N.H. Admin. Code § Ed 1129.08

Current through Register No. 45, November 7, 2024

Section Ed 1129.08 - Form 1129F: Expenses by Line Item

(a) When completing Form 1129F: 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 or years for which the budget report is being prepared, the month and year or years on which the fiscal year or years begin, and the month and year or years the fiscal year or years end;

(4) Give the date on which the original or amended budget report is being prepared;

(5) Give the total of expenses;

(6) Give the total general management expenses to be allocated; and

(7) Give expenses by line item as required in (b) - (ap) below.

(b) Salary and wages shall:

(1) Be recorded in account 601; and

(2) Include and comply with the following:

a. Payment for regular full and part-time personnel services accrued in whatever form by employees of the vendor during the fiscal year;

b. Premiums for overtime, extra pay-shifts, and multi-shift work;

c. All salary and wage costs shall be supported by documented payroll vouchers or a generally accepted documentation method; and

d. Payroll shall be further supported by time and attendance records for individual employees.

(c) Employee benefits shall:

(1) Be recorded in account 602; and

(2) Include and comply with the following:

a. All group fringe benefit plans provided to regular full and part-time employees, such as, Blue Cross/Blue Shield, retirement plans, and worker compensation;

b. Benefit plans shall be in conformance with state and federal law; and

c. The cost of fringe benefit plans shall be a percentage of total salaries and wages by program.

(d) Temporary staff shall:

(1) Be recorded in account 603; and

(2) Include and comply with the following:

a. All temporary personnel costs associated with staffing coverage needed due to employee absenteeism or staff vacancies; and

b. 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:

(1) Be recorded in account 604; and

(2) Include and comply with the following:

a. All payments made for F.I.C.A. and unemployment insurance;

b. F.I.C.A. shall equal the prevailing rate multiplied by the total F.I.C.A. salaries per program;

c. State and federal unemployment insurance shall equal the rate as determined by the applicable state and the federal agencies; and

d. 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:

(1) Be recorded in account 621; and

(2) Include and comply with the following:

a. All professional services purchased which are for purposes of obtaining any evaluations;

b. 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

c. The amount budgeted for evaluations of children with disabilities shall be based upon past documented actual costs.

(g) Client treatment or services shall:

(1) Be recorded in account 622; and

(2) Include all costs for purchasing specialized client services on a full or part-time basis.

(h) Accounting and audit fees shall:

(1) Be recorded in account 623; and

(2) Include and comply with the following:

a. The cost of accounting and auditing services supplied by outside providers, including check-writing and payroll fees; and

b. 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:

(1) Be recorded in account 624; and

(2) Include and comply with the following:

a. All legal service costs which the agency expects to incur in order to fulfill obligations to the department;

b. No funds shall be used to pay any legal fees that involve litigation or disputes against the department or any other state agency; and

c. 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:

(1) Be recorded in account 625; and

(2) Include and comply with the following:

a. Consultants or professional fees, such as program evaluations;

b. Fees incurred for any type of professional development or training shall be reflected in the appropriate professional development line item; and

c. Consultants' costs shall be allowed when:

1. 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;

2. The contractual agreement for the services 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;

3. The consultants costs are reasonable as specified in Ed 1129.12 and they are not involved with the recovery of costs or funds from federal, state, or local government;

4. The consultants are not trustees, directors, officers or employees of the organization nor of any parent organization; and

5. The need for contracting the services is in relation to the organization's capability in the particular area.

(k) Journals and publications shall:

(1) Be recorded in account 631; and

(2) Include the cost of all books, publications and training materials purchased for professional development or training purposes.

(l) In-service training shall:

(1) Be recorded in account 632; and

(2) Include and comply with the following:

a. All professional development and training costs for conferences, workshops, conventions, in-service training and tuition except for travel costs;

b. Travel costs shall be shown in staff transportation;

c. 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 the University of New Hampshire's in state, per graduate credit cost.

d. 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

e. Allowable costs include meals, transportation, rental of facilities, and other items incidental to such conferences.

(m) Conferences and conventions shall:

(1) Be recorded in account 633; and

(2) Include and comply with the following:

a. Expenses for attending any conferences, workshops, and conventions except travel costs; and

b. Travel costs shall be shown in Account 742, staff transportation.

(n) Other professional development shall:

(1) Be recorded in account 634; and

(2) Include any development costs not covered by the accounts above such as an individual staff member's tuition.

