Page Numbers
Form 1134C.1: Assets and Depreciation
7 - 8
Assets Purchased with
Donated Funds
RATE SETTING
Ed
1134.01 DEFINITIONS
(a) “Accrual basis of accounting” means an
accounting method which recognizes revenue when it is earned rather than when it
is received, and expense is recognized when it is incurred rather than when it
is paid.
b) “Advertising costs” means those costs of
media services, solicitations of bids for goods and services, recruiting
personnel and development of school brochures and program
descriptions.
(c)
“Agency” means any private provider of special education services which
has been approved by the Department as a provider of special education and/or
related services.
(d)
Allowable costs” means those costs determined by the Department to be
reasonable in accordance with Ed 1134.12 and required for the operation of
approved special education programs pursuant to Ed 1100.
(e) “Consultant” means an independent
contractor who is a member of a particular profession who provides professional
services or expert advice to an agency.
(f) “Direct costs” means costs which
can be identified specifically with the organization’s final cost objectives, as
determined in accordance with Ed 1134.13.
(g) “Indirect costs” means those costs which
have been incurred for common or joint objectives and cannot be readily
identified with a particular final cost objective, as determined in accordance
with Ed 1134.14.
(h) “Length of the school year” means the
total number of days during which the program provides services in the rate
setting period.
(i) “Program capacity” means the maximum
number of children with disabilities that can be enrolled in a school, class or
program as specified in Ed 1100.
(j) “Related party” means all affiliates of
an enterprise, including but not limited to the following:
(1) Its management and their
immediate families;
(2) Its principal owners and
their immediate families
(3) Beneficial employee
trusts that are managed by the management of the organization; and
(4) Any party that can or
does deal with the organization and has ownership of, control over, or can
significantly influence the management or operating policies of another party to
the extent that an arms length transaction cannot be
achieved.
(k) “Reasonable costs” means those costs
which are prudent, within cost limitations and are required for the operation of
approved special education programs.
(l) “Special education
costs” means the sum of all costs less applicable credits.
(m) “Surplus” means the positive net
difference of revenue over expense from operations, regardless of whether that
difference is called surplus, profit, excess of support and revenue over
expense, or fund balance increase on the entity’s books of
account.
Ed
1134.02 RATE SETTING BUDGET
PROPOSAL
(a) In order to obtain a rate for special
education instruction, room and board, physical therapy, occupational therapy,
speech therapy and counseling from the Department, the agency shall complete a
budget proposal and submit it to the Department.
(b) The Department shall not act on any
proposal which is incomplete, and/or which contains substantive errors or
omissions. Any such proposal shall
be returned for corrections and/or completion.
(c) The agency shall submit
the following in the budget proposal:
(1) Form 1134 A: Cover Sheet;
(2) Form 1134 B: Personnel;
(3) Form 1134 C: Assets and
Depreciation;
(4) Form 1134 C.1: Assets
and Depreciation-Assets Purchased with Donated Funds;
(5) Form 1134 D: Program Data;
(6) Form 1134 E: Revenues; and
(7) Form 1134 F: Expenses by Line
Item.
Ed
1134.03 FORM 1134 A: COVER SHEET
(a) The purpose of the cover sheet is to
identify the agency making the budget proposal and to provide certification from
the agency that the information in (b) below is correct.
(b) When completing Form
1134 A: Cover Sheet, the agency shall:
(1) Indicate whether the
report being submitted is the original or an amended
submission;
(2) Give the accounting
period;
(3) Give the name, address,
and telephone number of the agency;
(4) Give the ownership type
such as proprietorship, partnership, or corporation;
(5) Give the operating
agency type such as for profit or non-profit
(6) Give the name, title,
and telephone number of the person completing the budget
proposal;
(7) Give the name of the
agency’s authorized representative;
(8) Give the signature of
the agency’s authorized representative certifying that information within the
budget proposal is correct and accurate to the best of the authorized
representative’s knowledge and that information was not deliberately omitted or
falsified;
NOTE:
All other items are requirements of the Department of Health & Human
Services.
Ed
1134.04 FORM 1134 B:
PERSONNEL
(a) When completing Form
1134B: Personnel, the agency shall:
(1) Indicate whether the
report being submitted is the original or an amended
submission;
(2) Give the name of the
agency;
(3) Give the fiscal year for
which the personnel report is being prepared, the month and year on which the
fiscal year begins, and the month and year the fiscal year
ends;
(4) Give each employee’s
full name;
(5) Give the field(s) of
study and degree(s) received, if any, for each employee; if applicable, mark
“none.”
(6) Give Job Title for
each employee,
(7) Give each employee’s
annual wage or salary;
(8) Allocate that portion of
each employee’s wage or salary which pertains to administrative and general
management activities;
(9) Allocate that portion of
each employee’s wage or salary which pertains to fund
raising;
(10) Allocate that portion
of each employee’s wage or salary which pertains to other non-special education
costs;
(11) Give the amount of each
employee’s wage or salary which pertains to special education instruction;
(12) Give the amount of each
employee’s wage or salary which pertains to any special education room and board
costs;
(13) Give the amount of each
employee’s wage or salary which pertains to occupational therapy, physical
therapy, speech therapy, and counseling activities;
(14) Give the total of
general management costs, total costs of fund raising, and total costs of
non-special education programs;
(15) Give the total of each
employee’s wage or salary which pertains to all special education programs;
and
(16) Give the total of each employee’s wage
or salary which pertains to any special education room and board costs, and to
occupational therapy, physical therapy, speech therapy, and counseling
activities.
(b) The allocation in (9) above, shall be
the percentage of each employee’s total work time which pertains to this
activity. Agencies which do not
have a fund raising activity shall indicate “N/A”
(c) The allocations in (10) above, shall be
the percentage of each employee’s total work time which pertains to this
activity. Entities which do not
have non-special education costs shall indicate “N/A”.
(d) The allocation in (11) above, shall be
the percentage of each employee’s total work time which pertains to special
education instruction.
(e)
The allocation in (12) above, shall be the percentage of each employee’s
total work time which pertains to any special education room and board
costs.
(f) The allocations in (13) above, shall be
the percentage of each employee’s total work time which pertains to these
activities.
NOTE:
Any salary that exceeds DHHS current year’s cap should be listed in two parts:
1) DHHS cap
2) Amount exceeding DHHS cap.
All
other items are requirements of the Department of Health & Human
Services.
Ed
1134.05 FORM 1134 C: ASSETS AND
DEPRECIATION
When
completing Form 1134C: Assets and Depreciation, the agency
shall:
(a) Indicate whether the
report being submitted is the original or an amended
submission;
(b) Give the name of the
agency;
(c) Give the fiscal year for which the
assets and depreciation report is being prepared, the month and year on which
the fiscal year begins, and the month and year the fiscal year
ends;
(d) Give the description of the item to be
depreciated such as an electric typewriter or an
automobile;
(e) Describe how the item
was acquired, using the following codes:
(1) “P” for items
purchased;
(2) “D” for items donated;
and
(3) “O” for other.
