Sec.17a-17-8. Allocating costs

(a) A portion of allowable costs properly attributable to the provision of educational services shall be allocated in accordance with this section.

(b) Allocations shall be based on floor space utilization, in the case of real property expenses, utilities, fuel, property-related insurance, property taxes, housekeeping, maintenance, and reasonable interest expenses.

(1) The calculation of floor space utilized shall be based on the percent of actual square feet available that is used by the treatment center for either residential care or educational services or both. Common area square footage is not includable in this calculation. Common area refers to space used for lobbies, recreational areas, administrative areas, maintenance and food service.

(2) To the extent that the same space is used for both residential care and educational services, the percentage of time reserved for each use shall be the basis for allocating floor space under this section.

(3) Changes in the floor space for a program during the budget year that are greater than 5% of the existing floor space must be fully explained and must receive prior written approval from the Commissioner.

(c) For purposes of allocating personnel expenses including related educational services and residential care services, the following procedures apply:

(1) When an employee spends all of his time on either residential care or educational services, the cost must be charged to that activity.

(2) When an employee spends his time on both residential care and educational services, the cost chargeable to that activity must be based on the time actually expended.

(3) Records of allocated time and charges must be maintained to verify allocation of payroll cost.

(d) For purposes of allocating transportation costs and equipment, only those costs actually related to the activity may be allocated.

(Effective February 1, 1994)