Miami Beach Community Health Center, Inc.~oo7-ass ys
PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH, FLORIDA
AND MIAMI BEACH COMMUNITY HEALTH CENTER, INC.
FOR YOUTH SERVICES
RELATED TO THE CITY'S SERVICE PARTNERSHIP INITIATIVE
THIS AGREEMENT made and entered into this 1st day of June, 2008, by and
between the CITY OF MIAMI BEACH, FLORIDA (hereinafter referred to as City),
having its principal offices at 1700 Convention Center Drive, Miami Beach, Florida,
33139, and MIAMI BEACH COMMUNITY HEALTH CENTER, INC., a Florida
Corporation, (hereinafter referred to as Contractor), whose address is 710 Alton Road,
Miami Beach, Florida, 33139.
SECTION 1
1.1 DEFINITIONS
Agreement: This Agreement between the City and Contractor, and any
exhibits and/or attachments hereto.
City Manager: The Chief Administrative Officer of the City.
Contractor: For the purposes of this Agreement, Contractor shall be
deemed to be an independent contractor, and not an agent
or employee of the City.
Services: All services, work and actions by the Contractor performed
pursuant to or undertaken under this Agreement, as
described in Section 2 and Exhibit "A" hereto.
Fee (Compensa#ion): Amount paid to the Contractor #o cover the costs of the
Services.
Risk Manager: The Risk Manager of the City, with offices et 1700
Convention Center Drive, Third Floor, Miami Beach, Florida
33139, telephone number (305) 673-7000, Ext. 6435, and
fax number (305) 673-7023.
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SECTION 2
SCOPE OF WORK (SERVICES)
The Contractor will provide medical screenings for up to two-hundred and forty (240)
youth in accordance with The Children's Trust Miami Beach Service Partnership
Grant, dated June 1, 2008. The scope of work to be performed by Contractor is
further detailed in Exhibit "A," entitled "Scope of Services." The Contractor shall
report to the City of Miami Beach, Neighborhood Services Department, Office of
Community Services, Division Director.
SECTION 3
COMPENSATION
3.1 FIXED FEE
Contractor shall be compensated for the Services, as set forth in Section 2
and Exhibit "A", as follows: Provision of medical screenings for referred youth at up to
Two Hundred and Forty (240) youth at Ten Dollars ($10) each, for a maximum not to
exceed Two Thousand Four Hundred Dollars ($2,400).
Contractor's compensation shall be further subject to and conditioned upon all
or any portion of the Services to be provided herein being allowable and within the
Scope of Services delineated in Exhibit "A".
Notwithstanding the preceding, Contractor's total compensation during the
term of this Agreement shall not exceed the maximum allowable sum of Two
Thousand Four Hundred Dollars ($2,400).
3.2 INVOICING
Contractor shall submit monthly invoices, a Monthly Progress Report, and
accompanying Monthly Progress Submissions Checklist & Summary Form, as set
forth in Exhibit "B", which includes an itemized, detailed description of the Services,
or portions thereof, provided (including the clients served) and cost(s) for same.
Invoices and supporting documentation shall be submitted to Maria L. Ruiz, Division
Director, Office of Community Services, 1700 Convention Center Drive, Miami
Beach, Florida, 33139.
3.3 METHOD OF PAYMENT
Payments shall be made within thirty (30) days of the date of invoice, in a
manner satisfactory to and as approved and received by the City Manager and/or his
designee, who shall be the Division Director, Office of Community Services.
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SECTION 4
GENERAL PROVISIONS
4.1 RESPONSIBILITY OF THE CONTRACTOR
With respect to the performance of the Services, the Contractor shall exercise
that degree of skill, care, efficiency and diligence normally exercised by recognized
professionals with respect to the performance of comparable services. In its
performance of the Services, the Contractor shall comply with all applicable laws,
ordinances, and regulations of the City, Miami-Dade County, the State of Florida, and
the federal government, as applicable.
