Unallowable Costs for In-home Service

Section 240 Section 240.2030  Unallowable Costs for In-home Service Certain costs shall not be considered by the Department in establishing a fixed rate of reimbursement for in-home service: a)         expenses resulting from transactions with related parties/parent organizations that are greater than the going market cost of the transactions to the provider; b)         non-straightline depreciation; c)         bad debts; d)         special benefits to owners, including owner and key-man life insurance; e)         compensation to non-working owners and officers; f)         discounts, rebates, allowances, and charity grants offered by the agency; g)         entertainment expenses; h)         fundraising; i)          legal fees for litigation with governmental agencies; j)          awards, grants and gifts to individuals; k)         fines and penalties; l)          contingency funds; m)        losses on other grants and contracts; and n)         health coverage costs incurred for direct service workers by any qualifying provider for which an enhanced rate is paid for that purpose by the Department under Section 240.1970.