Illinois Administrative Code › Title 89 - SOCIAL SERVICES › Part 900 - ILLINOIS PURCHASED CARE REVIEW BOARD › Section 900.321 - Non-Allowable Costs and Revenue Offsets

Current through Register Vol. 48, No. 28, July 12, 2024
a) Non-allowable costs. The following shall
			 be considered non-allowable or non-reimbursable costs:
1) Medical care provided by licensed
			 physicians and therapy services provided by psychiatrists, except for their
			 diagnostic or evaluation services and consultation to education staff; licensed
			 dentists, except for diagnosis or evaluation and consultation to education
			 staff; other health or medical personnel, including nurses, except as they are
			 providing school health services, as defined in Section
			 900.310(e);
			 and other medical personnel involved in the provision of ongoing medical care.
			 Nursing services necessary to meet State child care licensing requirements are
			 allowable.
2) Supplies used by the
			 medical care personnel listed in subsection (a)(1) of this Section in carrying
			 out activities that are not reimbursable.
3) Overhead costs incurred by the medical
			 care personnel listed in subsection (a)(1) in the provision of services that
			 are not reimbursable.
4) Expenses
			 resulting from transactions with related organizations that are greater than
			 the expense to the related organization.
A)
			 Where the provider makes rent/lease payments to a related organization, as
			 defined in Section
			 900.310(i)
			 of this Part, rent/lease expense is disallowed and the capital costs of the
			 related organization must be used.
B) Interest expense paid to a related
			 organization is disallowed. However, interest expense incurred by the related
			 organization is allowable.
C) The
			 cost of goods and services purchased from a related organization shall be
			 allowable to the extent that the cost to the provider does not exceed the cost
			 to the related organization.
D)
			 Providers may be required to submit evidence to substantiate or refute any
			 claim of relatedness in determining allowable costs.
E) Providers shall identify all transactions
			 with related organizations in their annual filing of the cost report.
F) Allowable costs of related organizations
			 shall be added to the provider's costs for the same cost centers for
			 determination of reasonable cost standards applicable to the provider's
			 costs.
5)
			 Non-straight-line depreciation. (However, straight-line depreciation is an
			 allowable cost.)
6) Research cost,
			 other than costs for program evaluation.
7) Bad debt.
8) Special benefits to owners, including
			 owner and keyman life insurance, except insofar as required by lending
			 institutions.
9) Compensation to
			 non-working owners and non-working officers' salary.
10) Discounts, rebates, allowances and
			 charity grants.
11) Entertainment
			 expenses.
12) Fund
			 raising.
13) Costs of production,
			 including wages paid to students, incurred solely for the purpose of generating
			 revenue from the sale of goods and services. Wages paid to students and other
			 services approved by the State Board of Education for vocational training or
			 educational arts and craft activities are allowable, even if they generate
			 revenue.
14) Interest payments
			 related to a provider's assets that are unrelated to a special education
			 program.
15) Costs incurred by
			 owners or boards of directors for non-program activities, including that
			 portion of overhead that should be allocated to these activities.
16) Printing expenses not related to the
			 program.
17) Travel, lodging, food
			 and registration expenses to attend conferences, conventions, and meetings
			 related to lobbying activities, association business, or entertainment. Costs
			 to attend conferences and conventions held in-state, or within 50 miles of the
			 state where the attendee is employed, are allowable under the following
			 conditions:
A) The conference or convention
			 is specifically related to special education, or the conference, convention or
			 meeting was sponsored by the State.
B) Allowable conference and convention
			 expenses shall be grouped under administrative costs and subject to the
			 administrative ceiling, in accordance with Section
			 900.330(b)(1)
			 of this Part.
C) Allowable employee
			 development or training costs incurred to meet staff certification or licensure
			 requirements of any State agency or other governmental unit may be reported
			 under program costs.
18)
			 Dues to national, State and parent organizations.
19) Scholarships or awards and grants to
			 individuals .
20) Fees for
			 professional, technical, social or other organizations unrelated to the
			 program.
21) Nonclient
			 transportation, including staff transportation to and from work.
			 Program-related staff transportation is an allowable cost.
22) Meals provided to individuals who are not
			 clients.
23) Interest on loans
			 among intra-organizational funds.
24) Fines and penalties.
25) Mortgage and loan principal
			 payments.
26) Contributions and
			 donations by the provider.
27)
			 Asset acquisition costs. (That is, costs of items reported on the provider's
			 books when those costs exceed $500 for items having a life of one year or more.
			 Depreciation for these items is, however, an allowable expense.)
28) Contingencies.
29) Legal expenses incurred on behalf of
			 clients for non-program activities or for litigation against governmental
			 agencies.
30) Imputed value of
			 goods and services.
31) Severance
			 pay.
32) Sales tax for
			 not-for-profit organizations.
33)
			 Income tax.
34) Student
			 transportation to and from the provider's program, as a responsibility of the
			 placing school district, reimbursable under Section 14-13.01 of the School Code
			 [105
			 ILCS 5/14-13.01 ].
35) Clothing and allowances.
36) Costs of advertising for clients and
			 public relations.