Section 75-03-20-15 - Compensation1. Reasonable compensation for a person with a minimum of five percent ownership, persons on the governing board, or any person related within the third degree of kinship to top management personnel must be considered an allowable cost if services are actually performed and required to be performed. The amount allowed must be in an amount not to exceed the average of salaries paid to individuals in like positions in all centers which are nonprofit organizations and which have no top management personnel who have a minimum of five percent ownership or are on the governing board. Salaries used to determine the average will be based on the latest information available to the department. Reasonableness also requires that functions performed be necessary in that, had the services not been rendered, the center would have to employ another person to perform them. 2. Items which are considered compensation include, but are not limited to, the following: b. Amounts paid by the center for the personal benefit of the person, e.g., housing or automobile allowance. c. The cost of assets, services, or supplies provided by the center for the personal use of the person. d. Pension, retirement benefits, annuities, or deferred compensation. N.D. Admin Code 75-03-20-15
Effective December 1, 1991.General Authority: NDCC 25-03.2-10, 50-06-16
Law Implemented: NDCC 25-03.2