Sec. 444.2. UNRESTRICTED FUND ASSETS

[3110]

(a) CURRENT ASSETS.

[3111]

(1) 1010

 

CASH

 

1011

 

General Checking Accounts

 

1012

 

Payroll Checking Accounts

 

1013

 

Other Checking Accounts

 

1014

 

Imprest Cash Funds

 

1015

 

Savings Account

 

1016

 

Certificates of Deposit

 

1019

 

Other Cash Accounts

These cash accounts represent the amount of cash on deposit in banks and immediately available for use in financing Unrestricted Fund activities, amounts on hand for minor disbursements, and amounts invested in savings accounts and certificates of deposit.

(2) 1020

 

INVESTMENTS

 

1021

 

U.S. Government Securities

 

1022

 

Other Current Investments

 

1023

 

Share of Pooled Investments

 

1029

 

Other Investments

Current securities and investments, evidenced by certificates of ownership or indebtedness, must be reflected in these accounts.

(3) 1030

 

ACCOUNTS AND NOTES RECEIVABLES

 

1031

 

Inpatient Receivables—Inhouse

 

1032

 

Inpatient Receivables—Discharged and Unbilled

 

1033

 

Inpatient Receivables—Medicare

 

1034

 

Inpatient Receivables—Medicaid

 

1035

 

Inpatient Receivables—Other

 

1036

 

Outpatient Receivables—Unbilled

 

1037

 

Outpatient Receivables—Medicare

 

1038

 

Outpatient Receivables—Medicaid

 

1039

 

Outpatient Receivables—Other

(i) These accounts shall reflect the amounts due from hospital patients and their third-party sponsors.

(ii) Separate accounts may be maintained for different levels of inpatient care (i.e., Acute and Intensive, Skilled Nursing, etc.) and outpatient care (i.e., Emergency Room, Clinic) and for different payors, if desired. This may be accomplished by the inclusion of digits to the right of the decimal point.

(iii) Notes receivable and accounts receivable may also be segregated, but there is usually little to be gained from this practice, as the amount of notes receivable will usually be nominal.

(iv) 1031

 

Inpatient Receivables—Inhouse

This account shall reflect all charges and credits (at the hospital's full established rates) for medical services rendered to patients still in hospital.

(v) 1032

 

Inpatient Receivables—Discharged and Unbilled

This account shall reflect all charges and credits (at the hospital's full established rates) for medical services rendered to patients who have been discharged but not yet billed.

(vi) 1033

 

Inpatient Receivables—Medicare—Discharged and Billed

This account should be used only if the hospital is not on the Periodic Interim Payment Program. The balance in this account reflects all unpaid charges billed to the Medicare intermediary. Direct billings to the Medicare inpatient (or to Medicaid) for deductibles, coinsurance, and other patient-chargeable items would also be included in this account if such billings were not included in Inpatient Receivables—Other (or Inpatient Receivables—Medicaid).

(vii) 1034

 

Inpatient Receivables—Medicaid—Discharged and Billed

The balance in this account reflects all unpaid charges billed to Medicaid. Direct billings to the Medicaid inpatient (or to the Medicare intermediary) for deductibles, coinsurance, other patient- chargeable items and items under “Part B” Medicare coverage would also be included in this account if such billings were not included in Inpatient Receivables—Other (or Inpatient Receivables—Medicare).

(viii) 1035

 

Inpatient Receivables—Other—Discharged and Billed

Include in this account all unpaid billings for medical services and supplies provided to all non- Medicare, non-Medicaid inpatients. Direct billings to Medicare and Medicaid inpatients for deductibles, coinsurance, and other patient-chargeable items may also be included if they are not included elsewhere.

(ix) 1036

 

Outpatient Receivables—Unbilled

This account reflects all unbilled charges and credits (at the hospital's full established rates) for medical services rendered to outpatients.

(x) 1037

 

Outpatient Receivables—Medicare

The balance in this account reflects all unpaid charges billed to the Medicare intermediary. Direct billings to the Medicare outpatient (or to Medicaid) for deductibles, coinsurance, and other patient-chargeable items would also be included in this account if such billings were not included in Outpatient Receivables—Other (or Outpatient Receivables—Medicaid).

