Sec. 10.09.29.12. Cost Reporting

A. The provider shall:

(1) Include, for purposes of cost finding, direct and indirect costs applicable to recipient care;

(2) In the cost report, specifically identify costs associated with related organizations;

(3) Maintain adequate financial records and statistical data, according to generally accepted accounting principles and procedures, which shall provide, as a minimum:

(a) Maintenance of:

(i) A chronological cash receipts and disbursements journal in sufficient detail to show the exact nature of the receipts and disbursements,

(ii) An appropriate time reporting system for all personnel and proper payroll authorizations and vouchers,

(iii) Records on all assets capitalized and depreciation on the assets,

(iv) Appropriate records of client days,

(v) Records on an accrual basis,

(vi) A daily midnight bed census by recipient name in a form prescribed by the Department, although use of the prescribed form may be waived by the Department or its designee when a provider demonstrates the ability to maintain a superior system of census information,

(vii) Other records as required by the Department, and

(viii) A Maryland Medical Assistance log on forms prescribed by the Department;

(b) Proper reference to supporting invoices, vouchers, or other forms of original evidence; and

(c) A provision for payment by check, although when financial transactions involve numerous small expenditures, an imprest petty cash fund may be established, provided adequate supporting vouchers are maintained;

(4) Keep all records available for inspection or audit by the Department or its designee at any reasonable time during normal business hours, with records for each fiscal year's cost report to be retained for 6 years after the filing date of the cost report specified in §A(5) of this regulation;

(5) Submit financial and statistical cost reports to the Department or its designee:

(a) In a prescribed form; and

(b) Within 3 months after the end of the provider's fiscal year unless the:

(i) Department grants the provider an extension, or

(ii) Provider discontinues participation in the Program;

(6) Be considered for an extension as cited in §A(5)(b)(i) of this regulation, which may be granted upon written request by the provider, setting forth the specific reasons for the request, if the Department determines, taking into consideration the totality of the circumstances, that the request is reasonable; and

(7) If it discontinues participation, submit financial and statistical data to the Department within 45 days after the effective date of termination.

B. The Department shall:

(1) For cost reports requested in §A(5) of this regulation, which have not been received within the 3-month time period and when an extension has not been granted:

(a) Withhold from the provider a maximum of 5 percent of the current interim payment starting at the beginning of the second calendar month after the month in which the report is due,

(b) Continue withholding as described in §B(1)(a) of this regulation in any subsequent calendar months, and

(c) Retain all withholdings until final cost settlement is completed;

(2) When a report is not submitted by the last day of the 6th month after the end of the provider's fiscal year, impose one or more sanctions as provided for in Regulation .09 of this chapter; and

(3) When a report is not submitted by the last day of the 6th month after the end of the provider's fiscal year, make final cost settlement for that fiscal year at the last final per diem rates for which the Department has verified costs for that facility, if the rates established do not exceed the maximum per diem rates in effect when the facility was last field verified.

C. For purposes of this regulation, reports are considered received when the submitted reports are completed according to instructions issued by the Department or its designee.

D. The Program may not make an initial retroactive adjustment when cost reports are received, and tentative settlements may not be made before final settlement.

E. When a provider receives notification of final settlement as set forth in Regulation .14A(4) of this chapter and an appeal is filed, undisputed amounts of settlement may not be paid to the appropriate recipients until final findings of the appeal.