Current through 2024-38, September 18, 2024
18.1
Cost Report Periods
Facilities are required to submit annual cost reports, as
prescribed herein, to the State of Maine, DHHS, Division of Audit, 11 State
House Station, Augusta, Maine 04333-0011. Cost reports shall be based on the
fiscal year of the facility.
18.2
Accounting Principles
Allowable costs shown in all cost reports described herein
shall be on the basis of generally accepted accounting principles, except that
facilities are allowed to file on the accrual, cash, or modified cash method of
accounting. All new facilities are required to file on the Accrual basis. Once
a facility has established an accounting method used in filing its annual cost
report, that accounting method cannot be changed without the approval of the
DHHS, Division of Audit. The provider must pay all year-end accruals within six
(6) months after the end of the year in which the amounts are accrued. If the
accruals are not paid within such time, these amounts will be deducted from
allowable costs incurred in the first audit conducted following that six (6)
month period.
18.3
Cost Finding
Total allowable costs shall be divided by the actual bed
days to determine the cost per bed day. When facilities provide more than one
level of care, including both nursing facility and residential care, total
allowable costs shall be allocated to each level based on the occupancy data
reported for each level and the following statistical bases:
18.3.1
Capital Costs: Square
feet serviced to the extent the costs benefit both levels of care. In the event
the cost benefits only one level of care, it will be directly costed to the
level of care having the benefit of the cost.
18.3.2
Plant Operation and
Maintenance: Square feet serviced.
18.3.3
Housekeeping: Lesser of
actual direct cost or allocation based on square feet serviced.
18.3.4
Laundry: Pounds or
resident days.
18.3.5
Dietary: Number of meals served.
18.3.6
General and Administrative,
Financial and Other Expenses: Total accumulated allowable costs for each
level of care, not including general and administrative and financial
expense.
18.4
Cost
Reports
18.4.1
Forms:
Annual cost report forms provided by the DHHS, Division of Audit, shall be used
for all facilities.
18.4.2 Each
facility must submit an annual cost report on forms prescribed in Section
18.4.1. Cost reports and all supporting documentation requested are due within
five months of the end of each fiscal year. Facilities are encouraged to submit
a copy of the cost report on a computer disk in the format prescribed by DHHS,
Division of Audit. Beginning July 1, 2002, all submissions must be made on
electronic media to be specified by the Department. The inclusive dates of the
reporting year shall be the twelve (12) month period of each provider's fiscal
year, unless advance authorization to submit a report for a lesser period has
been granted by the Director, DHHS, Division of Audit. Failure to submit a cost
report in the time prescribed above may result in the Department imposing the
deficiency in Section 34.8.
18.4.3
Cents are omitted in the preparation of all schedules except when inclusion is
required to properly reflect per diem costs or rates.
18.4.4 Certification by operator: Each
provider shall examine the cost report and supporting schedules prepared for
submission to DHHS, Division of Audit, and shall certify that the report is a
true, correct and complete statement prepared from the books and records of the
provider.
The cost report is to be certified by the owner or operator
of the facility. If someone other than the provider prepares the cost report,
the person preparing the cost report must also sign that
report.
18.5
Record
Keeping Requirements
18.5.1 Providers
must maintain an accounting system with accurate and auditable financial and
statistical records that are in sufficient detail to substantiate their cost
reports. The accounting system shall include original documents, journals,
ledgers, trial balances, and financial statements. All records must be
maintained for a period of not less than five (5) years following the date of
final settlement.
18.5.2 These
records shall include, but not be limited to, matters of provider ownership,
organization, operation, fiscal and other record keeping systems, Federal and
State income tax information, asset acquisition, lease, sale, or other action,
franchise or management arrangement, member services charge schedule, matters
pertaining to cost of operation, amounts of income received by service, and
purpose and flow of funds and working capital.
18.5.3 Providers shall make records available
to representatives of the Department or the Maine Attorney General's Office.
Providers shall be given at least a three (3) day notice when fiscal records
are involved, and shall be notified which fiscal records are to be
reviewed.
