Management fees are allowable costs only when there is:

1. (1) A written management agreement that:

   1. (a) Creates a principal and/or agent relationship between the provider and the manager; and
   2. (b) Identifies the items, services, and activities that the manager will provide.
2. (2) Documentation that verifies the management service was performed.
3. (3) Assurance that the service performed was necessary and did not duplicate any service provided by the provider.

[Statutory Authority: RCW 71A.20.140. WSR 01-10-013, § 388-835-0645, filed 4/20/01, effective 5/21/01.]