Section 58034 - Required Cost Information(a) In order for the Department to establish a permanent payment rate, the vendor shall submit information for the following allowable costs if they are incurred by the vendor and are necessary for the vendored service. (1) Total gross salary and wages including overtime for the staff functions specified in Section 56792.(2) Fringe benefit costs associated with the salary and wage costs for the staff functions identified in (1) which shall be limited to the following:(A) Old Age Security Disability Insurance (OASDI) or Federal Insurance Compensation Act (FICA);(B) Workers' compensation;(C) Unemployment insurance;(I) Employee Training Tax as specified in the California State Unemployment Insurance Code Section 976.6; and(J) Long-term disability insurance.(3) Operating expenses which shall not duplicate other allowable costs and shall be limited to the following cost categories:(A) Accounting fees of the vendor for the establishment and maintenance of accounting records and other information systems required for the fiscal management of the vendored service;(B) Bank service fees of the vendor;(C) Communication costs for services including telephone, telegraph, teletype, centrex, telepak, postage, message services, facsimiles and TDD;(D) Contractual/consultant fees for service operation that do not have a specific cost category;(E) Depreciation costs, except for vehicles which are covered under (P). The following items shall be depreciated using the straight-line depreciation method and the useful life of the item. The useful life of an item shall be that used for federal tax purposes. 1. Buildings which have been purchased by the vendor;2. Furniture and equipment which has been purchased by the vendor and has a unit acquisition cost of at least $500 and a normal useful life of at least four years; and3. Capital improvements that add to the value or useful life of the building or equipment. Capital improvements shall be treated as a permanent investment to be added to the cost basis of the building or equipment and charged to depreciation.(F) General expense costs for the following items only:1. Furniture and equipment which do not meet the criteria specified in (E) 2;2. Interest on loans attributable to the vendored service;3. Subscriptions for periodicals which are used in the operation of the vendored service or for the purpose of staff development;4. Staff recruitment costs; staff screening costs, such as fingerprinting prospective employees; and staff hiring costs which shall include the costs for physical examinations or other health and safety costs that may be required prior to employment;5. Fees for licenses, certifications, registrations or permits, if necessary for vendorization or the continued operation of the service subsequent to vendorization;7. Association dues or fees;8. Costs for providing or preparing information related to the vendored service which is used as general information to the consumers or to the authorized consumer representatives;9. Local business fees or taxes;10. Costs related to inoculations or clinical tests of an employee, for the employee's or consumer's health and safety; and(J) Maintenance costs for repair and upkeep of furniture and equipment, vehicles, buildings and grounds which neither adds to the permanent value nor prolongs its useful life, but maintains it in an efficient operating condition;(L) Rental and lease costs. On a lease-purchase, while the item is being leased, the cost shall be reported under this category. When the option-to-purchase has been exercised, the residual value of the item shall be depreciated and shall be reported, as applicable, under category (E) or (P). Rental and lease costs shall apply to the following items:1. Furniture and equipment;(M) Staff training costs for in-service training and employee development which meet the requirements specified in Section 56794;(N) Staff travel costs which are specifically related to the administration of the vendored service.(O) Utility costs such as gas, electricity, water, garbage, sewer fees or other utility expenses which occur at the vendored service site;(P) Vehicle depreciation cost for owned vehicles shall be calculated by using the straight-ling depreciation method and the minimum normal service life which is allowed by the Urban Mass Transportation Administration. The minimum normal service life for vehicles such as regular and specialized vans and cars is at least four years for service or an accumulation of at least 100,000 total miles on the vehicle.(4) Management organization costs which:(A) Shall include for staff functions of the management organization, the allowable costs specified in (a)(1) through (3) of this section.(B) Shall not include: 1. More than 100 percent of the allocated costs of the management organization;2. Costs applicable to or claimed by other services operated by the vendor.3. Any non-allowable costs pursuant to Section 58036; and4. Costs for respite worker staff.(C) Shall be allocated on a basis consistent with the administrative support provided to each separate service, and each vendor shall: 1. Indicate whether the methodolgy used to allocate the costs of the management organization is based upon. a. Direct service hours; orb. The total costs of each service.2. Include the total allowed costs of the management organization for the reporting period.(b) Cost information submitted pursuant to (a) shall not include respite worker travel costs. These costs shall be reimbursed pursuant to Sections 58130 and 58132.Cal. Code Regs. Tit. 17, § 58034
1. New section filed 6-26-90 as an emergency; operative 7-1-90 (Register 90, No. 36). A Certificate of Compliance must be transmitted to OAL by 10-29-90 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 6-26-90 order transmitted to OAL 9-28-90 and filed 10-29-90 (Register 90, No. 46).
3. Change without regulatory effect amending subsections (a)(3)(F)8. and (a)(3)(F)10. filed 1-17-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 3).
4. Amendment of subsections (a)(1), (a)(2)(I), (a)(3)(F)2., (a)(3)(F)9., (a)(4)(B)3. and (b) filed 4-25-2000; operative 5-25-2000 (Register 2000, No. 17). Note: Authority cited: Section 4690.2, Welfare and Institutions Code. Reference: Sections 4690.2, 4691 and 4691.5, Welfare and Institutions Code.
1. New section filed 6-26-90 as an emergency; operative 7-1-90 (Register 90, No. 36). A Certificate of Compliance must be transmitted to OAL by 10-29-90 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 6-26-90 order transmitted to OAL 9-28-90 and filed 10-29-90 (Register 90, No. 46).
3. Change without regulatory effect amending subsections (a)(3)(F)8. and (a)(3)(F)10. filed 1-17-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 3).
4. Amendment of subsections (a)(1), (a)(2)(I), (a)(3)(F)2., (a)(3)(F)9., (a)(4)(B)3. and (b) filed 4-25-2000; operative 5-25-2000 (Register 2000, No. 17).