Statutes, codes, and regulations
New York Codes, Rules and Regulations
Title 14 - DEPARTMENT OF MENTAL HYGIENEChapter XIV - Office for People With Developmental DisabilitiesPart 635 - General Quality Control and Administrative Requirements Applicable to Programs, services or Facilities Funded or Certified by the Office for People With Developmental Disabilities
Subpart 635-6 - Allowability of Capital Costs and Costs of Transactions with Related Parties
Section 635-6.6 - Moveable equipment and personal property

N.Y. Comp. Codes R. & Regs. tit. 14 § 635-6.6

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Current through Register Vol. 46, No. 25, June 18, 2024
Section 635-6.6 - Moveable equipment and personal property
(a) Costs of ownership of moveable equipment and personal property shall be allowable in the amount of depreciation and interest if the purchase is made through a multiple bid process. Depreciation shall be based upon the historical cost and useful life.
(1) If the equipment or personal property is purchased from a party not related to the provider or individual, the historical cost shall be the lesser of the actual cost of purchasing the equipment or personal property or the fair market value of such equipment or personal property.
(2) If the equipment or personal property is purchased from a party related to the provider or the individual, the historical cost shall be the least of:
(i) actual acquisition cost;
(ii) fair market value; or
(iii) the seller's cost.
(3) The useful life is the higher of the reported useful life or the useful life as reported in the Estimated Useful Lives of Depreciable Hospital Assets, (2004 edition), published by Health Forum, Inc., an American Hospital Association company, One North Franklin, 28th Floor, Chicago, IL 60606-3421. A provider or individual may use a different useful life if such different useful life is approved by OPWDD. OPWDD shall base such approval upon historical experience and documentary evidence.
(4) The provider or individual shall use the straight-line, double declining balance or sum-of-the-years' digits depreciation method. Once selected, the depreciation method shall remain constant for the useful life of the asset.
(b) Costs of leasing moveable equipment and personal property shall be allowable as follows:
(1) If lease payments are made to a party which is not a related party, allowable costs shall be the lesser of:
(i) actual lease payments; or
(ii) fair market rental.
(2) If lease payments are made to a related party, allowable costs shall be the least of:
(i) actual lease payments;
(ii) fair market rental; or
(iii) allowable depreciation, the associated interest expense, if any, and other related expenses, including, but not limited to, maintenance costs.

N.Y. Comp. Codes R. & Regs. Tit. 14 § 635-6.6

Amended New York State Register October 28, 2015/Volume XXXVII, Issue 43, eff.11/1/2015
Amended New York State Register April 20, 2016/Volume XXXVIII, Issue 16, eff.4/20/2016
Amended New York State Register September 21, 2016/Volume XXXVIII, Issue 38, eff. 9/21/2016