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Home My WebLink AboutCC Resolution 10458 (Preschool Services; DOE)RESOLUTION NO. 10458 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL TO ENTER INTO A CONTRACT WITH THE DEPARTMENT OF EDUCATION AND AUTHORIZES THE CITY MANAGER TO SIGN CONTRACT DOCUMENTS FOR STATE PRESCHOOL SERVICES IN THE AMOUNT OF $66,082.00 WHEREAS,the City of San Rafael has been awarded a contract for State Preschool Services in the amount of $66,082.00 for Fiscal Year 1999-2000; and WHEREAS, the City Council approves and authorizes the City Manager to sign designated contract documents with the Department of Education, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael enter into this transaction with the California Department of Education to provide State Preschool Services in the amount of $66,082.00 for Fiscal Year 1999-2000. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City on Tues. , the 6th of duly, 1999, by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 2�M. LEONCINI City Clerk U CALIFORNIA DEPARTMENT OF ED UCA TION 721 Capitol Mall, P.O. Box 944272 Sacramento, CA 94244-2720 LOCAL AGREEMENT FOR CHILD DEVELOPMENT SERVICES CONTRACTOR'S NAME: CITY OF SAN RAFAEL F, y, 99-00 DATE: July 01, 1999 CONTRACT NUMBER: GPRE-9140 PROGRAM TYPE: STATE PRESCHOOL PROJECT NUMBER: 21-N916-00-9 By signing this contract and returning it to the State, you are agreeing to provide services in accordance with the FUNDING TERMS and CONDITIONS (FT&C) and APPLICATION which are attached and by this reference incorporated into this contract. The FT&C and Requirements specify the contractual responsibilities of the State and the contractor. Funding of this contract is contingent upon appropriation and availability of funds. This contract is effective from July 1, 1999 through June 30, 2000. For satisfactory performance of the required services, the contractor shall be reimbursed in accordance with the Determination of Reimbursable Amount Section of the FT&C, at a rate not to exceed $ $15.56 per child per day of full-time enrollment and a Maximum Reimbursable Amount (MRA) of $ $66,082.00. Any provision of this contract found to be in violation of Federal or State statute or regulation shall be invalid but such a finding shall not affect the remaining provisions of this contract. SERVICE REQUIREMENTS Minimum Child Days of Enrollment (CDE) Requirement Minimum Days of Operation (MDO) Requirement 7E(1.(AUTHORIZED SIGNATURE) PRINTED NAME OF PERSON SIGNING Donna Salaj TTTLE Manager Contracts Office 175 4247 BY (AUTHO�SIGWPRINT b NAME AND TITLE OF PERSOONNSSIGGNNIINNG lto d Gould, City ( anage.r A 14QQ Fift. Avenue, $an Rafael CA Q4901 p.0. Box 1515fiQ, San Rafael, 6A 94915-1,560 AMOUNT ENCUMBERED BY THIS PROGRAWCATEGORY (CODE AND TITLE) FUND Department of General Sannces (General use only DOCUMENT . Child Development Programs $ 66,082 (OPTIONAL USE) (01 S7) PRIOR AMOUNT ENCUMBERED FOR 03038-N916 Transfer to SSF THIS CONTRACT j ITEM 30.10.010 CHAPTER STATUTE FISCAL YEAR $ 0 6100-196-0001 1BA 11999 11999-2000 TOTAL AMOUNT ENCUMBERED TO OBJECT OF EXPENDITURE (CODE AND TME) DATE $ 66,082 702 SACS: Res -6055 Rev -8590 1 hereby certify upon my own personal knowledge that budgeted funds are available for the period and T.B.A. NO.I B.R. NO. purpose of the expenditure stated above SIGNATURE OF ACCOUNTING OFFICER DATE COPY California Department of Education Child Development Division Mangement Bulletin 098-23 mb) Continued Funding Application APPLICATION FOR CONTINUED FUNDING Send the original and three complete copies of all required forms by January 29, 1999. FISCAL YEAR 1999-2000 (FORM CD3704) To: Continued Funding Application Child Development Division 560 J Street, Suite 220 Sacramento, CA 95814_ Instructions for completing this form and other helpful information are included in the accompanying MANAGEMENT BULLETIN #98-23 (mb). Our agency is currently funded for all contracts identified with a check mark below for this fiscal year. The agency agrees to continue implementation of these programs during Fiscal Year 1999-2000 with funds provided by CDE. Center-Based/Family Child Care Home Programs: O Campus Child Care (with match) ❑ Center -Based - Child Care & Development Fund (CCDF) ❑ Family Child Care Homes O Family Child Care Homes - CCDF O Full Day State Preschool Wrap Around ❑ General Child Development O HUD Child Care O HUD Child Care CCDF O Literacy Latchkey O Migrant Child Care O Migrant Specialized Services 11 School Age Community Child Care (Latchkey) O School Age Parenting & Infant Development (SAPID) O Severely Handicapped 60 State Preschool Agency's Cii /Vendor Number: I 2 I 1 N 1 9 11 I h` 1 LEGAL NAME OF AGENCY ADDRESS City of San Rafael P.O.Box 151560 Sail' -,.Rafael EXECUTIVE OFFICER/SUPERINTENDENT Rod Gould — City Manager PROGRAM DIRECTOR(S) Bill Scharf BOARD OF DIRECTORS CHAIRPERSON Albert Boro, Mayor Alternative Pavment Proerams O Alternative Payment Program (APP) O APP-CCDF O Child Protective Services O Child Protective Services - CCDF O CaIWORKs Stage 2 O Ca1WORKs Stage 3 O CalWORKs Stage 2 - CCDF O CaIWORKs Stage 3 - CCDF Resource and Referral Programs: O Resource and Referral (R&R) O Quality R&R - CCDF IIFederal ID Number: 1914 j 6101010 CITY ZIP CODE 94915 TELEPHONE ( 415 ) 485-3079 TELEPHONE ( 415 ) 485-3338 TELEPHONE ( 415 ) 485-3070 I CERTIFY, AS THE AUTHORIZED AGENCY REPRESENTATIVE, THAT ALL APPLICABLE STATE AND FEDERAL STATUTES AND REGULATIONS WILL BE OBSERVED. I ALSO CERTIFY THAT ALL COMPLETED FORMS ACCURATELY DESCRIBE PROGRAM OPERATIONS. SIGNATURE OF AUT RIZ EN PRESENTATIVE DATE Jnnrnary ')7. 1000 V111 NAME AND TITLE OF AUT ZED A NT (PLEASE PRINT.) PHONE Bill Scharf, Assistant Director Community Services 415-485-3338 Page 1 Califomia Department of Education Mangement Bulletin #99-23 mb) Child Dcyclopment Division Continued Funding Application ` AGENCY INFORMATION All agencies must complete Sections A, B, and C. Is the information described below identical for all CDD contracts? Yes ?�QNJ No ❑ If not, specify contract type(s) addressed on this page: Duplicate this page for each additional contract, if applicable. A. SERVICE DELIVERY AREA(S) Describe the geographic areas served by your child development program(s). You may use community boundaries, zip codes, or school district boundaries. The service delivery area is the 94901 and 94903 zip codes of San Rafael in Marin County. In the SAC program the children come from the San Rafael City Schools and Dixie School Districts. In the State Preschool, the children come from the Canal Area of San Rafael (94901). B. DEMOGRAPHICS Describe the socioeconomid characteristics of families served. The greatest need in the community that is served by these contracts is economic. There are a high percentage of families living at or below the poverty level. Over ninety percent of the children served by these contracts live in East San Rafael. This area has the densest population, fastest growth, highest degree of poverty and greatest ethnic diversity in San Rafael. For example: between 1980 - 1990 East San Rafael grew at a rate of 55W compared to 8.5% for the rest of the city. C. AGENCY PHILOSOPHY Describe your agency's overall child development program philosophy and how it is implemented in your program(s). We believe each child has the right to grow and develop within a safe and nurturing environment. Our program and staff will foster a child's growth and development in all of the developmental areas: social, intellectual, cultural, emotional and physical. We focus on a child's individual development, offering opportunities to meet challenge, feel success, build confidence and establish positive self-esteem. We assist and encourage every child to take steps toward responsible self-direction. We believe that play is a child's natural learning mode. And that through play, coupled with sensitive, positive role models children learn to be caring, cooperative and conscientious adults. A variety of creative, learning opportunities are planned each day such as arts and crafts, cooking, movies, outdoor sports, games and much more. Page 2 California Department of Education Mangement Bulletin #99-23 mb) Child Development Division Continued Funding Application PROGRAM INFORMATION A. CENTER -BASED AND FAMILY CHILD CARE HOME NETWORKS ONLY Is this program information identical for all CDD contracts of is type? Yes ❑ No� If not, specify contract type(s) addressed on this page: 5 r -GS Duplicate this page for each additional contract, if applicab e. 1. Identification of Children's Needs How do you identify the needs of the children? Describe how you meet these needs in each of the following developmental areas for each age group. Complete one page for each age group (infant, toddler, preschool, school age). a) Cognitive All assessment is ongoing and continuous through formal written assessment tools and informal observations. An initial assessment is carried out during the first thirty days of enrollment. A formal assessment tool -like the Child Development Assessment Form by McMurrain and Brooke, is used. This tool is used for planning educational and developmental experiences for the child. For example in the cognitive area the following are observed and recorded: Can the child follow simple directions? Can the child retell a story immediately after it has been told in logical sequence? Does the child know the seasons of the year? All of these observations are recorded to build a developmental profile in which to chart the child's progress in the cognitive area. b) Language All educational and developmental activities are planned with sensitivity and recognition of the child's native language. Activities are developed to be free from linguistic and cultural bias. Language development is assessed initially using the above assessment tool and through continuous observation. Since all children in the program are non-native English speakers, a goal is to not only provide native language development, but also to provide the beginning of language development in the English language. In this, the preschool works closely with the Kindergarten teachers at the public school to give the children the necessary skills to succeed in their upcoming year in school. -- -- c) Social/Emotional Socio/emotional - Initial formal assessment is used to provide a developmental profile of the child. In the social - emotional realm the observation would look for the child's ability to express feelings and to interact with others. This would include, for example, expressing and controlling feelings, cooperating with others, showing social awareness, self-concept development, relationships with adults. d) Physical Development An initial formal assessment is used to begin the developmental profile. In the physical development realm the teacher would, for example, observe whether the child can use their body with control and efficiency, including the fine motor skills of cutting with a scissors or tracing letters with a pencil and gross motor skills such a walking, jumping and balancing. The staff from these initial observations will develop the child's physical development -activities and experiences. Page 3 Caliromia Depanment brEduc&:ion Mangement Bulletin #98-23 mb) Child Development Division Continued Funding Application PROGRAM INFORMATION A. CENTER -BASED AND FAMILY CHILD CARE HOME NETWORKS ONLY Is this program information identical for all CDD contracts of this type? Yes ❑ Noj If not, specify contract type(s) addressed on this page: K519 C)_ Duplicate this page for each additional contract, if applicable. 1. Identification of Children's Needs How do you identify the needs of the children? Describe how you meet these needs in each of the following developmental areas for each age group. Complete one page for each age group (infant, toddler, preschool, school age). a) Cognitive Assessments are conducted primarily to monitor the child's development and to plan activities appropriate to their level of development. In the SAC program, an initial interview is held to determine the child's interest and special needs. Upon registering for the program parents are asked to provide the staff with the necessary information about their child's like and dislikes, interests and hobbies, etc. The parents are asked if there is anything special about their child or if the parents have any special requests of the program. For example: Do the children need to finish homework before engaging in other activities? Individual folders are created to contain information on children and their development. - -- b) Language All educational and developmental activities are planned with sensitivity and recognition of the child's promary language. Activities are developed to be free from linguistic and cultural bias. Language development is assessed through continuous observation. The SAC program has limited resources to provide language development. Our goal is to provide enrichment and assistance, where possible, to help the SAC child to develop their communication skills. c) SociaVEmotional In the SAC program observation is the primary mode of assessment. Teacher may use a standard checklist and move, during the year into a more anecdotal mode of assessment. Staff will use informal notes and place them in the child's folder regarding a child's social and emotional behavior. If problems are noted, staff may decide to have an expert come in and observe the child to suggest ways that the staff can deal appropriately with the child's behavior. Staff may meet with the parents to suggest family counseling. Some children may come to the program through referrals from Child Protective Services. These children have special needs, and we work closely with the agency to develop an appropriate plan for that child. d) Physical Development Physical development is an integral component of the SAC program. All children are encouraged to participate in a variety of physical activities. The staff observes and records what kinds of activities the children are engaged in and adjust their planning to involve as many of the children as possible. There are group games, as well as individual recreational activities. We offer a plethora of activities, from tennis to swimming to kickball to soccer. Not only all developmental levels accounted for, but also gender is taken into consideration. Page 3 Califonnia Department of Education Mangement Bulletin #98-23 mb) Child De„velopmFnt Division Continued Funding Application PROGRAM INFORMATION A. CENTER -BASED AND FAMILY CHILD CARE HOME NETWORKS ONLY (CONTINUED) Is this program information identical for all CDD contracts of this type? Yes k No ❑ If not, specify contract type(s) addressed on this page: Duplicate this page for each additional contract, if applicable. 2. Parent Involvement a) Describe how your families are involved in your program. Building partnerships in both the preschool and school age programs is a very important, though challenging task. Most of the parents in our program work during the day and are responsible for their families when they get home for the evening. With that in mind, our goal has always been to keep parent involvement and participation informal and non- threatening. Examples of parent involvement are: requesting parents to help during meal times, asking parents to demonstrate cultural activities, having parents volunteer to help in the classroom or on a specific project. Parents recently worked at one center, with the local Rotary Club to repaint all of the shelves in the classrooms. Parents are involved in the community garden adjacent to another center. Parents help organize and contribute to the annual Thanksgiving Feast. b) Describe the role of the Parent Advisory Committee (PAC) in your program. In our program has chosen to involve parents in different aspects of the program according to their interest and ability to participate. We form partnerships with parents over the many years their child is in school. These relationships are fostered and nurtured. We know how busy parents are, but also how important it is for them to become involved in their children's lives. Therefore, some parents may be involved in the program on a daily basis, while others may be called on for their expertise occasionally. Our PAC is our entire parent body. We have had parents involved in interviewing for center directors, volunteer in the office with mailings, acting as special guests in the classroom, helping build a playground or paint a building, advocating oto the school district for classroom space. Page 4 PRESCHOOL CPRE FUNDING TERMS AND CONDITIONS AND PROGRAM REQUIREMENTS for CHILD DEVELOPMENT PROGRAMS FISCAL YEAR 1999 - 00 00 1 Section PRESCHOOL PROGRAMS TABLE OF CONTENTS Fiscal Year 1999-00 Funding Terms and Conditions Page DEFINITIONS............................................................................... 