50-24.4-07. Nonallowable costs

50-24.4-07. Nonallowable costs 1. The following costs may not be recognized as allowable: political contributions; salaries or expenses of a lobbyist, as defined in section 54-05.1-02, for lobbying activities; advertising designed to encourage potential residents to select a particular nursing home; fines and penalties; legal and related expenses for unsuccessful challenges to decisions by governmental agencies; memberships in sports, health, or similar social clubs or organizations; and costs incurred for activities directly related to influencing employees with respect to unionization. The department by rule shall exclude the costs of other items or services not directly related to the provision of resident care. 2. Nonallowable costs include the education expense unless: a. The education was provided by an accredited academic or technical educational facility; b. The education expense was for materials, books, or tuition; and c. The amount of education expense claimed for an individual does not exceed fifteen thousand dollars in the aggregate. 3. The education expense may be claimed the year in which it is expended. 4. For any individual who receives education assistance, the facility shall enter a contract with the individual which stipulates a minimum commitment to work for the facility as well as a repayment plan if the individual does not fulfill the contract obligations. 5. An individual who receives the maximum of fifteen thousand dollars of education assistance shall commit to a minimum of six thousand six hundred fifty-six hours of employment after completion of the educational program. The number of hours of employment required may be prorated for an individual who receives less than the maximum of fifteen thousand dollars of education assistance. 6. The facility shall report the education expense separately on the facility's cost report. The expense is allowed as a passthrough and is limited only by the fifteen thousand dollar maximum per individual. 7. If an individual defaults on a contract and education expenses for the individual have previously been claimed in any report year, the facility shall report the amount of repayment on the facility's cost report in the report year in which the default occurs. 8. The department shall exclude sales tax revenue received from a political subdivision or local taxing authority as an offset to costs for facilities located in communities with a population below twelve thousand five hundred people.