Sec. 32.03.04.19. Administration of Subsidy Award

A. If funds are available the Department shall advance subsidy payments to a provider in good standing on a quarterly basis.

B. For the term of a subsidy services agreement, the Department shall:

(1) During the first quarter, advance to the provider a subsidy payment equal to 1/4 of the total subsidy award; and

(2) During each subsequent quarter, advance an amount equal to the total amount of subsidies earned during the previous quarter.

C. At the end of each quarter, the provider shall submit the following to the Department on forms provided by the Department:

(1) A report of subsidies earned; and

(2) A request for funds for the next quarter.

D. By January 30 of each year, a provider shall submit to the Department a year-to-date report covering the first 6 months of the provider's actual revenues and expenses allocable to the operation of the Program.

E. At the end of a fiscal year in which subsidies are awarded, or at any time the Department believes that the amount of subsidies advanced significantly exceeds the amount of subsidies earned, the Department shall reconcile:

(1) The amount of subsidies advanced to the provider by the Department during the fiscal year; and

(2) The amount of subsidies earned by the provider during the fiscal year.

F. If the subsidies advanced to a provider during a fiscal year are projected to be significantly greater than the subsidies earned, the Department may withhold from the provider an amount equal to the projected overpayment from the next quarterly advance.

G. If the subsidies advanced to a provider during a fiscal year are greater than the amount of subsidies earned, the provider shall refund the subsidy overpayment to the Department within 60 days of a request by the Department for reimbursement. If a provider does not refund the overpayment within 60 days, the Department may offset the overpayment against any future subsidies earned by the provider.

H. If the subsidies advanced to a provider during a fiscal year are less than the amount of subsidies earned, the Department shall pay the subsidy amount due the provider, up to the maximum grant amount of the subsidy services agreement.

I. Not later than 10 days after the end of the third quarter of a fiscal year, a provider may request an amendment to its subsidy services agreement if it projects that the amount of subsidies earned will exceed the maximum grant amount of the subsidy services agreement. If funds are available, the Department may agree to amend the subsidy services agreement for all or part of the projected amount.

J. If the total subsidy awards received by a provider in a fiscal year are equal to or greater than $25,000, the provider shall submit to the Department, within 90 days of the last day of the fiscal year, an annual audit report, prepared in accordance with generally accepted accounting principles. Providers that receive in any one fiscal year $25,000 or more in subsidies and that have a certificate for more than one facility shall maintain their financial records so that revenues and expenses can be tracked on a facility-by-facility basis.

K. If the total subsidy awards for a fiscal year are less than $25,000, the provider shall submit to the Department, within 90 days of the last day of the fiscal year, an annual report of the provider's actual revenue and expenditures allocable to its operation under the Program.

L. The Department shall review a report required by §J or K of this regulation and reconcile the report with the amount of subsidy payments made to the provider during the fiscal year.After the Department has reconciled the subsidy payments, it shall pay any subsidy amount due to the provider, up to the maximum grant amount in the provider’s subsidy services agreement.