1 GENERAL PROVISIONS...................................................................:.. 3 National Labor Relations Board/Federal Court Order ........................................... 3 Notification of Address Change............................................................ 3 Open Board Meetings.................................................................... 3 Compliance with Title 22 California Code of Regulations ........................................ 3 Issuance and Use of Checks............................................................... 4 Prohibition Against Loans and Advances ..................................................... 4 Materials Developed with Contract Funds .................................................... 4 Prohibition Against Religious Instruction or Worship ........................................... 4 Contracts with Multiple Service Areas ....................................................... 4 Contractor's Termination for Convenience.................................................... 5 Compliance Review of Contractors......................................................... 5 Eligibility for Funding.................................................................... 5 ContinuedFunding...................................................................... 6 Applicability of Corporations Code ......................................................... 6 Conflicts of Interest...................................................................... 6 Americans with Disabilities Act............................................................ 7 Air or Water Pollution Violations........................................................... 7 Recycled Paper Certification............................................................... 7 Child Support Compliance................................................................ 7 FACILITIES AND EQUIPMENT................................................................ 7 Depreciation and Use Allowance........................................................... 7 CapitalOutlay.......................................................................... 8 Equipment Bidding and Approval Requirements ............................................... 8 Title, Use, Disposition and Retention of Equipment ............................................ 8 Renovation and Repair................................................................... 9 SUBCONTRACTS............................................................................ 9 Subcontracts Excluded from Requirements of this Section ....................................... 9 Bids for Subcontracts.................................................................. 10 Prior Child Development Division Approval ................................................. 10 Required Subcontract Provisions.......................................................... 11 Recommended Subcontract Provisions..................................................... 12 Audit Requirements for Subcontracts....................................................... 12 COSTS, EARNINGS AND REIMBURSEMENT.................................................. 12 Reasonable and Necessary Costs.......................................................... 12 IndirectCosts.......................................................................... 12 Administrative Costs.........:.......................................................... 13 Service Level Exemption (Start -Up) for New or Expanded Programs ............................. 13 Costs for Travel and Per Diem............................................................ 13 Specific Items of Reimbursable Costs ...................................................... 14 Nonreimbursable Costs........../....................................................... 14 Charging of Expenditures................................................................ 15 Recoupment of Advanced Contract Funds ................................................... 16 Determination of Reimbursable Amount .................................................... 16 Minimum Days of Operation............................................................. 16 Reduction, Withholding and Cancelling Apportionments ....................................... 16 Order of Expenditure................................................................... 17 ACCOUNTING AND REPORTING REQUIREMENTS ............................................ 17 General Provisions..................................................................... 17 Child Development Fund and Interest Bearing Accounts .......... . ............................ 17 Enrollment and Attendance Accounting..................................................... 17 Attendance and Excused Absences.......................................................... 17 General Recordkeeping Requirements...................................................... 18 Attendance and Expenditure Reports....................................................... 18 Reports on Children and Families Served ................................................... 19 Legislative Report Data.................................................................. 19 Audits and Auditors.................................................................... 19 Review of Audit by Office of External Audits ................................................ 20 Delinquent Audits and One -Time -Only Extensions ............................................ 20 Bureau of Stale Audits.................................................................. 20 Budgetand Calendar.................................................................... 20 ReserveAccounts...................................................................... 21 CONTRACT CLASSIFICATIONS.............................................................. 21 ClearStatus........................................................................... 21 Provisional Status...................................................................... 21 Conditional Status ...................................................................... 22 TERMINATION, SUSPENSION AND MAJOR REDUCTIONS IN CONTRACT PAYMENTS ............ 22 Independent Appeal Procedures........................................................... 22 Formal Appeals Procedures .............................................................. 22 Contractor's Responsibility After Notice of Termination ........................................ 23 CONTRACT STATUS CHANGE PROCEDURES ................................................. 23 Administrative Review of Changes in Contract Status .......................................... 23 Conditional Status Imposed During the Contract Period ........................................ 24 Conditional Status Addendum.......................................................:.... 24 Duration of Conditional Contract Status ..................................................... 24 RESOLUTION OF CONTRACT ADMINISTRATION DISPUTES ................................... 25 Program Requirements DEFINITIONS.............................................................................. 26 ELIGIBILITY FOR SERVICES AND DOCUMENTATION ......................................... 27 General Requirements................................................................... 27 Eligibility Criteria...................................................................... 27 Certification of Eligibility ................................................................. 27 Contents of Basic Data File............................................................... 28 Application for Services................................................................. 28 Determination of Family Size............................................................. 28 Documentation of Total Countable Income .................................................. 28 Documentation of Public Assistance....................................................... 29 Documentation of Exceptional Need ....................................................... 29 Documentation of Child Protective Services ......................... . ....................... 29 ADMISSION POLICIES AND PROCEDURES.................................................... 29 General Admission Procedures............................................................ 29 Admission Priorities, Waiting List and Displacement .......................................... 29 NO FEES TO BE CHARGED/EXCEPTION+...................................................... 30 CONFIDENTIALITY OF RECORDS............................................................ 31 STAFFING QUALIFICATIONS................................................................ 31 Program Director...................................................................... 31 Site Supervisor........................................................................ 31 Teacher.............................................................................. 32 Applicability of Staffing Requirements..................................................... 32 STAFFING RATIOS.......................................................................... 32 MINIMUM HOURS AND DAYS OF OPERATION ................................................ 32 DUE PROCESS REQUIREMENTS............................................................. 32 Notice of Action, Application for Services ................................................... 32 Notice of Action, Recipient of Services ..................................................... 33 Approval or Denial of Child Care and Development Services ................................... 33 Changes Affecting Service............................................................... 33 Clients Request for a Hearing and Procedures ................................................ 33 Appeal Procedure for CDD Review........................................................ 34 Contractor Compliance with CDD Decision ................................................. 34 Program Quality Requirements PROGRAM PHILOSOPHY, GOALS AND OBJECTIVES ........................................... 35 DEVELOPMENTAL PROFILE................................................................. 35 EDUCATION PROGRAM..................................................................... 35 STAFF DEVELOPMENT PROGRAM........................................................... 35 PARENT INVOLVEMENT AND EDUCATION .......................... :....................... 35 HEALTH AND SOCIAL SERVICES............................................................ 36 COMMUNITY INVOLVEMENT............................................................... 36 NUTRITION................................................................................ 36 ANNUAL SELF -STUDY PROCESS............................................................ 36 00 FUNDING TERMS AND CONDITIONS PRESCHOOL PROGRAMS Fiscal Year 1999-00 These are the Funding Terms and Conditions (FT&C) for fiscal year 1999-00. Each contractor is required, as a condition of its contract with the California Department of Education (CDE), Child Development Division (CDD), to adhere to these FT&C, and any other Requirements incorporated into the contract, in addition to all other applicable laws and regulations. Any variance from this contract, the FT&C, Requirements, laws or regulations could be considered a noncompliance issue and subject the contractor to possible termination of the contract. Any change of these FT&C or Requirements to be binding on the State and the contractor must be in writing, in advance, from the CDE in the form of a formal contract amendment. Any interpretation of the FT&C or Requirements must be in writing from the CDE and signed by the director of the CDD. Contractors may adopt any reasonable policies relating to the program that are not in conflict with law, regulations or the terms of this contract. Those potentially affected shall be duly notified and due process, if applicable, shall be assured. I. DEFINITIONS As used in the FT&C: "Actual and allowable net costs" means the costs which may be reimbursed under a particular child development contract after disallowed costs and restricted income have been subtracted from total expenditures. "Additional funds" means award of new contracts or expanded contracts which increase the contractor's level of administrative responsibility. Cost of living adjustments, rate increases and one -time -only supplemental funds are not considered to be "additional funds." "Adjusted child days of enrollment" means child days of enrollment after special needs adjustment factors specified in Education Code Section 8265.5 have been applied. "Administrative costs" means costs incurred for administrative activities where neither the family nor the child directly benefit from the activity. "Adult" means a person who is at least eighteen (18) years of age. "Approved indirect cost plan" means that the annual agency audit does not include any management findings regarding the development or the application of the plan. "Authorized representative" means a person who has been delegated the responsibility to sign a child in and out of a child care program in the absence of the parent. "Benefit to the State" means that the activitX will improve knowledge or expertise in areas directly related to subsidized child care and development services. "Ceases operation" means the contractor does not provide subsidized services in accordance with the contractor's program operating calendar submitted to and approved by the CDD for the applicable contract period. 1 "Child development fund" means the restricted fund used by the contractor to account for contract funds and related net reimbursable program costs. "Commingled child care services" means the provision of services to both subsidized and nonsubsidized children in the same classroom at the same time. "Contract period" means the time span the contract is in effect as specified in the child development contract. "Depreciation" means a cost in the current fiscal year that is based on acquisition costs, less any estimated residual value, computed on a straight line method (based on the normal, estimated useful life expectancy of the asset). "Disallowed costs" means costs which have been incurred but are not reimbursable because they are not reasonable and/or necessary for the performance of the contract as defined below or are otherwise nonreimbursable as specified in Section V.G below. "Employment agreements" means the formal hiring documents for individuals who will accrue benefits normally afforded to contractor's staff. "Full signature" means the legal signature of the individual (e.g., signature normally used on checks and other documents). If the individual is not literate in written English, the individual may sign with an "X" which must be initialled by the contractor's authorized representative. "Indirect cost allocation plan" means a written justification and rationale for assigning the relative share of indirect costs across more than one program or contract. "Indirect cost" means an expense that cannot be readily assigned to one specific program or one specific line item within a program. "Maximum reimbursable amount" means the total dollar amount of a contract. Reimbursement from the State shall not exceed the maximum reimbursable amount. 