Section 144-115-18 - COST FINDING AND COST REPORTING18.1Cost Report PeriodsFacilities are required to submit annual cost reports, as prescribed herein, to the State of Maine, DHHS, Division of Audit, 11 State House Station, Augusta, Maine 04333-0011. Cost reports shall be based on the fiscal year of the facility.
18.2Accounting Principles Allowable costs shown in all cost reports described herein shall be on the basis of generally accepted accounting principles, except that facilities are allowed to file on the accrual, cash, or modified cash method of accounting. All new facilities are required to file on the Accrual basis. Once a facility has established an accounting method used in filing its annual cost report, that accounting method cannot be changed without the approval of the DHHS, Division of Audit. The provider must pay all year-end accruals within six (6) months after the end of the year in which the amounts are accrued. If the accruals are not paid within such time, these amounts will be deducted from allowable costs incurred in the first audit conducted following that six (6) month period.
18.3Cost Finding Total allowable costs shall be divided by the actual bed days to determine the cost per bed day. When facilities provide more than one level of care, including both nursing facility and residential care, total allowable costs shall be allocated to each level based on the occupancy data reported for each level and the following statistical bases:
18.3.1Capital Costs: Square feet serviced to the extent the costs benefit both levels of care. In the event the cost benefits only one level of care, it will be directly costed to the level of care having the benefit of the cost.18.3.2Plant Operation and Maintenance: Square feet serviced.18.3.3Housekeeping: Lesser of actual direct cost or allocation based on square feet serviced.18.3.4Laundry: Pounds or resident days.18.3.5Dietary: Number of meals served.18.3.6General and Administrative, Financial and Other Expenses: Total accumulated allowable costs for each level of care, not including general and administrative and financial expense.18.4Cost Reports18.4.1Forms: Annual cost report forms provided by the DHHS, Division of Audit, shall be used for all facilities.18.4.2 Each facility must submit an annual cost report on forms prescribed in Section 18.4.1. Cost reports and all supporting documentation requested are due within five months of the end of each fiscal year. Facilities are encouraged to submit a copy of the cost report on a computer disk in the format prescribed by DHHS, Division of Audit. Beginning July 1, 2002, all submissions must be made on electronic media to be specified by the Department. The inclusive dates of the reporting year shall be the twelve (12) month period of each provider's fiscal year, unless advance authorization to submit a report for a lesser period has been granted by the Director, DHHS, Division of Audit. Failure to submit a cost report in the time prescribed above may result in the Department imposing the deficiency in Section 34.8. 18.4.3 Cents are omitted in the preparation of all schedules except when inclusion is required to properly reflect per diem costs or rates.18.4.4 Certification by operator: Each provider shall examine the cost report and supporting schedules prepared for submission to DHHS, Division of Audit, and shall certify that the report is a true, correct and complete statement prepared from the books and records of the provider. The cost report is to be certified by the owner or operator of the facility. If someone other than the provider prepares the cost report, the person preparing the cost report must also sign that report.
18.5Record Keeping Requirements18.5.1 Providers must maintain an accounting system with accurate and auditable financial and statistical records that are in sufficient detail to substantiate their cost reports. The accounting system shall include original documents, journals, ledgers, trial balances, and financial statements. All records must be maintained for a period of not less than five (5) years following the date of final settlement.18.5.2 These records shall include, but not be limited to, matters of provider ownership, organization, operation, fiscal and other record keeping systems, Federal and State income tax information, asset acquisition, lease, sale, or other action, franchise or management arrangement, member services charge schedule, matters pertaining to cost of operation, amounts of income received by service, and purpose and flow of funds and working capital.18.5.3 Providers shall make records available to representatives of the Department or the Maine Attorney General's Office. Providers shall be given at least a three (3) day notice when fiscal records are involved, and shall be notified which fiscal records are to be reviewed.10- 144 C.M.R. ch. 115, § 18