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 75-03-20-08 - Nonallowable costs

Current through Supplement No. 393, July, 2024
Nonallowable costs include, but are not limited to:
1. Promotional, publicity, and advertising
				expenses, exclusive of personnel procurement;
2. Political contributions;
3. Salaries or expenses of a lobbyist;
4. Basic research;
5. Fines or penalties including interest
				charges on the penalty, bank overdraft charges, and late payment charges;
6. Bad debts;
7. Compensation and expenses for officers,
				directors, or stockholders;
8.
				Contributions or charitable donations;
9. Costs incurred for activities directly
				related to influencing employees with respect to unionization;
10. Costs of membership or participation in
				health, fraternal, or social organizations such as eagles, country clubs,
				knights of columbus;
11. Corporate
				costs such as organization costs, reorganization costs, costs associated with
				acquisition of capital stock, costs relating to the issuance and sale of
				capital stock or other securities, and other costs not related to client
				services;
12. Home office costs
				which would be unallowable if incurred directly by the center;
13. Stockholder servicing costs incurred
				primarily for the benefit of stockholders or other investors. Such costs
				include, but are not limited to, annual meetings, annual reports and
				newsletters, accounting and legal fees for consolidating statements, stock
				transfer agent fees, and stockbroker and investment analysis;
14. The cost of any equipment, whether owned
				or leased, not exclusively used by the center except to the extent that the
				center demonstrates to the satisfaction of the department that any particular
				use of equipment was related to client care;
15. Costs, including by way of illustration
				and not by way of limitation, for legal fees, accounting and administrative
				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 center;
16. Depreciation expense for center assets
				which are not related to client care;
17. Personal expenses of owners and employees
				for items or activities including, but not limited to, vacations, boats,
				airplanes, personal travel or vehicles, and entertainment;
18. Costs which are not adequately
				documented. Adequate documentation includes written documentation, date of
				purchase, vendor name, listing of items or services purchased, cost of items
				purchased, account number to which the cost is posted, and a breakdown of any
				allocation of costs between accounts or centers;
19. The following taxes, when levied on
				providers:
a. Federal income and excess
				profit taxes, including any interest or penalties paid thereon;
b. State or local income and excess profit
				taxes;
c. Taxes in connection with
				financing, refinancing, or refunding operations such as taxes in the issuance
				of bonds, property transfers, issuance or transfer of stocks, etc. Generally,
				these costs are either amortized over the life of the securities or depreciated
				over the life of the asset. They are not, however, recognized as tax expense;
d. Taxes such as real estate and
				sales tax for which exemptions are available to the center;
e. Taxes on property which is not used in the
				provision of covered services; and
f. Taxes such as sales taxes, levied,
				collected, and remitted by the center;