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The Pennsylvania Code website reflects the Pennsylvania Code changes effective through 53 Pa.B. 7346 (November 25, 2023).

55 Pa. Code § 6211.101. Costs that are not allowable.


§ 6211.101. Costs that are not allowable.

 The following costs are not allowable:

   (1)  Nonworking officers’ salaries.

   (2)  Fundraising expenses.

   (3)  Free care or discounted services.

   (4)  Parties and social activities not related to client care.

   (5)  Personal telephone service.

   (6)  Personal radio and television service.

   (7)  Direct and indirect costs related to nonallowable cost centers including gift, barber, beauty, flower and coffee shops, homes for administrators or pastors, convent areas and nurses’ quarters.

   (8)  Guest meals.

   (9)  Pennsylvania Capital Stock and Franchise Tax.

   (10)  Income tax.

   (11)  Ambulance costs.

   (12)  Promotional advertising including a Yellow Page listing that is greater than the minimum insert.

   (13)  Late payment penalties.

   (14)  Penalties, fines, or late charges assigned by any source, whether or not related to the facility.

   (15)  Life insurance for officers and directors of the governing board, including life insurance premiums necessary to obtain mortgages and other loans.

   (16)  Bad debts or contractual adjustments.

   (17)  Collection expenses associated with bad debts.

   (18)  Travel expenses for members of the board of directors unrelated to the program.

   (19)  Depreciation and interest on capital indebtedness for costs in excess of the limitations specified in §  6211.79(s) (relating to depreciation allowance).

   (20)  Expenses not necessary for client care.

   (21)  Basic education for eligible school-age children.

   (22)  Vocational rehabilitation services.

   (23)  Personal travel for employes, including personal use of facility vehicles.

   (24)  Meals for employes, except for employe meals provided as part of client training activities.

   (25)  Living expenses for live-in employes, including lodging, meals and personal laundry.

   (26)  Membership fees for social, fraternal, and other organizations involved in activities unrelated to the program or an organization defined as a lobbying group under the Lobbying Registration and Regulation Act (46 P. S. § §  148.1—148.9).

   (27)  Expenses payable from another public agency, insurance program or health program.

   (28)  Net operating or capital cost, including legal fees, accounting and administrative costs, travel costs and the costs of feasibility studies, attributable to the negotiation or settlement of the sale or purchase of a capital asset (by acquisition or merger) for which payment has previously been made under Title XIX of the Social Security Act (42 U.S.C.A. § §  1396—1396q) if the sale or purchase was made on or after July 18, 1984. This paragraph does not apply to any asset that undergoes a transfer of ownership on or after July 1, 1984 under an enforceable agreement that was entered into prior to July 18, 1984.

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