(xi) 1038

 

Outpatient Receivables—Medicaid

The balance in this account reflects all unpaid charges billed to Medicaid. Direct billings to the Medicaid outpatient (or to the Medicare intermediary) for deductibles, coinsurance, other patient-chargeable items, and “Part B” coverage, would also be included in this account if such billings are not included in Outpatient Receivables—Other (or Outpatient Receivables—Medicare).

(xii) 1039

 

Outpatient Receivables—Other

Include in this account all unpaid billings for medical services and supplies provided to all non-Medicare, non-Medicaid outpatients. Direct billings to Medicare and Medicaid outpatients for deductibles, coinsurance, and other patient-chargeable items may also be included if they are not included elsewhere.

(4) 1040

 

ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES

 

AND THIRD-PARTY CONTRACTUALS

 

1041

 

Allowance for Bad Debts

 

1042

 

Allowance for Contractual Adjustments—Medicare

 

1043

 

Allowance for Contractual Adjustments—Medicaid

 

1047

 

Allowance for Contractual Adjustments—Other

 

1049

 

Allowance for Other Adjustments

These are valuation (or contra-asset) accounts whose credit balances represent the estimated amount of uncollectible receivables from patients and third-party payors. For details on the computation of the related deductions from revenue, see the account descriptions of the Deductions from Revenue accounts.

(5)

(i) 1050

 

RECEIVABLES FROM THIRD-PARTY PAYORS

(i) 1051

 

PIP Clearing Account

During the year, this account reflects the difference between amounts billed to the Medicare intermediary for applicable services rendered, and periodic interim payments received from the Medicare intermediary. At year-end, this account must be closed out, with the balance going to the account entitled Contractual Adjustment—Medicare.

1052

 

Other Receivables—Third-Party Cost Report

 

Settlement—Medicare

1053

 

Other Receivables—Third-Party Cost Report

 

Settlement—Medicaid

1059

 

Other Receivables—Third-Party Cost Report

 

Settlement—Other

(ii) The balance of this account reflects the amount due from third-party reimbursement programs based upon cost reports submitted and/or audited. Sub-accounts may be maintained for each year's settlement if more than one year's settlement is included in an account.

(6) 1060

 

PLEDGES AND OTHER RECEIVABLES

 

1061

 

Pledges Receivable

 

1062

 

Allowance for Uncollectible Pledges

 

1063

 

Grants and Legacies Receivable

 

1064

 

Interest Receivable

 

1065

 

Accounts and Notes Receivable—Staff, Employees, etc.

 

1066

 

Intercompany Advances, Current

 

1069

 

Other Receivables

These accounts reflect other amounts due to the Operating Fund for other than patient services.

(7) 1070

 

DUE FROM OTHER FUNDS

 

1072

 

Due from Board-Designated Assets

 

1073

 

Due from Plant Replacement and Expansion Fund

 

1074

 

Due from Specific Purpose Fund

 

1075

 

Due from Endowment Fund

The balances in these accounts reflect the amounts due from designated assets or restricted funds to the Operating Fund. The balance of these accounts should not be construed as a receivable in the sense that a claim external to the hospital exists. Instead, this balance should be viewed as representing assets of the Operating Fund which are currently accounted for as restricted funds.

(8) 1080

 

INVENTORY

 

1081

 

Inventory—General Stores

 

1082

 

Inventory—Pharmacy

 

1083

 

Inventory—Central Services and Supplies

 

1084

 

Inventory—Dietary

 

1085

 

Inventory—Plant Operating and Maintenance

 

1089

 

Inventory—Other

These balances reflect the cost of unused hospital supplies. Any generally accepted cost method (e.g., FIFO, LIFO, etc.) may be used as long as it is consistent with that of the preceding accounting period. The extent of inventory control and detailed record-keeping will depend upon the size and organizational complexity of the hospital.

(9) 1090

 

PREPAID EXPENSES AND OTHER CURRENT ASSETS

 

1091

 

Prepaid Insurance

 

1092

 

Prepaid Interest

 

1093

 

Prepaid Rent

 

1094

 

Prepaid Pension Plan Expense

 

1095

 

Prepaid Taxes

 

1096

 

Prepaid Service Contracts

 

1097

 

Other Prepaid Expenses

 

1098

 

Deposits

 

1099

 

Other Current Assets

These prepaid asset and other current asset accounts represent costs incurred which are properly chargeable to a future accounting period. Other current assets not included elsewhere are also contained in these accounts.

