Statement of costs allocations

The statement of costs provides for the identification of the allowable expenditures and basic services subject to payment by the department. When costs are incurred solely for a basic service, the costs must be assigned directly to that basic service. When costs are incurred jointly for two or more basic services, and not able to be directly assigned, the costs must be allocated as follows: 1. Personnel. The total cost of all staff identified in payroll records must be listed by position title and distributed to basic services. Time studies may be performed for one week at least quarterly for allocation. When no time studies exist, the applicable units must be used for allocation. When there is no definition of a unit of service, the department must use the unit of service for billing purposes. 2. Fringe benefits. The cost of fringe benefits must be allocated to basic services based on the ratio of the basic service personnel costs to total personnel costs. Personnel costs on which no fringe benefits are paid are excluded. 3. Equipment. The total cost of all equipment, whether rented, leased, purchased, or depreciated, must be distributed to basic services based on usage or applicable units. 4. Real property cost. The total of all property costs, whether rented, leased, purchased, or depreciated, must be allocated based on direct square footage. When multiple usage of direct use area occurs, the allocation is first done by square footage and then by applicable units. 5. Travel. The total of all unassigned travel costs must be included in administrative costs. 6. Supplies. The total of all unassigned supply costs must be included with administrative costs. 7. Food services. The total of all food costs must be allocated based on meals served. When the number of meals served has not been identified, applicable units must be used. 8. Insurance and bonds. The total of all such costs, except insurance costs representing real property costs or vehicle insurance costs applicable to vehicles used for one or more basic services, must be included as administrative costs. 9. Indirect program support costs. Total indirect program support costs, not including personnel and fringe benefits, must be allocated to basic service categories, exclusive of production, room, and board, based on actual units of service. When determining the day habilitative ratio of indirect program support costs, total day habilitation units are divided by thirty-two and rounded to the nearest whole number. 10. Administrative costs. Total administrative costs must be allocated to all service categories, exclusive of residential habilitation room, board, and production, based upon the ratio of the basic service cost to total cost excluding administrative and production costs. The percentage calculated for habilitation services must be based on total costs, including room and board, with the allocation made only to direct care costs, direct program support costs, and indirect program support costs.