Kansas Administrative Regulations › Agency 30 - KANSAS DEPARTMENT FOR CHILDREN AND FAMILIES › Article 10 - ADULT CARE HOME PROGRAM › Section 30-10-219 - ICF-MR costs allowed with limitations

Current through Register Vol. 43, No. 28, July 11, 2024
(a) The following
			 expenses or costs shall be allowed with limitations:
(1) Loan acquisition fees and standby fees
			 shall be amortized over the life of the related loan if the loan is related to
			 client care.
(2) Only the taxes
			 specified below shall be allowed as amortized costs.
(A) Taxes in connection with financing,
			 re-financing, or re-funding operations; and
(B) special assessments on land for capital
			 improvements over the estimated useful life of those improvements.
(3) Purchase discounts,
			 allowances, and refunds shall be deducted from the cost of the items purchased.
			 Refunds of prior year expense payments shall also be deducted from the related
			 expenses.
(4) Any start-up cost of
			 a provider shall be recognized if it is:
(A)
			 Incurred prior to the opening of the facility and related to developing the
			 ability to care for clients;
(B)
			 amortized over a period of not less than 60 months;
(C) consistent with the facility's federal
			 income tax return, and internal and external financial reports with the
			 exception of (B) above; and
(D)
			 identified in the cost report as a start-up cost which may include:
(i) Administrative salaries limited to three
			 months prior to licensing;
(ii)
			 employee salaries limited to one month prior to licensing;
(iii) utilities;
(iv) taxes;
(v) insurance;
(vi) mortgage interest;
(vii) employee training costs; and
(viii) any other allowable costs incidental
			 to the start-up of the facility as prior approved by the agency.
(5) Any cost which can
			 properly be identified as organization expenses or can be capitalized as
			 construction expenses shall be appropriately classified and excluded from
			 start-up cost.
(6) Organization
			 and other corporate costs, as defined in K.A.R. 30-10-200, of a provider that
			 is newly organized shall be amortized over a period of not less than 60 months
			 beginning with the date of organization.
(7) Membership dues and costs incurred as a
			 result of membership in professional, technical, or business-related
			 organizations shall be allowable. However, similar expenses set forth in
			 paragraph (a)(9) of K.A.R. 30-10-218 shall not be allowable.
(8)
(A)
			 Costs associated with services, facilities, and supplies furnished to the
			 ICF-MR by related parties, as defined in K.A.R. 30-10-200, shall be included in
			 the allowable cost of the facility at the actual cost to the related party,
			 except that the allowable cost to the ICF-MR provider shall not exceed the
			 lower of the actual cost or the market price.
(B) When a provider chooses to pay an amount
			 in excess of the market price for supplies or services, the agency shall use
			 the market price to determine the allowable cost under the medicaid/medikan
			 program in the absence of a clear justification for the premium.
(9) The net cost of approved staff
			 educational activities shall be an allowable cost. The net cost of
			 "orientation" and "on-the-job training" shall not be within the scope of
			 approved educational activities, but shall be recognized as normal operating
			 costs.
(10) Client-related
			 transportation costs shall include only reasonable costs that are directly
			 related to client care and substantiated by detailed, contemporaneous expense
			 and mileage records. Transportation costs only remotely related to client care
			 shall not be allowable. Estimates shall not be acceptable.
(11) Lease payments. Lease payments shall be
			 reported in accordance with the financial account statements of the Financial
			 Accounting Standards Board.
(12)
			 The actual cost of airplanes and associated expenses are not allowed. However,
			 the provider may charge the equivalent distance of automobile mileage at the
			 IRS allowable rate. The effective date of this regulation shall be April 1,
			 1992.