Adaptive Equipment: Devices, aids, controls, appliances or
supplies of either a communication or adaptive type, determined
necessary to enable the person to increase his or her ability to
function in a home and community based setting with independence and
safety.
Affiliate: An associate with respect to a partnership - each
partner within the partnership; a corporation - each officer,
director, principal stockholder and controlling person within the
corporation; a natural person - each member of the person's
immediate family; each partnership; and each partner of the person;
each corporation in which the person or any affiliate of the person
is an officer, director, principal stockholder, or controlling
person.
Agency Administration: Those expenses which are not directly
attributable to a specific program but rather to the overall
administration of all the programs, or a support function for the
agency, such as personnel, that is not specific to any particular
program, service, or contract.
Amortization: The process of writing off a regular portion of
the cost of an intangible asset over a fixed period of time. Refer
to Appendix O - Guidelines for Depreciation and Amortization.
Arm's Length Transaction: A transaction entered into by
unrelated parties, each acting in their own best interest. It is
assumed that in this type of transaction, the prices used are the
fair market values of the property or services being transferred in
the transaction.
Asset: Property and service rights, measurable in terms of
money, which the entity acquires for their economic benefit or
value.
Building: The basic structure, shell and additions. The
remainder is identified as fixed equipment. Land costs are not
depreciable and should be excluded from building costs.
Capital Expenditure: The acquisition of both property and
equipment having a useful life which extends over more than one
accounting period. A capital expenditure either adds a fixed asset
unit or increases the value of an existing fixed asset.
Expenditures benefiting only the current year should be treated as
an operating expense.
Closely allied entities (CAEs): Closely allied entities include
corporations, partnerships, unincorporated associations or other
bodies that have been formed or are organized to provide financial
assistance and aid for the benefit of the service provider or
receive financial assistance and aid from the service provider.
Financial assistance and aid include engaging in fund raising
activities, administering funds, holding title to real property,
having an interest in personal property of any nature, and engaging
in any other activities for the benefit of the service provider or
the closely allied entity.
Community Support Programs (CSP revenue): Medicaid revenue that
is added to the Medicaid rate of certain OMH outpatient programs in
proportion to the amount of community support program state and
local net deficit funding that has previously been replaced by CSP.
This Medicaid revenue is regulated in law 14NYCRR Part 588.
Comprehensive Outpatient Programs (COPS revenue): Medicaid
revenue that is added to the Medicaid rate of certain OMH outpatient
programs in proportion to the amount of state and local net deficit
funding that has previously been replaced by COPS . This Medicaid
revenue is regulated in law 14NYCRR parts 592.
Controlling Party: Any person or organization who by reason of
a direct or indirect ownership interest or designated responsibility
(whether of record or beneficial) has the ability, acting either
alone or in concert with others with ownership interest or
designated responsibility, to direct or cause the direction of the
management or policies of a corporation, partnership or other
entity. Neither the commissioner nor any employee of DMH, SED nor
any member of a local legislative body of a county or municipality,
nor any county or municipal official except when acting as the
administrator of a program shall, by reason of his or her official
position, be deemed a controlling party of any corporation,
partnership or other entity. For SED purposes, "Controlling Party"
shall have the same meaning as "less-than-arm's-length relationship"
as defined in Section 200.9 of the SED Commissioner's Regulations.
Department of Mental Hygiene (DMH): The agency in New York
State charged with the responsibility for providing services for the
care and treatment of mental illness, mental retardation and
developmental disabilities, alcoholism and substance abuse as well
as the prevention of such conditions.
Depreciation: The process of writing off the acquisition cost
of a fixed asset over the estimated useful life. Depreciation is
the decline in economic potential of limited life assets originating
from wear and tear, natural deterioration through interaction of the
elements, and technical obsolescence. Refer to Appendix O -
Guidelines for Depreciation and Amortization.
Disproportionate Share Income (DSH): Disproportionate Share
Income (DSH) Legislation (Bill #5550-A, 1997-98 Budget initiative)
signed by the Governor in 1997 allows for the Office of Mental
Health and the Office of Alcohol and Substance Abuse Services to
replace net deficit financing with Disproportionate Share Funding
in Article 28 voluntary non-profit general hospitals. Payments
shall not exceed such general hospital’s cost of providing services
to uninsured and Medicaid patients after taking into consideration
all other Medical Assistance received, including disproportionate
share payments made to general hospital and payments from and on
behalf of such uninsured patients and shall also not exceed the
amount of State Aid and Local Aid Grants for which the hospital or
its successor would have been eligible pursuant to Articles 25 & 41
of the Mental hygiene Law for fiscal year 1996-97.
Expensed Adaptive Equipment: Includes the costs of all adaptive
equipment purchased during the CFR reporting period with a value of
less than $1,000 or a useful life of less than two years.
Expensed Equipment: Includes the costs of all equipment
purchased during the CFR reporting period with a value of less than
$1,000 or a useful life of less than two years.
Federal Grants: Sources of revenue in the form of grants
received directly from the federal government to support service
provider programs.
Federal Medicaid Salary Sharing: A Medicaid revenue. Through
the Federal Medicaid Salary Sharing program, counties can be
reimbursed for part of the cost of county staff time related to the
management of certain aspects of mental health or mental retardation
Medicaid Programs. (Costs associated with staff who operate medical
programs or who provide direct care are, however, not included).
