1. (a) The indirect costs cost element represents that portion of indirect, overhead, and administrative costs allocated pursuant to Section 56906, and includes the following:

   1. (1) Wages and fringe benefits to staff performing facility administration and management, clerical, bookkeeping/accounting, staff supervision, maintenance and repair duties;
   2. (2) Housing;
   3. (3) Furniture and equipment;
   4. (4) Insurance;
   5. (5) Utilities;
   6. (6) Housekeeping supplies and services;
   7. (7) Transportation;
   8. (8) Program supplies;
   9. (9) Other professional consultant services;
   10. (10) Repair and maintenance; and
   11. (11) General and administrative costs.

2. (b) The following steps shall be completed by the Department to determine the proposed amount for indirect costs:

   1. (1) Calculate total costs per resident day using the following formula:

      Dollar amount per cost item

      Total number of resident days enrolled

   2. (2) Using generally accepted statistical techniques:

      1. (A) Analyze the total indirect cost per resident day for all CSFs to determine if there are any significant differences by:

         1. 1. Service Levels 2, 3 and 4;
         2. 2. Operation type;
         3. 3. Facility size; and
         4. 4. Geographic location.
      2. (B) Group together those with a significant similarity, except geographic locations;
      3. (C) Group together those that are similar by geographic location, whether or not the differences between locations are significant;
      4. (D) Where distinct groups have been identified in subsections (B) and (C) above, determine the median total indirect costs per resident day for each group.
   3. (3) Convert each median cost per resident day identified in subsection (1) or (2)(D) above to the cost per resident month using the formula for median cost per resident month in Section 56911(b)(3).

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. Editorial correction of subsections (a) and (b)(3) (Register 94, No. 50).

3. Change without regulatory effect amending subsections (b)(2)(A)1., (b)(2)(D) and (b)(3) filed 6-19-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 25).