'Net reimbursable program costs" means the portion of the actual and allowable net costs which are incurred in the provision of child care and development services for subsidized children. 'New contract" is a contract award to an existing contractor which is for a program type as specified in Education Code Section 8208(h) that is different than the child development contract(s) currently administered by the applicant. "Private contractor" means an entity other than a public agency which is tax exempt or non -tax exempt and under contract with the CDE for the provision of child care and development services. "Public contractor" means a school district, community college district, county superintendent of schools, campus of the California State University or the University of California system, county, city or other public entity under contract with the CDE for the provision of child care and development services. OF "Reasonable and necessary costs" means expenditures that, in nature and amount, do not exceed what an ordinarily prudent person would incur in the conduct of a competitive business. "Restricted income" means income which may only be expended for specific limited purposes. E "Service delivery area" means the community, geographic area or political subdivision in which the child care and development services are to be provided as specified in the Request for Applications. "Total expenditures" means all costs for the provision of subsidized services under the contract and any nonsubsidized services which are provided in commingled classrooms. "Unnecessarily increase the value" means an improvement of a site beyond what is required to meet Title 22 California Code of Regulations, Community Care Licensing Standards. "Use allowance" means an alternate method for claiming the use of the contractor's assets as a cost when depreciation methods are not used. II. GENERAL PROVISIONS A. National Labor Relations Board/Federal Court Order By signing this contract, the contractor swears under penalty of perjury that no more than one final unappealable finding of contempt of court has been issued by a federal court against the contractor within the last two (2) years because of failure to comply with a federal court order for compliance with an order of the National Labor Relations Board (Public Contract Code Section 10296). This provision does not apply to public entities. B. Notification of Address Change Contractors shall notify the CDD in writing of any change in mailing address for communication regarding the contract (administrative address) within ten (10) calendar days of the address change. For non-public agencies, the notification must be accompanied with (1) board minutes verifying the change in address and (2) a copy of the notification to the . Internal Revenue Service of the address change. Contractors shall notify the CDD in writing of any proposed change in operating facility address(es) at least thirty (30) calendar days in advance of the change unless such change is required by an emergency such as fire, flood or earthquake. C. Open Board Meetings Any private tax exempt or private non -tax exempt agency receiving public funds under these regulations must, to the extent of the publicly funded program, comply with the Ralph M. Brown Open Meetings Act ("Brown Act"), Government Code Sections 54950-54961. Board meetings shall be open fo the public except for meetings with its designated representatives prior to and during consultations and discussions with representatives of employee organizations regarding the salaries, salary schedules or compensation paid in the form of fringe benefits of employees or to consider the appointment, employment, evaluation of performance or dismissal of an employee or to hear complaints or charges brought against an employee unless such employee requests an open meeting. Minutes of these open meetings shall be available to the public. D. Compliance with Title 22 California Code of Regulations r Contractors with facilities which are exempt by statute or otherwise exempt from licensure shall comply with health and safety regulations for day care centers and family child care homes as specified in Title 22 California Code of Regulations, Community Care Licensing Standards in order to qualify for child care and development program contract funds. E. Issuance and Use of Checks Except for external payroll services, private contractors shall not use any presigned, pre -authorized, or pre -stamped checks without the prior written approval of the CDD. Private contractors shall require two (2) authorized signatures on all checks unless: (1) the contractor has a policy approved by its governing board requiring dual signatures only on checks above a specified dollar amount and (2) the annual audit verifies that appropriate internal controls are maintained. F. Prohibition Against Loans and Advances Contractors shall not loan contract funds to individuals, corporations, organizations, public agencies or private agencies. Contractors shall not advance unearned salary to employees. Contractors shall not make advance payments to subcontractors and shall compensate subcontractors after services are rendered or goods are received except for (1) subcontractors providing direct child care and development services and (2) subcontractors with subcontracts exempt from the provisions of Section N below as specified in Section N.A. G. Materials Developed with Contract Funds If the contractor receives income from materials developed with contract funds, the use of the income shall be restricted to the child development program. If the materials were developed in part with contract funds, the income from the sale of the materials that shall be used in the child development program shall be computed in direct proportion to the share of contract funds used in development of the materials. Materials developed with contract funds shall contain an acknowledgement of the use of State funds in the development of materials and a disclaimer that the contents do not necessarily reflect the position or policy of the CDE. H. Prohibition Against Religious Instruction or Worship The contractor shall not provide nor be reimbursed for child care and development services which include religious instruction or worship. I. Contracts with Multiple Service Areas A contractor with more than one service delivery area as specified in and funded through a single contract shall maintain service at the same level, plus or minus ten percent (10%) of the contracted child days of enrollment, in the individual service area(s) specified in its current contract. The contractor may request approval from the CDD to vary service levels by more than ten percent (10%) if the contractor can demonstrate that the need for services in the designated area(s) has changed. The CDD shall approve or derry the request within thirty (30?Uendar days of receipt of the request. If the request is denied, the contractor may appeal this decision in accordance with Section X below. 0 Contractor's Termination for Convenience General Termination for Convenience A contractor may terminate the contract for any reason during the contract term. The contractor shall notify the CDD of its intent to terminate the contract at least ninety (90) calendar days prior to the date the contractor intends to terminate the contract. Within fifteen (15) days from the date the contractor notifies the CDD of its intent to terminate the contract, the contractor shall submit: (1) a current inventory of equipment purchased in whole or in part with contract funds and (2) the names, addresses and telephone numbers of all families served by the contract and all staff members funded by the contract. Upon receipt of a notice of intent to terminate, the CDD will transfer the program to another agency as soon as practicable. The State shall only be obligated to compensate the contractor for net reimbursable program costs in accordance with this contract through the date of termination. There shall be no other compensation to the contractor. The State shall offset any monies the contractor owes the State against any monies the State owes under this contract. 2. Changes in Laws or Regulations The CDD shall notify contractors in writing of changes in laws or regulations prior to the effective date or as soon as possible after enactment. If any laws or regulations are changed substantially during the contract period, the contractor shall have the option to discontinue performance and be relieved of all obligations for further performance. The contractor has thirty (30) calendar days from receipt of notification of pending changes to notify the CDD in writing of the contractor's intent to terminate if the required changes are unacceptable to the contractor. The contract shall be deemed terminated sixty (60) calendar days after receipt of the notification of the intent to terminate. K. Compliance Reviews of Contractors At least once every three (3) years and as resources permit, the CDE shall conduct reviews at the contractor's office(s) and operating facility(ies) to determine the contractor's compliance with applicable laws, regulations or contractual provisions. The reviews shall be conducted by consultants, analysts and/or management staff of the CDD, CDE's Office of External Audits and Child Development Fiscal Services (CDFS), formerly Education Finance Division (EFD), or other State of California representatives. L. Eligibility for Funding r A contractor is not eligible for additional funds, as defined in Section I above, if the contractor has received final notification, as specified in Section VIIIA below, that its contract has been terminated - 5 A contractor is not eligible for additional funds if the contractor has demonstrated fiscal and/or programmatic noncompliance and has received final notification, as specified in Section IX.A below, that (1) its contract will be placed on conditional status or (2) it will not be offered continued funding. M. Continued Funding Contractors have no vested right to a subsequent contract. Contractors that are not on conditional contract status but which have evidenced fiscal or programmatic noncompliance with the provisions of this contract, law or regulations shall receive an administrative review in accordance with Section IX.A below to determine whether they will receive an offer for continued funding. Contractors currently on conditional status that do not meet the requirements specified in the Conditional Status Addendum, as specified in Section IX.0 below, may not be offered a subsequent contract and shall be so notified by the CDD at least ninety (90) calendar days prior to the end of the current contract period. Contractors that intend to accept the offer to continue services in the subsequent contract period shall respond to a continued funding application request from the CDD in accordance with the instructions and timelines specified in the request. Failure to respond within the timelines specified in the continued funding application request shall constitute notification to the CDD of the contractor's intent to discontinue services at the end of the current contract period unless the contractor has received a written extension of the original timeline from the CDD. N. Applicability of Corporations Code Except for partnerships and sole proprietorships, private contractors shall be subject to all applicable sections of the Corporations Code including standards of conduct and management of the organization. O. Conflicts of Interest For any transaction to which the contractor is a party and the other party is: (a) an officer or employee of the contractor or of an organization having financial interest in the contractor; or (b) a partner or controlling stockholder or an organization having a financial interest in the contractor; or (c) a family member of a person having a financial interest in the contractor, the transaction(s) shall be fair and reasonable and conducted at arm's length. Based on corporate law (Corporations Code sections 310, 5233-5234, 7233 and 9243 as applicable) the general rules that would be followed to ensure that transactions are conducted "at arm's length" include: (1) prior to consummating the transaction, the governing body should authorize or approve the transaction in good faith and the board should require the interested party, or parties, to make full disclosure to the board both in writing and during the board meeting where the transaction is being discussed and (2) all parties having a financial interest in the transaction should refrain from voting on the transaction and it should be so noted in the board minutes. If the transaction involves the renting of property, either land or buildings, owned by affiliated organizations, officers or other key personnel of the contractor or their families, the board of directors shall request the interested party to obtain a "fair market rental estimate" from an independent appraiser. If the contractor has no board or is a sole proprietor, the requirement for a "fair market rental estimate" shall also apply. The contractor has the burden of supporting the reasonableness of rental costs. If the property is owned by the contractor, rental costs are not reimbursable and costs may be claimed only as depreciation or use allowance. Any transaction described in this paragraph shall be disclosed by the auditor in the notes to the financial statement in the annual audit. 