Section 75-03-20-16 - Revenue offsetsCenters must identify income to offset costs where applicable in order that state financial participation not supplant or duplicate other funding sources. Any income whether in cash or in any other form which is received by the center, with the exception of the established rate and income from payment made under the Job Training Partnership Act, will be offset up to the total of the appropriate actual costs. If actual costs are not identifiable, income will be offset in total to the appropriate cost category. If costs relating to income are reported in more than one cost category, the income must be offset in the ratio of the costs in each of the cost categories. These sources of income include, but are not limited to:
1. Food income. Centers receiving reimbursement for food and related costs from other programs such as the United States department of agriculture or the department of public instruction or amounts from or paid on behalf of employees, guests, or other nonclients for meals or snacks must reduce allowable food costs by the revenue received. 2. Vending income. Income from the sale of beverages, candy, or other items will be offset to the cost of the vending items or, if the cost is not identified, all vending income will be offset to maintenance costs. 3. Insurance recovery. Any amount received from insurance fora loss incurred must be offset against the appropriate cost category regardless of when the cost was incurred if the center did not adjust the basis for depreciable assets. 4. Refunds and rebates. Any refund or rebate received for a reported cost must be offset against the appropriate cost. 5. Transportation income. Any amount received for use of the center's vehicles must be offset to transportation costs. 6. Gain on the sale of assets. Revenue from the sale of an asset will be offset against depreciation expense. 7. Rental income. Revenue received from outside sources for the use of center buildings or equipment will be offset to property expenses. 8. Interest income. Revenue from investments will be offset against interest expense. 9. Grant income. Grants, gifts, and awards from the federal, state, or philanthropic agencies will be offset to the costs which are allowed under the grant. 10. Restricted gifts and income from endowments. Gifts or endowment income designated by a donor for paying specific operating costs incurred in providing contract services must be offset to costs in the year the cost is incurred regardless of when the gift or endowment is received. 11. Other cost-related income. Miscellaneous income including amounts generated through the sale of a previously expensed item, e.g., supplies or equipment, must be offset to the cost category where the item was expensed. 12. Other income to the center from local, state, or federal units of government may be determined by the department to be an offset to costs. N.D. Admin Code 75-03-20-16
Effective December 1, 1991.General Authority: NDCC 25-03.2-10, 50-06-16
Law Implemented: NDCC 25-03.2