Pennsylvania Code
Title 55 - HUMAN SERVICES
Part VI - Mental Health/Intellectual Disability/Autism Manual
Subpart C - Administration and Fiscal Management
Chapter 4300 - COUNTY MENTAL HEALTH AND INTELLECTUAL DISABILITY FISCAL MANUAL
FISCAL MANAGEMENT OF THE COUNTY PROGRAM
Section 4300.142 - Profit organizations
Current through Register Vol. 54, No. 44, November 2, 2024
(a) If a proprietor of an organization organized for profit performs services as a salaried employe of the organization, a reasonable allowance of compensation for these services is an allowable cost if both of the following apply:
(b) A reasonable allowance for compensation means that the compensation allowance is an amount that would ordinarily be paid.
(c) A necessary function means that if the owner had not rendered the services, another person would have to be employed to perform them. A necessary function also means that the function be pertinent to the operation and sound conduct of the organization.
(d) Compensation to voting members of an organization organized for profit is subject to the requirements for directors of nonprofit organizations in order for the cost to be included as an allowable expense.