11 Rental costs for equipment owned by affiliated organizations, officers or other key personnel of the contractor or their families are allowable only as use or depreciation allowance. P. Americans with Disabilities Act By signing this contract, the contractor assures the CDE that it shall comply with the Americans with Disabilities Act (ADA) of 1990 (42 U.S.C. 12101 et seq.) as well as all applicable federal and state laws and regulations, guidelines and interpretations issued thereto. Q. Air or Water Pollution Violations (Government Code Section 4477) By signing this agreement, the contractor swears under penalty of perjury that the contractor is not: (1) in violation of any order or resolution not subject to review promulgated by the state Air Resources Board or an air pollution control district; (2) subject to a cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution. This provision does not apply to public agencies. R Recycled Paper Certification (Public Contract Code Section 10308.5/10354) The contractor agrees to certify in writing to the CDE, under penalty of perjury, the minimum, if not exact, percentage of recycled content, both postconsumer material and secondary material as defined in Public Contract Code Sections 12161 and 12200, in materials, goods or supplies offered or products used in the performance of the contract, regardless of whether the product meets the required recycled product percentage as defined in Sections 12161 and 12200. The contractor may certify that the product contains zero recycled content. Child Support Compliance (Public Contract Code Section 7110) By signing this agreement, the contractor acknowledges that (a) it recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement including, but not limited to, disclosure of information and compliance with earnings assignment orders as provided in Chapter 8 (commencing with Section 5200) of part 5 of Division 9 of the Family Code; and (b) to the best of its knowledge it is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. III. FACILITIES AND EQUIPMENT A. Depreciation and Use Allowance Taxes, insurance and maintenance may be claimed as part of actual and allowable costs for buildings, building improvements related to the child development program and equipment necessary for the operation of the program. Within the limits specified below, depreciation or use allowance may also be claimed. Depreciation shall not be claimed on land, donated assets or assets.Vchased with public funds, on any fully depreciated asset or on idle or excess facilities. A use allowance shall not be claimed on land or assets purchased with contract funds or on assets for which depreciation has been claimed. Depreciation is a cost in the current fiscal year based on acquisition costs, less any estimated residual value, computed on a straight We method from the original date of acquisition (based on the normal, estimated useful life expectancy 7 of the asset). When depreciation is applied to assets acquired in prior years, the annual charges shall not exceed the amounts that would have resulted had depreciation been claimed from the date of acquisition. A use allowance is the alternate method for compensation when depreciation costs are not claimed. The use allowance for buildings and improvements is computed at an annual rate not to exceed two percent (2%) of acquisition costs. The use allowance for equipment is computed at an annual rate not to exceed six and two-thirds percent (6-2/3%) of acquisition costs. B. Capital Outlay Capital outlay expenditures are those that result in the acquisition of or additions to capital assets. Capital outlay expenditures are subdivided into two categories: (1) sites and improvement of sites; buildings; improvement of buildings; building fixtures; and services systems; and (2) equipment which includes personal property of a relatively permanent nature and/or of significant value. (See the California School Accounting Manual for categorization of various items.) Capital outlay expenditures for category (1) are reimbursable as depreciation or use allowance. Capital outlay expenditures for licensable facilities in the community served by the program are reimbursable as lease payments, payments of principal and interest on loans incurred to acquire, rehabilitate or construct licensable facilities as long as the costs do not exceed fair market rents existing in the community in which the facility is located. In addition, to be reimbursable, interest paid on private sector debt for the purchase, lease -purchase, repair or renovation of child care and development facilities owned or leased by contractors providing center -based care must not exceed the value obtained by the state in the use of the facilities for the child care and development program during the year. C. Equipment Bidding and Approval Requirements All equipment purchases in excess of seven thousand five hundred dollars ($7,500) per item (including tax) shall be approved in writing in advance by the CDD. In determining if an equipment purchase exceeds the threshold, all expenses associated with a purchase that are necessary for it to perform the intended purpose should be included in calculating the purchase cost. Example: A computer system could include but is not limited to individual items such as a central processing unit (CPU), computer monitor, computer stand, modems, disk drives, software, printer, etc. or hardware and software to install a local area network (LAN) system. For private agencies, all equipment purchases exceeding five thousand dollars ($5,000) will not be approved unless at least three (3) bids or estimates have been obtained The contractor shall purchase the goods or services from the lowest responsible bidder. If three (3) bids or estimates cannot be obtained, the contractor shall provide adequate documentation of the reason(s) why three (3) bids or estimates could not be obtained (e.g., emergency situations). Public agencies shall comply with applicable sections of the Public Contract Code. Bids, if applicable shall be attached to the Request for Approval of Capital Outlay Expenditures when submitted to the CDD for approval. One copy of the Request shall be retained by the CDD and one copy returned to the contractor approved or disapproved within thirty (30) calendar days of receipt. If the request for approval of an equipment purchase is disapproved, the contractor may appeal the decision in accordance with instructions specified in Section X below. Equipment replacement and lease -purchase agreements are subject to the above requirements. An inventory of all equipment shall be maintained. 00 D. Title, Use, Disposition and Retention of Equipment Title. When equipment is purchased with State funds, title shall vest in the contractor only for such period of time as the contractor has a contract with the CDE. 0 2. Retention of Equipment. The CDD may provide written authorization for the contractor to retain the equipment for the contractor's own use if a fair compensation is paid to the State for the State's share of the cost of the equipment. Fair compensation shall be determined by the State using the State's share of original acquisition cost, less depreciation, computed on a straight line method over the estimated useful life expectancy of the equipment. 3. Use. When equipment is purchased in whole or in part with State funds, the contractor shall use the equipment exclusively in the program(s) from which funds were used to purchase the equipment. If the contractor wishes to share the use of the equipment between/among two (2) or more programs, the cost of such equipment shall be prorated between/among the programs. 4. Disposition. If the contractor no longer has a contract with the CDE, the contractor shall dispose of the equipment in accordance with written directions from the CDD. E. Renovation and Repair Improvement of sites and adjacent grounds to meet or continue to meet Title 22, California Code of Regulations, Community Care Licensing Standards is reimbursable if the improvements do not unnecessarily increase the value (as defined in Section I above) of a facility and the contractor has obtained prior CDD approval for proposed work for ten thousand dollars ($10,000) or more. For private agencies, such proposed work in excess of five thousand dollars ($5,000), unless performed by contractor's staff, shall have at least three (3) bids or estimates and shall be awarded to the lowest responsible bidder. Bids, if applicable, shall be submitted by the contractor when requesting CDD approval. If three (3) bids or estimates cannot be obtained, the contractor shall maintain adequate documentation of the reason(s) why three (3) bids or estimates could not be obtained aswell as the reasonableness of cost in the absence of competition. Public agencies shall comply with applicable sections of the Public Contract Code. Proposed work for ten thousand dollars ($10,000) or more shall be submitted for prior written approval to the CDD. If three (3) bids were not obtained, the contractor shall submit written justification to the CDD at the time approval is requested. The CDD shall approve or disapprove the request within thirty (30) calendar days. If the request is disapproved, the contractor may appeal the decision in accordance with instructions specified in Section X below. If the work is to be performed through a subcontract, the requirements of Section IV.B through F also apply. When private agencies submit proposed subcontracts for renovation and repair for approval, evidence shall be included that the proposed subcontractor has obtained a payment bond in an amount not less than one-half ('/Z) the amount of the proposed subcontract. IV. SUBCONTRACTS A. Subcontracts Excluded from Requirements of this Section The following types of relationships are not subject to the requirements contained in Section IV: (1) employment agreements; (2) facility rental or lease agreements; (3) medical or dental service agreements; (4) bookkeeping/auditing agreements, except for Section IV. - (5) food services agreements; (6) janitorial and groundskeeping agreements; (7) a subcontract with a public agency; and (8) subcontracts with an individual for less than ten thousand dollars ($10,000.00), except for Section N.B. However, no subcontract shall in any way relieve the contractor of any responsibility for performance under this contract. D All subcontracts, rental agreements and other contractual arrangements should include a termination for convenience clause permitting termination of such agreements without cost to the contractor. B. Bids for Subcontracts Private contractors shall obtain at least three (3) bids or estimates for subcontracts that exceed five thousand dollars ($5,000). The subcontract shall be awarded to the lowest responsible bidder. If three (3) bids or estimates cannot be obtained, the private contractor shall maintain documents in its records that establish the reasons why three (3) bids or estimates could not be obtained and (2) the reasonableness of the proposed expenditure without three (3) bids or estimates. Subcontracts subject to the approval of the CDD shall be rebid at least once every three (3) years or more often if specified by the CDD in its annual approval of the subcontract. Public agencies shall award subcontracts in accordance with the Public Contract Code. The contractor shall not split subcontracts to avoid competitive bidding requirements. Subcontracts for direct child development services between a public agency contractor and a private subcontractor are exempt from bidding but not advance approval by the CDD if they are for ten thousand dollars ($10,000) or more. Subcontracts for auditing and/or bookkeeping services shall be rebid and changed every five (5) years unless retention of the same auditor is approved by the OEA. C. Prior Child Development Division Approval If directed by the CDD, contractors shall obtain prior written approval from the CDD for subcontracts for ten thousand dollars ($10,000) or more that are not excluded from the provisions of this Section by Section IV.A above. Prior to execution of a subcontract and commencement of work, the contractor shall submit two (2) copies of the proposed subcontract to the CDD for approval, including a proposed line -item budget which shows the costs of the services to be performed The budget for a proposed subcontract for renovation and repair shall show the total cost of labor and the total cost of materials. Bids, if applicable, shall be submitted to the CDD when requesting approval. If three (3) bids were not obtained, the contractor shall provide written justification when the subcontract is submitted to the CDD for prior approval. Contractors shall demonstrate that approval of the subcontract is cost effective to the State_ For proposed renovation and repair subcontracts, private agencies shall include documents showing that the bidder selected by the contractor has obtained a payment bond in an amount not less than one-half ('/z) the amount of the proposed subcontract. Requests for approval of subcontracts for transportation services shall include a Certificate of Insurance for the subcontractor in an amount not less than $1 million per occurrence (or a greater amount if required by the Public Utilities Commission regulations), listing the contractor and the State as additional named insured. One copy of the subcontract will be retained by the CDD and the other copy returned to the contractor approved or disapproved within thirty (30) calendar days of receipt of all required documents. No reimbursement shall be made to the contractor or subcontractor for work performed prior to CDD approval. A disapproved contract will include a statement of the reason(s) for not approving the subcontract. If the request for approval of a subcontract is denied, the contractor may appeal the decision in accordance with instructions specified in Section X below. The State does not assume any responsibility peonsibility for performance of approved subcontracts nor does the State assume responsibility for any unpaid debt of the contractor resulting from subcontracting liens. Subcontracts which increase the contractor's cost of performance are nonreimbursable. Subcontracts which contain a provision for reimbursement for cost -plus -a -percentage -of -cost are nonreimbursable. 10 D. Required Subcontract Provisions Every subcontract shall specify: The dates within which the subcontractor is to perform the contract. The time for subcontractor performance shall not begin prior to, nor shall the time extend beyond, the time period of the contract between the contractor and the State. 2. The dollar amount of the subcontract or specify an amount not to exceed a maximum dollar amount. 3. The service(s) to be provided under the subcontract. 4. The responsibilities of each party under the subcontract. That the subcontractor, and the agents and employees of the subcontractor, in the performance of the subcontract, are acting in an independent capacity and not as officers or employees or agents of the State of California. 6. That modifications of the subcontract shall be in writing, and that for subcontracts in excess of the amount stated in the annual child development contract, prior written CDD approval is required unless the subcontract is otherwise exempt from prior CDD approval. That the subcontract is the complete and exclusive statement of the mutual understanding of the parties and that the subcontract supersedes and cancels all previous written and oral agreements and communications relating to the subject matter of the subcontract. 8. Remedies, in case of a breach of contract, for subcontracts in excess of ten thousand dollars ($10,000.00). 9. That the State of California retains title to any equipment or supplies purchased with State funds and that the equipment shall be returned to the contractor upon termination of the subcontract. The subcontract shall also specify that the subcontractor shall obtain prior written approval from the contractor and the CDD for any unit of equipment that costs in excess of seven thousand five hundred dollars ($7,500). 10. That the subcontractor shall be reimbursed for travel and per diem expenses only at rates that do not exceed the rates paid to the CDE's nonrepresented employees computed in accordance with State Department of Personnel Administration regulations, Title 2 California Code of Regulations, Subchapter 1. 11. That the subcontractor agrees to indemnify and hold harmless the State of California, its officers, agents and employees from any and all claims and losses occurring or resulting to any and all contractors, subcontractors, materialmen, laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of the subcontract, and from any and all claims and losses occurring or resulting to any person, firm or corporation that may be injured or damaged by the subcontractor in the performance of the subcontract. 12. For management and/or direcirservice subcontracts, the subcontractor shall maintain records for program review, evaluation, audit and/or other purposes and make the records available to agents of the State for a period of five (5) years. 