4.2 PUBLIC ENTITY CRIMES
A State of Florida Form PUR 7068, Sworn Statement under Section
287.133(3)(a) Florida Statute on Public Entity Crimes shall be filed with the City's
Procurement Division, prior to commencement of the Services herein.
4.3 DURATION AND EXTENT OF AGREEMENT (TERM)
The term of this Agreement shall commence upon execution of this Agreement
by all parties hereto, and shall terminate on May 31, 2009.
4.4 TIME OF COMPLETION
The Services to be rendered by the Contractor shall be commenced upon
receipt of a written Notice to Proceed from the City subsequent to execution of the
Agreement by the parties, and shall be completed no later than May 31, 2009.
4.5 INDEMNIFICATION
Contractor agrees to indemnify and hold harmless the City of Miami Beach and its
officers, employees and agents, from and against any and all actions, claims,
liabilities, losses, and expenses, including, but not limited to, attorneys' fees, for
personal, economic or bodily injury, wrongful death, loss of or damage to property, at
law or in equity, which may arise or be alleged to have arisen from the negligent acts,
errors, omissions or other wrongful conduct of the Contractor, its employees, agents,
sub-consultants, or any other person or entity acting under Consultant's control, in
connection with the Contractor's performance of the Services pursuant to this
Agreement; and to that extent, the Contractor shall pay all such claims and losses
and shall pay all such costs and judgments which may issue from any lawsuit arising
from such claims and losses, and shall pay all costs and attorneys' fees expended by
the City in the defense of such claims and losses, including appeals.
The Contractor's obligation under this Subsection shall not include the obligation to
indemnify the City of Miami Beach and its officers, employees and agents, from and
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against any actions or claims which arise or are alleged to have arisen from negligent
acts or omissions or other wrongful conduct of the City and its officers, employees
and agents. The parties each agree to give the other party prompt notice of any
claim coming to its knowledge that in any way directly or indirectly affects the other
party.
4.6 TERMINATION, SUSPENSION AND SANCTIONS
4.6.1 Termination for Cause
If the Contractor shall fail to fulfill in a timely manner, or otherwise
violate any of the covenants, agreements, or stipulations material to this
Agreement, the City shall thereupon have the right to terminate the
Services then remaining to be performed. Prior to exercising its option
to terminate for cause, the City shall notify the Contractor of its violation
of the particular terms of this Agreement and shall grant Contractor
seven (7) days to cure such default. If such default remains uncured
after seven (7) days, the City, upon three (3) days' notice to Contractor,
may terminate this Agreement and the City shall be fully discharged
from any and all liabilities, duties and terms arising out of/or by virtue of
this Agreement.
Notwithstanding the above, the Contractor shall not be relieved of
liability to the City for damages sustained by the City by any breach of
the Agreement by the Contractor. The City, at its sole option and
discretion, shall additionally be entitled to bring any and all
legal/equitable actions that it deems to be in its best interest in order to
enforce the City's right and remedies against the defaulting party. The
City shall be entitled to recover all costs of such actions, including
reasonable attorneys' fees. To the extent allowed by law, the defaulting
party waives its right to jury trial and its right to bring permissive counter
claims against the City in any such action.
