Illinois Administrative Code › Title 89 - SOCIAL SERVICES › Part 140 - MEDICAL PAYMENT › Subpart E - GROUP CARE › Section 140.533 - General Administration Costs

Current through Register Vol. 48, No. 28, July 12, 2024
General administration costs are allowable as follows:
a) Administrative - Allowable costs are
				reasonable costs of salaries paid to the administrator and assistant
				administrator (reasonableness to be determined by hours worked, need for
				position, and prevailing salaries in the industry); central office expenses in
				accordance with Medicare guidelines; and miscellaneous administrative expenses
				not otherwise classified. Compensation paid to a nonworking officer or owner is
				not allowable.
b) Bad Debts - Costs
				attributed to uncollectable accounts are not allowable. This includes
				professional fees incurred for the collection of such accounts.
c) Clerical - Allowable costs are salaries
				and wages of clerical staff, officer supplies, printing, postage, copier
				expenses, telephone and telephone leasing expense, and other miscellaneous
				expenses. Clerical costs relating to fund raising or other non-care activities
				are not allowable.
d) Contributions
				- Contributions made to charitable or political organizations are not
				allowable.
e) Directors' Fees -
				Reasonable fees paid to directors are allowable. Reasonableness will be
				determined by the duration of the meeting and the customary directors' fees
				paid by similar institutions. The director must attend the meeting in order for
				a director's fee to be allowable. Auditable records indicating attendance and
				duration of meetings must be kept.
f) Dues, Fees, Subscriptions, Promotions -
				Reasonable cost of membership in organizations reasonably related to the
				development and operation of patient care facilities and programs, or the
				rendering of patient care is allowable. The cost of membership in civic,
				social, or fraternal organizations is not allowable. The cost of subscriptions
				to professional, technical, or business related periodicals is allowable.
				Allowable advertising costs include: those in connection with recruiting
				personnel, or for procurement of scarce items or services related to patient
				care. Advertising costs are not allowable in connection with public relations,
				fund raising, or to encourage patient utilization. Trust fees are also a
				non-allowable expense.
g) Employee
				Benefits and Payroll Taxes - Allowable costs include retirement plans, life
				insurance, health insurance, malpractice insurance for the medical director,
				payroll taxes, uniform allowance, unemployment insurance, workmen's
				compensation and employee meals. Benefits claimed as costs must be required by
				law, a written contract, or written policies of the facility. Premiums on
				key-man life insurance where the corporation or facility is the beneficiary, or
				where similar insurance is not available to all employees are not allowable
				except as required by lending institutions.
h) Good Will and Covenant not to Compete -
				Costs are not allowable.
i)
				Inservice Training and Education - Allowable costs are travel, food, lodging,
				attendance fees, and cost of bringing training personnel to the facility. The
				cost of training employees or volunteers who will work in the facility is
				allowable. The cost of training non-employees is not allowable.
j) License or Application Fees - Fee for
				licensure of the facility as well as the license application fee are allowable
				costs.
k) Malpractice Insurance -
				Cost of malpractice insurance for the facility is allowable.
l) Professional Services - Reasonable legal
				and accounting fees incurred incident to the operation of the facility are
				allowable. Legal and accounting costs incident to corporate matters not related
				to patient care are not allowable. Retainer fees are also not allowable. Legal
				fees for law suits against the State or Federal governments are not allowable.
				Management fees are allowable to the extent they are reasonable in relation to
				services performed.
m) Property and
				Liability Insurance - The cost of property and liability insurance premiums
				paid on care related assets is an allowable cost.
n) Travel and Seminar - The reasonable and
				necessary cost of attending meetings and seminars (related to patient care) is
				an allowable cost. Travel, lodging, food and registration expenses related to
				attending conferences and conventions beyond 50 miles of Illinois are not
				allowable. Conferences held in-state, or within 50 miles of Illinois are
				allowable under the following conditions:
1)
				The conference is specifically of an educational nature (i.e., improvements of
				skill levels). Meetings directed towards lobby activities are not considered
				educational.
2) Staff in attendance
				are those involved in supervising and providing direct care to
				clients.
3) Costs associated with
				other than direct care staff (e.g., accountant, bookkeeper, dietary,
				housekeeping) are allowable when attendance at a conference was at the request
				of, or sponsored by, the state, or if the seminar is directly related to
				government cost reporting and reimbursement.