(For
items purchased with restricted donated funds, follow the directions for Form
1134C.1.)
(f) If “O” was used to describe the
acquisition of any item in (e) above, an explanation shall be provided at the
bottom of the form
(g) Give the month and year, using numerals,
when the item was acquired,
(h)
Give the month and year, using numerals, when the item was put into use or
service;
(i) Give the number of items
acquired;
(j) Give the amount actually
paid for the item(s);
(k) Give the estimated salvage or trade-in
value of the item(s) at the end of its/their useful life;
(l) Give the difference
between the salvage value and the actual cost;
(m) Give the expected number of years during
which the item(s) will be effectively usable;
(n) Give the quotient resulting from
dividing the amount to be depreciated by the useful life;
(o) Give the percent of time that the
item(s) will be used for programs or activities funded by the Department (insert
additional columns as needed);
(p) Give
the result from multiplying the total annual depreciation by the percent of the
time the item(s) will be used for programs or activities funded by the
Department (insert additional columns as needed); and
(q) Give
the total applicable annual depreciation amounts.
When
completing Form 1134C.1: Assets and Depreciation, Assets Purchased with Donated
Funds, the agency shall:
(a) Indicate whether the
report being submitted is the original or an amended
submission;
(b) Give the name of the
agency;
(c) Give the fiscal year for which the
assets and depreciation report is being prepared, the month and year on which
the fiscal year begins, and the month and year the fiscal year
ends;
(d) Give the description of the item to be
depreciated such as an electric typewriter or an
automobile;
(e) Describe how the item
was acquired, using the following codes:
(1) “P” for items
purchased;
(2) “O” for other.
(f) If “O” was used to describe the
acquisition of any item in (e) above, an explanation shall be provided at the
bottom of the form
(g) Give the month and year, using numerals,
when the item was acquired,
(h)
Give the month and year, using numerals, when the item was put into use or
service;
(i) Give the number of items
acquired;
(j) Give the amount actually
paid for the item(s);
(k) Give the estimated salvage or trade-in
value of the item(s) at the end of its/their useful life;
(l) Give the difference
between the salvage value and the actual cost;
(m) Give the expected number of years during
which the item(s) will be effectively usable;
(n) Give the quotient resulting from
dividing the amount to be depreciated by the useful life;
(o) Give the percent of time that the
item(s) will be used for programs or activities funded by the Department (insert
additional columns as needed);
(p) Give the result from multiplying the
total annual depreciation by the percent of the time the item(s) will be used
for programs or activities funded by the Department (insert additional columns
as needed); and
(q) Give the total
applicable annual depreciation amounts.
Ed
1134.06 FORM 1134 D: PROGRAM DATA
When
completing Form 1134D: Program Data, the agency shall:
(a) Indicate whether the report being
submitted is the original or an amended submission;
(b) Give the name of the
agency;
(c) Give the fiscal year for which the
program data report is being prepared, the month and year on which the fiscal
year begins, and the month and year the fiscal year ends;
(d) Give a listing of each special education
program or therapy for which a rate is being requested;
(e) Give the maximum capacity of each
program, as defined in Ed 1134.01(i), operating during the regular school
year;
(f) Give the length of the
regular school year for each program;
(g) Give the inclusive dates
of the regular school year;
(h) Give the maximum capacity of each
program operating during the summer school year as defined in Ed
1134.01(i);
(i) Give the length of the
summer school for each program;
(j) Give the inclusive dates
of the summer school year;
(k) Give the actual occupancy figures for
each of the 12 months immediately preceding the preparation of the budget
proposal, or for each month of operation, if a shorter period than 12 months;
and
(l) Give the 1/2-hour units of service
available for each therapy for which a rate is being
requested.
(m) Provide a calendar which indicates
program dates, teacher workshops, holidays, vacations,
etc.
NOTE:
All
other items are requirements of the Department of Health & Human
Services.
Ed
1134.07 FORM 1134 E:
REVENUES
(a) When completing Form
1134 E: Revenues, the agency shall:
(1) Indicate whether the
report being submitted is the original or an amended
submission;
(2) Give the name of the
agency;
(3) Give the fiscal year for
which the revenue report is being prepared, the month and year on which the
fiscal year begins, and the month and year the fiscal year
ends;
(4) Give program service
fees from sources other than school districts;
(5) Allocate costs among
different funding sources when anticipated revenues for program funding come
from sources other than the districts, such as revenues from local and federal
governments, Medicaid, Medicare, private insurance, and special purpose
funds;
(6) Give all revenue from
sales of goods or services related to programs;
(7) Give all income from
direct sales, contracts or services;
(8) Give all funds from
(9) Give all funds from
towns, cities and/or counties;
(10) Give income from
restricted or unrestricted contributions;
(11) Give interest, dividends, and capital gain distributions in cash
from endowments;
(12) Give any federal
grants, including:
a. Funds to supplement the
cost of providing education to children with disabilities;
b. Funds to purchase or
subsidize the purchase of food and the value of food commodities;
or
c. Any other federal
grants.
(13) Give all revenues from
non-endowment savings accounts;
(14) Give all interest under
general management, unless the interest is restricted and allocated for a
specific use or program;
(15) Give all recognized
gains on the sale of assets;
(16) Give all other
revenues;
(17) Give any surplus
generated in the most recent fiscal year;
(18) Give total of all
revenue amounts;
(19) Give total general management revenue amount to be allocated as
specified by the Department;
(20) Give total of all
revenue amounts and general management amount to be allocated; and
(21) Give the amount of the
Department fees they are requesting.
(b) All program service fees
identified in (6) above shall be budgeted and reported.
(c) All revenue from private and public
sources shall be budgeted and reported. All revenue in this category shall be
allocated based on donor restrictions.
(d) All revenue line items shall be at least
equal to the prior year’s levels.
If expected to be less, specific explanation and documentation shall be
provided. The facility or entity shall apply for public and private sources of
funds. If the facility or entity
does not apply for public and private sources of funds, specific explanation and
documentation shall be provided to the Department.
(e) Rental income which can be allocated to
specific programs shall be allocated on the basis of square footage or full-time
equivalents of the program(s) involved. All rental income that cannot be
identified to specific programs shall be included in general management. This shall include income from rental of
computer hardware and/or software, and time-sharing
income.
(f) The following shall
apply to revenue allocations:
(1) All revenues shall be
reported and the appropriate allocations made;
(2) A tuition rate shall be
computed from expenses for which no revenue has been received from the following
sources:
a. Receipts from federal
government;
b. Cash receipts which
reduce the cost of an item; and
c. Donations and
gifts.
(3) Agencies shall allocate
costs among different funding sources when revenues come
from:
a. Government contracts or
grants;
b. Medicaid, medicare,
private insurance; and
c. Specific purpose funds
where applicable
(4) Revenues and expenses of
non-special education programs shall not be reported as special education
activity; and
(5) Revenues received from
school districts shall not be offset against costs when a tuition rate is
calculated.