11 13. The provisions of the "Nondiscrimination Clause" included in the prime contract as specified in Title 2 California Code of Regulations, Chapter 5, Section 8107. E. Recommended Subcontract Provisions The following items are suggested for inclusion in subcontracts to protect the interests of the contractor: Funding of the subcontract should be made subject to the appropriation and availability of funds from the State. All subcontracts should contain a provision that the subcontractor is liable for any audit exception caused by, or as a result of, the subcontractor's lack of performance as required by the subcontract. The subcontract should provide that the subcontractor, its agents and employees, in the performance of the subcontract, are acting in an independent capacity and not as agents or employees of the contractor. Unless exempted from CDD approval above, subcontracts for ten thousand dollars ($10,000) or more cannot become effective and binding on either the prime contractor or the subcontractor until approved in writing by the CDD, and any work performed by the subcontractor prior to the date of such approval shall not be used as a claim against the State. The consideration paid to the subcontractor, as provided in the subcontract, should be stated to be the full compensation for all the subcontractor's expenses incurred in the performance of the subcontract. F. Audit Requirements for Subcontracts Subcontracts for management and/or direct services shall be audited in accordance with CDE Audit Guidelines. The cost of the audit shall be reimbursable and shall be borne by the contractor either directly or as an allowance in the subcontract. The audit of the subcontract shall be submitted to the CDE's Office of External Audits as follows: School districts, county offices of education and community colleges shall submit the audit by November 15, 1999 for subcontracts performed during the 1998-99 contract period. All other contractors shall submit the subcontract audit along with the contractor's audit as specified in Section VI.I below. V. COSTS, EARNINGS AND REIMBURSEMENT A. Reasonable and Necessary Costs Contractors will be reimbursed for actual costs that are reasonable and necessary to the performance of the contract as defined in Section I above. B. Indirect Costs OV If an indirect cost rate is used, a cost allocation plan must be on file with the contractor and available for review by the CDD and auditors. The maximum indirect cost rate is eight percent (8%). The rate is applied to budget categories 1000-5000 only in determining the indirect charge to the contract. School districts and county offices of education shall use the CDE approved rate if it is less than eight percent (8%). 12 The amount of cost allocable to this contract shall not exceed the benefits to this contract. The allocation method must quantify this benefit among all similar programs and then distribute the costs accordingly. The indirect cost rate shall not include consideration of any costs otherwise nonreimbursable. If a depreciation or use allowance is included in the indirect cost rate, such allowance shall not be claimed on the asset. C. Administrative Costs Contractors may claim administrative costs as defined in Section I above which are directly related to the provision of child care and development services. Reimbursement of administrative costs shall not exceed fifteen percent (15%) of net reimbursable program costs or actual administrative costs, whichever is less. The fifteen percent (15%) includes any allowance for indirect costs and audits. Contractors shall maintain written documentation of the rationale used in determining direct and administrative costs. D. Service Level Exemption (Sttart-Up) for New or Expanded Programs Allowable start-up costs include employment and orientation of necessary staff, setting up of the program and facility; finalization of rental agreements and necessary deposits; purchase of a reasonable inventory of materials and supplies; and purchase of an initial premium of insurance. Contractors shall maintain an auditable record of start-up costs which shall be included within the audit at the end of the year. Reimbursable start-up costs shall occur prior to attainment of full enrollment. If all or part of the fifteen percent (15%) allowable start-up costs is needed and spent, that portion will not have to be "earned" through provision of services. If, however, the contractor neither needs nor chooses to claim any of the fifteen percent (151/6) start-up costs, the full service requirements shall be earned at the contract rate. E. Costs for Travel and Per Diem Contractors and subcontractors shall be reimbursed for travel and per diem expenses at rates not exceeding those amounts paid to the CDE's nonrepresented employees computed in accordance with State Department of Personnel Administration regulations, Title 2 California Code of Regulations, Subchapter 1. Contractors with collective bargaining agreements allowing higher rates of reimbursement shall not pay the difference out of contract funds. The CDD shall notify the contractor of a change in expense rates within thirty (30) calendar days after the CDD has received notification of a change in rates from the State Department of Personnel Administration. Contractors shall be reimbursed for out-of-state travel expenses only with prior written approval from the CDD. The CDD shall not approve out-of-state travel expenses: (1) for more than one employee per contract per year; (2) for contractors with delinquent accounts payable which are delinquent more than ninety (90) calendar days after the date of the original invoice; (3) for contractors on conditional status; (4) when there is no clear benefit to the State; or (5) when the benefit to the State can be obtained within California. The CDD shall approve or deny the request for out-of-state travel within thirty (30) calendar days of the receipt of the request. If the request is denied, V contractor may appeal the decision in accordance with instructions specified in Section X below. 13 F. Specific Items of Reimbursable Costs Reimbursable costs include, but are not limited to, the following: Start-up costs as specified in Section V.D above. Administrative costs as specified in Section V.0 above. Employee compensation, including fringe benefits, and personal service contracts. 4. Equipment and equipment replacement with prior CDD approval if required in Section HI.0 above. Improvement of sites and adjacent grounds to meet or continue to meet Title 22 California Code of Regulations, Community Care Licensing Standards in accordance with Section III.E above. 6. Taxes, insurance, and maintenance for buildings and/or equipment. Depreciation based on the useful life of an asset in accordance with Section IH.A above. 8. A use allowance for buildings and improvements in accordance with Section IIIA above. Travel and per diem expenses, including approved out-of-state travel, in accordance with Section V.E above. 10. An indirect cost rate based on an approved indirect cost plan, in accordance with Section V.B above. 11. Lease payments or depreciation and payments of principal and interest on loans incurred to acquire, rehabilitate or construct licensable facilities not to exceed fair market rents in the community in which the facility is located in accordance with guidelines issued by the CDE.. 12. Interest on private sector debt financing for purchase, lease -purchase, repair or renovation of child care and development facilities owned or leased for providing center -based care upon demonstration that the amount of interest paid in a year does not exceed the value obtained by the state in the use of the facilities for the child care and development program during the year in accordance with guidelines issued by the CDE. G. Nonreimbursable Costs The following costs shall not be reimbursable under the child development contract: Bad debts, including losses arising from uncollectible accounts and any related legal costs. 2. Contributions 3. Costs of amusement or entertainment OV Costs of fines or penalties Costs of idle facilities unless those costs are related to a partial year program and the costs of the idle facilities have been approved by the CDD 14 6. Costs incurred after the contract has been terminated 7. Fund raising costs except as specified in Section VII of the Program Quality Requirements 8. Consumer interest except: (a) interest on borrowed funds when apportionments are withheld because of a delay or error attributable to the State and the amount of interest claimed is approved by the CDD; (b) when interest is part of a lease purchase agreement; or (c) when the interest is part of payments on a loan incurred to acquire, rehabilitate or construct licensable facilities not to exceed fair market rents existing in the community in which the facility is located or (d) when the interest is on private sector debt financing for the purchase, lease -purchase, repair or renovation of child care and development facilities owned or leased by the contractor and it has been demonstrated that the amount of interest paid in a year does not exceed the value obtained by the state in the use of the facilities for the child care and development program during the year in accordance with guidelines issued by the CDE. 9. Investment management costs 10. Costs of organization of a nonprofit corporation such as incorporation fees or consultant fees 11. Public relations consultant fees 12. Costs of legal, consulting and accounting services incurred in prosecution of claims against the State 13. State and federal income taxes 14. Costs for the acquisition of sites and buildings except through depreciation unless the costs are for a licensable facility in the community served by the program and the costs do not exceed fair market rents existing in the community in which the facility is located in accordance with guidelines issued by the CDE. 15. Bonuses unless part of a collective bargaining agreement 16. Compensation to the members of the board of directors except for: (a) reimbursement for travel and/or per diem, computed in accordance with Section V.E above, incurred while the members are conducting business for the organization; and (b) as provided in the California Corporation Code Section 5227, et seq. 17. Costs of subcontracts which increase the contractor's cost or subcontracts which contain a provision for reimbursement for cost -plus -a -percentage -of -costs. 18. Costs incurred in prior or future years. H. Charging of Expenditures Net reimbursable program costs must be incurred during the contract period. Contractors shall not use current year contract funds to pay prior or fie year obligations. However, the cost of the annual independent audit may be claimed either in the contract periodwhich was the subject of the audit or during the contract period in which the audit is completed. 15 Recoupment of Advanced Contract Funds The CDE shall recoup any payments made for costs which were not reasonable and necessary. The amount that is recouped shall be the excess payment over the reasonable or fair market value, or one hundred percent (100%) of the cost, if the cost was not necessary. The CDE may elect to recover any costs of recoupment, including collection services or attorney fees. Determination of Reimbursable Amount Contractors shall be reimbursed for an audited claim that is the least of the following: The maximum reimbursable amount as stated in the annual child development contract 2. The net reimbursable program costs for contractors without a Reserve Account Contract service earnings - The adjusted child days of enrollment for certified children, times the contract rate per child day of enrollment, times the actual percentage of attendance plus five percent (5%), but in no case to exceed one hundred percent (100%) of enrollment K. Minimum Days of Operation If the contractor fails to operate at least ninety eight percent (98%) of the minimum days of operation required in its contract, ceases operation or the contract is terminated prior to the end of the contract period, the maximum reimbursable amount shall be reduced in proportion to the percentage of the contract minimum days of operation that the contractor was not in operation. L. Reduction, Withholding, and Cancelling Apportionments to Contractors The CDE shall reduce, withhold or cancel any scheduled apportionment when one or more of the following conditions exist: The contractor has not submitted an acceptable audit for any prior year of operation on or before the date due. The contractor has not submitted the reports required by Section VI below on or before the date due. The contractor will not earn the full contract amount based on the current year projected and the prior year actual net reimbursable programs costs as determined by the CDFS. 4. A creditor of the contractor has placed a lien on the contractor's scheduled apportionments. The contractor has accounts payable which are: (a) more than ninety (90) days delinquent to the CDE and (b) not under appeal as specified in either Section VIIIA or Section X below. If any apportionment is to be reducrd, withheld or cancelled, the CDE shall provide the contractor prior written notice of the intended action. 16 M. Order of Expenditure Expenditure from the Child Development Fund established pursuant to Section VI.B below shall occur in the following order: State or federal contract funds apportioned by the CDE shall be first in and first out. Federal Headstart funds providing services to families receiving state Preschool program services are deemed nonrestricted funds. Interest received on advanced CDE funds shall be last in and last out. VI. ACCOUNTING AND REPORTING REQUIREMENTS A. General Provisions Contractors shall follow the accounting procedures specified in the most recent edition of the California School Accountiniz Manual. Contractors shall report expenditures on an accrual basis. B. Child Development Fund and Interest Bearing Accounts All contractors shall establish a fund to be known as the "Child Development Fund" as specified in Education Code Section 8328, except that private contractors shall establish the fund in a federally insured banking institution located in California. Contractors with multiple fund sources shall establish separate program cost accounts for each source of funds. If a contractor places advanced contract funds in an interest bearing account, the interest bearing account shall be a separate account within the Child Development Fund. Interest earned shall be retained by the contractor if it is expended on reimbursable costs and earned by providing subsidized days of enrollment beyond the minimum required to earn the maximum reimbursable amount at a rate equal to the lesser of the daily contract rate or the actual program costs. C. Enrollment and Attendance Accounting Contractors shall use daily sign-in/sign-out sheets as a primary source document for audit and reimbursement purposes. One of the following persons shall enter the time of arrival and departure on a sign-in/sign-out sheet and shall sign the sheet using their full signature: (1) the parent or other adult authorized by the parent to drop off/pick up a child or (2) the staff person designated by the contractor as the person responsible for entering the times of arrival and departure if the child is not dropped off/picked up by a parent or other adult authorized by the parent. D. Attendance and Excused Absences Attendance, for the purposes of reimbursement, includes excused absences because of illness or quarantine of the child, illness or quarantine of their parent, family emergency, court ordered visitations or a reason which is clearly in the best interest of the child. r If the absence is claimed by the contractor as an excused absence, the attendance accounting records shall contain verification that includes: (1) the name of the child; (2) the date(s) of absence; (3) the specific reason for the absence; and (4) the signature of the parent or the contractor's authorized representative if verification is made by telephone. 17 ��.�`�,�� .x; 7��►X •�s %,moi► ;Yj �� v~�`� _fir � aF � - •y • �,. -a�, C)AMA-_L_ Jgsiwx -tel _• .4. 