1. (1) Programs operated by not-for-profit corporations providing domestic violence services must submit to the department the fiscal, programmatic and statistical reports and information relating to the standards and costs of providing residential care and services to victims of domestic violence and their children required by the department on such forms or in such a manner as the department may, from time to time, require. Such forms and records must be submitted to the department by April 15th of each year by residential programs located outside New York City and by October 15th of each year by residential programs located in New York City. Programs which submit completed forms and reports to the department will be notified in writing by the department if such forms or reports must be clarified or supplemented. A program which is so notified will be given an additional 30 calendar days from the date of notice by the department to submit the corrected forms or reports. A program which does not submit the required forms and reports, submits part but not all of the required forms and reports, or fails to clarify or supplement the forms and reports as requested by the department by the applicable date will be deemed to have failed to meet the submittal deadline and will be subject to a reduction of the administrative component of the per diem rate for the program's next fiscal year as specified in this Part.
2. (2) If a program is unable to meet the applicable deadline for a good cause, the program may request an extension of up to 30 days in which to submit the required fiscal, programmatic and statistical forms and reports. This request must be submitted in writing to the department prior to the applicable deadline, and must include an explanation of why the extension is needed. For good cause shown, the department may grant an extension of up to 30 days. If there are unusual circumstances which are beyond the control of the program and which justify the extension, the department may grant additional 30 day extensions until the program is able to submit the required forms and reports. The department will notify the program in writing of any extension granted pursuant to this paragraph.

3. (3) Those programs which fail to submit the required forms and reports in a timely fashion, or fail to respond within 30 days to a written request from the department for clarifying or supplemental information on any forms or reports already submitted, will be assessed a penalty. Such penalty will result in a reduction of the administrative component of the approved per diem rate beginning on the first day of the fiscal year for which the new rate applies and ending on the date in the same fiscal year, determined in accordance with the following schedule:

   Days late	Percentage reduction of administrative component of the approved per diem rate	Ending date of reduced rate for domestic violence programs outside New York City	Ending date of reduced rate for domestic violence programs in New York City
   16–30 days	5 percent	Jan. 15th	July 15th
   31–45 days	10 percent	Feb. 1st	Aug. 1st
   46–60 days	20 percent	Feb. 15th	Aug. 15th
   61–90 days	25 percent	March 1st	Sept. 1st
   91–180 days	30 percent	March 1st	Sept. 1st
   181–270 days	35 percent	March 1st	Sept. 1st
   271–365 days	45 percent	March 1st	Sept. 1st
   365 +	50 percent	March 1st	Sept. 1st

4. (4) For those programs which are granted an extension by the department pursuant to paragraph (2) of this subdivision, the calculation of the number of days the documentation is late will commence on the next business day following the expiration of the extension. For those programs which receive a written request from the department for clarifying or supplemental information pursuant to paragraph (1) of this subdivision, the calculation of the number of days the documentation is late will commence on the 31st day after the date of such written request if the requested material is not submitted before the end of any extension period granted by the department. If the due date falls on a weekend or holiday, the calculation of the number of days the documentation is late will commence on the next business day. Every calendar day after the date the calculation commences will be counted when determining the total number of days that a program is late in submitting the required documentation to the department. The total number of days beyond the date authorized for submitting required reports or forms pursuant to this Part or the date authorized for submitting clarifying or supplemental information will be considered in establishing the total number of late days and the amount of the penalty.

5. (b) Reimbursement will not be made by the department to a social services district for payments for care in a residential program for victims of domestic violence operated by a not-for-profit corporation and licensed by the department until the department has promulgated an approved per diem rate for that program.

   1. (1) The department will establish an approved per diem rate for each licensed residential program for victims of domestic violence operated by a not-for-profit corporation. This rate will apply to any social services district financially responsible for a victim of domestic violence residing in the program. The per diem rate, which is not negotiable, will be:

      1. (i) based upon the reasonable operating expenses of the residential program, including the costs of complying with the standards set forth in Parts 452-455 of this Title; and
      2. (ii) subject to the approval of the director of the budget.