(g) Surplus equal to and for the purpose of
funding 6 weeks’ of wage and salary expense, including benefits and payroll
taxes, may be retained by the entity and may be excluded from the amount of
surplus to be carried forward;
NOTE:
Column A is the sum of Columns B, D, E, F, G, H and I. Column C is the restricted portion of
these same columns.
Ed
1134.08 FORM 1134 F: EXPENSES BY LINE
ITEM
(a) When completing Form
1134 F: Expenses by Line Item, the agency shall:
(1) Indicate whether the
budget report being submitted is the original or an amended
submission;
(2) Give the name of the
agency;
(3) Give the fiscal year for
which the budget report is being prepared, the month and year on which the
fiscal year begins, and the month and year the fiscal year
ends;
(4) Give the total of
expenses;
(5) Give the total general
management expenses to be allocated; and
(6) Give expenses by line
item as required in (b) - (ar) below.
(b) Salary and wages shall
be recorded in account 601 and shall include and comply with the
following:
(1) Payment for regular full
and part-time personnel services accrued in whatever form by employees of the
vendor during the fiscal year (transfer figures from the total lines on Form
1134B exactly);
(2) Premiums for overtime,
extra pay-shifts, and multi-shift work;
(3) All salary and wage
costs shall be supported by documented payroll vouchers or a generally accepted
documentation method; and
(4) Payroll shall be further
supported by time and attendance records for individual
employees.
(c) Employee benefits shall be recorded in
account 602 and shall include and comply with the
following:
(1) All group fringe benefit
plans provided to regular full and part-time employees, such as, Blue Cross/Blue
Shield, retirement plans, and worker compensation;
(2) Benefit plans shall be
in conformance with state and federal law; and
(3) The cost of fringe
benefit plans shall be a percentage of total salaries and wages by
program.
(d) Temporary staff shall be recorded in
account 603 and shall include and comply with the
following:
(1) All temporary personnel
costs associated with staffing coverage needed due to employee absenteeism
and/or staff vacancies; and
(2) The amount of substitute
coverage budgeted for direct service staff whose presence is considered
essential for the day-to-day supervision of children with disabilities shall be
determined by documented use and costs.
(e) Payroll taxes shall be recorded in
account 604 and shall include and comply with the
following:
(1) All payments made for
F.I.C.A. and unemployment insurance;
(2) F.I.C.A. shall equal the
prevailing rate multiplied by the total F.I.C.A. salaries per
program;
(3) State and federal
unemployment insurance shall equal the rate as determined by the applicable
state and the federal agencies; and
(4) If an agency elects to
fund an unemployment compensation reserve, the agency shall not also include
unemployment tax as an expense item.
(f) Client evaluations shall be recorded in
account 621 and shall include and comply with the
following:
(1) All professional
services purchased which are for purposes of obtaining any
evaluations
(2) This shall not include
the cost of any full or part-time staff, as reflected in the personnel budget,
whose responsibilities include evaluations of children with disabilities;
and
(3) The amount budgeted for
evaluations of children with disabilities shall be based upon past documented
actual costs.
(g) Client treatment or services shall be
recorded in account 622 and shall include all costs for purchasing specialized
client services on a full or part-time basis.
(h) Accounting and audit fees shall be
recorded in account 623 and shall include and comply with the
following:
(1) The cost of accounting
and auditing services supplied by outside providers, including check-writing and
payroll fees; and
(2) These services shall not
be provided by employees of, or other people who are affiliated with the
agency. These costs shall be
included in general management.
(i) Legal fees shall be recorded in account
624 and shall include and comply with the following:
(1) All legal service costs
which the agency expects to incur in order to fulfill obligations to the
Department;
(2) No funds shall be used
to pay any legal fees that involve litigation or disputes against the Department
or any other state agency; and
(3) No funds shall be used
to pay any fines, payback or other court-ordered payments as a result of
investigation or litigation against the facility or
program.
(j) Other professional services and
consultants shall be recorded in account 625 and shall include and comply with
the following:
(1) Consultants and/or
professional fees, such as program evaluations;
(2) Fees incurred for any
type of professional development and/or training shall be reflected in the
appropriate professional development line item; and
(3) Consultants’ costs shall
be allowed when:
a. The nature and scope of
the consultant’s services rendered are necessary, pertain to the organization’s
functions, activities or programs or to nutritional services, and cannot be
provided by the organization’s employees or can be more economically performed
by consultants than by employees;
b. The fee charged for the
service by the individual or concern shall be consistent with the customary fees
charged by similarly qualified consultants for the service rendered, is
reasonable in relation to the services rendered and shall be supported by
specific rationale in support of fee(s) charged;
c. The contractual agreement
for the services is adequately specific and shall at minimum include fees
charged, services to be provided, number of days to be worked, beginning and end
date of contract and a product evaluation;
d. The consultants costs are
reasonable as defined in Ed 1134.12 and they are not involved with the recovery
of costs or funds from federal, state or local government;
e. The consultants are not
trustees, directors, officers or employees of the organization nor of any parent
organization; and
f. The need for contracting
the services is in relation to the organization’s capability in the particular
area.
(k) Journals and publications shall be
recorded in account 631 and include the cost of all books, publications and
training materials purchased for professional development/training
purposes.
(l) In-service training shall be recorded in
account 632 and shall include and comply with the
following:
(1) All professional
development and training costs for conferences, workshops, conventions,
in-service training and tuition except for travel costs;
(2) Travel costs shall be
shown in staff transportation;
(3) These professional
development and training cost requests shall not exceed a total sum of money
computed by multiplying the number of the program’s full-time employees by
$250;
(4) Costs of conferences or
meetings shall be allowed when the primary purpose of the conference is
dissemination of technical information and is part of the facility’s approved
professional development plan; and
(5) Allowable costs include
meals, transportation, rental of facilities and other items incidental to such
conferences.
(m) Conferences and conventions shall be
recorded in account 633 and shall include and comply with the
following:
(1) Expenses for attending
any conferences, workshops, and conventions except travel costs; and
(2) Travel costs shall be
shown in Account 742, Staff transportation.
(n) Other professional development shall be
recorded in account 634 and include any development costs not covered by the
accounts above such as an individual staff member’s
tuition.
(o) Rent shall be recorded in account 641
and shall include and comply with the following:
(1) The cost of renting any
building utilized for the facility or program;
(2) Rental cost for space
shall not exceed the cost of comparable space and facilities in the same
locality;
(3) Rentals shall be
documented by a lease agreement;
(4) Any leases shall
stipulate the extent of the lessee’s responsibility for renovations;
and
(5) These costs shall be
cost-allocated to programs and general management based upon square footage or
full-time equivalents:
a. Rental costs as specified
in sale and leaseback agreements shall be allowable to the extent of actual
costs had the organization continued to own the property;
and
b. The cost of
lease-purchase agreements shall be excluded as a rental expense;
(p) Heating costs shall be
recorded in account 643 and shall include and comply with the
following:
(1) All heating costs, such
as electricity, gas or oil;
(2) These costs shall be
excluded if they are including a rental or lease agreement;
and
(3) These costs shall be
cost-allocated to programs and general management based upon square footage or
full-time equivalents.
