Costs must be directly related to the installation, maintenance, or operation of a PSAP to be considered allowable costs. Directly related costs are those that are necessarily incurred by a PSAP to process emergency and non-emergency requests for service, relay information from those requests to the appropriate public safety or public service agency, and to provide support to the responding agency throughout the response.
Allowable costs may be recurring or nonrecurring. Costs must be necessary and reasonable for proper and efficient performance and administration of a PSAP. A cost is reasonable if, in nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost.
The determination of whether a recurring or nonrecurring cost is allowable shall be at the sole discretion of the board.
S.D. Admin. R. 50:02:04:08
General Authority: SDCL 34-45-18.2.
Law Implemented: SDCL 34-45-18.2, 34-45-20(5).