(o) Rent shall:

(1) Be recorded in account 641; and

(2) Include and comply with the following:

a. The cost of renting any building utilized for the facility or program;

b. Rental cost for space shall not exceed the cost of comparable space and facilities in the same locality;

c. Rentals shall be documented by a lease agreement;

d. Any leases shall stipulate the extent of the lessee's responsibility for renovations;

e. The cost of lease purchase agreements shall not be included.; and

f. Allowable costs shall be as follows:

1. 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;

2. If any party as lessor is in common with the leasee, the rental costs shall be limited to actual costs, including but not limited to mortgage payments, insurance premium payments, and property taxes; and

3. The cost of lease-purchase agreements shall be excluded as a rental expense.

(p) Heating costs shall:

(1) Be recorded in account 643; and

(2) Include and comply with the following:

a. All heating costs, such as electricity, gas, or oil;

b. These costs shall be excluded if they are including in a rental or lease agreement; and

c. These costs shall be cost-allocated to programs and general management based upon square footage or full-time equivalents.

(q) Other utilities shall:

(1) Be recorded in account 644; and

(2) Include and comply with the following:

a. All other utility costs, such as electricity, water, sewage, and gas;

b. These costs shall be excluded if they are included in a rental or lease agreement; and

c. These costs shall be cost-allocated to programs and general management based upon square footage or full-time equivalents.

(r) Maintenance and repairs shall:

(1) Be recorded in account 645; and

(2) Include and comply with the following:

a. The costs of materials and supplies needed for routine maintenance and repairs and maintenance contracts such as garbage removal and snowplowing;

b. These costs shall be excluded if they are included in a rental or lease agreement;

c. These costs shall be cost-allocated to programs and general management based upon square footage or full-time equivalents; and

d. The following shall apply to repair and maintenance of plant:

1. 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

2. Costs incurred for necessary maintenance, repair, or upkeep of movable equipment which keep it in efficient operating condition shall be allowable.

(s) Taxes shall:

(1) Be recorded in account 646; and

(2) Include and comply with the following:

a. 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;

b. These costs shall be cost-allocated to programs and general management based upon square footage or full-time equivalents; and

c. Taxes for which an exemption is available and payments in lieu of taxes shall be disallowed.

(t) Other occupancy costs shall:

(1) Be recorded in account 647; and

(2) Include and comply with the following:

a. Any other occupancy costs not covered by above accounts; and

b. Renovation costs shall be included in account 660 Capital Expenditures.

(u) Office supplies shall:

(1) Be recorded in account 651; and

(2) Include and comply with the following:

a. Costs of consumable materials used for office operations, such as paper, pens, notebooks, printed checks, photocopy supplies; and

b. 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:

(1) Be recorded in account 652; and

(2) Include and comply with the following:

a. Costs of consumable supplies used for buildings and grounds as well as all household supplies such as toilet paper, towels, crockery, flatware, and cleaning supplies; and

b. 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:

(1) Be recorded in account 653; and

(2) Include and comply with the following:

a. Costs of materials used in programs for children with disabilities, such as paper, pens, paint brushes, sets of practice materials, and magazine or book subscriptions for children's use; and

b. These costs shall be cost-allocated to programs or direct costs or full-time equivalents.

(x) Production and sales shall:

(1) Be recorded in account 654; and

(2) Include and comply with the following:

a. The cost of materials which are purchased for the purpose of making products which are to be sold; and

b. The production and sales expense shall not be more than the revenue generated from sales.

(y) Food shall:

(1) Be recorded in account 655; and

(2) Include the cost of raw and prepared food goods:

(z) Medical supplies shall:

(1) Be recorded in account 656; and

(2) Include and comply with the following:

a. The costs of services which would be available to children with disabilities if they were enrolled in a public school;

b. 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; and

c. 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.

(aa) Capital expenditures shall:

(1) Be recorded in account 660; and

(2) Include and comply with the following:

a. The cost of furnishings and equipment valuing more than $1,000 for each item;

b. Groups of items valuing $1,000 or more, even if individual items are valued at less than $1,000, shall be depreciated;

c. Compensation for the use of buildings, or other capital improvements and equipment shall be made through depreciation charges;

d. 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;

e. Reimbursement for capital expenditures shall be available through depreciation charges only;

f. Depreciation charges shall be based on historical acquisition cost less estimated salvage value of the asset;

g. Property records shall be maintained and the straight-line method of computing depreciation shall be used;

h. All capital expenditures including purchases, major renovations and leasehold improvements for which department reimbursement is requested shall be included in the budget proposal;

i. Any expenditure not so included shall not be reimbursed;

j. The need to fund extraordinary or emergency capital expenditures shall be approved;

k. These costs shall be cost allocated to programs and general management based upon square footage or full-time equivalents;

l. 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;

m. The amount of the credit or charge under l. shall be the difference between the amount realized on the asset and the undepreciated basis;

n. No gain or loss from the sale of depreciated property shall be recorded as a credit or charge under the following conditions:

1. The gain or loss is, or could be, processed against a depreciation account;

2. 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;

3. A loss occurs from the failure to maintain permissible insurance;

4. Gains or losses resulting from mass or extraordinary sales, retirements, or other dispositions shall be considered on a case-by-case basis; and

5. Gains or losses resulting from the sale or exchange of non-special education assets or those not qualifying for depreciation are not allowable; and

o. The following shall be excluded from allowable depreciation expense:

1. Cost of land; and

2. Depreciation expense computed under methods other than the straight line method.

(ab) Equipment rental shall:

(1) Be recorded in account 670; and

(2) Include and comply with the following:

a. Costs of renting equipment, such as copiers; and

b. The renting of postage meters shall be included in account 730, postage.