(q) Other utilities shall be recorded in
account 644 and shall include and comply with the
following:
(1) All other utility costs,
such as electricity, water, sewage, gas;
(2) These costs shall be
excluded if they are included in a rental or lease agreement;
and
(3) These costs shall be
cost-allocated to programs and general management based upon square footage or
full-time equivalents.
(r) Maintenance and repairs shall be
recorded in account 645 and shall include and comply with the
following:
(1) The costs of materials
and supplies needed for routine maintenance and repairs and/or maintenance
contracts such as garbage removal and snowplowing;
(2) These costs shall be
excluded if they are included in a rental or lease
agreement;
(3) These costs shall be
cost-allocated to programs and general management based upon square footage or
full-time equivalents; and
(4) The following shall
apply to repair and maintenance of plant:
a. Costs incurred for
necessary maintenance, repair and upkeep of property which do not add to its
useful life but keep it in efficient operating condition shall be allowable when
they are not included in rental or other charges for space;
and
b. Costs incurred for
necessary maintenance, repair or upkeep of movable equipment which keep it in
efficient operating condition shall be allowable.
(s) Taxes shall be recorded in account 646
and shall include and comply with the following:
(1) Taxes which the
organization is required to pay and which are paid or accrued in accordance with
generally accepted accounting principles and payments made to local governments
shall be allowable;
(2) These costs shall be
cost-allocated to programs and general management based upon square footage or
full-time equivalents; and
(3) Taxes for which an
exemption is available and payments in lieu of taxes shall be
disallowed.
(t) Other occupancy costs shall be recorded
in account 647 and shall include and comply with the
following:
(1) Any other occupancy
costs not covered by above accounts; and
(2) Renovation costs shall
be included in account 660 Capital Expenditures.
(u) Office supplies shall be recorded in
account 651 and shall include and comply with the
following:
(1) Costs of consumable
materials used for office operations, such as paper, pens, notebooks, printed
checks, photocopy supplies; and
(2) These costs shall be
cost-allocated to programs and general management based upon direct costs or
full-time equivalents.
(v) Building and household supplies shall be
recorded in account 652 and shall include and comply with the
following:
(1) Costs of consumable
supplies used for buildings and grounds as well as all household supplies such
as toilet paper, towels, crockery, flatware, cleaning supplies;
and
(2) These costs shall be
cost-allocated to programs and general management based upon direct costs or
full-time equivalents.
(w) Educational and training supplies shall
be recorded in account 653 and shall include and comply with the
following:
(1) Costs of materials used
in programs for children with disabilities, such as paper, pens, paint brushes,
sets of practice materials, magazine or book subscriptions for children’s use;
and
(2) These costs shall be
cost-allocated to programs and direct costs or full-time
equivalents.
(x) Production and sales shall be recorded
in account 654 and shall include and comply with the
following:
(1) The cost of materials
which are purchased for the purpose of making products which are to be sold;
and
(2) The production and sales
expense shall not be more than the revenue generated from
sales.
(y) Food shall be recorded in account 655
and shall include the cost of raw or prepared food goods.
(z) Medical supplies shall be recorded in
account 656 and shall include and comply with the
following:
(1) The costs of services
which would be available to children with disabilities if they were enrolled in
a public school;
(2) Costs of speech,
physical or occupational therapy, or counseling if included in an IEP of a child
with a disability, shall be allowable under a separate rate setting program and
shall not be included as part of instruction and room and board
rates;
(3) The cost of a medical
examination for an employee or applicants for employment, or the cost of
furnishing any records required by the employer as a condition of employment
shall be allowable; and
(4) Other medical services
or the costs of medical supplies provided by the agency’s own staff shall not be
included in this account. These
costs are not allowed and shall be included in the non-special education section
of expenditure Form 1134F.
(aa) Capital expenditures shall be recorded
in account 660 and shall include and comply with the following (transfer the
total lines from Forms 1134C and 1134C.1 exactly):
(1) The cost of furnishings
and equipment valuing more than $1,000 for each item;
(2) Groups of items valuing
$1,000 or more, even if individual items are valued at less then $1,000, shall
be depreciated;
(3) Compensation for the use
of buildings, or other capital improvements and equipment shall be made through
depreciation charges;
(4) All other asset items
used for program purposes costing $1,000 or more having a useful life of one
year or more shall be depreciated;
(5) Reimbursement for
capital expenditures shall be available through depreciation charges
only;
(6) Depreciation charges
shall be based on historical acquisition cost less estimated salvage value of
the asset;
(7) Useful life shall be
determined on the basis of the particular operating conditions and the generally
accepted useful life of similar assets;
(8) Adequate property
records shall be maintained and ONLY the straight-line method of computing
depreciation shall be used;
(9) All capital expenditures
including purchases, major renovations and leasehold improvements for which
Department reimbursement is requested shall be included in the budget
proposal;
(10) Any expenditure not so
included shall not be reimbursed;
(11) The need to fund
extraordinary or emergency capital expenditures shall be
approved;
(12) These costs shall be
cost allocated to programs and general management based upon square footage or
full-time equivalents;
(13) Gains and losses on
sale, retirement, or other disposition of property which qualify as depreciable
shall be reflected as a credit or a charge to the program in which the asset was
being used;
(14) The amount of the
credit or charge under (13) shall be the difference between the amount realized
on the asset and the undepreciated basis;
(15) No gain or loss from
the sale of depreciated property shall be recorded as a credit or charge under
the following conditions:
a. The gain or loss is, or
could be, processed against a depreciation account;
b. The property is given in
exchange as part of the price of a similar asset and the gain or loss is taken
into account in determining the depreciation costs basis of the new
asset;
c. A loss occurs from the
failure to maintain permissible insurance;
d. Gains or losses resulting
from mass or extraordinary sales, retirements, or other dispositions shall be
considered on a case-by-case basis; and
e. Gains or losses resulting
from the sale or exchange of non-special education assets or those not
qualifying for depreciation are not allowable; and
(16) The following shall be
excluded from allowable depreciation expense:
a. Cost of
land;
b. Donated assets or assets
purchased with donated funds;
c. Assets acquired through
grants from federal, state or local governments, or from private organizations,
foundations, or companies;
d. Idle or excess assets;
and
e. Depreciation expense
computed under methods other than the straight line
method.
(ab) Equipment rental shall be recorded in
account 670 and shall include and comply with the
following:
(1) Costs of renting
equipment, such as typewriters; and
(2) The renting of postage
meters shall be included in Account 730, postage.
(ac) Equipment maintenance and repairs shall
be recorded in account 680 and shall include costs of equipment repairs, and
service maintenance contracts or agreements.
(ad) Advertising shall be recorded in account
700 and shall include and comply with the following:
(1) Advertising costs for
employee recruitment only;
(2) Other advertising costs
shall not be allowed;
(3) The costs of media
services such as a newspaper, magazines, radio resulting from the recruitment of
personnel, the solicitation of bids for goods and services and development of
school brochures and program descriptions; and
(4) All other advertising,
public relations or community education costs which cannot be demonstrated to
have direct benefit to the education program shall not be allowable and shall be
recorded in a program cost center not included in the special education rate
base.
