Section 51.81. Allowable costs

(a) The allowable cost must be the best price made by a prudent buyer.

(b) Costs must relate to the administration or provision of the HCBS.

(c) Costs must be allocated and distributed to various HCBS or other lines of business among cost categories in a reasonable and fair manner in proportion with the benefits provided to the HCBS or other lines of business among cost categories.

(d) To be an allowable cost under this chapter, the cost must be documented and meet the following:

(1) Be reasonable for the performance of the HCBS.

(2) Conform to any limitations or exclusions in the regulation in accordance with the requirements in the approved applicable waiver, including approved waiver amendments.

(3) Be consistent with policies and procedures that apply uniformly to both Federally-funded and other activities of the organization.

(4) Be determined in accordance with GAAP as a notice in the Pennsylvania Bulletin.

(5) Not be included as a cost or used to meet cost sharing or matching requirements of any other Federally-financed program in either the current or a prior period adjustment.

(e) Transactions involving allowable costs between related parties shall be disclosed to the Department on the cost report.

(f) A cost not listed in this chapter is not an allowable cost.

(g) Effective July 1, 2011, through June 30, 2012, allowable costs that are ineligible may be included in the cost report as instructed.

Notation

Cross References

This section cited in 55 Pa. Code § 51.48 (relating to provider in the Adult Autism Waiver); 55 Pa. Code § 51.73 (relating to cost report requirements); 55 Pa. Code § 51.84 (relating to management fees); and 55 Pa. Code § 51.99 (relating to indirect costs).