4 -All -A -X it -,ADIri Jri X�AUD)r II W� ! .119 IC -It -x-Rom*J `�% Jlf`'►Y' A ..adQ7[ II■hill iGfu•n01.: L-1 l i:ll it If an excused absence is based on time spent «-ith a par file shall contain a copy of the Court Order. Contractors shall adopt reasonable policies delineat "family emergence" and "in the best interest of the ch absences which may include reasonable limitations, i Except for children wfio are recipients of protective sen interest of the child" shall be limited to ten (10) days E. General Recordkeeping Requirements All records shall be retained for a minimum period of f there are documents to support the claims. The cont Authorized representatives of the State shall be allo- Nvork hours. F. Attendance and Expenditure Reports Contractors on conditional and provisional status month). All other contractors shall submit four (4) cu 20th. January 20th, April 20th and July 20th. Repc delinquent and, in accordance with Section VL abo, received. Contractors shall submit reports containing the follc Days of enrollment and attendance for all child:- to hildto date Total days of operation in the current reportL All services, revenues and expenditures for subsidized children are commingled as defin, 4. Amount and sources of all revenues other tha year to date total Total expenditures related to the program of The report shall include a certification that the ini original signature of the person authorized by the c Contractors have sixty (60) days from the due date fo: educational agencies; the final report shall be the contractor pursuant to this contract. G. Reports on Children and Families Served The contractor shall submit the following: annual Child Care Annual Aggregate Report (CD -800) to the CDD by November 1 of each year. 2. monthly Child Care Population Information Collection (CDD -801A) reports to the CDD by the 15th of the following month if selected to participate in the sample of 200 families for the Child Care Population Information Collection, the contractor shall submit the report CDD -801B) in accordance with the instructions from the CDD. Reports not received by CDD by the dates specified shall be deemed delinquent and, in accordance with Section V.M above, apportionment(s) shall be withheld until the required report is received. H. Legislative Report Data The contractor shall report annually to the CDE the numbers of four-year-old and three-year-old children in the program at a point in time and in a form and manner determined by the CDE. Contractors shall submit statistical, cost and program data as requested by the CDE in order for the CDE to prepare various legislatively mandated reports. By September 30 of each year, the CDD shall issue a notice to all affected contractors of any data collection efforts planned for the current contract period. Contractors shall submit the data to the CDE by the date specified in the CDE's request for this information. Reports not received by the required due date shall be considered delinquent. Penalties for delinquent reporting are specified in Section V.L above. Audits and Auditors Contractors shall submit to the CDE's Office of External Audits an acceptable annual financial and compliance audit. All audits shall be performed by: (1) a Certified Public Accountant who possesses a valid license to practice within the State of California; (2) a Public Accountant licensed on or before December 31, 1970 and currently certified and licensed by the State of California; or (3) a member of the CDE's staff of auditors. Public agencies may have their audits prepared by in-house auditors if the public contractor has internal audit staff that performs auditing functions and meets the tests of independence found in Standards for Audits of Governmental Organization, Programs, Activities, and Functions issued by the Comptroller General of the United States. Non -school district contractors shall submit the audit for the 1998-99 contract period by November 1.5, 1999 or earlier if specified by the CDE. The audits for school districts and county offices of education shall be submitted to the State Controller and the Office of External Audits by December 15, 1999 in accordance with Education Code Section 41020 and extensions shall only be granted in accordance with Education Code Section 41020.2. 19 Private agencies (including proprietary entities) that receive $300,000,00 or more in total federal funds are required to have an Organization Wide Audit (OWA) performed in accordance with OMB Circular A-133 and the "Audit Guide for Audits of Child Development and Nutrition Programs" prepared by CDE's Office of External Audits. Governmental and other public agencies (excluding school districts, county offices of education and community college districts) must comply with the requirements of OMB Circular A-128 and the CDE's "Audit Guide." All other agencies (excluding school districts, county offices of education and community colleges) must submit a contractor audit performed in accordance with the CDE's "Audit Guide." If, for any reason, the contract is terminated during the contract period, the audit shall cover the period from the beginning of the contract through the date of termination. Subcontracts for management and/or direct services shall be audited in accordance with the requirements stated in Section IV.F above. Review of Audit by the CDE's Office of External Audits The CDE's Office of External Audits shall conduct a review of the audit to determine whether the audit is acceptable and to determine the contractor's net reimbursable program costs. The Office of External Audits' determination of earnings shall be the final accounting of any amount payable to or receivable from the contractor pursuant to the contract. The contractor may appeal the Office of External Audits' findings according to the procedures specified in Section VIILA below if the amount of the demand for remittance meets or exceeds the threshold specified in Education Code Section 8402(c). K. Delinquent Audits and One -Time -Only Extensions If an audit is not received on or before the required due date and an extension has not been granted, the audit shall be considered delinquent and all apportionments shall be withheld as specified in Section V.L above. Except for contractors on conditional status, the Office of External Audits may grant a contractor a one -time -only, thirty (30) calendar day extension of the audit due date provided the inability of the contractor to submit the audit by the due date was beyond the fault and control of the contractor. Contractors shall be liable for all CDE costs incurred in obtaining an independent audit if the contractor fails to produce or submit an acceptable audit. L. Bureau of State Audits Contractors shall be subject to the examination and audit of the Bureau of State Audits for a period of three (3) years after final payment under this contract. M. Budget and Calendar r Contractors shall submit a revised calendar to the CDD and the CDFS whenever there are changes to the most recent version submitted to the CDE. Contractors shall submit revised budgets to the CDD as requested by the CDD. wo N. Reserve Accounts All contractors are encouraged to develop and maintain a reserve within the Child Development Fund. This reserve is derived from earned but unexpended funds calculated on current year service -based contracts. The following criteria must be followed when establishing and using a reserve account: Each agency wishing to establish a reserve shall submit a letter of intent no later than July 20 following the close of the fiscal year for which the reserve will be established. The letter of intent must be on agency letterhead and signed by the executive director (or authorized representative for public agencies). 2. Each reserve must be maintained in an interest-bearing account and the amount of interest earned will be included in the reserve balance. Reserve monies can only be used for expenses that are reimbursable allowable expenses as defined in the FT&C. Transfers from one reserve to another are not allowable.. However, transfers to a current -year contract in the same reserve category are allowable and shall be reported as restricted program income on that contract's attendance and fiscal report. 4. Reserve monies are generated from current year contracts; therefore, the transferable amount generated during the contract period will not be available until July 1 of the subsequent fiscal year. Transfers to the reserve will be authorized by CDFS only once a year. Upon receipt of the June final report, preliminary reserve amounts will be calculated by CDFS and reported to the contractor. If the contractor is an LEA, this may be the official notification provided there are no further amendments. For agencies that are required to submit an audit to the CDE, the amount will not be final until the audit is closed by the OEA and there are no outstanding billings. 6. Participating agencies must submit a Reserve Account Status Report for each reserve category type along with their June attendance and fiscal report due July 20. 7. Upon termination of all child development contracts, all monies in the reserve account shall be returned to the CDE.. VII. CONTRACT CLASSIFICATIONS A. Clear Status Contractors that are in full compliance with applicable law, regulations and contract provisions are awarded clear contracts. B. Provisional Status New contractors and contractors voh new contracts shall be on "provisional' status (stamped on the facesheet of the contract) for a period of not less than twelve (12) months. Contractors on provisional status shall submit monthly fiscal and attendance reports to the CDFS. 21 ZARAEl7ftXX:_X�XJ�X;I.YAI4,3t C. Conditional Status Contractors receiving "conditional" contracts (st. until the CDE issues a contract rider formally conditional status the contractor shall submit m report shall include a current inventory of equip: VIH.TERMINATION, SUSPENSION AND MAJOR RED A. Independent Appeal Procedures Pursuant to the requirements of Education Code be available to am, contractor whose contract is tc is reduced by four percent (4%) or $25,000, W officers in accordance with procedures established 1 California Code of Regulations. Sections 201 Termination or suspension of a contract during items of fiscal or programmatic noncompliance 1N an addendum stating the specific items of noncon or (2) a contractor engages in serious misconduc any of the reasons listed in Education Code Sec Am• action by the CDD to terminate or suspend a in Education Code Section 8402(a) through (c), s and describing the contractor's appeal rights. If th to the OAH. To assure that there is no interruption in semis for the appellant's contract during the appeal pr in Education Code Section 8406.7 or imminent dr to operate during the appeal process. B. Formal Appeals Procedures 1. Appeal Petition The contractor may contest the notices requesting a hearing before the OAH, nc action. The petition shall include (a) a ch action is unwarranted. and (c) any writh 2. Hearing If the contractor requests a hearing, it v the CDD, but at least ten (10) calendar An OAH hearing officer will hear evidc hearing will be recorded. The hearing c 3. The Decision The hearing officer shall issue a final decision, in writing, within thirty (3 0) calendar days after the submission of the case. The decision shall be sent by registered mail or personally served on the representatives of the parties by OAH. The decision shall the final administrative action afforded the contractor. 4. Request for Additional Written Materials on File at CDE Contractors may request, in writing, any public documents on which the CDE intends to rely from the CDE files at a cost of six (6) cents per page, payable in advance. The CDE will mail the material requested not later than ten (10) days Gom the receipt of the request. C. Contractor's Responsibility After Notice of Termination After receiving notice of the CDD's decision to terminate the contract, the contractor shall submit to the CDD all of the following: (1) a current inventory of equipment purchased in whole or in part with contract funds; (2) the names, addresses and telephone numbers of all families served by the contract, all staff members funded by the contract; and (3) monthly enrollment and attendance reports until the contract is actually terminated. The State shall only be obligated to compensate the contractor for net reimbursable program costs in accordance with this contract through the date of termination. There shall be no other compensation to the contractor. The State shall offset any monies the contractor owes the State against any monies the State owes under this contract. IX. CONTRACT STATUS CHANGE PROCEDURES A. Administrative Review of Changes in Contract Status Contract performance shall be reviewed at least annually by CDD staff who shall determine by April 1 of each year whether to offer continued funding on a clear contract, continued funding on a conditional basis or to make no offer of continued funding. If the staff recommends conditional status or no offer of continued funding, the contractor shall be notified in writing of the reasons for the proposed change in contract status by April 7. The notice of proposed action shall be sufficiently specific to allow the contractor to respond to the factual basis for the proposed action. If the contractor disagrees with the proposed action the contractor's response shall be received by the CDD within ten (10) calendar days of receipt of the notice of proposed action. The contractor's response shall include any written materials in support of its position and, if the contractor intends to make an oral presentation, the response shall so specify. If the action is being appealed, the staff recommendation and the contractor's response shall be reviewed by an administrative review panel convened by the Director of the CDD within seven (7) calendar days of receipt of the contractor's response. The review par el will consist of representatives of CDD management, the CDFS and CDE's Legal Office, Office of External Audits and Contracts Office and a representative of a child care and development service provider familiar with the type(s) of program(s) operated by the contractor. 23 Upon review of the written submissions, the panel will do one of the following: (1) issue a final decision upholding or modifying the proposed change in status if no oral presentation has been requested; (2) schedule a time and place for an oral presentation by the contractor or (3) issue a final decision to not change the contract status. If an oral presentation has been requested, the contractor will be notified by telephone of the time and place of the presentation. The oral presentation will be scheduled no later than fourteen (14) calendar days from receipt of the contractor's response. At the oral presentation, the contractor or the contractor's representative will have an opportunity to explain any material submitted in its response. While the contractor may present any information or arguments that are relevant to the proposed action, the review panel may set reasonable limits on the scope of the presentation. Within seven (7) calendar days after the oral presentation, the review panel shall issue and mail to the contractor a decision upholding, reversing or modifying the proposed change in contract status. The decision of the review panel shall be the final action of the CDE with regard to that contract. B. Conditional Status Imposed During the Contract Period If the contractor demonstrates fiscal or programmatic noncompliance during the contract period, based on such information as an annual audit report, a contract compliance review, a program quality review, or a change in licensing status, the CDD may place the contract on conditional status for the remainder of the contract period. The contractor shall receive notice and may request an administrative review of the proposed action as set forth in Section IX.A above, in the event such a change in contract status is recommended by staff of the CDD. If the contract is placed on conditional status during the last ninety (90) days of the contract period and the contractor is offered continued funding, the contract for the subsequent contract period will also be on conditional status. C. Conditional Status Addendum A conditional status contract shall contain a bill of particulars as specified in Education Code Section 8406.6 called a Conditional Status Addendum explaining the contract conditions. The Addendum shall include the following: (1) the specific item(s) of noncompliance which the contractor must correct; (2) the specific corrective action(s) which must be taken; (3) the time period within which the contractor must complete the corrections; and (4) notice that failure to make required corrections will result in termination of the contract or no offer of continued