(ae) Printing shall be recorded in account
710 and include costs of printing forms, leaflets and brochures, if the costs
are specifically related to programs funded by the
Department.
(af) Telephone and communications shall be
recorded in account 720 and include costs related to telephones, telegrams, and
similar communications expenses.
(ag) Postage and shipping shall be recorded
in account 730 and include costs related to postage stamps, trucking, delivery,
and rental of postage meters.
(ah)
Staff transportation shall be recorded in account 741 and shall include and
comply with the following:
(1) Transportation, lodging,
subsistence and related items incurred by employees who are on official business
incidental to a special education program;
(2) Such costs shall be
charged on an actual cost basis or per diem/mileage basis provided that the
method chosen is consistently applied to each event;
(3) Cost of mileage for the
business use of private vehicles at a rate not to exceed the prevailing
reimbursement rate per mile used by the State of
(4) If vehicles are leased
or rented and include so-called “Free Mileage”, such mileage is not eligible for
reimbursement; and
(5) Any portion of vehicle
expense which is reimbursed through depreciation charges shall be excluded from
the mileage reimbursement rate.
(ai) Client transportation shall be recorded
in account 742 and shall include and comply with the
following:
(1) Costs of travel directly
related to the school education program;
(2) Costs of transportation
to and from the home of a child with a disability to the school program shall be
the responsibility of the local school district and shall be excluded from the
tuition rate;
(3) The agency shall be
compensated for the lease, purchase, maintenance and use of vehicles provided
when they are needed for an approved education program;
and
(4)
Cost
of gasoline for leased or purchased facility vehicles used for program
purposes.
(aj) Vehicle leasing shall be recorded in
account 743 and shall include and comply with the
following:
(1) Vehicle lease expense
for vehicles used for program purposes; and
(2)
Attach
copies of vehicle leases and registrations. The purchase of a vehicle shall be
depreciated.
(ak) Vehicle maintenance and repair shall be
recorded in account 744 and shall include and comply with the
following:
(1) Cost related to vehicle
maintenance and repair.
(al) Professional liability and bonding shall
be recorded in account 761 and include all costs to meet the Department’s
requirements for professional liability and bonding.
(am) Vehicle insurance shall be recorded in
account 762 and include all vehicle insurance costs.
(an) Comprehensive property and liability
insurance costs shall be recorded in account 763 and shall include and comply
with the following:
(1) Comprehensive property
and liability and directors’ and officers’ insurance
costs;
(2) Comprehensive general
liability insurance against all claims of bodily injury, death, and property
damage or loss shall be in amounts of not less than $250,000 per claim and
$1,000,000 per incident;
(3) Fire and extended
coverage insurance covering all property shall be in an amount not less than 80%
of the whole replacement value of the property;
(4) Self-insurance costs but
only if the agency provides documentation to show that sufficient self-insurance
coverage is maintained to guard the program against those losses which would
have been normally covered if the agency had purchased the appropriate level of
insurance;
(5) Only employee group
insurance plans shall be approved;
(6) Costs resulting from
losses not covered under deductible insurance policy provisions, contracted for
and in keeping with sound business practice; and
(7) Actual losses which
could have been covered by permissible insurance shall be
excluded.
(ao) Membership dues shall be recorded in
account 770 and shall include and comply with the
following:
(1) Dues, memberships and
subscriptions in civic, business, technical and professional organizations;
(2) Costs shall be allowable
only when the benefit from membership is related to the organization’s special
education programs, the cost is reasonable in relation to the value or benefits
received, and the expense is not for membership in an organization which devotes
a substantial part of its activities to influencing
legislation;
(3) The total allowable
amount of Department funds that may be used for this expense shall not exceed
$2,000; and
(4) Any amount over $2,000
shall be shown under non-special education funded
programs.
(ap) Interest expense shall be recorded in
account 780 including and complying with the following:
(1) Interest costs for the
purchase or improvement of capital assets which have been
approved;
(2) Interest on loans for
working capital that are directly related to cash flow deficiencies which are
beyond the entity’s ability to control;
(3) The interest rate shall
not exceed the prevailing rates at the time the loan was
secured;
(4) Interest charges shall
not be at a rate in excess of what a borrower would pay at the time the loan was
taken;
(5) Interest charges for
borrowing for land, buildings and working capital that is in excess of program
requirements shall be excluded;
(6) Working capital as used
in this section shall mean a loan obtained to provide temporary cash in order to
meet a current cash shortfall arising from time differences between expense and
revenue cycles; and
(7) The entity shall bear
responsibility for providing documentation that working capital deficiencies
were beyond its control.
(aq) Other expenditures shall be recorded in
account 800 and include any other program costs not included in any of the above
line items. Provide a list of what
is included on this line.
(ar) Parent overhead shall be recorded in
account 900 and shall include and comply with the
following;
(1) Charges to an
organization’s programs from a parent or affiliated organization provided that
the charges are defined as allowable costs and that the charges are allocated to
all programs on the same basis; and
(2)
If a
program or facility includes charges for general management, parent overhead
charges shall not also be reimbursable.
NOTE:
All other items are requirements of the Department of Health and Human
Services.
Ed
1134.09 GENERAL RATE SETTING
INFORMATION
(a) Tuition rates shall be set based on the
agency’s budget proposal which shall be submitted on those forms prescribed in
Ed 1134.02. Deadline for submission
of all prescribed forms shall be the first of April, each
year.
(b) Any adjustments to the agency’s budget
proposal shall be made by the Department based solely upon these rules and
evaluation of required budget materials and information.
(c) Rates shall become effective on July
first, each year, or on the agency’s program start date, whichever is
later. The rate shall remain in
effect through June 30 of the following year, or on the agency’s program end
date, whichever occurs first.
(d) Once the Department has established a
final rate for an agency, no further adjustments shall be made to the rate(s)
for the fiscal year in which the agency’s budget proposal was
submitted.
(e) The Department shall notify the agency
by certified mail of the established rate(s).
(f) The daily and annual rate(s) established
through this process shall be the maximum reimbursement paid to the agency on a
per-child basis.
(g) Any parent organization or related party
providing services, facilities, or supplies to an agency submitting a budget
proposal shall make available documentation including but not limited to
invoices, leases, loan-notes, insurance policies supporting the related party
costs. The related party costs
shall be considered services for the purposes of establishing
rates.
(h) Each agency shall establish a chart of
accounts reflecting the functions specified in (i) below and shall maintain
accounting records in accordance with the chart.
(i) All revenues and
expenditures shall be assigned to the following functions:
(1) General
Management;
(2) Fund
Raising;
(3) Other non special
education costs;
(4) Special education
programs - Instruction;
(5) Special education
programs - Room and Board costs;
(6) Special education
programs - Occupational therapy;
(7) Special education
programs - Physical therapy;
(8) Special education
programs - Speech therapy; and
(9) Special education
programs - Counseling.
