Section 51.99. Indirect costs

(a) Indirect costs are allowable costs if the following criteria are met:

(1) The provider shall have a cost allocation plan.

(2) Costs are authorized in accordance with OMB Circular A-122 and § 51.81 (relating to allowable costs).

(b) A provider shall consider the actual circumstances impacting the expense when determining how to allocate the expense to each benefiting HCBS or function.

(c) If a cost is identified as an indirect cost, the cost will remain an indirect cost as long as circumstances remain unchanged.

(d) A provider shall select an allocation method to assign an indirect cost which must comply with the following:

(1) The method is best suited for assigning a cost with a benefit derived.

(2) The method has a traceable cause and effect relationship.

(3) The method is based on logic and reason when neither the cause nor the effect of the relationship is determinable.

(e) A provider shall allocate a general expense in a cost group which is more general in nature which produces a result that is equitable to both the Department and the provider.

(f) The Department may request the allocation method be reviewed by an auditor.

Notation

Cross References

This section cited in 55 Pa. Code § 51.48 (relating to provider in the Adult Autism Waiver).