1. (a)

   1. (1)

      1. (A) All providers in operation under a valid Medicaid agreement for long-term care services must file a financial and statistical report, commonly referred to as a “cost report” or “FSR”.
      2. (B) In addition to the annual reporting requirement, nursing facilities will be required to submit a limited cost report containing direct care cost information for the period January 12, 2001, to June 30, 2001, in order that the direct care per diem can be rebased after this initial period.

   2. (2)

      1. (A) Nursing facilities that have been newly constructed or a newly enrolled provider that did not previously participate in Medicaid will be required to prepare and submit a cost report for the period beginning their first day of operation through the end of the month which includes their sixth month of operation.
      2. (B) This report is essential in establishing rates for a new provider.
      3. (C) If the facility was not certified for Medicaid participation at date of first opening or acquisition, then the reporting period shall begin at official certification date rather than the date of acquisition.
   3. (3) Nursing facilities that are newly purchased or leased shall submit a cost report for the period beginning with their first day of operation through the end of the state fiscal year unless the cost reporting period would be less than three (3) months of operation.
   4. (4) Facilities that change ownership after April 1 of a state fiscal year would not submit a cost report from the date of initial operation to the end of the state fiscal year.
   5. (5) Facilities changing ownership after April 1 of a state fiscal year will prepare and submit a cost report for the period beginning their first day of operation through the end of the month which includes their sixth month of operation.

2. (b) When to file.

   1. (1)

      1. (A)

3. (i) Nursing facilities will report cost on a fiscal year ending June 30.

   1. (ii) Cost reports will be due within ninety (90) days after the end of the reporting period.

      1. (B)

         1. (i) Under sixteen-bed intermediate care facilities for individuals with intellectual disabilities (ICF/IID) providers will report cost on a calendar year basis.
         2. (ii) The cost report will be due within ninety (90) days of the end of the reporting period.

      2. (C)

         1. (i) The Arkansas Health Center Nursing Facility and the sixteen-bed and over ICF/IID providers will report cost semiannually, January 1 – June 30 and July 1 – December 31, with the cost reports being due within sixty (60) days of the end of the reporting period.
         2. (ii) Should the due date fall on a Saturday, Sunday, or State of Arkansas holiday or federal holiday, the due date shall be the following business day.
      3. (D) Nursing facility cost reports are to be electronically submitted through the LTC cost report web application on or before the applicable due date.
      4. (E) ICF/IID reports are to be delivered, postmarked, or electronically uploaded to the web portal on or before the applicable due date.

   2. (2)

      1. (A) Providers who fail to submit cost reports and other required schedules and information by the due date or extended due date have committed a Class D violation of Arkansas Code § 20-10-205.

      2. (B) Civil penalties associated with failure to timely submit a cost report for long-term care facilities are detailed in 20 CAR § 579-111.

         1. (c) Extensions for filing.
   3. (1) If a written request for an extension is received by the Division of Medical Services in advance of the report due date and a written extension is granted, a penalty will not be applied provided the extended due date is met.
   4. (2) Each request for extension will be considered on its merit.
   5. (3) No extension will be granted unless the facility provides written evidence of extenuating circumstances beyond its control, which causes a late report.

   6. (4) In no instance will an extension be granted for more than thirty (30) days.

      1. (d) What to submit.

   7. (1) In addition to the applicable cost report forms, providers must submit the following:

      1. (A) Most recently completed Medicare cost report;
      2. (B) Working trial balance and related working papers identifying the cost report line each account is included on;
      3. (C) Detailed depreciation schedule;
      4. (D) Any work papers used to compute adjustments made on the cost report;
      5. (E) A copy of any new or amended contracts for management services by a related party, home office, or a third party which includes the basis used to allocate the costs to providers of the group and to nonprovider activities, if applicable; and
      6. (F) Copy of new or amended lease agreement if a leased facility.

   8. (2)

      1. (A) When it is determined, upon initial review for completeness by the division, that a cost report has been submitted without all required information, providers will be allowed a specified amount of time to submit the requested information without incurring the penalty for a delinquent cost report.

      2. (B)

         1. (i) For cost reports which are submitted by the due date, ten (10) working days from the date of the provider’s receipt of the request for additional information will be allowed for the provider to submit the additional information.
         2. (ii) For cost reports which are submitted by an extended due date, five (5) working days from the date of the provider’s receipt of the request for additional information will be allowed for the provider to submit the additional information.
      3. (C) If requested additional information has not been submitted by the specified date, the cost report will be subject to the penalty provisions for delinquent submission.

      4. (D)

         1. (i) An exception exists in the event that the due date, or extended due date when an extension has been granted, comes after the specified number of days for submission of the requested information.
         2. (ii) In these cases, the provider will be allowed to submit the additional requested information on or before the due date, or extended due date if an extension has been granted, of the cost report.

4. (e) Where to submit.

   1. (1) Nursing facility cost reports and additional information should be submitted through the LTC cost report web application.
   2. (2) ICF/IID cost reports and additional information may be submitted to the address below or uploaded to the contractor’s web portal: Arkansas Department of Human Services Division of Medical Services P.O. Box 1437 - Slot S535 Little Rock, AR 72203-1437
5. (f) Amended cost reports. Providers can submit amended cost reports to the Department of Human Services up to one hundred eighty (180) days after the close of the cost reporting period.

Codification Notes: “LTC” means long-term care.