(j) Rates for out-of-state agencies
shall be set at the rate established by the rate- setting authority in the state
where the agency is located. In
states where no rate-setting authority exists, the Department shall establish
the rate payable to the agency through application of these rules. Requests for rate changes for
out-of-state agencies shall be accompanied by a copy of the revised official
rate notification from the rate-setting authority in the state where the agency
operates.
(k) Each agency shall submit
the following information:
(1) A complete rate setting
budget proposal as specified in Ed 1134.02(c)(1)- (6); and
(2) Actual data from the
previous year to allow the Department to compare the budget to actual
expenditures for the year.
(l) The agency shall submit a copy of the
audited financial statements and special report made by an independent auditor
as specified in Ed 1134.18. The
actual data and independent auditors’ reports shall be due within 120 days of
completion of the fiscal year. The financial statements shall at a minimum
contain supplemental schedules using the same line items and functions used in
the budget submitted with the rate request.
(m) A semi-annual Summary of Revenues and
Expenditures report shall be prepared using the same line items and functions as
used in preparation of the budget.
The first summary shall contain information for the first 6 months of the
fiscal year and shall be submitted with the rate setting
proposal.
Ed
1134.10 ALLOWABLE COSTS
(a) To be considered an allowable special
education cost the following criteria shall be met:
(1) The cost shall be
reasonable within the definition of Ed 1134.12;
(2) The cost shall have a
direct relationship to the policies and procedures
(3) The cost shall be
recognized by and reported in accordance with generally accepted accounting
principles;
(4) The cost shall be
supported by documentation including but not limited to:
a. Invoices;
b. Leases;
c. Loan-notes;
d. Insurance policies; and
e. Service contracts;
and
(5) The cost shall pertain
and be readily identifiable to an activity, function or program relative to the
provision of special education and related services.
(b) If
personal vehicles or living accommodations are prerequisites for certain direct
care positions, such expenses shall be approved.
Ed
1134.11 NON-ALLOWABLE
COSTS
The
following shall not be allowed as special education costs:
(a) Political and charitable
contributions;
(b) Investment expenses
which are in excess of investment income;
(c) Amusement of facility or program
officers or employees or for non-organization related activities, entertainment,
and any related costs such as meals, lodging, rentals, transportation and
gratuities;
(d) Ordinary living expenses which are
normally assumed by parents of children attending public day
schools;
(e) Fees and expenses of
trustees and directors;
(f) Fines and penalties which are imposed by
a court and/or which result from violations of or the failure to comply with
federal, state, county or municipal law, rule, or
regulation;
(g) Bad debts, actual or estimated,
resulting from uncollectible accounts or other
claims, and related collection and legal costs;
(h) Contributions to a contingency fund or
any similar fund except for an unemployment reserve fund;
(i) Advertising expenses except for
personnel recruitment, bids for goods and services, school brochures,
solicitation and medical services;
(j) Organized fund raising
expenses in excess of revenue received and applied
(k) The following organized
fund raising costs:
(1) Solicitations of gifts;
(2) Bequests;
(3) Organized fund raising;
(4) Financial campaigns; and
(5) Endorsement drives.
(l) Voluntary payments and contributions
such as payments in lieu of real estate taxes;
(m) Any expenses of the organization which are not reasonable as defined in Ed 1134.12 or unrelated to required special education or necessary related services;
(n) Management fees or payments included in
lease or rental agreements between parties who are related as defined in Ed
1134.01(j);
(o) Reimbursement for expenditures or
depreciation of personally owned or leased assets excluding motor
vehicles;
(p) Income and business
profits taxes;
(q) Bonuses of any nature
conveyed and/or paid;
(r) Charges by parties who are related as
defined in Ed 1134.01(j) for services, facilities, and supplies furnished to the
operating entity if such charges exceed the cost to the related party for
providing the services, facilities or supplies;
(s) Charges for investment counsel, staff
and similar expenses incurred solely to enhance income from
investments;
(t) All personal expenses
such as:
(1) Personal travel
expenses;
(2) Laundry
charges;
(3) Beverage
charges;
(4) Gift certificates to
staff and vendors;
(5) Flowers or parties for
departing staff;
(6)
(7) Repairs on a personal
vehicle; and
(8) Rental expenses of
personal apartments.
(u) Medical services and supplies, other than those cited in 1134.08(z); and
(v) Medical supplies or costs of medical supplies provided by the agency’s own staff.
Ed
1134.12 REASONABLE COSTS
(a) The reasonableness of specific costs
shall be determined by the Department by applying (b),
below.
(b) Costs shall be allowed provided they can
be justified by one or more of the following criteria:
(1) The cost shall be of a
type necessary for the operation of the organization or performance of an
activity or function of the program;
(2) The cost shall be
consistent with accepted sound business practices, arms length bargaining,
federal and state law, rules of the State Board of Education, or generally
accepted accounting principles;
(3) The cost request shall
not deviate by more than 5% from the average cost incurred in facilities and/or
circumstances which are similar;
(4) Year to year cost
increase requests shall not deviate by more than one percentage point from those cost
increases as measured by such price indices as the consumer price index or other
similar publications from the New Hampshire Department of Employment Security or
United States Department of Labor; and,
(5) The cost request can be
explained by a minimum 10% fluctuation in school enrollment from year to
year.
Ed
1134.13 DIRECT COSTS
(a) Costs identified specifically with
activities required for operation of an approved facility, function or program
shall be treated as direct costs.
(b) If costs are not allowable as special
education costs, they shall be treated as direct costs and allocated with their
share of the organization’s indirect costs when they represent activities
which:
(1) Include the salaries of
non-executive personnel;
(2) Occupy space;
or
(3)
Benefit
from the organization’s direct costs, including, but not limited to, the types
of costs listed in Ed 1134.16(c).
Ed
1134.14 INDIRECT COSTS
(a) Indirect costs shall be allocated to all
of the organization’s activities pursuant to Ed 1134.16.
(b) Indirect costs shall
include, but not be limited to:
(1) Salaries and expenses of
executives;
(2) Expenses for accounting;
(3) Costs of operating and
maintaining facilities;
(4) Depreciation allowances
on buildings and equipment; and
(5) General administration
expenses.
Ed
1134.15 BASIS OF ACCOUNTING
The
system for reporting special education costs shall be based on the accrual basis
of accounting.
Ed
1134.16 METHOD OF
ALLOCATION
(a) When an organization has only one major
purpose or when all its major functions benefit from its indirect costs to
approximately the same degree, the direct allocation method shall be used. Under the direct allocation method all
costs except general administration shall be treated as direct
costs.
(b) Costs shall be separated
into 9 basic functions as outlined in Ed 1134.09(i).
(c) Costs which directly benefit multiple
final cost objectives of an organization and include such costs as depreciation,
operation and maintenance of facilities, telephone and utilities shall be
prorated individually as direct costs of each function using a base appropriate
to the costs being prorated.
