North Dakota Administrative Code › Title 75 - Department of Human Services › Article 75-03 - Community Services › Chapter 75-03-20 - Ratesetting for Residential Treatment Centers for Children › Section 75-03-20-16 - Revenue offsets

Current through Supplement No. 393, July, 2024
Centers must identify income to offset costs where applicable
				  in order that state financial participation not supplant or duplicate other
				  funding sources. Any income whether in cash or in any other form which is
				  received by the center, with the exception of the established rate and income
				  from payment made under the Job Training Partnership Act, will be offset up to
				  the total of the appropriate actual costs. If actual costs are not
				  identifiable, income will be offset in total to the appropriate cost category.
				  If costs relating to income are reported in more than one cost category, the
				  income must be offset in the ratio of the costs in each of the cost categories.
				  These sources of income include, but are not limited to:
1. Food income. Centers receiving
				reimbursement for food and related costs from other programs such as the United
				States department of agriculture or the department of public instruction or
				amounts from or paid on behalf of employees, guests, or other nonclients for
				meals or snacks must reduce allowable food costs by the revenue received.
2. Vending income. Income from the
				sale of beverages, candy, or other items will be offset to the cost of the
				vending items or, if the cost is not identified, all vending income will be
				offset to maintenance costs.
3.
				Insurance recovery. Any amount received from insurance fora loss incurred must
				be offset against the appropriate cost category regardless of when the cost was
				incurred if the center did not adjust the basis for depreciable assets.
4. Refunds and rebates. Any refund
				or rebate received for a reported cost must be offset against the appropriate
				cost.
5. Transportation income.
				Any amount received for use of the center's vehicles must be offset to
				transportation costs.
6. Gain on
				the sale of assets. Revenue from the sale of an asset will be offset against
				depreciation expense.
7. Rental
				income. Revenue received from outside sources for the use of center buildings
				or equipment will be offset to property expenses.
8. Interest income. Revenue from investments
				will be offset against interest expense.
9. Grant income. Grants, gifts, and awards
				from the federal, state, or philanthropic agencies will be offset to the costs
				which are allowed under the grant.
10. Restricted gifts and income from
				endowments. Gifts or endowment income designated by a donor for paying specific
				operating costs incurred in providing contract services must be offset to costs
				in the year the cost is incurred regardless of when the gift or endowment is
				received.
11. Other cost-related
				income. Miscellaneous income including amounts generated through the sale of a
				previously expensed item, e.g., supplies or equipment, must be offset to the
				cost category where the item was expensed.
12. Other income to the center from local,
				state, or federal units of government may be determined by the department to be
				an offset to costs.
General Authority: NDCC
					 25-03.2-10,
					 50-06-16
Law Implemented: NDCC
					 25-03.2