4.6.2 Termination for Convenience of City
NOTWITHSTANDING SECTION 4.6.1, THE CITY MAY ALSO, FOR
ITS CONVENIENCE AND WITHOUT CAUSE, TERMINATE THIS
AGREEMENT AT ANY TIME DURING THE TERM HEREOF BY
GIVING WRITTEN NOTICE TO CONSULTANT OF SUCH
TERMINATION, WHICH SHALL BECOME EFFECTIVE SEVEN (7)
DAYS FOLLOWING RECEIPT BY THE CONSULTANT OF THE
WRITTEN TERMINATION NOTICE. IN THAT EVENT, ANY
FINISHED OR UNFINISHED DOCUMENTS AND OTHER
MATERIALS PREPARED AND OR OTHERWISE COMPILED BY
CONSULTANT PURSUANT TO ITS PROVISION OF THE SERVICES
CONTEMPLATED IN SECTION 2 AND IN EXHIBIT "A", SHALL BE
PROMPTLY ASSEMBLED AND DELIVERED TO THE CITY, AT
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CONSULTANT'S SOLE COST AND EXPENSE. IF THE
AGREEMENT IS TERMINATED BY THE CITY AS PROVIDED IN
THIS SUBSECTION, CONSULTANT SHALL BE PAID FOR ANY
SERVICES SATISFACTORILY PERFORMED, AS DETERMINED BY
THE CITY AT ITS SOLE DISCERTION, UP TO THE DATE OF
TERMINATION; PROVIDED, HOWEVER, THAT AS A CONDITION
PRECEDENT TO SUCH PAYMENT, CONSULTANT SHALL HAVE
DELIVERED ANY AND ALL DOCUMENTS, MATERIALS, ETC, TO
CITY, AS REQUIRED HEREIN.
4.6.3 Termination for Insolvency
The City also reserves the right to terminate the remaining Services to
be performed in the event the Contractor is placed either in voluntary
or involuntary bankruptcy or makes an assignment for the benefit of
creditors. In such event, the right and obligations for the parties shall
be the same as provided for in Section 4.6.2.
4.6.4 Sanctions for Noncompliance with Nondiscrimination Provisions
In the event of the Contractor's noncompliance with the
nondiscrimination provisions of this Agreement, as applicable, the City
shall impose such sanctions as the City or the State of Florida may
determine to be appropriate, including but not limited to, withholding of
payments to the Contractor under the Agreement until the Contractor
complies and/or cancellation, termination or suspension of the
Services and/or the Agreement. In the event the City cancels or
terminates the Services and/or the Agreement pursuant to this
Subsection the rights and obligations of the parties shall be the same
as provided in Section 4.6.2.
4.7 CHANGES AND ADDITIONS
Any changes and additions to the terms of this Agreement shall be by a written
amendment, signed by the duly authorized representatives of the City and Contractor.
No alteration, change, or modification of the terms of this Agreement shall be valid
unless amended in writing, signed by the parties hereto, and approved by the City.
4.8 OWNERSHIP OF DOCUMENTS
Any changes and additions to the terms of this Agreement shall be by a
written amendment, signed by the duly authorized representatives of the City and
Contractor. No alteration, change, or modification of the terms of this Agreement
shall be valid unless amended in writing, signed by the parties hereto, and
approved by the City.
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4.9 AUDIT AND INSPECTIONS
Upon 24-hour's written notice, the City Manager (on behalf of the City) and/or
such authorized representatives as the City Manager may deem to act on the City's
behalf, may, during Contractor's normal business hours, audit, examine and make
audits of all contracts, invoices, materials, payrolls, records of personnel, conditions
of employment, and any and all other data and/or records and/or documents
relating to all matters covered by this Agreement. Contractor shall maintain any and
all such records, as necessary to document compliance with the provisions of this
Agreement.
4.10 ACCESS TO RECORDS
Contractor agrees to allow access during normal business hours to all
records including, without limitation, Contractor's financial records, to the City and/or
its authorized representatives, and agrees to provide such assistance as may be
necessary to facilitate audit by the City and/or its representatives, when and as the
City Manager, in his sole and reasonable discretion, may deem necessary to ensure
compliance with the provisions of this Agreement including, without limitation, as
they pertain to any financial audits (with applicable accounting and financial
standards). Contractor shall allow access during normal business hours to any and
all records, forms, files, and documents which have been generated in performance
of this Agreement, by the City and/or its authorized representatives.
4.11 INSURANCE REQUIREMENTS
The Contractor shall not commence any work and/or Services pursuant
to this Agreement until all insurance required under this Section has been obtained
and such insurance has been reviewed and approved by the City's Risk Manager.