funding. If the contractor is placed on conditional status during the contract period a Conditional Status Addendum will be issued by the CDE and the Conditional Status Addendum shall be considered a part of the annual child development contract and binding on the contractor. D. Duration of Conditional Contract Status A contractor shall remain on condO.Ional contract status until the contractor has corrected deficiencies and/or has met requirements identified in the Conditional Status Addendum. A contractor with a repayment plan shall remain on conditional contract status and not receive any apportionments until full repayment is made. 24 A contractor on conditional contract status that is not on a repayment plan shall remain in that status until: (1) the CDE issues written notice to the contractor that the conditional status has been cleared; (2) the contractor is issued a clear contract; or (3) the contract terminates according to its terms. A contractor may request written verification from the CDD that some of the deficiencies have been corrected even if the contractor will not be removed from conditional contract status. X. RESOLUTION OF CONTRACT ADMINISTRATION DISPUTES The procedure specified in this Section shall be used to resolve disputes between contractors and the CDE that may arise regarding the interpretation and application of any term or condition of a contract, including, but not limited to, requests for waivers, approval of subcontracts or expenditures requiring approval, requests for reimbursement rate adjustments, or reductions in the total amount of contract reimbursement that are not appealable under Section VIIIA above. The contractor shall attempt to resolve contract disputes at the lowest staff level within the CDE. If the dispute is not resolved at the lowest staff level, the contractor may appeal the decision by submitting a written description of the issues and the basis for the dispute to the Field Services Unit Administrator of the CDD having jurisdiction over the contractor's service delivery area. The Administrator shall make a determination and shall send a written notification of the decision to the contractor, together with the reasons for the decision, within thirty (30) calendar days of the receipt of the appeal by the Administrator. The contractor may appeal the decision of the Administrator to the Director of the CDD by submitting a written description of the issues in dispute, and a copy of the Administrator's decision. The Director of the CDD shall send notification of the decision to the contractor and shall specify the reason(s) for the decision within thirty (30) calendar days of the receipt of the appeal by the Director. The decision of the Director of the CDD shall be the final administrative action afforded the contractor. I 25 PRESCHOOL PROGRAM REQUIREMENTS Fiscal 1999-00 I. DEFINITIONS As used in the Program Requirements "Adjusted monthly income" means total countable income minus verified child support payments paid by the parent whose child is receiving child development services. Except for child support payments paid by the parent, monthly income shall not be adjusted because of voluntary or involuntary deductions. When income fluctuations occur, the adjusted monthly income shall be computed by averaging the total adjusted income received during the twelve (12) months immediately preceding the month in which the application for services is signed. "Authorized representative" means the person designated by the contractor to certify eligibility for subsidized services. "Certify eligibility" means the formai process the contractor goes through to collect information and documentation to determine that the family meets the criteria for receipt of subsidized child development services as specified in Sections II.A and II.B below. The signature of the contractor's authorized representative on an application for services attests that the criteria have been met. "Child protective services children" means children receiving protective services through the local county welfare department as well as children identified by a legal, medical, social service agency or emergency shelter as abused, neglected or exploited or at risk of abuse, neglect or exploitation (see section II.J Documentation of Child Protective Services, p. 29, for specifc requirements). "Children with exceptional needs" means children who have been determined to be eligible for special education and related services by an individualized education program team according to the special education requirements contained in Part 30 (commencing with Section 56000), and meeting eligibility criteria described in Section 56026 and Sections 56333 to 56338, inclusive, and Sections 3030 and 3031 of Title 5 of the California Code of Regulations. These children have an active individualized education program, and are receiving appropriate special education and services, unless they are under three years of age and permissive special education programs are available. These children may be developmentally disabled, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed, orthopedically impaired, other health impaired, deaf -blind, multihandicapped or children with specific learning disabilities, who require the special attention of adults in a child care setting. "Declaration" means a written statement signed by a parent under penalty of perjury attesting that the contents of the statement are true and correct to the best of his or her knowledge. "Displace families" means to disenroll families in order to reduce service levels due to insufficient funding or inability of a contractor to operate one or more sites because of reasons beyond the control of the contractor, including earthquakes, floods or fire. "Four-year-old children" means those chilcen who will have their fourth birthday on or before December 2 of the fiscal year in which they are enrolled in a state preschool program. "Income fluctuation" means income which varies because of income such as bonuses, commissions, overtime, lottery winnings or migrant agricultural work or other seasonal employment. W1 "Legally qualified professional" means a person licensed under applicable laws and regulations of the State of California to perform legal, medical, health or social services for the general public. "Parent" means any person living with a child who has responsibility for the care and welfare of the child. "Recipients of service" means families and/or children enrolled in a child care and development program subsidized by the CDE. "Social service agency" means an agency which, in the course of day to day business, provides personal counseling, personal or group therapy using personnel properly certified or licensed under California law. Examples of such agencies include county welfare departments, county mental health departments, Family Service Association of America and Children's Home Society. "Three-year-old children" means those children who will have their third birthday on or before December 2 of the fiscal year in which they are enrolled in a state preschool program. "Total countable income" means income that does not include the following: (1) earnings of a child under age eighteen (18) years; (2) loans, grants, and scholarships obtained under conditions that preclude their use for current living costs; (3) grants or loans to students for educational purposes made or insured by a state or federal agency; (4) allowances received for uniforms or other work required clothing, food and shelter; (5) business expenses for self-employed family members and (6) income of a recipient of federal supplemental security income benefits pursuant to Title XVI of the Federal Social Security Act (42 SC Sec. 1381 et seq.) and state supplemental program benefits pursuant to Title XVI of the Federal Social Security Act and Chapter 3 (commencing with Section 12000) of part 3 of Division 9 of the Welfare and Institutions Code. II. ELIGIBILITY FOR SERVICES AND DOCUMENTATION A. General Requirements To receive Preschool program services, families shall meet eligibility criteria as specified in Section II.B below. In addition to meeting the eligibility requirements, to be eligible for services the child's parent(s) must live and/or work in the State of California. Evidence of a street address, post office address, income verification or declaration to live or work in California satisfies this requirement. The governing board of a school district, community college district, or a county superintendent of schools may accommodate children residing outside the district boundaries in accordance with Education Code Section 8322(a). The determination of eligibility shall be without regard to the immigration status of the child or the child's parent(s) unless the child or the child's parent(s) is under a final order of deportation from the United States Department of Justice. B. Eligibility Criteria Pre -kindergarten children ages three (3) to five (5) at the time of enrollment are eligible for the program. Except for CPS children, the family's adjusted monthly income cannot exceed the income ceilings established by the CDE at the time of enrollment. C. Certification of Eligibility 00 The contractor shall designate the staff person authorized to certify eligibility and, prior to initial enrollment, an authorized representative of the contractor shall certify eligibility for child care and development services after reviewing the completed application and documentation contained in the basic data file. Prior to enrollment the contractor shall complete the following forms: 27 Application for child care and development services as described in Section II.E below. 2. Notice of Action, Application for Services as described in Section IX.A below. The contractor shall certify eligibility no more than tone hundred twenty (120) calendar days prior to the first day of the beginning of the new preschool year. D. Contents of Basic Data File Contractors shall establish and maintain a basic data file for each family receiving Preschool program services. The basic data file shall contain an application for services and: 1. Documentation of total countable income 2. Documentation of exceptional need, if applicable 3. Written referral from a legal, medical or social services agency or emergency shelter for child protective services, if applicable 4. Notice of Action, Application for Services and/or Recipient of Services 5. All child health and emergency information required by Title 22 California Code of Regulations, Community Care Licensing Standards. E. Application for Services The application for services shall contain the following information: 1. The parent's(s') full name(s), address(es) and telephone number(s) 2. The names and birth dates of all children under the age of eighteen (18) in the family, whether or not they are served by the program 3. Family size and income 4. The parent's signature and date of the signature 5. The signature of the contractor's authorized representative certifying the eligibility. F. Determination of Family Size Family size shall be determined by the number of adults and children related by blood, marriage, or adoption who comprise the household in which the child is living. When an adult living in the household is neither the parent of the child nor the spouse of the parent, the adult and the adult's children if any, shall be excluded from the calculation of family size when such exclusion is to the advantage of the family. When a child is living with adult(s) other than a natural or adoptive parent, the child shall be considered a family of one. G. Documentation of Total Countable Income The parent(s) shall provide copies of his or her most recent check stub(s) or the contractor shall record the following information on the application foyervices when viewing the most recent check stub(s): (1) date of the check(s); (2) amount(s) of the gross pay specified on the check stub and (3) the period(s) covered by the check. Documentation shall be maintained for all income included in total countable income. 28 If the parent is self-employed, he/she may provide other documentation of income such as a letter from the source of the income or copies of tax returns or statements of estimated income for tax purposes. If the parent does not have documentation of his/her income, he/she may make a declaration of the amount of income. H. Documentation of Public Assistance If income is in the form of public assistance, the contractor shall document that a family is receiving public assistance by recording the family's Medi -Cal number on the application. I. Documentation of Exceptional Need For children with exceptional needs, the basic data file shall also include information as specified in Education Code Section 56026 and Title 5 California Code of Regulations, Sections 3030 and 3031. Documentation of Child Protective Services If a child is served under the first priority specified below, the basic data file shall contain a written referral, dated within the six (6) months immediately preceding the date of application for services, from a legal, medical, social service agency or emergency shelter. The written referral shall include either: A statement from the local county welfare department, child protective services unit, certifying that the child is receiving child protective services and that child care and development services are a necessary component of the child protective services plan or 2. A statement by a legally qualified professional that the child is at risk of abuse or neglect and the child care and development services are needed to reduce or eliminate that risk and The probable duration of the child protective service plan or the at -risk situation and 4. The name, address, telephone number and signature of the legally qualified professional who is making the referral III. ADMISSION POLICIES AND PROCEDURES A. General Admission Procedures Contractors shall develop written admission policies and procedures which shall be made available to the public. The admission procedures established shall conform to requirements in Title 22 California Code of Regulations, Section 101319. B. Admission Priorities, Waiting List and Displacement The first priority for services shall be given to child protective services children. Families with the lowest adjusted monthly income shall be admitted firg. If the contractor is unable to enroll a child in this first priority, the contractor shall refer the child's parent or guardian to local resource and referral services so that services for the child can be located. After children in the first priority are served, the contractor shall give priority to eligible four-year-old children prior to serving eligible three-year-old children. Within these age groups, families with the lowest adjusted monthly income 29 t�' 1t4t�lE:=1[�.�.x>•:�t.��`X'_ 3X� �=?l . �►X'��i shall be admitted first. The contractor shall certifi- to t old children. If income is the same. the contractor contractor: 1. Children who are identified as limited Englif 2. Children with exceptional needs whose India•; Education Code and Sections 3030 and 3031 c program as being an appropriate placement 3. Children from families whose special circ development. 