1. (a) To allocate cost items in a facility cost study, the Department shall review the data presented to determine:

   1. (1) That allowable costs are directly identified with the cost study facility (CSF) or specific cost element; or
   2. (2) That allowable costs are combined with the allowable costs of other facilities, cost elements, or a management organization.
2. (b) When the nature of the allowable cost of the accounting records provided by the facility permits, allowable costs shall be directly allocated to each CSF or cost element.

3. (c) When any allowable cost cannot be directly identified with a CSF or a cost element, the Department shall allocate a percentage of the cost to the CSF or cost element using the following steps:

   1. (1) Determine a percentage which reflects that portion of time, number of residents, hours of direct service, space, or vehicle miles which is attributable to the CSF.
   2. (2) Multiply the total cost by the percentage determined in (1) above.

Note: Authority cited: Section 4681.1, Welfare and Institutions Code. Reference: Section 4681.1, Welfare and Institutions Code.

History

1. New section filed 1-14-91; operative 2-13-91 (Register 91, No. 14).

2. Amendment of section filed 9-20-93 as an emergency; operative 9-20-93. Submitted to OAL for printing only pursuant to Chapter 722, Statutes of 1992, Section 147 (Register 93, No. 39). These regulations shall not be repealed by the Office of Administrative Law and shall remain in effect until revised or repealed, as appropriate.

3. Editorial correction of History 2 (Register 94, No. 47).