Section 54.08. Allowable costs.

  In determining rates under this subchapter, the department may consider costs incurred for any purpose that is allowable under all of the following:

(1)  Applicable federal regulations, including 2 CFR Part 225 , 2 CFR Part 230 , 45 CFR Part 74 , 45 CFR Part 92 , and 48 CFR Part 31 , except as provided in sub. (2) .

(2)  Reserves or profit as allowed under the following:

(a) For nonprofit corporations, reserves allowed under s. 49.34 (5m) (b) 2. , Stats.

(b) For proprietary child-placing agencies, profit allowed on an annual basis is the smaller amount determined under the following 2 methods of calculating profit:

1. The equity method is the sum of 7.5 percent of allowable operating costs plus 15 percent of average net equity for the year. In this subdivision, "average net equity" means the average cost of equipment, buildings, land, and fixed equipment minus the average accumulated depreciation and average long term liabilities for the year.

2. The expenses method is 10 percent of allowable operating costs for the year.

History: EmR1106 : emerg. cr., eff. 9-16-11; CR 11-026 : cr. Register December 2011 No. 672 , eff. 1-1-12.

Note

Further explanation is available in the department's Allowable Cost Policy Manual , which is available in the Partner Resources/Grants and Contract Administration section of the department's website at http://dcf.wisconsin.gov . Microsoft Windows NT 6.1.7601 Service Pack 1