Contractor shall maintain and carry in full force during the term of this Agreement the
following insurance:
1. Contractor General Liability, in the amount of $1,000,000.
2. Contractor Professional Liability, in the amount of $200,000.
3. Workers Compensation & Employers Liability, as required pursuant to Florida
Statutes.
All insurance required hereunder must be furnished by insurance companies
authorized to do business in the State of Florida.
Original certificates of insurance for the above coverage must be submitted to
the City's Risk Manager at the Office of the Risk Manager of the City of Miami Beach,
1700 Convention Center Drive, Miami Beach, Florida 33139.
The Contractor is solely responsible for obtaining and submitting all insurance
certificates for its sub-contractors.
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All insurance policies must be issued by companies authorized to do business
under the laws of the State of Florida. The companies must be rated no less than
"B+" as to management and not less than "Class VI" as to strength by the latest
edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New
Jersey, or its equivalent.
Compliance with the foregoing requirements shall not relieve the Contractor of
the liabilities and obligations under this Section or under any other portion of this
Agreement, and the City shall have the right to obtain from the Contractor specimen
copies of the insurance policies in the event that submitted certificates of insurance
are inadequate to ascertain compliance with required overage.
All of Contractor's certificates, as required in this Section 4.11, shall contain
endorsements providing that written notice shall be given to the City at least thirty
(30) days prior to termination, cancellation or reduction in coverage in the policy.
The Contractor shall not commence any work and/or Services pursuant to this
Agreement until the City's Risk Manager has received, reviewed and approved, in
writing, certificates of insurance showing that the requirements of this Section (in its
entirety) have been met and provided for.
4.12 ASSIGNMENT, TRANSFER OR SUBCONTRACTING
The Contractor shall not subcontract, assign, or transfer any work under this
Agreement without the prior written consent of the City Manager which consent, if
granted at all, shall be at the Manager's sole and absolute discretion.
4.13 SUB-CONTRACTORS
The Contractor shall be liable for Contractor's services, responsibilities and
liabilities under this Agreement, and the services, responsibilities and liabilities of
sub-contractors, and any other person or entity acting under the direction or control
of Contractor. When the term "Contractor" is used in this Agreement, it shall be
deemed to include any sub-contractors and any other person or entity acting under
the direction or control of Contractor. All sub-contractors must be approved, in
writing by the City Manager, or his designee, prior to their engagement by
Contractor (which approval, if granted at all, shall be at the Manager's sole
discretion and judgment).
4.14 EQUAL EMPLOYMENT OPPORTUNITY
In connection with the performance of this Agreement, the Contractor shall
not discriminate against any employee or applicant for employment because of
race, color, religion, ancestry, sex, age, and national origin, place of birth, marital
status, or physical handicap. The Contractor shall take affirmative action to ensure
that applicants are employed and that employees are treated during their
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employment without regard to their race, color, religion, ancestry, sex, age, national
origin, place of birth, marital status, disability, or sexual orientation, as applicable.
4.15 NO CONFLICT OF INTEREST
The Contractor agrees to adhere to and be governed by the Metropolitan
Miami-Dade County Conflict of Interest Ordinance, as same may be amended from
time to time; and by City of Miami Beach Code, as same may be amended from
time to time.
The Contractor covenants that it presently has no interest and shall not
acquire any interest, direct or indirectly which should conflict in any manner or
degree with the performance of the Services. The Contractor further covenants that
in the performance of this Agreement, no person having any such interest shall
knowingly be employed by the Consultant. No member of or delegate to the
Congress of the United States shall be admitted to any share or part of this
Agreement or to any benefits arising there from.
4.16 PATENT RIGHTS; COPYRIGHTS; CONFIDENTIAL FINDINGS
Any patentable result arising out of this Agreement, as well as all information,
design specifications, processes, data and findings, shall be made available in
perpetuity to the City, for public use.
