The Texas Department of Protective and Regulatory Services (TDPRS) defines allowable and unallowable costs in order to identify the reasonable expenses that a prudent and cost effective provider must incur to provide the 24-hour child-care services specified in the provider's contract or agreement with TDPRS. The primary objective of TDPRS's cost-reporting system is to determine a fair and reasonable reimbursement rate for a prudent and cost effective provider. To achieve this objective, TDPRS compiles a rate base that includes only information about allowable costs. TDPRS reimburses its residential child care contractors only for costs which are allowable, reasonable, necessary, and properly allocated to the specific contract. The cost principles, guidelines, and definitions for allowable and unallowable costs for cost-reporting purposes (such as rate setting) and for expenditure purposes are the same. Those guidelines are published in §§732.240 and 732.242-732.256 of this title (relating to Contract Administration).

Source Note:The provisions of this §700.1803 adopted to be effective July 31, 1991, 16 TexReg 3944; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective January 1, 1994, 18 TexReg 8975; amended to be effective October 1, 1998, 23 TexReg 9411.