North Dakota Administrative Code › Title 75 - Department of Human Services › Article 75-04 - Developmental Disabilities › Chapter 75-04-05 - Payment for Provider Agencies of Services to Individuals with Intellectual Disabilities - Developmental Disabilities › Section 75-04-05-13 - Nonallowable costs

Current through Supplement No. 393, July, 2024
Nonallowable costs include:
1. Advertising designed to encourage
				potential clients to select a particular provider agency.
2. Amortization of noncompetitive
				agreements.
3. Bad debt expense
				.
4. Barber and beautician
				services.
5. Basic
				research.
6. Fees paid to a member
				of a board of directors for meetings attended to the extent that the fees
				exceed the compensation paid per day to a member of the legislative council
				pursuant to North Dakota Century Code section 54-35-10.
7. Concession and vending machine
				costs.
8. Contributions or
				charitable donations.
9. Corporate
				costs, such as organization costs, reorganization costs, and other costs not
				related to client services.
10.
				Costs for which payment is available from another primary third-party payor or
				for which the department determines that payment may lawfully be demanded from
				any source.
11. Costs of functions
				performed by clients in a residential setting which are typical of functions of
				any individual living in the individual's own home, such as keeping the home
				sanitary, performing ordinary chores, lawnmowing, laundry, cooking, and
				dishwashing. These activities shall be an integral element of an individual
				program plan consistent with the client's level of function.
12. Costs of donations or memberships in
				sports, health, fraternal, or social clubs or organizations, such as Elks,
				YMCA, or country clubs.
13. Costs,
				including 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 the vendor.
14. Costs
				incurred by the provider agency's subcontractors, or by the lessor of property
				which the provider agency leases, and which becomes an element in the
				subcontractor's or lessor's charge to the provider agency, if such costs would
				not have been allowable under this section had they been incurred by a provider
				agency directly furnishing the subcontracted services, or owning the leased
				property.
15. Depreciation on
				assets acquired with federal or state grants.
16. Education costs incurred for the
				provision of services to clients who are, could be, or could have been,
				included in a student census. Education costs do not include costs incurred for
				a client, defined as a "student with disabilities" by North Dakota Century Code
				chapter 15.1-32, who is enrolled in a school district pursuant to an
				interdepartmental plan of transition.
17. Employee benefits not offered to all
				full-time employees.
18.
				Entertainment costs, including activities.
19. Equipment costs for 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 particular use of the equipment was related to client services.
20. Expense or liabilities
				established through or under threat of litigation against the state of North
				Dakota or any of its agencies; provided, that reasonable insurance expense may
				not be limited by this subsection.
21. Community contributions, employer
				sponsorship of sports teams, and dues to civic and business organizations, such
				as Lions, chamber of commerce, Kiwanis, in excess of one thousand five hundred
				dollars per statement of costs period.
22. Fundraising costs, including salaries,
				advertising, promotional, or publicity costs incurred for such a
				purpose.
23. Funeral and cemetery
				costs.
24. Goodwill.
25. Home office costs when unallowable if
				incurred by facilities in a chain organization.
26. Travel not directly related to industry
				conferences, state or federally sponsored activities, or client
				services.
27. Interest cost related
				to money borrowed for funding depreciation.
28. Items or services, such as telephone,
				television, and radio, located in a client's room and furnished primarily for
				the convenience of the clients.
29.
				Top management personnel insurance.
30. Laboratory salaries and
				supplies.
31. The cost of education
				unless:
a. The education was provided by an
				accredited academic or technical educational facility;
b. The costs were for materials, books, or
				tuition;
c. The employee was
				enrolled in a course of study intended to prepare the employee for a position
				at the facility and is in a position; and
d. The facility claims the cost of the
				education at a rate that does not exceed one dollar and twenty-five cents per
				hour of work performed by the employee in the position for which the employee
				received education at the provider agency's cost provided the amount claimed
				per employee may not exceed two thousand five hundred dollars per year or an
				aggregate of ten thousand dollars per employee and in any event may not exceed
				the cost to the facility of the employee's education.