- (a) A cost must be the best price made by a prudent buyer.
- (b) A cost must relate to the administration or provision of the HCBS.
- (c) A cost must be allocated and distributed to various HCBS or other lines of business among cost categories in a reasonable and fair manner and in proportion with the benefits provided to the HCBS or other lines of business among cost categories.
- (d) Allowable costs must include costs specified in this chapter.
(e) To be an allowable cost, the cost must be documented and comply with the following:
- (1) Applicable Federal and State statutes and regulations.
- (2) Generally Accepted Government Auditing Standards and applicable Departmental procedures.
- (f) A cost used to meet cost sharing or matching requirements of another Federally-funded program in either the current or a prior period adjustment is not allowable.
- (g) Transactions involving allowable costs between related parties shall be disclosed on the cost report.
Cross References
This section cited in 55 Pa. Code § 6100.641 (relating to cost-based rate); 55 Pa. Code § 6100.649 (relating to management fees); 55 Pa. Code § 6100.665 (relating to indirect costs); 55 Pa. Code § 6100.802 (relating to support coordination, targeted support management and base-funding support coordination); and 55 Pa. Code § 6100.803 (relating to organized health care delivery system).