Which statement about facility account operations is not true?

• A. Rates are reviewed annually.
• B. Distribution rates are set to achieve a profit by fiscal year end.
• C. Distribution rates are set to recover costs over time.
• D. Facility accounts are reconciled monthly.

Answer: (B)

In facility account operations, distribution rates are designed to recover costs over time, not to generate a profit by the end of the fiscal year. This cost-recovery approach ensures prices reflect actual operating costs and supports long-term financial stability. Rates are reviewed annually to adjust for changes in costs or usage, and facility accounts are reconciled monthly to keep records accurate and catch discrepancies early. The idea of aiming for a profit by year end isn’t aligned with how rates are typically set, which is why that statement isn’t true. The other statements fit common practice: annual rate reviews adjust for cost changes, rates aim to recover costs over time, and monthly reconciliations maintain accuracy.