons involved in the general operation of the organization, such as:

(i) Executive directors and other management; or

(ii) Support personnel like secretaries, receptionists, and bookkeepers; and

(b) Expenses related to:

(i) Providing an administrative office, including rent, depreciation, interest, utilities, taxes, insurance, and supplies; and

(ii) General management functions of the organization such as planning and budgeting, recruiting and training staff, and purchasing and distributing materials; and

(iii) Scheduling and conducting board, committee, and membership meetings; and

(iv) Publicizing the general organization; and

(v) Outside supporting services such as accounting, audit, and legal; and

(vi) Soliciting contributions or grants; and

(vii) Any net loss from nongambling fund-raising activities.

(3) Supporting service expenses do not include items which are unusual and infrequent in nature, for example, repairs from a fire.

(4) Expenses allocated to more than one service must be divided out according to their function. Licensees must document the methods of allocation and make them available for our review.

Statutory Authority: RCW 9.46.070. 07-10-032 (Order 609), ยง 230-07-040, filed 4/24/07, effective 1/1/08.

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