Code of Massachusetts Regulations › 808 CMR - DIVISION OF PURCHASED SERVICES › Title 808 CMR 1.00 - Compliance, Reporting And Auditing For Human And Social Services › Section 1.02 - Definitions

Current through Register 1525, July 5, 2024
Unless the context requires otherwise, terms used in 808 CMR 1.00 shall have the following meaning:
Administration and Support Costs
. Administration and Support Costs (management and general) include expenditures for the overall direction of the organization, general record keeping, business management, budgeting, general board activities, general legal expenses and related purposes. "Overall direction" includes the salaries and expenses of the chief officer of the organization and the chief officer's staff. If such staff spends a portion of its time directly supervising fundraising or Program service activities, such salaries and expenses are considered indirect fundraising or Program costs and should be prorated (allocated) among those functions by position title or type of expense.
Authorized Price
. A price which has been:
(a) agreed upon in a contract;
(b) established by the Executive Office of Health and Human Services pursuant to St. 2008, c. 257 or, in the case of M.G.L. c. 71B Programs, the price authorized by OSD.
For health care services (including Title XIX), as defined in M.G.L. c. 118E, the Authorized Price shall be set as directed by the Division of Medical Assistance.
Base Year
. The Fiscal Year which may be designated by OSD for the purpose of its Program pricing activity under 808 CMR 1.06.
Bureau of Purchased Services (BPS)
. The office within the Operational Services Division of the Executive Office for Administration and Finance established by M.G.L. c. 7, § 22N.
Capital Item
. A Capital Item is:
(a) an asset or group of assets of nonexpendable personal property having a useful life of more than one year; or
(b) a repair, betterment or improvement or a group of repairs, betterments or improvements of non-movable assets, which adds to the permanent value of an asset and prolongs its useful life for more than one year; and which costs the lesser of:
1. the capitalization level established and certified by the Contractor in accordance with generally accepted accounting principles for financial statement purposes; or
2. the dollar amount authorized by the Federal Office of Management and Budget Circular A-122 or A-21.
Client.
An individual, group of individuals, or the family or other person who provides support to such individuals, who is eligible for or receiving Human and Social Services. Also referred to as a consumer.
Client Resources
. Revenue received in cash or in kind from Clients to defray all or a portion of the cost of services. These may include supplemental social security income received by the Contractor to defray the room and board expense of residential Clients, Clients' Supplemental Nutrition Assistance Program (SNAP) or food assistance, or payments made by Clients according to ability to pay, such as a sliding fee scale.
Commercial Fee
. A prospectively negotiated earnings allowance derived from a net surplus of Contract Revenue and reimbursable operating costs associated with Human and Social services provided by a for-profit contractor to the Commonwealth pursuant to 808 CMR 1.00. Payments and related expenses received from other governmental payors, allocated administrative revenue and payments from the general public derived from clients, parents or guardians for services rendered to clients not Sponsored by any governmental entity are not considered in the establishment of the for-profit earnings allowance.
Commercial Income
. The difference between gross revenues and gross expenses resulting from the production of commercial products and services by Clients.
Contract Revenue
. Revenue derived from payments for Human and Social Services furnished in Commonwealth supported programs from the Commonwealth purchasing department, client resources and third party payments made on behalf of the client from Medicaid, Medicare, insurance companies, health maintenance organizations and other payors.
Contractor
. An individual or organization which enters into a contract with a Department or the State to provide Human or Social Services or which operates Programs approved by the Department of Elementary and Secondary Education under M.G.L. c. 71B.
Days
. Calendar days, unless otherwise specified.
Department
. Any Executive Office, Department, Agency, Office, Division, Board, Commission or Institution within the Executive Branch, excluding the Legislative Branch, Judicial Branch, Constitutional Offices, Elected Offices, Public Institutions of Higher Education, the Military Division and Independent Public Authorities.
Department
also includes Massachusetts Local Education Authorities (LEAs) when purchasing M.G.L. c. 71B Approved Private School Programs.
Department of Early Education and Care (EEC)
. An office of the Commonwealth established by M.G.L. c. 15D.
Department of Elementary and Secondary Education (ESE)
. The Massachusetts Department of Elementary and Secondary Education established by M.G.L. c. 15, § 1, including its departments and divisions.
Executive Office of Health and Human Services (EHS)
. The Executive Office established by M.G.L. c. 6A, § 2, including its departments and divisions.
