Policy Manual sample

MDT Home Health Care Agency, Inc. FINANCIAL MANAGEMENT Capital Expenditure Plan Financial records shall be kept in accordance with generally accepted accounting principles. The Agency will maintain capital expenditure plan for at least a 3-year period, including the operating budget year. Both must be revised to include the approval of both the agency budget and capital expenditure plan by the governing board. All financial records shall be retained for five years following the month in which the cost report to which the records apply is filed with the intermediary or in accordance with state or federal requirements, whichever is longer. If necessary there shall be a capital expenditure plan for a minimum of three years including the current operating year, which identifies anticipated sources of financing for expenditures in excess of the amount currently specified in Medicare's Conditions of Participation for Home Health Agencies. There shall be an annual operating budget which shall include all anticipated income and expenses and which reflects the scope of the Agency's services. The operating budget, capital expenditure plan, and financial policies and practices shall be prepared under the direction of a committee appointed by the Board of Directors, representative of the Board of Directors, administrative and medical staff. They shall be reviewed and updated annually by the committee and approved and monitored by the Board of Directors. The Administrator or designee shall prepare a report of the Agency's financial condition, including, but not limited to, income and expenses to be presented at each regularly scheduled meeting of the Budget Committee and Board of Directors. The Agency shall maintain records of accounts payable and accounts receivable according to standard accounting principles. Capital Expenditure Plan: The plan will includes and identifies in detail the anticipated sources of financing for, and the objectives of, each anticipated expenditure of more than $100,000 for items that would, under generally accepted accounting principles, be considered capital items. In determining if a single capital expenditure exceeds $100,000, the cost of studies, surveys, designs, plans, working drawings, specifications, and other activities essential to the acquisition, improvement, modernization, expansion, or replacement of land, office, building, and equipment are included. Expenditures directly or indirectly related to capital expenditures, such as grading, paving, broker commissions, taxes assessed during the construction period, and costs involved in demolishing or razing structures on land are also included. Transactions that are separated in time, but are components of an overall plan or patient care objective, are viewed in our entirety without regard to their timing. Other costs related to capital expenditures include title fees, permit and license fees, broker commissions, architect, legal, accounting, and appraisal fees; interest, finance, or carrying charges on bonds, notes and other costs incurred for borrowing funds. Home Health Agency Overall Plan and Budget F-2