No reports, other documents, articles or devices produced in whole or in part
under this Agreement shall be the subject of any application for copyright or patent
by or on behalf of the Contractor or its employees or subcontractors.
4.17 NOTICES
All notices and communications relating to the day-to-day activities shall be
exchanged between a project manager appointed by the Contractor and the
program coordinator designated by the City Manager, who shall be Neighborhood
Services Department, Office of Community Services, Division Director. The
Contractor's project manager shall be designated following execution of this
Agreement by the parties and prior to commencement of the Services.
All other notices and communications in writing required or permitted
hereunder may be delivered personally to the representatives of the Contractor and
the City listed below or may be mailed by registered mail.
Until changed by notice in writing, all such notices and communications shall
be addressed as follows:
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TO CONTRACTOR:
Miami Beach Community Health Center, Inc..
Attn: Kathryn Abbate, Executive Director
710 Alton Road
Miami Beach, Florida 33139
(305)695-2184
TO CITY:
City of Miami Beach
Office of Community Services
Attn: Maria L. Ruiz, Director
1700 Convention Center Drive
Miami Beach, Florida 33139
(305) 673-7491
4.18 LITIGATION JURISDICTIONNENUE
This Agreement shall be governed by, and construed in accordance with, the
laws of the State of Florida, both substantive and remedial, without regard to
principles of conflict of laws. The exclusive venue for any litigation arising out of the
Agreement shall be Miami-Dade County, Florida, if in State court, and the U.S.
District Court, Southern District of Florida, if in federal court.
BY ENTERING INTO THIS AGREEMENT, CONTRACTOR AND CITY
EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY
JURY OR ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS
AGREEMENT.
4.19 ENTIRETY OF AGREEMENT
This writing and any exhibits and/or attachments incorporated (and/or
otherwise referenced for incorporation) herein embody the entire Agreement and
understanding between the parties hereto, and there are no other agreements and
understandings, oral or written, with reference to the subject matter hereof that are
not merged herein and superseded hereby.
4.20 LIMITATION OF CITY'S LIABILITY
The City desires to enter into this Agreement only if in so doing the City can
place a limit on the City's liability for any cause of action for money damages due to
an alleged breach by the City of this Agreement, so that its liability for any such
breach never exceeds the sum of $1,000. Contractor hereby expresses its
willingness to enter into this Agreement with Consultant's recovery from the City for
any damage action for breach of contract to be limited to a maximum amount of
$1,000.
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Accordingly, and notwithstanding any other term or condition of this
Agreement, Contractor hereby agrees that the City shall not be liable to the
Contractor for damages in an amount in excess of $1,000 for any action or claim for
breach of contract arising out of the performance or non-performance of any
obligations imposed upon the City by this Agreement. Nothing contained in this
paragraph or elsewhere in this Agreement is in any way intended to be a waiver of
the limitation placed upon the City's liability as set forth in Section 768.28, Florida
Statutes.
[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their appropriate officials, as of the date first entered above.
FOR CITY:
CITY OF MIAMI BEACH, FLORIDA
ATTEST:
By:
~,~ P~a~
City Clerk
Mayor
FOR CONTRACTOR:
ATTEST:
By:
~~ ~1
Se retary
c rd S
Print Name
Corporate Seal
Miami Beach Community Health
Center, Inc., A Florida Corporation
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
,~
G~C1Y
~° ~ ttorne e
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EXHIBIT "A"
"SCOPE OF SERVICES"
The Contractor agrees to provide the following services to youth referred to the
Success University program:
Service Documentation of Service
Y_..._._._..._...._....__._...___.___.___.__.________.__....._..__....._._...___.__ ___.__.___.__..._....-__.._...._____.....__...._.__.__.._._..._..__ ..............._._.__....._____..._.._.___._______._.__._...._._..._..._.._......._.._.._.....;
Medical Screenin s Name of client and date of service
_9 .................................................................................:............................................................................................. .............................................................................................................................._
Related Definitions:
Medical Screenings -Medical Screenings will be any medical service provided at
any Miami Beach Community Health Center to an eligible Success University client.
