La. Admin. Code tit. 40 § XIII-122

Current through Register Vol. 50, No. 11, November 20, 2024

Section XIII-122 - Depreciation and/or Use Allowance

A. Compensation for the use of buildings, capital improvements, and equipment through use allowances or depreciation is allowable. Use allowances are the means of providing compensation in lieu of depreciation or other equivalent costs. However, a combination of the two methods may not be used in connection with a single class of fixed assets.

B. The computation of depreciation or use allowance will be in accordance with A-87 Cost Principles for State and Local Governments, Attachment B.

C. Depreciation or use allowance on idle or excess facilities is not allowable, except when specifically authorized by the grantor federal agency.

D. No depreciation or use charge may be allowed on any assets that would be considered as fully depreciated, provided, however, that reasonable use charges may be negotiated for any such assets if warranted after taking into consideration the cost of the facility or item involved, the estimated useful life remaining at time of negotiation, the effect of any increased maintenance charges or decreased efficiency due to age, and any other factors pertinent to the utilization of the facility or item for the purpose contemplated.

La. Admin. Code tit. 40, § XIII-122

Promulgated by the Department of Labor, Office of Labor, LR 19:1587 (December 1993).

AUTHORITY NOTE: Promulgated in accordance with R.S. 23:2022.