Statutory Authority and Definitions

Section 1120 Section 1120.10  Statutory Authority and Definitions a)         Statutory Authority This Part is filed pursuant to Section 12 of the Illinois Health Facilities Planning Act (Act) [20 ILCS 3960/12].  A public hearing on this Part was held in accordance with the provisions of Section 12 of the Act.  A record of the public hearing on this Part is available for inspection at the HFSRB offices at 525 West Jefferson Street, Springfield IL 62761. b)         Definitions 1)         "Agency" means the Illinois Department of Public Health (DPH). 2)         "Audit" means the most recent formal examination, correction and official endorsement of financial reports by an independent certified public accountant that is in accordance with generally accepted auditing standards. 3)         "Capital Expenditure" means an expenditure as defined in Section 3 of the Act [20 ILCS 3960/3] and includes expenditures made by, through, or on behalf of a health care facility as specified at 77 Ill. Adm. Code 1130. 4)        "Debt Financing" means all or any portion of project costs financed through borrowing.  Leasing, for purposes of this Part, is considered borrowing.  Portions of lease payments that are for service, insurance, or other noncapital costs are not considered borrowing. 5)         "Economically Feasible" means the costs of financing, constructing, acquiring, and operating a proposed project are reasonable and the expected impact of the project's operating and capital costs on the overall costs of health care are reasonable. 6)         "Estimated Total Project Cost" means the dollar amount of all expenditures or other transactions estimated to complete a project.  This amount includes all items that are to be capitalized and also includes the fair market value of any items that may be acquired through lease, donation, gift or other means. 7)         "Fair Market Value" means the dollar value of a project or any component of a project that is accomplished by lease, donation, gifts or any other means that would have been required for purchase, construction, or acquisition. 8)         "Financially Feasible" means that funds are available or will be obtained, and that are equal to or in excess of the estimated total project and related costs, without jeopardizing the applicant's financial viability.