Section 17a-17-5 - Allowable costs(a)Residential Care Costs:(1) Allowable residential care costs are limited to those allowable costs properly allocated, in accordance with Section 17a-17-8 of these regulations, to residential care.(2) Allowable residential care costs include costs of meals and food service, clothing, laundry, maintenance, housekeeping, transportation, utilities, fuel, property-related insurance, property taxes and real property expenses.(3) Real property expenses include all properly allocated direct expenses arising from the occupancy and use of the land, buildings, offices and other facilities owned or leased.(4) Allowable residential care costs also include the properly allocated cost of movable equipment based upon depreciation and interest according to generally accepted accounting principles.(5) A properly allocated amount for reasonable interest expense required to obtain necessary working capital is also an allowable residential care cost.(6) Costs for medical and dental services are allowable residential care costs to the extent these services are not covered by Title XIX.(7) Allowable residential care costs are separated into three cost components: Personal Services, Other Expenses and Fixed Expenses.(8) Except for increases previously approved by the department, increases in the residential care cost components of Personal Services and Other Expenses, in their respective aggregate by activity, over the previous contract year are limited to the increase in the Consumer Price Index as published in July of the year of the last reported ASCAR plus 2% or the actual reported increase in allowable residential care cost components as reported in said ASCAR, whichever is the lesser. Increases in the residential care cost component of Fixed Expenses over the previous contract year will be fully reimbursed, subject to review, except that increases in workers' compensation, dental insurance, hospital insurance, retirement, and other fringes resulting from revision, modification or expansion of benefit plans, unless such changes in benefit plans were previously approved by the department, are non-allowable costs.(b)Educational Service Costs:(1) Educational service costs are those costs directly incurred in providing children and other minors placed in the APSEP with an education in accordance with Connecticut General Statutes 10-76a et. seq. In addition, educational service costs include costs properly allocated under Section 17a-17-8 of these regulations to educational services.(2) Allowable educational service costs are separated into three cost components: Personal Services, Other Expenses and Fixed Expenses.(3) Except for increases previously approved by SDE, increases in the educational service cost components of Personal Services and Other Expenses, in their respective aggregate by activity, over the previous contract year are limited to the increase in the Consumer Price Index as published in July of the year of the last reported ASCAR plus 2% or the actual reported increase in allowable educational service cost components as reported in said ASCAR, whichever is the lesser. Increases in the educational service cost component of Fixed Expenses over the previous contract year will be fully reimbursed, subject to review, except that increases in workers' compensation, dental insurance, hospital insurance, retirement, and other fringes resulting from revision, modification or expansion of benefit plans, unless such changes in benefit plans were previously approved by SDE, are nonallowable costs.Conn. Agencies Regs. § 17a-17-5
Effective February 1, 1994