Oregon Administrative Rules › Chapter 309 - OREGON HEALTH AUTHORITY, HEALTH SYSTEMS DIVISION: BEHAVIORAL HEALTH SERVICES › Division 13 - ACCOUNTING AND BUSINESS PRACTICES › Section 309-013-0160 - Expenses

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A service
			 provider subject to audit under these rules shall keep its accounting records
			 consistent with Generally Accepted Accounting Principles. Accounting records
			 shall be retained for three years from the date of the expiration of the
			 Division's agreement or from the finalization of an audit, whichever comes
			 later. Allocation methods for expenses shall be documented. Relevant
			 calculations representing allocations shall be shown. The allocation method
			 shall reasonably distribute expenses which are shared by service providers or
			 service elements. Charges assessed against a service provider by a related
			 organization shall be justified by the related organization as to the method
			 and reason for relevant cost allocation. The expense invoice shall list the
			 location where services and supplies purchases are delivered for any item in
			 excess of $1,000.
(2) Record
			 requirements for Personal Services:
(a)
			 Reports reflecting the distribution of labor of each employee must be
			 maintained for all staff members, professional and nonprofessional, whose
			 compensation is charged in whole or in part to Division funds. To support the
			 allocation of indirect costs, such reports must also be maintained for other
			 employees whose work involves two or more functions or activities if a
			 distribution of their compensation between such functions or activities is
			 needed in the determination of the organization's indirect cost rate(s).
			 Reports maintained to satisfy these requirements must meet the following
			 standards:
(A) The reports must reflect an
			 after-the-fact determination of the actual activity of each employee. Budget
			 estimates (i.e., estimates determined before the services are performed) do not
			 qualify as support for charges to Division funds;
(B) Each report must account for the total
			 activity for which employees are compensated and which is required in
			 fulfillment of their obligations to the organization;
(C) The reports must be signed by the
			 individual employee, or by a responsible supervisory official having first-hand
			 knowledge of the activities performed by the employee, to attest that the
			 distribution of activity represents a reasonable distribution of the actual
			 work performed by the employee during the periods covered by the
			 reports;
(D) The reports must be
			 prepared at least monthly and must coincide with one or more pay
			 periods;
(E) Periodic time studies,
			 in lieu of ongoing time reports, may be used to allocate salary and wage costs.
			 However, the time studies used must meet the following criteria:
(i) A minimally acceptable time study must
			 encompass at least one full week per month of the cost reporting
			 period;
(ii) Each week selected
			 must be a full work week (e.g., Monday to Friday, Monday to Saturday or Sunday
			 to Saturday);
(iii) The weeks
			 selected must be equally distributed among the months in the cost reporting
			 period, e.g., for a 12 month period three of the 12 weeks in the study must be
			 the first week beginning in the month, three weeks the second week beginning in
			 the month, three weeks the third and three weeks the fourth;
(iv) No two consecutive months may use the
			 same week for the study, (e.g., if the second week beginning in April is the
			 study week for April, the weeks selected for March and May may not be the
			 second week beginning in those months);
(v) The time study must be contemporaneous
			 with the costs to be allocated. Thus, a time study conducted in the current
			 cost reporting year may not be used to allocate the costs of prior or
			 subsequent cost reporting years;
(vi) The time study must apply to a specific
			 provider. Thus, chain organizations may not use a time study from one provider
			 to allocate the costs of another provider or a time study of a sample group of
			 providers to allocate the costs of all providers within the
			 chain.