North Dakota Administrative Code › Title 75 - Department of Human Services › Article 75-02 - Economic Assistance › Chapter 75-02-09 - Ratesetting for Psychiatric Residential Treatment Facilities › Section 75-02-09-08 - Nonallowable costs

Current through Supplement No. 393, July, 2024
Nonallowable costs include:
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, except as provided for in section
				75-02-09-15;
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, or 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 resident services;
12. Home office costs that would be
				nonallowable if incurred directly by the facility;
13. Stockholder servicing costs incurred
				primarily for the benefit of stockholders or other investors, including annual
				meetings, annual reports and newsletters, accounting and legal fees for
				consolidating statements, stock transfer agent fees, and stockbroker and
				investment analyses;
14. The cost
				of any equipment, whether owned or leased, not exclusively used by the facility
				except to the extent the facility demonstrates to the satisfaction of the
				department that any particular use of equipment was related to resident 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 facility;
16. Depreciation expense for facility assets
				not related to resident care;
17.
				Personal expenses of owners and employees for items or activities including
				vacation, boats, airplanes, personal travel or vehicles, and entertainment;
18. Costs not adequately
				documented (adequate documentation includes written documentation of 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 facilities);
19. The following taxes, when levied on a
				facility:
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., which are
				generally either amortized over the life of the securities or depreciated over
				the life of the asset, but not recognized as tax expense;
d. Taxes such as real estate and sales tax
				for which exemptions are available to the facility;
e. Taxes on property not used in the
				provision of covered services; and
f. Taxes such as sales taxes, levied,
				collected, and remitted by the facility;