Revenue offsets

The department shall require facilities to submit financial records inclusive of revenue offsets for financial auditing and rate adjustments. Facilities shall identify income to offset costs, where applicable, so that state financial participation does not supplant or duplicate other funding sources. Any income, whether in cash or in any other form which is received by the facility, with the exception of the established rate and income from payment made under the Job Training Partnership Act, must be offset up to the total of the appropriate actual costs. If actual costs are not identifiable, income must be offset in total to the appropriate cost category. If costs relating to income are reported in more than one cost category, the income must be offset in the ratio of the costs in each of the cost categories. Treatment appropriate to some sources of income is provided in this section: 1. Clothing. Facilities receiving initial clothing allowances separately from the state or other sources shall reduce costs by the amount of the reimbursement. 2. Food income. Facilities receiving revenue for food and related costs from other programs, including the United States department of agriculture or the department of public instruction or amounts from or paid on behalf of employees, guests, or nonresidents for meals or snacks shall reduce allowable food costs by the revenue received. 3. Insurance recovery. A facility shall offset any amount received from insurance for a loss incurred against the appropriate cost category, regardless of when the cost was incurred, if the facility did not adjust the basis for depreciable assets. 4. Refunds and rebates. A facility shall offset any refund or rebate received for a reported cost to the appropriate cost. 5. Transportation income. A facility shall offset any amount received for use of the facility's vehicles to transportation costs. 6. Vending income. A facility shall offset income from the sale of beverages, candy, or other items to the cost of the vending items or, if the cost is not identified, the facility shall offset all vending income to maintenance costs. 7. Gain on the sale of assets. A facility shall offset gain from the sale of an asset against depreciation expenses. 8. Rental income. A facility shall offset revenue received from outside sources for the use of facility buildings or equipment to property expenses. 9. Grant income. A facility shall offset grants, gifts, and awards from the federal, state, or local agencies to the costs which are allowed under the grant. 10. Other cost-related income. A facility shall offset miscellaneous income, including amounts generated through the sale of a previously expensed item, e.g., supplies or equipment, to the cost category where the item was expensed. 11. Other income from government sources. The department may determine that other income to the facility from local, state, or federal units of government is an offset to costs.