Services will be deemed as provided when the following documentation is provided
within the noted timeframes:
Service Documentation Submission Deadline
Medical Screenings :Name of client and date of ;Included with Monthly
service ;Report and Invoicing
Service Deliverables
Service ~ Unit of Service Service Location Timeframe
Medical Screenings ~ 1 unit for up to 240 ;Any Miami Beach :Between July 1,
~ Success University Community Health 2008 and May 30,
.-_-------__._._----------..._....._.._._........._.__lyouuth______-_-- ;Center site :2009
Failure to meet contracted service units within the allocated timeframe may result in
the City subsequently reducing the Contractor's service level and allocated funding
accordingly.
If the Contractor is unable to fulfill the contracted service level within the allocated
timeframe for each service component, the City reserves the right to reduce service
levels accordingly across the funded service spectrum.
If the Contractor is unable to fulfill the contracted service level and the City
subsequently reduces service and funding levels, the City reserves the right to select
another vendor to fulfill the remaining service units. The City will select the alternate
vendor at its sole discretion.
Reporting Requirements
The Contractor will provide the City with a Monthly Progress Report and
reimbursement request utilizing the City's Reporting and Reimbursement Forms
12
(attached) by the third (3~d) of the following month. In the event that the third of the
month lands on a Saturday or Sunday, the report must be submitted the following
Monday.
Monthly reports and reimbursement requests will be submitted via:
• Electronic mail
• Facsimile
• Standard mail
• Hand delivery
Monthly reports will not be considered acceptable unless the following is met:
• Forms are completely and accurately filled
• .Necessary back-up materials are included (client documentation, expense
receipts, time logs, etc.)
• Reports bear the signature of the person submitting the report on behalf of
the Contractor
The City will document Contractor service level data and monthly reports via Active
Strategy software for inclusion in the monthly report to the Miami Beach Governing
Board as well as the City's website.
Partner Performance Ratings
The Contractor agrees that its Partner Performance Rating, the score awarded for
performance on the following measures, will be posted on the City's website:
• Timely and accurate submission of monthly progress report
• Timely and accurate submissions of monthly financial reports (reimbursement
requests)
• Delivery of contracted service units
• Promotion of the Miami Beach Service Partnership
• Attendance at Miami Beach Service Partnership Governing Board and related
committee(s) meetings
Ratings will be given for each performance measure based on the following:
Performance Measure
Timely and accurate submission of
monthly_progress _re_Port_--.__.____.__._.... _.
Timely and accurate submissions of
monthly financial reports (reimbursement
requests)
Delivery of contracted service units
_. _._____._._Ratin~_Rationale_&_Score__ _ _.__
- "0" for failing to submit on time
- "20" for submitting_on_time
- "0" for failing to submit accurate report
with back-up material on time
- "20" for submitting accurate report on
time
Possible score of 0 to 20 based upon
completion of monthly projected service
units. Score is pro-rated if total nroiected
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Promotion of the Miami Beach Service
Partnership
Attendance at Miami Beach Service
Partnership Governing Board and related
committee(s) meetings
service units are not met.
Possible score of 0 to 20:
- Contractor will promote Service.
Partnership on its website, if applicable (5
points for inclusion on website)
- Contractor will display Service
Partnership materials and/or poster in
service lobby. (5 points for inclusion in
lobby)
- Contractor will adhere to approved
commitments in Service Partnership
Marketing Plan (up to 10 points pro-rated
_for_participation on commitm_e_ nts~ _ ____ ___ _
Possible score of 0 to 20:
10 Points for attendance at Governing
Board meetings; 10 points for Committee
attendance
Memoranda of Understanding
A Memorandum of Understanding (MOU) reflecting the terms of this agreement as
well as commitment to the Miami Beach Service Partnership will be provided and
updated as necessary. The MOU must be submitted to the City of Miami Beach prior
to execution of the service contract.
