Section 75-03-15-05 - Cost allocationCost allocation methods described in this section must be used.
1. Salaries that cannot be reported based on direct costs are to be allocated using time studies. Time studies must be preapproved by the department and must be conducted at least semiannually for a two-week period or quarterly for a one-week period. The time study must represent a typical period of time when employees are performing normal work activities in each assigned area of responsibility. Allocation percentages based on the time studies are to be used starting with the next pay period following completion of the time study or averaged for the report year. The methodology used by the facility may not be changed without approval by the department.2. Housekeeping costs must be allocated based on usable square footage.3. Property and facility costs must be allocated based on usable square footage.4. Administration costs must be allocated on the basis of percentage of the total direct cost of the activity to the total costs, excluding administration.5. Fringe benefits must be allocated based on the ratio of salaries to total salaries.6. Dietary costs and food must be allocated based on meals served.7. Vehicle expenses must be allocated based on mileage logs. Mileage logs must include documentation for miles driven and the purpose of travel. If sufficient documentation is not available to determine to which cost category vehicle expenses are to be allocated, vehicle expenses must be assigned to administration.8. Costs not direct costed, or allocable using methods identified in subsections 1 through 7, must be included as administration costs.N.D. Admin Code 75-03-15-05
Effective November 1, 1985; amended effective March 1, 1999.Amended by Administrative Rules Supplement 2021-382, October 2021, effective 10/1/2021.General Authority: NDCC 50-06-16, 50-11-03
Law Implemented: NDCC 50-06-05.1, 50-11-03.2