Current through Register Vol. 54, No. 44, November 2, 2024
(a)
Administrative costs include costs incurred for a common or joint purpose and
are associated with supportive activities that are necessary to maintain the
direct effort involved in providing the program services.
(b) Administrative costs shall be apportioned
as general administration or allocated to other cost centers.
(c) Allowable administrative costs include:
(1) Compensation of the facility's
administrator, controller, purchasing agent, personnel director, and other
persons performing general supervision or management duties.
(2) Costs associated with the provision of
supporting services such as bookkeeping, data processing, and
auditing.
(3) Costs of space used
for administrative purposes, including depreciation and interest or
rental.
(4) Purchase of supplies
and equipment used for administrative purposes.
(5) Operating costs associated with
administrative purposes, such as travel and communications.
(d) Administrative costs include
costs associated with the owners or operators of the facility in accordance
with the following:
(1) The salary or
compensation cost of owners, operators or persons other than facility employes
may be included only if their time and involvement is documented, and they are
required for the management of the facility.
(2) The allowable cost for a person
performing necessary duties may not exceed the customary compensation and
fringe benefits in accordance with the methodology established by the facility
that an employe would normally receive while performing that work.
(e) The following requirements
apply for general administrative costs:
(1)
General administrative costs include costs that are incurred for a common or
joint purpose but are not readily assignable to a specific cost center or
program unit.
(2) General
administrative costs must include compensation, fringe benefits, and payroll
taxes for the facility's administrator, controller, purchasing agent, personnel
director; compensation for owners, officers, or persons other than facility
employes; personnel services; procurement; accounting; auditing; office
services and supplies; telephone and travel supporting administrative costs
specified in subsection (a); licenses; association dues; legal costs, including
attorney's fees if the provider prevails; management fees; and
advertising.
(3) Rental costs for
all offices used for administrative purposes shall be included as general
administrative costs. In programs of 15 beds or less, if an office is located
within the program unit, these costs may be allocated to the specific program
unit.
(4) General administrative
costs are limited to 13% of the total MA eligible costs less general
administrative costs and less depreciation and interest on capital
indebtedness.
(f) The
following requirements apply for other administrative costs:
(1) Costs associated with administrative
purposes, not associated with those costs identified in subsection (e) that
have a direct and demonstrable impact upon program services, are allocated to
specific other cost centers.
(2)
Other administrative costs must be specifically documented and
supported.
(3) The 13% limitation
on general administrative costs does not include these other administrative
costs that are allocated to specific units.
This section cited in 55 Pa. Code §
6211.47 (relating to operation of
multiple program types).
