Section Ed 1129.16 - Method of Allocation(a) When an organization has only one major purpose or when all its major functions benefit from its indirect costs to approximately the same degree, the direct allocation method shall be used. Under the direct allocation method all costs except general administration shall be treated as direct costs.(b) Costs shall be separated into 9 basic functions as outlined in Ed 1129.09(j).(c) Costs which directly benefit multiple final cost objectives of an organization and include such costs as depreciation, operation and maintenance of facilities, telephone and utilities shall be prorated individually as direct costs of each function using a base appropriate to the costs being prorated.(d) Indirect costs consisting exclusively of general administration and general expenses shall be distributed to the organization's functions using total direct costs of each activity as a base.(e) Organizations proposing to treat indirect costs in a manner different from (a) and (b) above shall submit a waiver request to the department which is: (2) Signed by the person who has prepared the rate setting proposal; and(3) Submitted not later than 120 days prior to the submission of a new rate proposal.(f) The department shall approve all requests received pursuant to (e) above unless the request(s) violates any requirement of Ed 1129 or generally accepted accounting principles.N.H. Admin. Code § Ed 1129.16
(see Revision Note at chapter heading for Ed 1100) #9197, eff 6-28-08
Amended by Volume XXXVII Number 15, Filed April 13, 2017, Proposed by #12141, Effective 3/24/2017, Expires 3/24/2027.