Section 465IAC2-16-22. Offsetting revenue and netting

   (a) Eligible cost reimbursement offsetting will be applied as a credit in accordance with federal regulations as identified by 2 CFR Part 230 (OMB Circular A-122 Cost Principles for Non-Profit Organizations). The resulting net cost will be used to establish the administrative payment.

  (b) Applicable credits refer to those receipts, or reduction of expenditures which operate to offset or reduce expense items that are allocable to awards as direct or indirect costs. Typical examples of such transactions include, but are not limited to, the following:

(1) Purchase discounts.

(2) Rebates or allowances.

(3) Recoveries or indemnities on losses.

(4) Insurance refunds.

(5) Adjustments of overpayments or erroneous charges.

To the extent that such credits accruing or received by the residential treatment services provider relate to allowable costs, they shall be credited to the department either as a cost reduction or cash refund, as appropriate.

  (c) In some instances, the amounts received from the department to finance residential treatment services provider activities or service operations should be treated as applicable credits. Specifically, the concept of netting such credit items against related expenditures will be applied by the department in determining the administrative payment. (Department of Child Services; 465 IAC 2-16-22; filed Apr 26, 2011, 11:20 a.m.: 20110525-IR-465100416FRA)