Depreciation of equipment and property which has a purchase price of over $1000 shall be an allowable cost pursuant to the following conditions:

1. (a) The depreciation shall be:

   1. (1) Identifiable and recorded in the NF’s accounting records;
   2. (2) Based on the historical cost of the asset or fair market value at the time of donation in the case of donated assets; and
   3. (3) Prorated over the estimated useful life of the asset using the straight line method and the guidelines specified in the American Hospital Association’s “Estimated Useful Lives of Depreciable Hospital Assets” (Revised 2023 Edition), available as noted in Appendix A;

2. (b) Recording of the depreciation pursuant to (a)(1) above shall encompass:

   1. (1) The identification of the depreciable asset in use;
   2. (2) The asset’s historical cost;
   3. (3) The method of depreciation;
   4. (4) The estimated useful life of the asset; and
   5. (5) The asset’s accumulated depreciation; and
3. (c) Depreciation shall be allowed on assets financed with Hill-Burton or other federal or public funds.

Source. #8547, eff 1-24-06 (formerly He-W 593.10); ss by #10474, eff 1-24-14; ss by #14020, eff 7-10-24; ss by #14149, eff 12-12-24