Illinois Administrative Code › Title 89 - SOCIAL SERVICES › Part 356 - RATE SETTING › Section 356.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Administrative cost" means those costs related to the
				management and organizational maintenance of the purchase of care provider such
				as program administration, postage, and clerical support.
"Allowable costs" means those reasonable costs, as defined in
				this Section, that will be considered for reimbursement. Prior to the final
				rate determination, allowable costs are subject to revenue offset and
				application of reasonable cost standards if applicable, as specified in Section
				356.50.
"Cost report" means a report of all costs incurred and revenue
				earned by a provider that are directly associated with services purchased by
				the Department for its clients.
"Department" or "DCFS" means the Department of Children and
				Family Services.
"Disallowable costs" means those costs that will not be
				considered for reimbursement.
"Fiscal year" means July 1 through June 30.
"For-profit agencies" means those agencies that are registered
				as for-profit by the Secretary of State and recognized as for-profit entities
				by the Internal Revenue Service.
"Fringe benefits" means those provider costs not paid as
				salaries but incurred by agencies directly for the benefit of their employees.
				Fringe benefits include, but are not limited to employee health and retirement
				benefits, payroll taxes, worker's compensation insurance and unemployment
				compensation insurance. Liability insurance and malpractice insurance are not
				considered fringe benefits because the provider itself receives substantial
				benefits and protections from incurring those costs.
"Historical costs" means the total expenditure incurred for all
				programs the purchase of care provider provided for the previous State fiscal
				year that are presented via certified audit.
"Ownership costs" means the costs of maintenance, utilities,
				property and building insurance, depreciation, amortization of leasehold
				improvements, rent, property taxes, interest and other related costs.
"Preoperating expenses" are those operating expenses that are
				incurred in making preparation for rendering client care before the first
				client is admitted (e.g., costs based upon the amount of time an executive
				director spends on developing a new program prior to the initiation of program
				services, staff salaries paid during training prior to the initiation of
				program services, etc.).
"Purchase of care providers" means those service providers with
				whom the Department of Children and Family Services (Department) does business
				through contracts on a reimbursable basis for units of service delivered to
				specific clients.
"Reasonable costs" means those costs incurred by purchase of
				care providers that are determined to be necessary and appropriate in
				accordance with Section 356.50.
"Reimbursement rates" are rate levels used by the Department to
				reimburse for institutional and group home care; foster care; day care center
				and home care; adoption, counseling and homemaker service; and others as
				required for contracting purposes. These services are further defined in 89
				Ill. Adm. Code 302 (Services Delivered by the Department of Children and Family
				Services).
"Revenues to be offset" means funding provided by a
				governmental unit via a grant mechanism that is not clearly linked to the
				provision of service to any one particular client. The Department will wholly
				or partially discount such funding in determining the providers' reimbursable
				costs.
"Support costs" means food and dietary, laundry, housekeeping,
				and other related costs.
"Total agency costs" means the total expenditure incurred for
				all programs the purchase of care provider provides during a State fiscal
				year.
"Unit of service" means a measured length of time, such as an
				hour or a day or some other measurable service component, that will enable the
				Department to determine the amount of service provided individually or in
				aggregate to clients.