Title: Section 87.9 - Real and personal tangible property

87.9 Real and personal tangible property.

(a) A property register will be maintained by a nursing home company for each type of real and personal tangible property owned other than the original purchase price of the project land and the original construction cost of the structure.

(b) The property register will contain the following information on an item basis:

(1) item inventory number;

(2) location of item by room or area;

(3) location of item by cost center;

(4) description of item;

(5) related purchase order number;

(6) date item received;

(7) payment check number;

(8) date of payment;

(9) manufacturers serial number, if any;

(10) depreciation--current year;

(11) accumulated depreciation--cumulative;

(12) salvage value; and

(13) item net delivered or installed cost.

(c) Entries in the property register will be made as soon as possible after a transaction is completed. A systematic plan of record-keeping that permits the efficient recording of purchases, transfers, trade-ins and retirements must be in existence.

(d) The types of real and personal tangible property described in subdivision (a) of this section are as follows:

(1) Other land costs representing the cost of all material improvements to the land after passage of title to a nursing home company other than improvements included in the original construction cost.

(2) Building repairs and improvements representing the complete cost of all material repairs and improvements made to the structure after completion of the building contract and any related approved change orders.

(3) Group I property, representing the installed cost of all furnishings and/or equipment which is permanently attached to the building.

(4) Group II property, representing the delivered cost of all movable furnishings and/or equipment having a useful life of five or more years.

(5) Group III property, representing the delivered cost of all movable furnishings and/or equipment having a useful life of less than five years and a unit cost of less than $50.

(e) A physical inventory of all items in the property register will be made at least once a year. The property register may be adjusted to reflect any necessary material changes resulting from the physical inventory, provided that an officer of a nursing home company certifies to the facts of the adjustment. Adequate details of the physical inventory, adjustments and certifications will be maintained for inspection by the State Department of Health.

(f) All property having a unit cost of $50 or more at time of purchase may be used as part payment for replacement equipment, or it may be offered for sale on a competitive basis. If no offers are received, it may be discarded provided an officer of a nursing home company certified to the facts of such disposal.

(g) An annual physical inventory of consumable supplies on hand must be taken and recorded on the books of a nursing home company.
 

Volume

VOLUME A-2 (Title 10)

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