New Jersey Administrative Code
Title 10 - HUMAN SERVICES
Chapter 49A - NURSING FACILITY PATIENT CARE RATIO REQUIREMENTS
Subchapter 2 - DISCLOSURE AND REPORTING REQUIREMENTS
Section 10:49A-2.7 - Allocation of expenses

(a) Each expense must be reported under only one type of expense, unless a cost incurred by the facility aggregates amounts that must be reported in different categories, in which case the expense must be allocated between expense reporting categories.

(b) Allocation to each category must be based on a generally accepted accounting method consistent with GAAP that is expected to yield the most accurate results. If expenses are allocated, the report must include a detailed description of the methods used to allocate expenses, including how each specific expense meets the criteria for the several categories assigned and why this is more accurate than specific identification with a single category.

(c) Facilities operating within a group where personnel and physical locations are shared, including expenses under the terms of a management contract, must be allocated among the facilities incurring the expense in accordance with the above standards. Expenses that relate solely to the operations of a reporting facility must be borne solely by the reporting entity and shall not be allocated to other entities within a group.

(d) The facility must maintain, and make available to the Department upon request, the data used to allocate expenses reported, along with all supporting information required to determine that the methods identified and reported were accurately implemented in preparing the report.