California Code of Regulations › Title 17 - Public Health › Division 2 - Health and Welfare Agency-Department of Developmental Services Regulations › Chapter 3 - Community Services › Subchapter 13 - Rate-Setting Procedures for in-Home Respite Services Agency Vendors › Article 3 - Submission of Required Information › Section 58034 - Required Cost Information

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 In order for the Department to establish a permanent payment rate, the vendor
					 shall submit information for the following allowable costs if they are incurred
					 by the vendor and are necessary for the vendored service.
(1) Total gross salary and wages including
					 overtime for the staff functions specified in Section
					 56792.
(2) Fringe benefit costs associated with the
					 salary and wage costs for the staff functions identified in (1) which shall be
					 limited to the following:
(A) Old Age Security
					 Disability Insurance (OASDI) or Federal Insurance Compensation Act
					 (FICA);
(B) Workers'
					 compensation;
(C) Unemployment
					 insurance;
(D) Life
					 insurance;
(E) Health
					 insurance;
(F) Dental
					 insurance;
(G)
					 Retirement;
(H) Vision
					 insurance;
(I) Employee Training
					 Tax as specified in the California State Unemployment Insurance Code Section
					 976.6;
					 and
(J) Long-term disability
					 insurance.
(3) Operating
					 expenses which shall not duplicate other allowable costs and shall be limited
					 to the following cost categories:
(A)
					 Accounting fees of the vendor for the establishment and maintenance of
					 accounting records and other information systems required for the fiscal
					 management of the vendored service;
(B) Bank service fees of the
					 vendor;
(C) Communication costs for
					 services including telephone, telegraph, teletype, centrex, telepak, postage,
					 message services, facsimiles and TDD;
(D) Contractual/consultant fees for service
					 operation that do not have a specific cost category;
(E) Depreciation costs, except for vehicles
					 which are covered under (P). The following items shall be depreciated using the
					 straight-line depreciation method and the useful life of the item. The useful
					 life of an item shall be that used for federal tax purposes.
1. Buildings which have been purchased by the
					 vendor;
2. Furniture and equipment
					 which has been purchased by the vendor and has a unit acquisition cost of at
					 least $500 and a normal useful life of at least four years; and
3. Capital improvements that add to the value
					 or useful life of the building or equipment. Capital improvements shall be
					 treated as a permanent investment to be added to the cost basis of the building
					 or equipment and charged to depreciation.
(F) General expense costs for the following
					 items only:
1. Furniture and equipment which
					 do not meet the criteria specified in (E) 2;
2. Interest on loans attributable to the
					 vendored service;
3. Subscriptions
					 for periodicals which are used in the operation of the vendored service or for
					 the purpose of staff development;
4. Staff recruitment costs; staff screening
					 costs, such as fingerprinting prospective employees; and staff hiring costs
					 which shall include the costs for physical examinations or other health and
					 safety costs that may be required prior to employment;
5. Fees for licenses, certifications,
					 registrations or permits, if necessary for vendorization or the continued
					 operation of the service subsequent to vendorization;
6. Accreditation fees;
7. Association dues or fees;
8. Costs for providing or preparing
					 information related to the vendored service which is used as general
					 information to the consumers or to the authorized consumer
					 representatives;
9. Local business
					 fees or taxes;
10. Costs related to
					 inoculations or clinical tests of an employee, for the employee's or consumer's
					 health and safety; and
11. Fuel and
					 oil.
(G) Insurance
					 costs;
(H) Janitorial
					 fees;
(I) Legal fees;
(J) Maintenance costs for repair and upkeep
					 of furniture and equipment, vehicles, buildings and grounds which neither adds
					 to the permanent value nor prolongs its useful life, but maintains it in an
					 efficient operating condition;
(K)
					 Office supply costs;
(L) Rental and
					 lease costs. On a lease-purchase, while the item is being leased, the cost
					 shall be reported under this category. When the option-to-purchase has been
					 exercised, the residual value of the item shall be depreciated and shall be
					 reported, as applicable, under category (E) or (P). Rental and lease costs
					 shall apply to the following items:
1.
					 Furniture and equipment;
2.
					 Vehicles; and
3.
					 Buildings.
(M) Staff
					 training costs for in-service training and employee development which meet the
					 requirements specified in Section
					 56794;
(N) Staff travel costs which are specifically
					 related to the administration of the vendored service.
(O) Utility costs such as gas, electricity,
					 water, garbage, sewer fees or other utility expenses which occur at the
					 vendored service site;
(P) Vehicle
					 depreciation cost for owned vehicles shall be calculated by using the
					 straight-ling depreciation method and the minimum normal service life which is
					 allowed by the Urban Mass Transportation Administration. The minimum normal
					 service life for vehicles such as regular and specialized vans and cars is at
					 least four years for service or an accumulation of at least 100,000 total miles
					 on the vehicle.
(4)
					 Management organization costs which:
(A) Shall
					 include for staff functions of the management organization, the allowable costs
					 specified in (a)(1) through (3) of this section.
(B) Shall not include:
1. More than 100 percent of the allocated
					 costs of the management organization;
2. Costs applicable to or claimed by other
					 services operated by the vendor.
3.
					 Any non-allowable costs pursuant to Section
					 58036; and
4. Costs for respite worker
					 staff.
(C) Shall be
					 allocated on a basis consistent with the administrative support provided to
					 each separate service, and each vendor shall:
1. Indicate whether the methodolgy used to
					 allocate the costs of the management organization is based upon.
a. Direct service hours; or
b. The total costs of each
					 service.
2. Include the
					 total allowed costs of the management organization for the reporting
					 period.