Subsection 144-101-III-50-2000 - COST FINDING AND COST REPORTING2010Cost Report Periods. All long-term care facilities are required to submit annual cost reports as prescribed herein to the State of Maine, Department of Health and Human Services, Office of Audit, 11 State House Station, Augusta, Maine 04333-0011. Such cost reports shall be based on the fiscal year of the facility. 2020Accounting Principles.The allowable costs shown in all cost reports described herein shall be on the basis of generally accepted accounting principles and the accrual method of accounting except that, for governmental institutions operated on a cash method of accounting, data based on such a method of accounting will be accepted. Any other providers who maintain their records on a cash basis should record such accruals as adjustments.2021 Generally accepted accounting principles means accounting principles approved by the American Institute of Certified Public Accountants.2022 Accrual method of accounting means that revenue is reported in the period when it is earned, regardless of when it is collected, and expenses are reported in the period in which they are incurred, regardless of when they are paid. 2022.1 All year end accruals must be paid by the facility within six (6) months after the end of the fiscal year in which the amounts are accrued. If the accruals are not paid within such time, these amounts will be deducted from allowable costs incurred in the subsequent fiscal year. 2023 Cash method of accounting means that revenues are recognized only when cash is received and expenditures for expense and asset items are not recorded until cash is disbursed for them.2030Cost Finding. The unit of output for cost finding shall be the costs of routine services for each level of care per patient day. The same cost finding method shall be used for all levels of care in all long-term care facilities. Generally, total allowable costs shall be divided by the actual days of care to determine the cost per bed day. When long-term care facilities provide more than one (1) level of care, total allowable costs shall be allocated to each level based on the occupancy data reported for each level and the following statistical bases: 2030.1Direct Care Staff Salaries. Services provided and hours of nursing care by licensed personnel and other qualified direct care staff.2030.2Other Nursing Staff. Nursing salaries as cost allocations. 2030.3Fixed Costs. By square feet serviced. 2030.4Plant operation and maintenance. By square feet serviced.2030.5. By square feet serviced.2030.7. Number of meals served. 2030.8General and Administrative and Financial and Other Expenses Total. Accumulated costs not including general and administrative and financial expense. 2035 The fixed component (any element of fixed cost that is included in the price charged by a supplier of goods or services) of purchased goods or services, such as plant operation and maintenance, utilities, dietary, laundry, housekeeping, central office allocation, and all others, whether or not acquired from a related party, shall be considered as costs for the particular good or service and not classified as property and related costs (fixed costs) of the facility. 2041Forms. The provider shall use the cost report forms provided or approved by the Department.2042When to File. The cost report and financial statements for each facility shall be filed not later than five (5) months after the fiscal year end of the provider. When a provider fails to file an acceptable cost report by the due date, the Department will send the provider a notice by certified mail, return receipt requested, advising the provider that all payments are suspended on receipt of the notice until an acceptable cost report is filed. Reimbursement will then be reinstated at the full rate from that time forward, but reimbursement for the suspension period shall be made at the deficiency rate of ninety percent (90%). An extension of time, waiving the deficiency rate, may be approved by the Department for good cause.2043Rounding. Cents are omitted in the preparation of all schedules except when inclusion is required to properly reflect per diem costs or rates.2044Certification by operator. The cost report is to be certified by the owner and/or administrator of the facility. If the cost report is prepared by someone other than the owner, administrator, or employee of the facility, the preparer should also sign the report.2045 ICFs-MR are required to submit cost reports to the DHHS, Office of Audit, based on the fiscal year of the facility. If an ICF-MR determines from the cost report filed, that the ICF-MR owes moneys to the DHHS, a check equal to fifty percent (50%) of the amount owed to the Department must accompany the cost report. If a check is not received with the cost report, the Department may elect to offset the current payments to the facility pursuant to state and federal rules and regulations until the entire amount is collected from the provider.2046 The Office of Audit may reject any filing that does not comply with these regulations. In such a case, the report shall be deemed not filed until refiled and in compliance.2047 Extensions to the filing deadline will only be granted under the regulations stated in the Medicare Provider Reimbursement Manual (CMS Pub 15).2050Record Keeping and Record Access Requirements2051 Providers must maintain accurate and auditable financial and statistical records that are in sufficient detail to substantiate their cost reports for a period of not less than three (3) years following the date of final settlement with the Department of Health and Human Services.2052 These records of the provider shall include, but not be limited to, matters of provider ownership, organization, operation, fiscal, and other record keeping systems, Federal and State income tax information, asset acquisition, lease, sale, or other action, franchise or management arrangement, patient service charge schedule, documents pertaining to cost of operation, amounts of income received by service and purpose, and flow of funds and working capital.2053 When the Department of Health and Human Services determines that a provider is not maintaining records as outlined above for the determination of reasonable cost under the program, the Department, upon determination of just cause, shall send a written notice to the provider of its intent to reduce payments to a ninety percent (90%) level of reimbursement in thirty (30) days together with an explanation of the deficiencies. Payments shall remain reduced until the Department is assured that adequate records are maintained, at which time reimbursement will be reinstated at the full rate from that time forward. If upon appeal, the provider documents that there was not just cause for the reduction in payment, all withheld amounts will be restored to the provider.2054 Providers shall make such records available to representatives of the State of Maine Department of Health and Human Services or the U.S. Department of Health and Human Services. Additionally, if the provider has contracted for services, they must include in their contracts a clause that allows the Department access to the subcontractor's contract, books, documents, and records necessary to verify the cost of the services furnished under the contract. Providers that already have contracts or subcontracts allowing such Departmental access are exempt from this requirement.2055 Overpayments found in audits will be accounted for no later than the second quarter following the quarter in which the overpayment was found to be valid. C.M.R. 10, 144, ch. 101, ch. III, 144-101-III-50, subsec. 144-101-III-50-2000