North Dakota Administrative Code
Title 75 - Department of Human Services
Article 75-03 - Community Services
Chapter 75-03-33 - Intergovernmental Transfer Program
Section 75-03-33-09 - Operating loss

1. First-year operating losses are operating losses incurred by an entity after July 1, 1999, for the first twelve months of operation following the date an entity begins providing basic care services, assisted living services, or other alternative to nursing facility care. Grants for operating losses shall not exceed the difference between expenses and revenues related to providing the services.

2. Operating expenses shall include only necessary, reasonable, and actual expenses related to the project and incurred while providing services.

3. Operating expenses shall not include costs that are not appropriate, necessary, or proper for the development or operation of the project. These costs include personal expenses of the owners or employees, good will, donations, startup costs, political contributions, fines or penalties, bad debt, fundraising costs, loss contingencies, or extraordinary losses.

4. Principal and interest rather than depreciation and interest shall be used when determining the operating loss.

5. Operating revenue shall include all revenue received for providing services, but does not include donation income.

6. An entity awarded a grant for operating losses may request payment of grant funds on a quarterly or yearly basis by submitting a cost report on forms prescribed by the department. The entity shall submit a final cost report no later than eighteen months following the start of operation.