Kan. Admin. Regs. § 30-10-219 - ICF-MR costs allowed with limitations
(a) The following
expenses or costs shall be allowed with limitations:
(1) Loan acquisition fees and standby fees
shall be amortized over the life of the related loan if the loan is related to
client care.
(2) Only the taxes
specified below shall be allowed as amortized costs.
(A) Taxes in connection with financing,
re-financing, or re-funding operations; and
(B) special assessments on land for capital
improvements over the estimated useful life of those improvements.
(3) Purchase discounts,
allowances, and refunds shall be deducted from the cost of the items purchased.
Refunds of prior year expense payments shall also be deducted from the related
expenses.
(4) Any start-up cost of
a provider shall be recognized if it is:
(A)
Incurred prior to the opening of the facility and related to developing the
ability to care for clients;
(B)
amortized over a period of not less than 60 months;
(C) consistent with the facility's federal
income tax return, and internal and external financial reports with the
exception of (B) above; and
(D)
identified in the cost report as a start-up cost which may include:
(i) Administrative salaries limited to three
months prior to licensing;
(ii)
employee salaries limited to one month prior to licensing;
(iii) utilities;
(iv) taxes;
(v) insurance;
(vi) mortgage interest;
(vii) employee training costs; and
(viii) any other allowable costs incidental
to the start-up of the facility as prior approved by the agency.
(5) Any cost which can
properly be identified as organization expenses or can be capitalized as
construction expenses shall be appropriately classified and excluded from
start-up cost.
(6) Organization
and other corporate costs, as defined in K.A.R. 30-10-200, of a provider that
is newly organized shall be amortized over a period of not less than 60 months
beginning with the date of organization.
(7) Membership dues and costs incurred as a
result of membership in professional, technical, or business-related
organizations shall be allowable. However, similar expenses set forth in
paragraph (a)(9) of K.A.R. 30-10-218 shall not be allowable.
(8)
(A)
Costs associated with services, facilities, and supplies furnished to the
ICF-MR by related parties, as defined in K.A.R. 30-10-200, shall be included in
the allowable cost of the facility at the actual cost to the related party,
except that the allowable cost to the ICF-MR provider shall not exceed the
lower of the actual cost or the market price.
(B) When a provider chooses to pay an amount
in excess of the market price for supplies or services, the agency shall use
the market price to determine the allowable cost under the medicaid/medikan
program in the absence of a clear justification for the premium.
(9) The net cost of approved staff
educational activities shall be an allowable cost. The net cost of
"orientation" and "on-the-job training" shall not be within the scope of
approved educational activities, but shall be recognized as normal operating
costs.
(10) Client-related
transportation costs shall include only reasonable costs that are directly
related to client care and substantiated by detailed, contemporaneous expense
and mileage records. Transportation costs only remotely related to client care
shall not be allowable. Estimates shall not be acceptable.
(11) Lease payments. Lease payments shall be
reported in accordance with the financial account statements of the Financial
Accounting Standards Board.
(12)
The actual cost of airplanes and associated expenses are not allowed. However,
the provider may charge the equivalent distance of automobile mileage at the
IRS allowable rate. The effective date of this regulation shall be April 1,
1992.
Notes
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