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7 AAC 145.533. Personal care services, Community First Choice services, or home and community-based waiver services allowable costs. (a) For purposes of the annual report required in 7 AAC 145.531, costs are allowable costs if they are reasonable, necessary, and related to the service provided. For purposes of this section,
(1) a cost is reasonable if the amount expended does not exceed what a prudent buyer who seeks to minimize costs would pay for an item or service; and
(2) a cost, direct or indirect, is necessary if it is appropriate in developing and maintaining the required standard of operation for providing recipient care in accordance with state law. (b) For purposes of the annual report required in 7 AAC 145.531, allowable costs include, subject to (a) of this section,
(1) wages, salaries, and associated costs; those costs must be commensurate with compensation paid for equivalent staff positions or similar duties on a state-specific industry level; the target provider shall support each cost with a timesheet, or other contemporaneous documentation, that supports time worked and the category of service if applicable; in this paragraph, “associated costs” includes
(A) payroll taxes;
(B) insurance for
(i)the owner-employee;#
(i) the owner-employee;
(ii)an employee who is a related party; and#
(ii) an employee who is a related party; and
(iii) other employees and staff;
(C) payments for contract labor services; and
(D) other labor costs that can be tied directly to recipient care;
(2) travel costs for recipients and target providers including transportation, per diem, and meal allowances that are an allowable element of a covered service;
(3) the costs of items or services purchased for recipients that are necessary to carry out the recipients’ approved support plans or plans of care;
(4) board of directors’ expenses, including travel and training costs directly associated with board functions on behalf of the target provider, but excluding lobbying activities;