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(5) bonuses to owners or other related parties, except that to be allowable, bonuses

(A) may not represent any form of profit sharing or distribution of profits;

(B) may not be determined on the level of profit earned by the target provider;

(D) may not be made only to related parties;

(E) must be based upon the same criteria for all members of the same employee classification type; in determining the employee classification type, part-time employees may be considered a different classification type than full-time employees;

(F) must be made available to all employees of the same classification type; however, if the employee classification type predominantly consists of related parties, the bonuses are nonallowable costs; and

(G) may not be made available only to employees who are officers, stockholders, or the highest paid individuals of the organization, and may not otherwise discriminate in favor of certain employees;

(6) general service costs, including the costs of

(A) personal services and associated benefits, training, and travel of the owner, the target provider’s executive director, and the target provider’s secretarial, clerical, accounting, and other administrative staff;

(B) office equipment, including leased equipment, supplies, postage, related professional subscriptions, and associated procurement costs;

(D) professional dues for professional staff;

(7) contractual costs for consulting, legal, and financial accounting and auditing services directly related to the provision of care;

(8) insurance expenses, including professional liability, automobile, and facility coverage, and bonding;

(9) advertising costs limited to

(A) announcing the opening of or change of name of a facility;

(B) recruitment of personnel;

(D) obtaining bids for construction or renovation;

Page 2895

Official source

(5) bonuses to owners or other related parties, except that to be allowable, bonuses

(A) may not represent any form of profit sharing or distribution of profits;

(B) may not be determined on the level of profit earned by the target provider;

(D) may not be made only to related parties;

(G) may not be made available only to employees who are officers, stockholders, or the highest paid individuals of the organization, and may not otherwise discriminate in favor of certain employees;

(6) general service costs, including the costs of

(B) office equipment, including leased equipment, supplies, postage, related professional subscriptions, and associated procurement costs;

(D) professional dues for professional staff;

(7) contractual costs for consulting, legal, and financial accounting and auditing services directly related to the provision of care;

(8) insurance expenses, including professional liability, automobile, and facility coverage, and bonding;

(9) advertising costs limited to

(A) announcing the opening of or change of name of a facility;

(B) recruitment of personnel;

(D) obtaining bids for construction or renovation;