Fiscal Year of the Commonwealth
. The 12 month period beginning on July 1st and ending on June 30th
Human and Social Services
. Services provided by a Contractor to assist, maintain or improve the personal, mental or physical well-being of Clients. This may include, but is not limited to, social, habilitative, rehabilitative, health, mental health, developmental disability, special education, vocational, employment and training and elder services.
Local Education Authority (LEA)
. A local school district or public school defined pursuant to M.G.L. c. 71B.
M.G.L. c. 71B Approved Private School.
A private day or residential school approved in accordance with 603 CMR 18.00:
Program and Safety Standards for Approved Public or Private Day and Residential Special Education School Programs.
Also referred to as Approved Private School.
Maximum Obligation
. The maximum dollar amount of the Department's contract to pay for Human and Social Services.
Off-setting Revenue
. The sum of the following revenues and support items. These revenues and support items must be received during the price year and must be dedicated for use in the same Program that also receives Commonwealth funds.
(a) any Contractor revenues and support (including but not limited to public and private grants, gifts, contributions, bequests, or any income therefrom, income from endowments, funds received from the Massachusetts Department of Elementary and Secondary Education for nutrition programs, or similar funding) to the extent that revenues and support are restricted to use in the Program;
(b) the amount of unrestricted revenues and support voluntarily designated by the Contractor to defray the cost of Program services to a Department;
(c) the fair market value of any public employees assigned to work in the Contractor's Program (including salaries, fringe benefits and travel allowances) and/or the occupancy of public facilities to the extent that they are available to the Program without charge or at less than fair market value;
(d) any revenues and support (including but not limited to Supplemental Social Security Income, SNAP or food assistance, Emergency Aid to the Elderly, Disabled and Children (EAEDC), reimbursements from third-party payers, Client sliding fee scale payments) received by or available to the Contractor on account of Clients;
(e) the amount of Commercial Income that the Contractor or Department may designate;
(f) the value of revenues and support used to defray non-reimbursable costs; and
(g) not-for-profit Contractor surplus revenue retention funds accrued in excess of the limitations of 808 CMR 1.03(7)  which may be utilized at the discretion of the Department to reduce the Authorized Price or Maximum Obligation of the Commonwealth.
Program.
The delivery of one or more discrete services in an organized and coordinated fashion in order to achieve contract objectives or a M.G.L. c. 71B private special education Program approved by ESE.
Reimbursable Operating Costs
. Those costs reasonably incurred in providing the services described in the contract and/or, in the case of a Program approved under the provisions of M.G.L. c. 71B, in providing the services mandated by ESE or specifically included in an Authorized Price, with the exception of costs enumerated in 808 CMR 1.05 and costs excluded in the Authorized Price. Operating costs shall be considered "reasonably incurred" only if they are reasonable and allocable using the standards contained in Federal Office of Management and Budget Circular A-122 or A-21.
Related Party
. Any person or organization satisfying the criteria for a Related Party published by the Financial Accounting Standards Board in Statement of Financial Accounting Standards No. 57 (FASB 57), Codification 850-10-20.
Restricted Funds
. Those temporarily and permanently Restricted Funds derived from charitable contributions, as defined in the Uniform Financial Statements and Independent Auditor's Report (UFR), which have been designated to a specific use by their donor. Funds which have been restricted as to application by the Contractor's governing body are not considered restricted.
Sponsored
. The financing of the delivery of a program of Human and Social Services or a Human and Social Service to a Client.
Subcontractor
. An individual acting as a sole proprietor of an organization or organization which provides some or all of the needed Human or Social Services or operates a Program on behalf of a Contractor, provided, however, that
Subcontractor
does not include an individual (including a client) or a firm providing personnel services or non-direct client services, unless specifically provided for in the service contract or agreement.
Subcontractor
also includes sub-Subcontractors. Human and Social Service as used in 808 CMR 1.02:
Subcontractor
does not include management and business support activities.
Submit or Submission
. Unless otherwise provided, to deliver a document electronically, by hand or by depositing it with the US Post Office or other delivery service, postage pre-paid.
Uniform Financial Statements and Independent Auditor's Report (UFR)
. A uniform reporting system, established by OSD, consisting of basic financial statements prepared and audited in accordance with generally accepted accounting principles (GAAP) and generally accepted governmental auditing standards (GAGAS), supplemental schedules and other information as deemed necessary.