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(E) advertising for a bond issue;

(F) informational listing of a target provider in a telephone directory;

(G) listing a facility’s hours of operation; and

(H) advertising specifically required as part of a target provider’s accreditation process; and

(10) depreciation expense on assets used in the provision of covered service care to the extent the useful lives are no shorter than the useful life allowed under 26 U.S.C. (Internal Revenue Code) by the United States Department of the Treasury, Internal Revenue Service for federal income tax purposes; equipment expense is allowable only in accordance with generally accepted accounting principles (GAAP). (c) For purposes of the annual report required in 7 AAC 145.531, nonallowable costs include

(1) items or services purchased for recipients that are not necessary to carry out approved plans of care;

(2) lobbying expenses;

(3) fundraising expenses;

(4) contingency funds;

(5) fines, penalties, and bad debts;

(6) contributions or donations;

(7) entertainment expenses, including meals, banquets, gratuities, and decorations;

(8) organization dues that are based on a percentage of grant award amounts;

(9) other costs not allowed under requirements or special conditions related to other state grant awards to the target provider;

(10) public relations and community education expenses related to advertisements, brochures, newsletters, marketing, surveys, and staff and community development activities; and

(11) costs incurred by a target provider related to a court or administrative proceeding initiated by a target provider, except that costs incurred on an issue in a court or administrative proceeding originally initiated by a target provider are allowable costs if the target provider is the prevailing party on the issue under a final order, and the rules governing the proceedings do not make provision for the award of fees and costs to a prevailing party. (d) To determine the relationship to recipient care and to determine whether individual cost survey reports are reasonable and accurate for use in rate-setting determinations, the department will evaluate the costs that target providers report.