(d) Indirect costs consisting exclusively of
general administration and general expenses shall be distributed to the
organization’s functions using total direct costs of each activity as a
base.
(e) Organizations proposing to treat
indirect costs in a manner different from (a) and (b) above shall submit a
waiver request to the Department which is:
(1) In
writing;
(2) Signed by the person who
has prepared the rate setting proposal; and
(3) Submitted not later than
120 days prior to the submission of a new rate proposal.
(f) The Department shall approve all
requests received pursuant to (e) above unless the request(s) violates any
requirement of Ed 1134 or generally accepted accounting
principles.
Ed
1134.17 FORM 1134.11: RATE COMPUTATIONS FOR
INSTRUCTION, ROOM AND BOARD, OCCUPATIONAL THERAPY, PHYSICAL THERAPY, SPEECH
THERAPY AND COUNSELING
(a) On Form 1134.11, the agency shall
calculate the rate for a special education program as
follows:
(1) The agency shall compute
the net expenses of the program;
(2) The net expenses of the program shall be
equal to the total expenses from Form 1134F less the total revenues from Form
1134E;
(3) The agency than shall
multiply the program capacity rate by 90%;
(4) The agency shall compute the annual rate
by dividing the net expenses of the program by 90% of the program capacity rate;
and
(5) The agency shall compute the daily rate
by dividing the annual rate by the length of the program
year.
(b) On Form 1134.11, the agency shall
calculate the rates for special education therapies as
follows:
(1) The agency shall compute
the net expenses of the program;
(2) The net expenses of the program shall be
equal to the total expenses from Form 1134F less the total revenues from Form
1134E;
(3) The agency shall record the units of
service available as reported on Form
1134D; and
(4)
The agency shall compute the therapy rate by dividing the net expenses of the
program by the units of service available.
NOTE:
All other items are requirements of the Department of Health and Human
Services.
Ed
1134.18 AUDIT
REQUIREMENTS
(a) Audits shall be made in accordance with
the U.S. Office of Management and Budget Circular A-133, Titled Audits of
States, Local Governments and
Non-
Profit Organizations which was published in the Federal Register
(b) Audits shall include an examination of
the systems of internal control, systems established to ensure compliance with
laws and rules affecting the expenditure of LEA funds, and financial
transactions and accounts.
(c) The examinations
required by (b), above, shall be used to determine
whether:
(1) There is effective
control over and proper accounting for revenues, expenses, assets and
liabilities;
(2) The financial statements
are presented fairly in accordance with generally accepted accounting
principles;
(3) The Department financial
reports contain accurate and reliable financial data; and
(4) LEA funds are being
expended in accordance with Ed 1134.
(d) In order to accomplish the above
purposes cited in (c) above, a representative number of charges to special
education programs shall be tested to determine whether the
charges:
(1) Are required for the
proper administration of the program;
(2) Were given consistent
accounting treatment and applied uniformly to all activities of the
organization;
(3) Were net of applicable
credits;
(4) Did not include costs
properly chargeable to the organization’s other programs;
(5) Were properly recorded
with the correct amount and date and supported by source documentation;
and
(6) Were allocated equitably
to benefiting activities, including non-special education
activities.
(e) Audits shall be made
annually and include:
(1) Financial statements,
including footnotes, of the organization;
(2) The auditors’ comments
on the financial statements which shall:
a. Identify the statements
examined and the period covered;
b. Identify the various
special education programs for which a rate was set and the amounts of LEA funds
received;
c. State that the audit was
done in accordance with Ed 1134.18;
d. Express an opinion as to
whether the financial statements are fairly presented in accordance with
generally accepted accounting principles, but if an unqualified opinion cannot
be expressed then the nature of the qualification shall be stated;
and
e. Comment on the accuracy
and completeness of the Department financial reports, including an expression of
negative assurance with respect to compliance with Ed
1134.
(f) Work papers and reports shall be
retained for a minimum of 3 years from the date of the audit report unless the
auditor is notified in writing by the Department of the need to extend the
retention period. The workpapers
shall be made available upon request to the Department.
Ed
1134.19 RATE NOTIFICATION
(a) The Department shall notify the agency
by certified mail of the tentative rate(s) and the notification shall include
any schedule of adjustments used in the determination of the tentative
rate(s).
(b) The agency shall review the notification
and schedule of adjustments. If the
agency has questions, problems, or both, with the tentative rate(s) the agency
shall request a meeting with the Department’s rate setter within 14 working days
of receipt of the notification letter from the Department which states the
tentative rate(s).
(c) The request for a meeting with the
Department’s rate setter shall state the specific reasons why the agency
believes there was an error in the tentative rate(s).
(d) Unless a written request for a meeting
with the Department’s rate setter is received by the Department within 14
working days of the agency’s receipt of the letter or other written notification
from the Department which states the tentative rate(s), the tentative rate(s)
shall become final.
(e) If the agency requests a meeting with
the Department’s rate setter concerning the tentative rate(s) and the results of
that meeting do not satisfactorily resolve the concern(s) of the agency, the
agency shall be informed by the Department’s rate setter of his/her right to a
review pursuant to Ed 1134.20.
(f) During any review held pursuant to Ed
1134.20, the agency’s most recent approved final rate(s) shall remain in effect
for billing purposes. If the agency
has not had a previously approved final rate(s) adopted by the Department, the
agency may bill-for-services at the tentative rate(s).
Ed
1134.20 HEARING MECHANISM FOR SPECIAL EDUCATION
RATES
(a) A private provider of special education
services making a request for reconsideration of the rates established by the
Department shall adhere to the procedures set forth in (b) - (d)
below.
(b) A request for reconsideration shall be
filed within 14 days of the date of the receipt of the notification letter which
states the rate(s) and which is sent by the state to the
agency.
(c) A request for reconsideration shall be
made in writing, shall be signed by a person duly authorized by the agency to
submit the request for reconsideration and shall be filed with the Director,
Division of Instruction, New Hampshire Department of
Education.
(d) The request for reconsideration shall
state the specific reasons why the agency believes there was an error in the
original determination.
(e) The Director shall render a decision in
writing regarding the request within 14 days of the date on which the letter is
received by the state. If the
Director determines that the request for reconsideration reasons are vague,
he/she shall require that the agency file a more detailed statement of request
for reconsideration. In such case,
the requirements specified in (b) - (d) above shall apply to any such
statements.
(f) If the Director agrees with any or all
portions of the agency’s request for reconsideration, the Department’s rate
setter shall recalculate the agency’s rate(s) accordingly.
(g) If the Director does not agree with any
or all portions of the agency’s request for reconsideration, the Director shall
notify the agency of his/her decision pursuant to the requirements set forth in
(e) above.
(h) Agencies who wish to appeal the decision
of the Director pursuant to Ed 1134.20(e) shall do so by filing an appeal with
the Commissioner of Education, New Hampshire Department of
Education.
(i) The appeal shall be made in writing,
shall be signed by a person duly authorized by the agency to submit the appeal
and shall state specific reasons for the appeal.
(j) The appeal shall be filed within 14 days
of the date of the notification letter which states the decision of the Director
which is sent by the Department to the agency.
