Minnesota Administrative Rules

9535.2400 BUDGETS.

Subpart 1.

Income and expenditures.

A budget must accompany each application for a grant under Minnesota Statutes, section 245.73 and must be completed on budget forms provided by the commissioner. For each facility for which a grant is requested a separate budget must be submitted showing the total projected income and expenditures for that facility. Except for depreciation, the budget must represent projected cash transactions by the county, the facility, and the subcontractors. Straight-line depreciation, calculated according to generally accepted accounting principles, may be included if the purchase of the item being depreciated is not included as an expenditure in the budget for the current period or for any other budget periods.

Subp. 2.

Separate expenditure categories.

Each budget must separate expenditures according to the following categories, as further defined in subparts 3 to 6:

A.

room and board and previously funded program costs;

B.

new program costs separated into new direct service costs and other new program costs; and

C.

other costs including program costs for residents who are not adult, not mentally ill, or not Minnesota residents.

Subp. 3.

Room and board costs.

Room and board costs must include the following costs:

A.

all directly identifiable costs of normal and special diet food preparation and service;

B.

all directly identifiable costs of linen, bedding, laundering, and laundry supplies;

C.

all directly identifiable costs of housekeeping, including cleaning and lavatory supplies;

D.

all directly identifiable costs for maintenance and operation of the building and grounds, including fuel, electricity, water, supplies, and parts and tools to repair and maintain equipment and facilities; and

E.

a reasonable allocation of salaries and other costs related to items A to D.

However, costs which are new since June 1, 1981, and which are required by parts 9520.0500 to 9520.0690 are other new program costs and are not room and board costs.

Subp. 4.

Previously funded program costs.

Previously funded program costs must include costs for any services provided before June 1, 1981, at least at the level of funding used for those services during May 1981.

Subp. 5.

New direct service costs.

Within the limits in part 9535.2600, subpart 1, new direct service costs are the only costs which may be paid with state funds under Minnesota Statutes, section 245.73. New direct service costs may include the following if the costs are required by parts 9520.0500 to 9520.0690 and if the costs are new since June 1, 1981:

A.

salaries and related expenses including payroll taxes, health insurance, retirement contributions, telephone, personal liability insurance, postage, recruitment, staff training, and in-state travel of personnel providing services directly to adult residents who are mentally ill. Support personnel are included to the extent they perform client related duties such as client record keeping, individual program planning, and on-site program supervision;

B.

consumable supplies used by the personnel described in item A in performing client related duties and by clients in carrying out program activities; and

C.

minor expenditures which are shown by the county board to be essential for the facility to meet requirements of parts 9520.0500 to 9520.0690, and which cannot be paid for from local matching funds.

Subp. 6.

Other new program costs.

Other new program costs must include all new program costs other than those already included in new direct service costs. These costs must include, but not be limited to, the costs of renovation, construction or rent of buildings, and purchase or lease of vehicles or equipment, if these costs are new since June 1, 1981, and are required by parts 9520.0500 to 9520.0690. These costs may be paid for with local matching funds, but may not be paid for with state funds provided under Minnesota Statutes, section 245.73.

Subp. 7.

Cost allocation.

The application shall include an explanation of the allocation of indirect costs to the various budget categories.

Subp. 8.

Elimination or reduction in funds by state or federal government.

If there has been a state or federal decision to reduce the previous level of funding for an existing program, expenditures which would otherwise be included under previously funded program costs may be included under new direct service costs or other new program costs. An application must include documentation of the elimination or reduction in funds by the state or federal government. If the previous funding was from a block grant type of funding source, the percentage reduction used for this exception must not exceed the average percentage reduction for all other services funded by the applicant county board from that funding source.

Subp. 9.

Limits on dollar amounts for items.

The dollar amounts for the various items included in the budget must not exceed the prevailing cost of like items in the local county and the costs that prudent and cost-conscious management would pay for a given item or service.

Subp. 10.

Time frame for budget.

The budget shall relate to a time period set by the county board within the time limits set by the appropriation.

Subp. 11.

Client-days.

The budget shall include the projected number of client-days of service per facility and the projected cost per client per day.

Statutory Authority:

MS s 245.73

History:

L 2002 c 221 s 50; L 2003 1Sp14 art 11 s 11

Published Electronically:

October 15, 2013