(ac) Equipment maintenance and repairs shall:

(1) Be recorded in account 680; and

(2) Include costs of equipment repairs, and service maintenance contracts or agreements.

(ad) Advertising shall:

(1) Be recorded in account 700; and

(2) Include and comply with the following:

a. Advertising costs for employee recruitment only;

b. Other advertising costs shall not be allowed;

c. 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

d. 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:

(1) Be recorded in account 710; and

(2) 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:

(1) Be recorded in account 720; and

(2) Include costs related to telephones, and similar communications expenses.

(ag) Postage and shipping shall:

(1) Be recorded in account 730; and

(2) Include costs related to postage stamps, trucking, delivery, and rental of postage meters.

(ah) Vehicle leasing, maintenance and repair shall:

(1) Be recorded in account 741; and

(2) Include and comply with the following:

a. Vehicle lease expense for vehicles used for program purposes;

b. Copies of vehicle leases and registrations;

c. The purchase of a vehicle shall be depreciated; and

d. Cost related to vehicle maintenance and repair.

(ai) Client and staff transportation shall:

(1) Be recorded in account 742; and

(2) Include and comply with the following:

a. Costs of travel directly related to the school education program;

b. 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;

c. The agency shall be compensated for the lease, purchase, maintenance and use of vehicles provided when they are needed for an approved education program;

d. Transportation, lodging, subsistence and related items incurred by employees who are on official business incidental to a special education program;

e. Transportation 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;

f. 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 New Hampshire;

g. If vehicles are leased or rented and include so-called "Free Mileage", such mileage shall not be eligible for reimbursement;

h. Any portion of vehicle expense which is reimbursed through depreciation charges shall be excluded from the mileage reimbursement rate; and

i. Cost of gasoline for leased or purchased facility vehicles used for program purposes.

(aj) Professional liability and insurance against crime and theft shall:

(1) Be recorded in account 761; and

(2) Include all costs to meet the department's requirements for professional liability and criminal liability.

(ak) Vehicle insurance shall:

(1) Be recorded in account 762; and

(2) Include all vehicle insurance costs.

(al) Comprehensive property and liability insurance costs shall:

(1) Be recorded in account 763; and

(2) Include and comply with the following:

a. Comprehensive property and liability and directors' and officers' insurance costs;

b. 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;

c. 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;

d. 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;

e. Only employee group insurance plans shall be approved;

f. Costs resulting from losses not covered under deductible insurance policy provisions, contracted for and in keeping with sound business practice; and

g. Actual losses which could have been covered by permissible insurance shall be excluded.

(am) Membership dues shall:

(1) Be recorded in account 770; and

(2) Include and comply with the following:

a. Dues, memberships and subscriptions in civic, business, technical, and professional organizations;

b. 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;

c. The total allowable amount of department funds that may be used for this expense shall not exceed $2,000; and

d. Any amount over $2,000 shall be shown under non-special education funded programs.

(an) Interest expense shall:

(1) Be recorded in account 780; and

(2) Include and complying with the following:

a. Interest costs for the purchase or improvement of capital assets which have been approved;

b. Interest on loans for working capital that are directly related to cash flow deficiencies which are beyond the entity's ability to control;

c. The interest rate shall not exceed the prevailing rates at the time the loan was secured;

d. Interest charges shall not be at a rate in excess of what a borrower would pay at the time the loan was taken;

e. Interest charges for borrowing for land, buildings, and working capital that is in excess of program requirements shall be excluded. Working capital as used in this clause means 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

f. The entity shall bear responsibility for providing documentation that working capital deficiencies were beyond its control.

(ao) Other expenditures shall:

(1) Be recorded in account 800; and

(2) Include any other program costs not included in any of the above line items.

(ap) Parent overhead shall:

(1) Be recorded in account 900; and

(2) Include and comply with the following:

a. 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

b. If a program or facility includes charges for general management, parent overhead charges shall not also be reimbursable.

(aq) Salaries of executives included in the approved special education rate shall be recorded in account 601. Regardless of the actual salary, for the department rate setting purposes, executive staff salaries shall be reported at 75% of the average full-time, of the previous year, of the New Hampshire Superintendent salaries.

N.H. Admin. Code § Ed 1129.08

(see Revision Note at chapter heading for Ed 1100) #9197, eff 6-28-08

Amended by Volume XXXVII Number 15, Filed April 13, 2017, Proposed by #12141, Effective 3/24/2017, Expires 3/24/2027.