Section 686.260  Unallowable Costs for Homemaker Service

Certain costs shall not be considered by the Department in establishing a fixed rate of reimbursement for homemaker service:

a)         expenses resulting from transactions with related parties/parent organizations that are greater than the going market cost of the transactions to the provider;

b)         non-straightline depreciation;

c)         bad debts;

d)         special benefits to owners, including owner and key-man life insurance;

e)         compensation to non-working owners and officers;

f)         discounts, rebates, allowances, and charity grants offered by the agency;

g)         entertainment expenses;

h)         fund-raising;

i)          legal fees for litigation with governmental agencies;

j)          awards, grants and gifts to individuals;

k)         fines and penalties;

l)          contingency funds; and

m)        losses on other grants and contracts.

(Source:  Added at 22 Ill. Reg. 499, effective December 22, 1998)