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Similar charts were included detailing an allocation of expenses
to the ALU and SCU. The report states that the SNF, ALU, and SCU
expense information listed above does not include an allocation
of amortization of debt issue cost, amortization of preopening
cost, or an allocation of interest expense. Specific expenses
associated with the pool, spa, and exercise facilities at Village
West are not identified in the financial information in the
report.
In allocating expenses to the SNF, the following explanation
was provided:
Line Item Description
Food service Percent of total contract
Payroll and benefit Direct labor costs plus benefits
Departmental costs All expenses in specific dept.,
except payroll and benefits
Housekeeping and laundry Percent of total contract
Food service Benefits of employees directly
allocated to cost center
Maintenance A specific employee dedicated to
the health care facility
Landscape Based on previous time study
Administration Based on previous time study
Insurance Policies directly related to
facility plus 10 percent of other
policies
Linens Linens purchased directly for the
SNF
Depreciation and Directly from the fixed asset
amortization program
Contracts Alarm system, copiers, fire drill,
Medical Director, etc. (No
ancillary contractors)
Utilities 10 percent of the total utilities
for AFVW
Interest expense 10 percent of total interest
expense for AFVW
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