(A) "Direct costs" are defined as those costs associated with providing services that directly benefit a patient, client or the public as set forth in any contract entered into pursuant to section 9.231 of the Revised Code. Typical direct costs chargeable to a contract include, but are not limited to:
(1) Compensation of employees for the time devoted to the performance of the contract;
(2) Cost of materials or supplies acquired, consumed, or expended for the purpose of the contract;
(3) Equipment and other capital expenditures specified in the contract; and
(4) Travel expenses incurred to carry out the contract.
(C) Direct costs, at a minimum, shall be:
(1) Necessary and reasonable;
(2) Allocable to the contract;
(3) Authorized or not prohibited under federal, state or local law;
(4) In conformity with any limitations specified in the contract;
(5) Accorded consistent treatment;
(6) Determined in accordance with generally accepted accounting principles;
(7) Net of all applicable credits; and
(8) Adequately documented.
(D) The guidance provided in 2 CFR 200 (as in effect on the effective date of this rule), to the extent applicable , shall be followed for direct costs unless otherwise agreed to by the parties in a written contract. Costs not specified in 2 CFR 200 (as in effect on the effective date of this rule) may be included as direct costs if specifically identified and agreed to by the parties in a written contract.
(F) For the purposes of division (B)(2)(f) of section 9.231 of the Revised Code, "routine business services other than administrative or management services" shall be determined on a case-by-case basis depending on the accepted and relevant business or trade standards that may apply to the type of business and services under consideration.
Five Year Review (FYR) Dates: 11/01/2016 and 01/06/2022
Promulgated Under: 119.03
Statutory Authority: 9.237
Rule Amplifies: 9.23 , 9.231, 9.232, 9.233, 9.234, 9.235, 9.236, 9.237
Prior Effective Dates: 01/13/2006