4. Children who range in age from three years - The basic data file shall include documentation to si Pursuant to Title 5 California Code of Regulations Se year-olds and three -rear -olds have been enrolled_ t participation. This includes children who exceed t the current income ceiling issued by the CDD by fifte eligible families of the same size. These children 4d The contractor shall maintain the following info pro -vision: (a) evidence that shows the contractor mac and (c) the specific reason(s) for enrolling each child enrolled pursuant to this provision to all of the Sta Contractors shall maintain a current waiting list in order of priority from the waiting list as vacancies oG in reverse order of admission priorities. If funding for this program w•as initially allocated site shall be four-year olds. Any exception to this IV. NO FEES TO BE CHARGED/EXCEPTION Except as provided below, contractors shall not charge a f nor a provider of services shall require or solicit, in cash or i includes activities or services such as meals and recreation the family, the contractor shall refund to the parent(s) the Contractors prodding field trips may charge parents a fee. costs of field trips if those costs are charged as an additi trips shall inform parents, prior to enrolling the child, th A contractor may charge parents for field trips only unde A. The contractor has a written policy adopted by the regarding whether or not, and how much, to charE B. The maximum total of charges per child in a cont C. No cluld is denied participation in a field trip due to the parent's inability or refusal to pay the charge. No adverse action shall be taken against any parent for that inability or refusal. The contractor shall establish a payment system that prevents the identification of children based on whether or not their parents have paid a field trip charge. Expenses incurred and income received for field trips shall be reported to the CDE and income received shall be reported as restricted income. V. CONFIDENTIALITY OF RECORDS The use or disclosure of all information pertaining to the child and his/her family shall be restricted to purposes directly connected with the administration of the program. The contractor shall permit the review of the basic data file by the child's parent(s) or parent's authorized representative, upon request and at reasonable times and places. The contractor shall share information necessary for the administration of the child care and CalWORKS programs for the time period for which the person receives child care. VI. STAFFING QUALIFICATIONS A. Program Director If the contractor operates at two (2) or more sites, the contractor shall employ a program director who has administrative and programmatic responsibility for the program. The program director shall meet the requirements specified in Attachment A. The CDD may waive the qualifications for program director upon a fording of one of the following: (1) the applicant is malting satisfactory progress toward securing a permit issued by the Commission on Teacher Credentialing authorizing supervision of a child care and development program operating in two (2) or more sites or fulfilling the qualifications for program directors in severely handicapped programs, (2) the place or employment is so remote from institutions offering the necessary coursework as to make continuing education impracticable and the contractor has made a diligent search but has been unable to hire a more qualified applicant or (3) any other reason established by the rule by the Superintendent of Public Instruction. B. Site Supervisor At each site there shall be a person designated as the site supervisor who has operational program responsibility for the program. A site supervisor shall meet the requirements specified in Attachment A. The CDD shall grant a waiver of this requirement upon a contractor's demonstration of the existence of compelling need. Factors the CDD shall consider irp determining compelling need are as follows: (1) evidence that the contractor's recruitment efforts have not been successful in obtaining qualified applicants; (2) evidence of the contractor's inability to offer competitive salaries and/or (3) evidence of potential or current staffs lack of reasonable access to training resources which offer required course work. 31 C. Teacher Teachers shall meet the requirements specified in Attachment A. D. Applicability of Staffing Requirements Contractors are not subject to regulations under CCR, Title 5, and the laws upon which those regulations are promulgated if subsidized children comprise less than a majority of the enrollment at a given center. If there are no facilities in the area able to meet the special needs of particular children, then the CDD may, upon request, waive its regulations for staffing and ratios for programs in which subsidized children comprise a majority of the enrollment. VII. STAFFING RATIOS Contractors shall maintain at least the following minimum ratios in all centers: 1:8 adult -child ratio 1:24 teacher -child ratio Compliance with these ratios shall be determined based on actual attendance. Except as otherwise provided in Title 22 California Code of Regulations, Community Care Licensing Standards the program may exceed teacher -child and adult -child ratios by fifteen percent (15%) for a period of time not to exceed one hundred twenty (120) minutes in any one day. If the contractor cannot recruit a sufficient number of parents or volunteers, the contractor shall hire teacher aides for each class to the extent required to meet adult -child ratios as set forth above. VIII.MINIMUM HOURS AND DAYS OF OPERATION The contractor shall operate classes a minimum of three (3) hours per day, excluding home -to -school transportation time, for a minimum of 175 days per year, unless the child development contract specifies a lower minimum days of operation. IX. DUE PROCESS REQUIREMENTS A. Notice of Action, Application for Services The contractor's decision to approve or deny services shall be communicated to the applicant through a written statement referred to as a Notice of Action, Application for Services, in accordance with Section IX.0 below. The contractor shall maintain copies of the Notice of Action, Application for Services in the basic data file. The Notice of Action, Application for Services shall include: (1) the applicant's name and address; (2) the contractor's name and address; (3) the name and telephone number of the contractor's authorized representative who made the decision; (4) the date of the notice; (5) the method of distribution of the notice. If the services are approved, the not00 ice shall also contain (1) basis of eligibility; (2) duration of the eligibility; (3) names of children approved to receive services; and (4) hours of service for each day. If the services are denied, the notice shall contain: (1) the basis of denial and (2) instructions for the parent(s) on how to request a hearing if they do not agree with the contractor's decision in accordance with procedures specified below. 32 B. Notice of Action, Recipient of Services If existing service to the family will be altered, the contractor shall notify the family through a written Notice of Action, Recipient of Services in accordance with Section IX.D below. The contractor shall maintain copies of all Notices of Action, Recipient of Services in the family's basic data file. The Notice of Action, Recipient of Services shall include: (1) the type of action being taken; (2) the effective date of the action; (3) the name and address of the recipient; (4) the name and address of the contractor; (5) the name and telephone number of the contractor's authorized representative who is taking the action; (6) the date the notice is mailed or given to the recipient; (7) the method of distribution to the recipient; (8) a description of the action; (9) a statement of the reason(s) for the changes; (10) a statement of the reason(s) for termination, if applicable; and (11) instructions for the parent(s) on how to request a hearing if they do not agree with the contractor's decisions in accordance with procedures specified in Section IX.E below. C. Approval or Denial of Child Care and Development Services The contractor shall mail or deliver a completed Notice of Action, Application for Services to the parents within thirty (30) calendar days from the date the application is signed by the parent(s). D Changes Affecting Service The contractor shall complete a Notice of Action, Recipient of Services when changes are made to the service agreement. The contractor shall mail or deliver the notice of action to the parents at least fourteen (14) calendar days before the effective date of the intended action. E. Clients Request for a Hearing and Procedures If the parent disagrees with an action, the parent(s) may file a request for a hearing with the contractor within fourteen (14) calendar days of the date the Notice of Action was received. Upon the filing of a request for hearing, the intended action shall be suspended until the review process has been completed. The review process is complete when the appeal process has been exhausted or when the parent(s) abandons the appeal process. Within ten (10) calendar days following the receipt of the request for a hearing, the contractor shall notify the parent(s) of the time and place of the hearing. The time and place of the hearing shall, to the extent possible, be convenient for the parent(s). The hearing shall be conducted by an administrative staff person who shall be referred to as "the hearing officer." The hearing officer shall be at a staff level higher in authority than the staff person who made the contested decision. The parent(s) or parent's authorized representative is required to attend the hearing. If the parent or the parent's authorized representative fails to appear at the hearing, the parent will be deemed to have abandoned his or her appeal. Only persons directly affected by the hearing shall be allowed to attend. The contractor shall arrange for the presence of an interpreter at the hearing, if one is requested by the parent(s). The hearing officer shall explain to the parent(s) the legal, regulatory, or policy basis for the intended action. During the hearing, the parent(s) shall have an opportunity to explain the reason(s) they believe the contractor's decision was incorrect. The contractor's staff shall present any material facts omitted by the parent(s). 33 The hearing officer shall mail or deliver to the parent(s) a written decision within ten (10) calendar days after the hearing. F. Appeal Procedure for CDD Review If the parent disagrees with the written decision from the contractor, the parent has fourteen (14) calendar days in which to appeal to the CDD. If the parent(s) do(es) not submit an appeal request to the CDD within fourteen (14) calendar days, the parents' appeal process shall be deemed abandoned and the contractor may implement the intended action. The parent(s) shall specify in the appeal request the reason(s) why he/she believes the contractor's decision was incorrect. A copy of the contractor's notice of intended action and written decision shall be submitted by the parent(s) with the appeal request. Upon receipt of an appeal request, the CDD may request copies of the basic data file and other relevant materials from the contractor. The CDD may also conduct any investigations, interviews or mediation necessary to resolve the appeal. The decision of the CDD shall be mailed or delivered to the parent(s) and to the contractor within thirty (3 0) calendar days after receipt of the appeal request. G. Contractor Compliance with CDD Decision The contractor shall comply with the decision of the CDD immediately upon receipt thereof. The contractor shall be reimbursed for child care and development services delivered to the family which is appealing during the appeal process. If a contractor's determination that a family is ineligible is upheld by the CDD, services to the family shall cease upon receipt of the CDD's decision by the contractor. ■ 34 STATE PRESCHOOL PROGRAM QUALITY REQUIREMENTS Fiscal Year 1999-00 I. PROGRAM PHILOSOPHY, GOALS AND OBJECTIVES Each contractor shall have a written philosophical statement and goals and objectives which support that philosophy. The governing body of each contractor shall approve the program philosophy, goals and objectives. The goals and objectives shall address the requirements contained in Sections II through IX below and shall reflect the cultural and linguistic characteristics of the families served by the contractor. II. DEVELOPMENTAL PROFILE A "developmental profile" is a record of a child's physical, cognitive, social and emotional development. Teacher and parent observations shall be included as part of the child's developmental profile. The contractor shall complete a developmental profile of each child upon enrollment and at least once every twelve (12) months. The contractor shall use the developmental profiles to plan and conduct age and developmentally appropriate activities. III. EDUCATION PROGRAM Each contractor shall include in its program an educational program component that is developmentally, culturally and linguistically appropriate for the children served. The educational program component shall provide activities which will facilitate a child's physical, cognitive, social and emotional development. IV. STAFF DEVELOPMENT PROGRAM Each contractor shall develop and implement a staff development program which includes the following: A. Identification of training needs of staff or service providers B. Written job descriptions C. An orientation plan for new employees D. An annual written performance evaluation procedure unless a different frequency of performance evaluations is specified in a contractor's collective bargaining agreement with their employees E. Staff development opportunities which include topics related to the functions specified in each employee's job descriptions and those training needs identified in Section IV.A above F. An internal communication system that provides each staff member with the information necessary to carry out his or her assigned duties V. PARENT INVOLVEMENT AND EDUCATION Each contractor shall include in its program a parent involvement and education component which shall include the following: A. An orientation for parents that includes topics such as program philosophy, program goals and objectives, eligibility criteria and priorities for enrollment, fee requirements, due process procedures and program activities B. At least two (2) individual parent/teacher conferences per year C. Parent meetings with program staff D. An open door policy which encourages parents to participate in the daily activities whenever possible 35 E. A parent Advisory Committee which advises the contractor on issues related to services to families and children VI. HEALTH AND SOCIAL SERVICES Each contractor shall include in its program a health and social service component that: A. Identifies the needs of the child and the family for health or social services B. Refers a child and/or family to appropriate agencies in the community based on the health or social service needs C. Conducts follow-up procedures with the parent to ensure that the needs have been met VII. COMMUNITY INVOLVEMENT Each contractor shall solicit support from the community including the solicitation for donated goods and services. Each contractor shall provide information to the community regarding the services available. Contractors may utilize media or other forms of communication in the community. VIII.NUTRITION Each contractor shall include in its program a nutrition component that ensures that the children have nutritious meals and snacks during the time in which they are in the program. The meals and snacks shall be culturally and developmentally appropriate for the children being served and shall meet the nutritional requirements specified by the federal Child Care Food or the National School Lunch program. IX. ANNUAL SELF -STUDY PROCESS Each contractor shall develop and implement an annual self -study plan that determines if the program goals and objectives are being met. The self -study shall include a self-assessment by the contractor (Exemplary Program Standards) in accordance with instructions specified by the CDD. The self -study plan shall include assessment of the program by parents. The contractor shall submit a summary of the findings of the self -study to the CDD by March 1 of each year. The contractor shall modify its goals and objectives to address any areas identified during the self -study as needing improvement. 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