North Dakota Administrative Code › Title 75 - Department of Human Services › Article 75-02 - Economic Assistance › Chapter 75-02-07.1 - Ratesetting for Basic Care Facilities › Section 75-02-07.1-10 - Nonallowable costs

Current through Supplement No. 393, July, 2024
Costs not related to resident care are costs not appropriate
				  or necessary and proper in developing and maintaining the operation of the
				  facility and its activities. These costs are not allowed in computing the
				  rates. Nonallowable costs include:
1.
				Political contributions;
2.
				Salaries or expenses of a lobbyist;
3. Advertising designed to encourage
				potential residents to select a particular facility;
4. Fines or penalties, including interest
				charges on the penalty, bank overdraft charges, and late payment
				charges;
5. Legal and related
				expenses for challenges to decisions made by governmental agencies except for
				successful challenges as provided for in section
				75-02-07.1-08;
6. Costs incurred for activities directly
				related to influencing employees with respect to unionization;
7. Cost of memberships in sports, health,
				fraternal, or social clubs or organizations such as elks, YMCA, country clubs,
				or knights of columbus;
8.
				Assessments made by or the portion of dues charged by associations or
				professional organizations for lobbying costs, contributions to political
				action committees or campaigns, or litigation, except for successful challenges
				to decisions made by governmental agencies, including all dues unless an
				allocation of dues to such costs is provided;
9. Community contributions, employer
				sponsorship of sports teams, and dues to civic and business organizations,
				i.e., lions, chamber of commerce, kiwanis, in excess of one thousand five
				hundred dollars per cost reporting period;
10. Home office costs not otherwise allowable
				if incurred directly by the facility;
11. Stockholder servicing costs incurred
				primarily for the benefit of stockholders or other investors that include
				annual meetings, annual reports and newsletters, accounting and legal fees for
				consolidating statements for security exchange commission purposes, stock
				transfer agent fees, and stockbroker and investment analysis;
12. Corporate costs not related to resident
				care, including reorganization costs; costs associated with the acquisition of
				capital stock, except otherwise allowable interest and depreciation expenses
				associated with the transaction described in subsection 4 of section
				75-02-07.1-13; and costs relating
				to the issuance and sale of capital stock or other securities;
13. The full cost of items or services such
				as telephone, radio, and television, including cable hookups or satellite
				dishes, located in resident accommodations, excluding common areas, furnished
				solely for the personal comfort of the residents;
14. Fundraising costs, including salaries,
				advertising, promotional, or publicity costs incurred for such a
				purpose;
15. The cost of any
				equipment, whether owned or leased, not exclusively used by the facility except
				to the extent that the facility demonstrates, to the satisfaction of the
				department, that any portion of the use of equipment was related to resident
				care;
16. Costs, including, by way
				of illustration and not by way of limitation, legal fees, accounting and
				administration costs, travel costs, and the costs of feasibility studies,
				attributed to the negotiation or settlement of the sale or purchase of any
				capital assets, whether by sale or merger, when the cost of the asset has been
				previously reported and included in the rate paid to any health care facility
				or basic care facility;
17. Costs
				incurred by the provider's subcontractors or by the lessor of property that the
				provider leases, that are an element in the subcontractor's or lessor's charge
				to the provider, if the costs would not have been allowable had the costs been
				incurred by a provider directly furnishing the subcontracted services, or
				owning the leased property, except no facility shall have a particular item of
				cost disallowed under this subsection if that cost arises out of a transaction
				completed before July 1, 1995;
18.
				The cost, in excess of charges, of providing meals and lodging to facility
				personnel living on premises;
19.
				Depreciation expense for facility assets not related to resident
				care;
20. Nonbasic care facility
				operations and associated administration costs;
21. All costs for services paid directly by a
				government entity to an outside provider, such as prescription drugs;
22. Travel costs involving the use of
				vehicles not exclusively used by the facility except to the extent:
a. The facility supports vehicle travel costs
				with sufficient documentation to establish that the purpose of the travel is
				related to resident care;
b.
				Resident-care related vehicle travel costs do not exceed a standard mileage
				rate established by the internal revenue service; and
c. The facility documents all costs
				associated with a vehicle not exclusively used by the facility;