Illinois Administrative Code › Title 89 - SOCIAL SERVICES › Part 356 - RATE SETTING › Section 356.40 - Cost Information Requirements of Providers

Current through Register Vol. 48, No. 28, July 12, 2024
a) Cost Reporting - Except as otherwise
			 provided by this subsection, all providers shall annually file a certified cost
			 report on a schedule provided by the Department. The time period covered by the
			 cost report shall correspond to the Department's fiscal year unless otherwise
			 approved by the Department. The Department may designate cost reports filed by
			 the provider with other State agencies as suitable for fulfilling this
			 requirement when those reports provide all of the information needed by the
			 Department in a clear and usable way. Any provider that completes an audit in
			 accordance with 89 Ill. Adm. Code
			 357.120
			 (Purchase of Service Fiscal Reports and Records) shall bind the DCFS cost
			 report required by this subsection within that audit. Day care providers are
			 exempt from all audit and cost reporting requirements unless they are involved
			 in the cost based rate negotiations authorized under Section
			 356.30(a)
			 of this Part. Providers involved in those rate negotiations shall file the cost
			 report on the Department schedule, as described in this subsection, and, if
			 required to file an OMB Circular A-133 audit, a copy of that audit with the
			 cost report bound within the audit.
b) Accrual Accounting - The provider shall
			 use the accrual basis of accounting when reporting financial data.
c) Audits - Providers shall cooperate in any
			 audits undertaken to verify the truth, accuracy, and completeness of reported
			 costs, in accordance with 89 Ill. Adm. Code 434 (Audits, Reviews, and
			 Investigations).
d) Total Costs and
			 Revenue - Providers must report all costs of service and must disclose their
			 total costs and revenue. Supporting documentation will be required to verify
			 the costs allocated to each of the various services the Department purchases
			 and to the sum of other services the agency provides. The reported total cost
			 and revenue must be certified by a licensed public accountant.
e) Historical Costs - Historical costs will
			 be established when the provider has operated one or more years and independent
			 auditors concur with the reported total costs. New providers who have not
			 established their historical costs shall be permitted to submit budgeted
			 information for the first fiscal reporting period. However, no rate increases
			 shall be authorized for the next fiscal year until audited historical costs are
			 available. When the rate increase is authorized based on historical costs, it
			 will coincide with the effective date of the contract if the audit is received
			 in accordance with contractual requirements.
f) Other Information Required - As a
			 condition of contract issuance or renewal, the Department will request and
			 receive promptly any other financial information, reasonably related to rate
			 determination, needed to determine the provider's costs. For determining State
			 Fiscal Year 2000 rates, this may include submission of program budgets. (See
			 Section
			 356.50(f).)