Section 75-03-15-12 - Home office costs1. Home offices of chain organizations vary greatly in size, number of locations, employees, mode of operations, and services furnished to member facilities. Although the home office of a chain is normally not a facility in itself, the home office may furnish to the individual facility central administration or other services, including centralized accounting, purchasing, employees, or management services. Only the home office's actual costs of providing these services are includable in the facility's allowable costs under the program.2. Costs that are not allowed in the facility may not be allowed as home office costs that are allocated to the facility.3. Any service provided by the home office which is included in costs as payments by the facility to an outside vendor or which duplicates costs for services provided by the facility is considered a duplication of costs and is not allowed.4. If a home office makes a loan to or borrows money from one of the components of its chain organization, the interest paid is not an allowable cost and interest income is not used to offset interest expense.N.D. Admin Code 75-03-15-12
Effective November 1, 1985; amended effective March 1, 1999.Amended by Administrative Rules Supplement 2014-353, July 2014, effective July 1, 2014. .General Authority: NDCC 50-06-16, 50-11-03
Law Implemented: NDCC 50-06-05.1, 50-11-03.2