Current through Register Vol. 43, No. 39, September 26, 2024
(a) Historical cost
data.
(1) For cost reporting purposes, each
provider shall submit the ICF-MR financial and statistical report in accordance
with the instructions included in this regulation. The report shall cover a
consecutive 12-month period of operations. The 12-month period shall coincide
with the fiscal year used for federal income tax or other financial reporting
purposes. The same 12-month period shall be used by providers related through
common ownership, common interests or common control. A non-owner operator of a
facility must have a signed provider agreement to be considered a provider for
the purpose of this paragraph. A working trial balance, as defined in K.A.R.
30-10-200, and a detailed depreciation schedule shall be submitted with the
cost report.
(2) If a provider has
more than one facility, the provider shall allocate central office costs to
each facility consistently, based on generally accepted accounting principles,
including any facilities being paid rates from projected cost data.
(b) Amended cost reports. Amended
cost reports revising cost report information previously submitted by a
provider shall be required when the error or omission is material in amount and
results in a change in the provider's rate of $.10 or more per client day.
Amended cost reports shall also be permitted when the error or omission affects
the current or future accounting periods of the provider. No amended cost
report shall be allowed after 13 months have passed from the report year end.
(c) Due dates of cost reports.
Cost reports shall be received by the agency no later than the close of
business on the last day of the third month following the close of the period
covered by the report. Cost reports from each provider with more than one
facility shall be received on the same date.
(d) Extension of time for submitting a cost
report to be received by the agency.
(1) A
one-month extension of the due date of a cost report may, for good cause, be
granted by the agency. The request shall be in writing and shall be received by
the agency prior to the due date of the cost report. Requests received after
the due date shall not be accepted.
(2) A second extension may be granted in
writing by the secretary of the agency when the cause for further delay is
beyond the control of the provider.
(3) Each provider who requests an extension
of time for filing a cost report to delay the effective date of the new rate,
which is lower than the provider's current rate, shall have the current rate
reduced to the amount of the new rate. The reduced rate shall be effective on
the date that the new rate would have been effective if the cost report had
been received on the last day of the filing period without the extension.
(e) Penalty for late
filing. Except as provided in subsection (d), each provider filing a cost
report after the due date shall be subject to the following penalties.
(1) If the cost report has not been received
by the agency by the close of business on the due date, all further payments to
the provider shall be withheld and suspended until the complete ICF-MR
financial and statistical report has been received.
(2) Failure to submit cost information within
one year after the end of the provider's fiscal year shall be cause for
termination from the medicaid/medikan program.
(f) Projected cost data.
(1) If a provider is required to submit a
projected cost report under K.A.R. 30-10-214, the provider's rate or rates
shall be based on a proposed budget with costs projected on a line item basis
for the provider's most immediate future 12-month period.
(2) The projection period shall end on the
last day of a calendar month. Providers shall use the last day of the month
nearest the end of the 12-month period specified in subparagraph (1) or the end
of their fiscal year when that period ends not more than one month before or
after the end of the 12-month report period. The projection period shall not be
less than 11 months or more than 13 months. Historical cost data reported shall
be for the full period reported if that period is less than 12 months or the
latest consecutive 12-month period if the report period is extended beyond 12
months to meet this requirement.
(3) The projected cost report shall be
approved for reasonableness and appropriateness by the agency before the rate
or rates are established for the projection period, and upon receipt of the
provider's historical cost report for the time period covered by the projected
cost report. The projected cost report items which are determined to be
unreasonable or which contain deviations from the historical cost report shall,
upon audit, be handled in accordance with subsection (f) of K.A.R. 30-10-214.
(4) The projection period of each
provider filing a projected cost report in accordance with paragraph (2) of
subsection (e) of K.A.R. 30-10-214 shall be extended to the last day of the
12th month following the date the new construction is certified for use by the
appropriate agency. The projected and historical cost reports for this
projection period shall be handled in accordance with paragraph (1) of this
subsection. If the projection period prior to the certification of the new
construction exceeds three months, the provider shall be required to file a
historical cost report for this period for the purpose of retroactive
settlement in accordance with paragraph (1) of this subsection.
(5) An interim settlement, based on a desk
review of the historical cost report for the projection period, may generally
be determined within 90 days after the provider is notified of the new rate
determined from such cost report. The final settlement shall be based on an
audit of the historical cost report.
(g) Balance sheet requirement. A balance
sheet prepared in accordance with cost report instructions shall be filed as
part of the cost report forms for each provider. The effective date of this
regulation shall be October 1, 1991.
