Current through Supplement No. 394, October, 2024
1. Direct costing
of allowable costs will be used whenever possible. If direct costing is not
possible and the center has more than one license or has services which are
jointly used for administration, education, maintenance, rehabilitation, or
nonclient activities, the following allocation methods will be used:
a. Salaries which cannot be reported based on
direct costs are to be allocated using time studies. Time studies must be
conducted at least semiannually for a two-week period or quarterly for a
one-week period. The time study must represent a typical period of time when
employees are performing normal work activities in each of their assigned areas
of responsibility. Allocation percentages based on the time studies are to be
used starting with the next pay period following completion of the time study
or averaged for the report year. The methodology used by the center may not be
changed without approval by the department.
b. Salaries of direct care supervisory
personnel may be allocated based on full-time equivalents of the employees
supervised or on a ratio of salaries.
c. Fringe benefits must be allocated based on
the ratio of salaries to total salaries.
d. Plant operation expenses must be allocated
based on square footage.
e.
Property costs must be allocated based on square footage.
f. Administration cost must be allocated on
the basis of the percentage of total costs, excluding administration and
property costs, in each cost center.
g. Dietary costs and food must be allocated
based on meals served.
h. Vehicle
expenses must be allocated based on mileage logs. Mileage logs must include
documentation for all miles driven and purpose of travel. If sufficient
documentation is not available to determine which cost category vehicle
expenses are to be allocated to, vehicle expenses will be allocated in total to
administration.
i. Costs not
direct costed or allocable using methods identified in subdivisions a through h
must be included as administration costs.
2. If any of the above allocation methods
cannot be used by the center, a waiver request may be submitted to the division
of mental health services. The request must include an adequate explanation as
to why the referenced allocation method cannot be used by the center. The
center must also provide a rationale for the proposed allocation method. Based
on the information provided, the department will determine the allocation
method that will be used to report costs.
