1 TAC § 355.104. Revenues

A provider must report in the format specified by the Texas Health and Human Services Commission (HHSC) revenues that reflect the activity of the provider and that are directly related to the provision of contracted client care or services. A provider may not report revenues from other programs or activities in which the contracted provider may be engaged.

(1) Revenues should be reported net of charity allowances and courtesy allowances, and bad debt expense.

(2) Any revenues received directly by the provider through a voucher or from other direct payment systems as described in §355.103(b)(20)(K) of this title (relating to Specifications for Allowable and Unallowable Costs) must not be reported on the cost report unless specifically requested by the program-specific reimbursement methodology rules, HHSC procedures, or cost report instructions.

(3) For guidelines in reporting revenue received as a federal grant, refer to §355.103(b)(18) of this title and to program-specific reimbursement methodology rules.

(4) For guidelines in offsetting revenues against certain expenses, refer to §355.103(b)(18)(D) of this title.

(5) For reporting interest income:

(A) report as interest income, with no offset to interest expense, any interest earned on funded depreciation accounts, qualified pension funds, and debt service reserve funds required by non-related party lenders; and

(B) report as interest income, interest earned from all other sources, after first netting this income against interest expenses in the following sequence:

(i) interest incurred on working capital loans; and

(ii) interest incurred on all other loans except mortgage loans. Mortgage loans are not to be offset.