(k)
The
appeal shall be heard under RSA 541-A:31-36 by the Commissioner of
Education or his/her designee and in accordance with Ed
200.
RSA 541-A:31. Availability of Adjudicative Proceeding; Contested Cases; Notice, Hearing and Record.
RSA 541-A:32. Intervention.
RSA 541-A:33. Evidence; Official Notice in Contested Cases.
RSA 541-A:34. Examination of Evidence by Agency.
RSA 541-A:35. Decisions and Orders.
RSA 541-A:36. Ex Parte Communications.
Ed
200 RULES OF PRACTICE AND PROCEDURE
Ed
1134.21 THE JOINT RATE SETTING
PROCESS
(a) The Department shall jointly administer
the joint rate setting process with the Department of Health and Human Services
pursuant to the requirements of
Ed
1134.21, Ed 1134.22 and Ed 1134.23.
(b) An agreement signed by the
Commissioner of the Department of Health and Human Services and the Commissioner
of the Department of Education in March of 1999, “Agreement Between the New
Hampshire Department of Education and the New Hampshire Department of Health and
Human Services Relative to Students with Disabilities Ages Birth to Twenty One,”
shall be used as the basis for the administration of the joint rate setting
process.
(c) When rates are jointly set by the
Department of Health and Human Services and the Department in accordance with
RSA 170-G:4, XVII and XVII-a, any conflicts identified by the state agencies
existing between rate setting rules of the Department of Health and Human
Services and the Department shall be resolved by both state agencies applying
the stricter of the 2 sets of rules.
RSA 170-G:4. Department; Powers and
Duties.
The department shall have the power and duty to:
XVII. After consultation with the
advisory board created by RSA 170-G:6, establish rates for all services,
placements and programs which are paid for by the department pursuant to RSA
169-B:40, 169-C:27, 169-D:29, and any services required to be provided by the
department pursuant to paragraph II of this section. When educational aspects
are present in any service, placement or program subject to rate-setting by the
department, rates for the educational component shall be addressed jointly by
the department and the department of education. XVII-a. Review annually the rates
established for the purchase of services, placements and programs pursuant to
paragraph XVII of this section. This annual review shall consider the effects of
the established rates on current costs, quality and availability of services.
Ed
1134.22 JOINT RATE NOTIFICATION
(a) The Department and the Department of
Health and Human Services shall both notify the agency by certified mail of the
tentative rate(s) and the notification shall include any schedule of adjustments
used in the determination of the tentative rate(s).
(b) The agency shall review the notification
and schedule of adjustments. If the
agency has questions, problems, or both, with the tentative rate(s) the agency
shall request a joint meeting with the Department’s rate setter and the
Department of Health and Human services rate setter within 14 working days of
receipt of the notification letter from the Department and Department of Health
and Human Services which states the tentative rate(s).
(c) The request for a joint meeting with the
Department’s rate setter and the Department of Health and Human Services rate
setter shall state the specific reasons why the agency believes there was an
error in the tentative rate(s).
(d) Unless a written request for a meeting
is received by the Department and the Department of Health and Human Services
within 14 working days of the agency’s receipt of the notification letter from
the Department and the Department of Health and Human Services which states the
tentative rate, the tentative rate(s) shall become final.
(e) If the agency requests a joint meeting
with both of the state’s rate setters concerning the tentative rate(s) and the
results of that meeting do not satisfactorily resolve the concern(s) of the
agency, the agency shall be informed by both rate setters of his/her right to
review pursuant to rules of the Department of Health and Human Services and the
Department.
(f)
During
any review held pursuant to rules of the Department of Health and Human Services
or the Department, the agency’s most recent approved final rate(s) shall remain
in effect for billing purposes. If
the agency has not had a previously approved final rate(s) adopted by the
Department and the Department of Health and Human Services, the agency may bill
for services at the tentative rate(s).
Ed
1134.23 HEARING MECHANISM FOR JOINTLY SET SPECIAL
EDUCATION RATES
(a) A private provider of special education
services making a request for reconsideration of the rates established jointly
by the Department and the Department of Health and Human Services shall adhere
to the procedures set forth in (b) - (d) below.
(b) A request for reconsideration made under
(c) below shall be filed within 14 days of the date of receipt of the
notification letter which states the rate(s) and which is sent by both state
agencies to the private provider.
(c) A request for reconsideration shall be
made in writing, shall be signed by a person duly authorized by the agency to
submit the request for reconsideration and shall be filed with the Director,
DCYF and the Director, Division of Instruction, New Hampshire State Department
of Education or their designees.
(d) The request for reconsideration shall
state the specific reasons why the agency believes there was an error in the
original determination.
(e) Both directors or their designees shall
render a joint decision in writing regarding the request within 14 working days
of the date on which the letter is received by both state agencies. If the
directors or their designees determine that the request for reconsideration
reasons are vague, they shall require that the private provider file a more
detailed statement of request for reconsideration. In such case, the
requirements specified in (b) - (d) above shall apply to any such statements.
(f) If the directors agree with any or all
portions of the agency’s request for reconsideration, both state rate setters
shall recalculate the agency’s rates accordingly.
(f)
If
the directors disagree with each other, and the agency wishes to pursue the
issue, the agency shall appeal under RSA 541-A:31-36 as provided in (l)
below.
RSA 541-A:31. Availability of Adjudicative Proceeding; Contested Cases; Notice, Hearing and Record.
RSA 541-A:32. Intervention.
RSA 541-A:33. Evidence; Official Notice in Contested Cases.
RSA 541-A:34. Examination of Evidence by Agency.
RSA 541-A:35. Decisions and Orders.
RSA
541-A:36. Ex Parte Communications.
(h)
If
the directors do not agree with any or all portions of the agency’s request for
reconsideration, the directors shall notify the agency of their decision
pursuant to the requirements set forth in (e) above.
(i) Agencies
who wish to appeal the decision of both directors pursuant to Ed 1134.23(e)
shall do so by filing an appeal with the Commissioner, Department of Education,
and the Commissioner, Department of Health and Human
Services.
(j) The appeal shall be made in writing,
shall be signed by a person duly authorized by the agency to submit the appeal
and shall state specific reasons for the appeal.
(k) The appeal shall be filed within 14 days
of the date of the letter or other written notification which states the
decision of the directors or their designees which is sent by the Department and
DCYF to the agency.
(k) The
appeal shall be heard under RSA 541-A:31-36 by the Commissioner of Education and
the Commissioner of the Department of Health and Human Services or their
designees in accordance with Ed 200 and He-C 200, provided that, if such rules are in conflict, the
stricter rules shall apply.
RSA 541-A:31. Availability of Adjudicative Proceeding; Contested Cases; Notice, Hearing and Record.
RSA 541-A:32. Intervention.
RSA 541-A:33. Evidence; Official Notice in Contested Cases.
RSA 541-A:34. Examination of Evidence by Agency.
RSA 541-A:35. Decisions and Orders.
RSA 541-A:36. Ex Parte Communication