Fixed Equipment: Includes attachments to buildings, such as
wiring, electrical fixtures, plumbing, elevators, heating and air
conditioning systems, etc. The general characteristics of this
equipment are: a) affixed to the building and not subject to
transfer; and b) minimum useful life of two years, but shorter than
the life of the building to which affixed.
Fund Raising: All expenses associated with the activities a
service provider may use to supplement its revenues in obtaining
contributions, gifts, grants, etc. All fund raising and special
events expenses (personal services, leave accruals, fringe benefits,
OTPS, equipment and property) are to be included as “other programs”
(column 7) on Schedule CFR-2 and the appropriate operating expenses
(personal services, leave accruals, fringe benefits and OTPS)
included on Schedule CFR-3, line 48.
Historical Cost: The cost at date of acquisition of an asset,
less discounts plus all normal incidental costs necessary to bring
the asset into existing use and location.
Immediate Family: A relationship including brother, sister,
grandparent, grandchild, first cousin, aunt or uncle, spouse,
parent, or child of such person, whether such relationship arises by
reason of birth, marriage or adoption.
Improvement(s): A capital expenditure which extends or improves
the useful life of an asset or improves it in some manner over and
above the original asset. Thus, if an expenditure adds years to an
asset's useful life or improves its rate of output, it would be
considered an improvement. In contrast, a maintenance or repair
expense is not capitalized.
In-Contract vs. Out of Contract: Programs that are approved to
receive Aid to Localities net deficit funding on the Consolidated
Budget Report (CBR) are designated as in-contract (i.e., utilizing
one of the funding codes listed in Appendix N, except for the
non-funded code 090), while programs not receiving Aid to Localities
net deficit funding (i.e., utilizing funding code 090) are regarded
on the CBR as out-of-contract. See Appendix Z for Policy Statement
and Procedures.
Leasehold: An agreement between the lessee and the lessor
specifying the lessee's rights to use the leased property for a
given time at a specified rental payment.
Leasehold Improvements: Modifications or upgrades made by a
lessee to leased property which revert to the lessor at the
expiration of the lease term. See Appendix O for amortization
rules.
Local Governmental Unit (LGU) Administration: A program
category which includes all local government costs related to
administering services for the mentally ill, mentally retarded and
developmentally disabled, alcohol and/or substance abuser. These
costs should not include agency and program administration costs,
but should include community service board costs.
Maintenance in Lieu of Rent: Expenditures should include the
rent of premises or the cost to own and maintain the premises. If
the building is occupied jointly with other tenants, this cost
should be allocated on the basis of the service provider's
proportionate share of the total usable square footage of the
building.
Medicaid: A revenue category representing payments received for
services to eligible participants under the combined Federal/State
program which pays for medical care for those who cannot afford it,
regardless of age.
Medicare: A revenue category representing payments received for
services to eligible participants under the Federal programs which
pay for medical care for those 65 years old or over and/or disabled
under Title II and in receipt of Social Security disability benefits
for 24 months.
Moveable Equipment: The general characteristics of this
equipment are:
a. capable of being moved as distinguished from fixed
equipment;
b. a unit cost sufficient to justify ledger control;
c. sufficient size and identity to make control feasible by
means of identification tags; and
d. a minimum useful life of approximately two years.
Refer
to Appendix O - Guidelines for Depreciation and Amortization.
Net
Deficit Funding: All revenues resulting from:
a. direct contract with New York State Department of Mental
Hygiene (DMH);
b. contract with Local Government Unit (LGU) (State and
County Share);
Not-for-Profit Organization: A group, institution, or
corporation formed for the purpose of providing goods and services
under a policy where no individual (e.g., trustee) will share in any
profits or losses of the organization. Profit is not the primary
goal of not-for-profit entities. Profit may develop, however, under
a different name (e.g., surplus, increase in fund balance). Assets
are typically provided by sources that do not expect repayment or
economic return. Usually, there are restrictions on resources
obtained. All income and earnings will be used exclusively for the
purpose of the corporation and no part shall inure to the benefit or
profit of any private individual firm or corporation.
Organizational Expense: Expenditures incurred in starting a
business. They include attorney's fees and various registration
fees paid to State governments. The total of all the expenditures
is considered to be an intangible asset. Theoretically, these
expenditures may benefit the company throughout its operating life,
but must be amortized. Refer to Appendix O for amortization rules.
Principal Stockholder: A person who beneficially owns, holds or
has the power to vote, ten percent (10%) or more of any class of
securities issued by said corporation.
Program Administration Expense: Administrative expenses directly
attributable to a specific program which may include but are not
limited to personal services and fringe benefits of Program
Director, Billing Personnel, etc.
Related Party Transaction: A transaction between the reporting
entity, its affiliates, principal owners, management and members of
their immediate families and any other party with which the
reporting entity may deal when one party has the ability to
significantly influence management or operating policies of the
other to the extent that one of the transacting parties might be
prevented from fully pursuing its own separate interests.
Salvage Value: The amount expected to be realized upon the sale
or other disposition of the asset when it is no longer useful to the
program.
Site Specific Methodology: An accepted cost development and
reporting methodology in which costs of programs are related to
specific sites where services are provided, as opposed to
aggregating and averaging costs for all sites (cost averaging).
State Grant: A revenue category which represents income from
State agencies other than OASAS, OMH, OMRDD and SED.
Third Party: A revenue category which includes payments
received for services to participants from private health insurance
coverage such as Blue Cross, etc.
Unit of Service: The workload measure by which programs are
evaluated. Units of service vary with the type of program provided.