(b) BOARD DESIGNATED ASSETS.

[ 3112 ]

(1) 1110

 

CASH

 

1111

 

General Checking Accounts

 

1113

 

Other Checking Accounts

 

1115

 

Savings Accounts

 

1116

 

Certificates of Deposit

 

1119

 

Other Cash Accounts

(2) 1120

 

INVESTMENTS

 

1121

 

U.S. Government Securities

 

1122

 

Other Current Investments

 

1123

 

Share of Pooled Investments

 

1129

 

Other Investments

(3) 1160

 

PLEDGES AND OTHER RECEIVABLES

 

1161

 

Pledges Receivable

 

1162

 

Allowance for Uncollectible Pledges

 

1163

 

Grants and Legacies Receivable

 

1169

 

Other Receivables

(4) 1170

 

DUE FROM OTHER FUNDS

 

1173

 

Due from Plant Replacement and Expansion Fund

 

1174

 

Due from Specific Purpose Fund

 

1175

 

Due from Endowment Fund

(5) 1190

 

PREPAID EXPENSES AND OTHER CURRENT ASSETS

 

1199

 

Other Current Assets

(6) Included in these accounts are assets which have been designated (or appropriated) by the governing board for special use.

(c) PROPERTY, PLANT AND EQUIPMENT.

[ 3113 ]

(1) 1200

 

LAND

The balance of this account reflects the cost of land used in hospital operations. Included here is the cost of offsite sewer and water lines, public utility charges for servicing the land, governmental assessments for street paving and sewers, the cost of permanent roadways and of grading of a nondepreciable nature, the cost of curbs and of sidewalks whose replacement is not the responsibility of the hospital, as well as other land expenditures of a nondepreciable nature. Unlike buildings and equipment, land does not deteriorate with use or with the passage of time; therefore, no depreciation is accumulated.

(2) 1210

 

LAND IMPROVEMENTS

 

1211

 

Parking Lots

 

1219

 

Other Land Improvements

All land expenditures of a depreciable nature that are used in hospital operations are charged to this account. This would include the cost of onsite sewer and water lines; paving of roadways, parking lots, curbs and sidewalks (if replacement is the responsibility of the hospital), as well as the cost of shrubbery, fences and walls.

(3) 1220

 

BUILDINGS

 

1221

 

Hospital

 

1224

 

Clinic

 

1225

 

Student Housing Facility

 

1226

 

Employee Housing Facility

 

1227

 

Non-Paid Workers Housing Facility

 

1228

 

Skilled Nursing Facility

 

1229

 

Parking Structure

The cost of all buildings and subsequent additions used in hospital operations shall be charged to this account. Included are all architectural, consulting and legal fees related to the acquisition or construction of buildings. Interest paid during construction financing is a cost of the building and is included in this account.

(4) 1230

 

FIXED EQUIPMENT

 

1231

 

Hospital

 

1234

 

Clinic

 

1235

 

Student Housing Facility

 

1236

 

Employee Housing Facility

 

1237

 

Non-Paid Workers Housing Facility

 

1238

 

Skilled Nursing Facility

 

1239

 

Parking Structure

(i) The cost of all fixed equipment used in hospital operations shall be charged to this account. Fixed equipment has the following general characteristics:

Affixed to the building, not subject to transfer or removal.

A life of two or more years, but less than that of the building to which it is affixed.

Used in hospital operations.

(ii) Fixed equipment includes such items as boilers, generators, elevators, engines, pumps and refrigeration machinery, including the plumbing, wiring, etc. necessary for equipment operations.

(5) 1240

 

LEASEHOLD IMPROVEMENTS

All expenditures for the improvement of a leasehold used in hospital operations shall be charged to this account.

(6) 1250

 

EQUIPMENT

(i) 1251

 

Major Movable Equipment

Equipment to be charged to this account has the following general characteristics:

Ability to be moved, as distinguished from fixed equipment.

