N.D. Admin. Code 75-02-09-15
Reasonable compensation for an individual with a minimum of five percent ownership, individuals on the governing board, or family members of top management personnel, including spouses and individuals in the following relationship to top management personnel or their spouses: parent, stepparent, child, stepchild, grandparent, stepgrandparent, grandchild, stepgrandchild, brother, sister, half-brother, half-sister, stepbrother, and stepsister will be considered an allowable cost if services are actually performed and required to be performed. The amount allowed must be in an amount not to exceed the average of salaries paid to individuals in like positions in all psychiatric residential treatment facilities that are nonprofit organizations and have no top management personnel who have a minimum of five percent ownership or are on the governing board. Salaries used to determine the average must be based on the latest information available to the department. Reasonableness also requires that functions performed be necessary in that, had the services not been rendered, the facility would have to employ another individual to perform them.
N.D. Admin Code 75-02-09-15
General Authority: NDCC 50-24.1-04
Law Implemented:42 USC 1396a(a)(30)(A)