New York Codes, Rules and Regulations › Title 18 - DEPARTMENT OF SOCIAL SERVICES › Chapter II - Regulations of the Department of Social Services › Subchapter D - Adult-Care Facilities › Part 491 - Shelters For Adults › Section 491.24 - Reimbursement

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
		    operational plan for each shelter for adults, small-capacity shelter or shelter
		    for adult families must include on forms and in the manner prescribed by the
		    office a financial statement for the facility's most recently completed fiscal
		    year where available, or where a facility has not been in operation, a
		    financial statement for the facility operator's most recently completed fiscal
		    year. In addition, the operational plan must contain a proposed one-year
		    budget, including estimated income and expenditures. Such budget must set forth
		    the costs reasonable and necessary to operate and maintain the facility
		    consistent with each of the requirements of the operational plan and this Part.
		    The budget must be based upon the estimated net actual expenditures for the
		    operation and maintenance of facilities and for the care of the residents with
		    respect to items approved under the operational plan. The budget must be
		    presented in sufficient detail to enable the office to identify costs not
		    subject to Federal financial participation. Budgets of facilities not operated
		    by social services districts must be agreed upon between the social services
		    district and the facility operator. All budgets must be formulated to ensure
		    that the costs of resident services that may be paid from other funding
		    sources, including but not limited to the MA program, are not included as costs
		    in the proposed shelter budgets.
(b) Costs reasonably necessary under any
		    operational plan shall be limited as follows:
(1)
(i)
		    Related party transactions. Actual costs for rental of land, building and
		    equipment and other personal property owned or controlled by organizations or
		    persons affiliated with an organization operating a facility, or owned or
		    controlled by members, directors, trustees, officers or other key personnel of
		    such operator or their families either directly or through corporations, trusts
		    or other similar arrangements in which they hold more than 10 percent interest
		    in such land, building and equipment or an interest valued at $1,000 or more,
		    whichever is less, are allowable only to the extent that such rentals do not
		    exceed the amount the operator would have received had legal title to the
		    rented items or facilities been vested in the operator.
(ii) Actual charges in the nature of rent
		    between or among organizations under common control are allowable to the extent
		    such charges do not exceed the normal costs of ownership, such as depreciation,
		    taxes, insurance and maintenance; provided that no part of such costs shall
		    duplicate any other allowed costs.
(iii) Nonrelated party transaction. Rental
		    costs of land, building and equipment and other personal property are allowable
		    if the rates are reasonable in light of such factors as rental costs of
		    comparable facilities and market conditions in the areas, the type, life
		    expectancy, condition and value of the facilities leased, options available and
		    other provisions of the rental agreement. Application of these factors, in
		    situations where rentals are extensively used, may involve, among other
		    considerations, comparison of rental costs with the amount which the operating
		    organization would have received had it owned the facilities.
(iv) Sales/leaseback transactions. Rental
		    costs specified in sale and leaseback agreements, incurred by persons or
		    organizations through selling facilities to investment organizations, such as
		    insurance companies, associate institutions or private investors, and
		    concurrently leasing back the same facilities, are allowable only to the extent
		    that such rentals do not exceed the amount which the organization would have
		    received had it retained legal title to the facilities.