Pennsylvania Code
Title 55 - HUMAN SERVICES
Part VIII - Intellectual Disability and Autism Manual
Subpart C - Administration and Fiscal Management
Chapter 6211 - ALLOWABLE COST REIMBURSEMENT FOR NON-STATE OPERATED INTERMEDIATE CARE FACILITIES FOR INDIVIDUALS WITH AN INTELLECTUAL DISABILITY
CONFLICT OF INTEREST
Section 6211.112 - Profit organizations

(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 be such an amount as would ordinarily be paid for comparable services by comparable facilities.

(c) A necessary function means that, had the owner not rendered the services, the facility would have had to employ another person to perform the services. A necessary function also means that the function be pertinent to the operation and sound conduct of the facility.

(d) Compensation to voting members of an organization organized for profit is subject to the requirements for directors of nonprofit organizations in § 6211.111 (relating to nonprofit organizations) in order for the cost thereof to be included as an allowable expense included in the computation of per diems.