Kan. Admin. Regs. § 30-10-219
Current through Register Vol. 43, No. 24, June 13, 2024
Section 30-10-219 - ICF-MR costs allowed with limitations(a) The following expenses or costs shall be allowed with limitations: (1) Loan acquisition fees and standby fees shall be amortized over the life of the related loan if the loan is related to client care. (2) Only the taxes specified below shall be allowed as amortized costs. (A) Taxes in connection with financing, re-financing, or re-funding operations; and (B) special assessments on land for capital improvements over the estimated useful life of those improvements. (3) Purchase discounts, allowances, and refunds shall be deducted from the cost of the items purchased. Refunds of prior year expense payments shall also be deducted from the related expenses. (4) Any start-up cost of a provider shall be recognized if it is: (A) Incurred prior to the opening of the facility and related to developing the ability to care for clients; (B) amortized over a period of not less than 60 months; (C) consistent with the facility's federal income tax return, and internal and external financial reports with the exception of (B) above; and (D) identified in the cost report as a start-up cost which may include: (i) Administrative salaries limited to three months prior to licensing; (ii) employee salaries limited to one month prior to licensing; (vii) employee training costs; and (viii) any other allowable costs incidental to the start-up of the facility as prior approved by the agency. (5) Any cost which can properly be identified as organization expenses or can be capitalized as construction expenses shall be appropriately classified and excluded from start-up cost. (6) Organization and other corporate costs, as defined in K.A.R. 30-10-200, of a provider that is newly organized shall be amortized over a period of not less than 60 months beginning with the date of organization. (7) Membership dues and costs incurred as a result of membership in professional, technical, or business-related organizations shall be allowable. However, similar expenses set forth in paragraph (a)(9) of K.A.R. 30-10-218 shall not be allowable. (8)(A) Costs associated with services, facilities, and supplies furnished to the ICF-MR by related parties, as defined in K.A.R. 30-10-200, shall be included in the allowable cost of the facility at the actual cost to the related party, except that the allowable cost to the ICF-MR provider shall not exceed the lower of the actual cost or the market price. (B) When a provider chooses to pay an amount in excess of the market price for supplies or services, the agency shall use the market price to determine the allowable cost under the medicaid/medikan program in the absence of a clear justification for the premium. (9) The net cost of approved staff educational activities shall be an allowable cost. The net cost of "orientation" and "on-the-job training" shall not be within the scope of approved educational activities, but shall be recognized as normal operating costs. (10) Client-related transportation costs shall include only reasonable costs that are directly related to client care and substantiated by detailed, contemporaneous expense and mileage records. Transportation costs only remotely related to client care shall not be allowable. Estimates shall not be acceptable. (11) Lease payments. Lease payments shall be reported in accordance with the financial account statements of the Financial Accounting Standards Board. (12) The actual cost of airplanes and associated expenses are not allowed. However, the provider may charge the equivalent distance of automobile mileage at the IRS allowable rate. The effective date of this regulation shall be April 1, 1992. Kan. Admin. Regs. § 30-10-219
Authorized by and implementing K.S.A. 1990 Supp. 39-708c; effective, T-30-12-28-90, Dec. 28, 1990; effective March 4, 1991; amended Oct. 1, 1991; amended April 1, 1992.