Startup costs

In the first stages of operation, a new center incurs certain costs in developing its ability to care for clients prior to their admission. Staff is obtained and organized, and other operating costs are incurred during this time of preparation which cannot be allocated to client care during that period because there are no clients receiving services. Such costs are commonly referred to as startup costs. The startup costs are to be capitalized and will be recognized as allowable administration costs amortized over sixty consecutive months starting with the month in which the first client is admitted.