Section 75-03-20-12 - Home office costs1. Home offices of chain organizations vary greatly in size, number of locations, staff, mode of operations, and services furnished to their member facilities. Although the home office of a chain is normally not a center in itself, it may furnish to the individual center central administration or other services such as centralized accounting, purchasing, personnel, or management services. Only the home office's actual costs of providing such services is includable in the center's allowable costs under the program. 2. Costs which are not allowed in the center will not be allowed as home office costs which are allocated to the center. 3. Any service provided by the home office which is included in costs as payments by the center to an outside vendor or which duplicates costs for services provided by the center will be considered a duplication of costs and will not be allowed. 4. Where the home office makes a loan to or borrows money from one of the components of a chain organization, the interest paid is not an allowable cost and interest income is not used to offset interest expense. N.D. Admin Code 75-03-20-12
Effective December 1, 1991.General Authority: NDCC 25-03.2-10, 50-06-16
Law Implemented: NDCC 25-03.2