A more or less fixed location in the building.

A unit cost large enough to justify the expense incident to control by means of an equipment ledger.

Sufficient individuality and size to make control feasible by means of identification tags.

A minimum useful life at time of acquisition of three years or more.

Used in hospital operations.

Major movable equipment includes such items as automobiles and trucks, desks, beds, chairs, accounting machines, sterilizers, operating tables, oxygen tents and X-ray apparatus.

(ii) 1259

 

Minor Movable Equipment

Equipment to be charged to this account has the following general characteristics:

Location generally not fixed; subject to requisition or use by various cost centers of the hospital.

Relatively small in size and unit cost.

Subject to storeroom control.

Fairly large number in use.

A useful life of less than three years.

Used in hospital operations.

Minor equipment includes such items as wastebaskets, bedpans, basins, glassware, silverware, pots and pans, sheets, blankets, ladders, and surgical instruments.

(7) 1260

 

CONSTRUCTION-IN-PROGRESS

 

1261

 

Buildings

 

1262

 

Fixed Equipment

 

1263

 

Major Movable Equipment

 

1264

 

Fees

 

1265

 

Insurance

 

1266

 

Interest

Cost of construction that will be in progress for more than one month and will be used for hospital operations should be charged to these accounts. Upon completion of the construction program, these accounts should be credited and the appropriate asset account(s) debited.

(8) 1270

 

ACCUMULATED DEPRECIATION —

 

LAND IMPROVEMENTS

 

1271

 

Parking Lots

 

1279

 

Other Land Improvements

(9) 1280

 

ACCUMULATED DEPRECIATION — BUILDINGS

 

1281

 

Hospital

 

1284

 

Clinic

 

1285

 

Student Housing Facility

 

1286

 

Employee Housing Facility

 

1287

 

Non-Paid Workers Housing Facility

 

1288

 

Skilled Nursing Facility

 

1289

 

Parking Structure

(10) 1290

 

ACCUMULATED DEPRECIATION — FIXED

 

EQUIPMENT

 

1291

 

Hospital

 

1294

 

Clinic

 

1295

 

Student Housing Facility

 

1296

 

Employee Housing Facility

 

1297

 

Non-Paid Workers Housing Facility

 

1298

 

Skilled Nursing Facility

 

1299

 

Parking Structure

(11) 1310

 

ACCUMULATED DEPRECIATION — LEASEHOLD IMPROVEMENTS

(12) 1320

 

ACCUMULATED DEPRECIATION — EQUIPMENT

 

1321

 

Major Movable Equipment

 

1329

 

Minor Movable Equipment

(13) The balances in accounts 1270 through 1329 reflect the depreciation accumulated on the above-mentioned assets used in hospital operations.

(d) OTHER TANGIBLE ASSETS.

[ 3114 ]

(1) 1330

 

INVESTMENT IN NON-OPERATING PROPERTY, PLANT AND EQUIPMENT

(2) 1340

 

ACCUMULATED DEPRECIATION — INVESTMENTS IN NONOPERATING PROPERTY, PLANT AND EQUIPMENT

(3) 1350

 

OTHER TANGIBLE ASSETS

1351

 

Intercompany Advances, Non-Current

(4) Accounts 1330 and 1340 include the cost (or fair market value at date of donation) of property, plant and equipment not used in hospital operations and accumulated depreciation thereon. Other tangible assets not included elsewhere are contained in account 1350.

(e) INTANGIBLE ASSETS.

[ 3115 ]

(1) 1360

 

GOODWILL

(2) 1370

 

UNAMORTIZED BORROWING COSTS

(3) 1380

 

PREOPENING AND OTHER ORGANIZATIONAL COSTS

1381

 

Preopening Costs

1389

 

Other Organization Costs

(4) 1390

 

OTHER INTANGIBLE ASSETS

(5) Accounts 1360-1390 are used to record intangible assets. If such intangibles are being amortized, the amortization may be directly credited to the asset account, or accumulated in a subaccount. Account 1360, Goodwill, contains the excess of the price paid for a business as a whole over the book value, or over the computer or agreed value of all tangible net assets purchased. Account 1370, Unamortized Borrowing Costs, includes such items as legal fees, underwriting fees, etc.