   2. (2) For purposes of establishing a per diem rate, for residential programs located outside of New York City, the fiscal year will be January 1st -December 31st. For residential programs located in New York City, the fiscal year will be July 1st - June 30th.

      (d) Rate methodology.

   3. (1) Only the following items, as described in forms and instructions provided by the department, are allowable costs for purposes of determining an approved per diem rate:

      1. (i) Salary expenses:

         1. (a) administrative;
         2. (b) program/support; and
         3. (c) maintenance.;

      2. (ii) Fringe benefits and payroll taxes:

         1. (a) social security;
         2. (b) insurance - life/health;
         3. (c) pension and retirement;
         4. (d) Workers' Compensation/Unemployment/NYS Disability; and
         5. (e) vacation accruals.

      3. (iii) Property expenditures;

         1. (a) rental leases (including furnishings, equipment and vehicles);
         2. (b) utilities;
         3. (c) supplies and equipment;
         4. (d) repair and maintenance of plant, equipment and vehicles;
         5. (e) use charges (depreciation of capital expenditures); and
         6. (f) taxes.

      4. (iv) Management expenditures:

         1. (a) telephone;
         2. (b) postage;
         3. (c) dues/licenses/permits;
         4. (d) office supplies;
         5. (e) subscriptions/publications;
         6. (f) conference expenses;
         7. (g) administrative expenses;
         8. (h) staff development;
         9. (i) publicity;
         10. (j) audit/legal and advisory fees;
         11. (k) insurance;
         12. (l) interest expenses; and
         13. (m) charges from parent organization.

      5. (v) Other:

         1. (a) transportation and staff expenses;
         2. (b) recreational and social activities for children;
         3. (c) purchase of services;
         4. (d) food;
         5. (e) clothing; and
         6. (f) bedding/linen.
   4. (2) Costs used in determining per diem rates may be reduced by the amount of any government grants, including grants from the department, awarded to a residential program pursuant to article 6-A of the Social Services Law.

   5. (3) Optional services provided pursuant to Parts 454 and 455 of this Title and staffing levels which exceed the minimum standards set forth in Parts 453, 454 and 455 of this Title may be included in the calculations when determining an approved per diem rate.

      1. (i) The reasonableness of the allowable costs will be determined by the department which will take into account factors including, but not limited to:

         1. (a) a comparison of costs incurred by similar programs; and
         2. (b) an evaluation of historical program operating costs incurred by the program.

      2. (ii) The reasonableness of property costs will be limited as follows:

         1. (a) Related party transactions. Actual costs for rentals of land, building and equipment and other personal property owned or controlled by organizations or persons affiliated with the residential program or owned or controlled by members, directors, trustees, officers or other key personnel of such residential program or their families either directly or through corporations, trusts or other similar arrangements in which they hold more than 10 percent interest in such land, building and equipment or an interest valued at $1,000 or more, whichever is less, are allowable only to the extent that such costs do not exceed the costs the residential program would have incurred had legal title to the rented items or facilities been vested in it.
         2. (b) Actual charges in the nature of rent between or among organizations under common control are allowable to the extent such charges do not exceed the normal costs of ownership, such as depreciation, taxes, insurance and maintenance; provided that no part of such costs duplicate any other allowed costs.
         3. (c) Nonrelated party transaction. Rental costs of land, building and equipment and other personal property are allowable if the rates are reasonable in light of such factors as rental costs of comparable facilities and market conditions in the area; the type, life expectancy, condition and value of the facilities leased; options available; and other provisions of the rental agreement. Applications of these factors, in situations where rentals are extensively used, may involve among other considerations, comparison of rental costs with the costs which the residential program would have incurred had it owned the facilities.
         4. (d) Sales/leaseback transactions. Rental costs specified in a sale and leaseback agreement incurred by a residential program by selling facilities to an investment organization, such as an insurance company, associate institution or private investor and concurrently leasing back the same facilities, are allowable only to the extent that such rentals do not exceed the costs which the residential program would have incurred had it retained legal title to the facilities.

      (4)

   (c) General requirements.

(a) Submission of forms and reports; penalty.