Evaluation
In the continuing effort to ensure programming excellence, clients will be provided
with evaluation forms at the end of each programming component to gauge their
satisfaction with services provided. The evaluation forms wilt be provided by the City
and must be administered at the following time:
• Provision of medical screening
Monitoring & Performance Reviews
The City of Miami Beach reserves the right to inspect, monitor and/or audit the
Contractor to ensure contractual compliance. This includes, but is not limited to:
• Review of on-site service delivery
• Inspection and review of client, budgetary and employee files (for those
employees providing services under this contract)
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The monitoring tool provided by The Children's Trust, "Community and Neighborhood
Services System of Care Programmatic Site Visit .Form", will be used to guide
inspections and monitoring visits. (Copy included herein.)
Employee File Review
The following documentation must be included in the employee file for those
employees providing services under this contract. The City of Miami Beach reserves
the right to inspect client files with due notice (at least 48 hours in advance of planned
site visit) to ensure adherence to contractual expectations as well as to ensure pre-
screening prior to a monitoring visit by The Children's Trust. The following must be
included in the employee files:
• Employment Application
• Evidence of degree/credentials
• Job Description Signed by Employee
• Evidence of Required Experience
• Florida Background Criminal Screening
• National FBI Background Criminal Screening (Level2)
• Affidavit of Good Moral Character
• Proof of Knowledge of Policies & Procedures
• Confidentiality Agreement Re: Client Information
• Documentation of Agency Training/In-Service Training
• I-9 Verification on File
Master Calendar
The Contractor will notify the City of any client appointment or anticipated service
delivery at least 72 hours in advance of the appointment or service delivery for
inclusion in the Success University Master Calendar that is distributed to all members
of the Miami Beach Service Partnership. The Master Calendar will be updated daily
and distributed to the Partnership as needed.
Additional Documentation
The following documentation must be submitted with this executed agreement:
• All required insurance certificates
• Copy of current audit
• Copy of required business licenses and permits
• Copy of notice as recipient of funding from The Children's Trust
• Updated Memorandum Of Understanding (MOU) reflecting scope of services
and leverage associated with Success University
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EXHIBIT "B"
INVOICING
The Contractor agrees to provide the invoicing and services documentation as
indicated in the Monthly Progress Report and Monthly Reimbursement Form, as
attached to this Exhibit, by the third (3~d) of the subsequent month.
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i fi ~
Grant Number:
Reporting Period:
D June 2008
D August 2008
O October 2008
O December 2008
O February 2009
O April 2009
O July 2008
D September 2008
O November 2008
O January 2009
O March 2009
O May 2009
Miami B
each , .. ....... .. .
Success University Initiative
Reporting Date:
Person Submitting Report:
Title:
Signature:
Vendor Agency:
Telephone:
E-Mail:
F'r0 r@SS NarratlV@
Please describe any difficulties encountered in providing services this month.
'.Please describe any success stories achieved this month.
Please provide any additional observations or comments related to Success University, your service goals or
general operations.
F. S F S ~F ...wi. 'r,: ::
1 MYf' \bNaY,::
wwww-- ` .... .., ~. a ( {xY v......~ is ~kh]if+ .'. }.
Grant Number:
Reporting Period:
O June 2008
O August 2008
O October 2008
O December 2008
O February 2009
O April 2009
O July 2008
O September 2008
O November 2008
O January 2009
O March 2009
O May 2009
Reporting Date:
Person Submitting Report:
Title:
Signature:
Vendor Agency:
Telephone:
E-Mail:
Population Served
U
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Po ulation Se ment ~ a` ~
Y
h
out 0
Parents 0
Other Famil p
Others 0
Staff 0
TOTALS 0
PLEASE NOTE: Service Units shouid
reflect non-dupkicated persons. The
infromation provided here enables
documentation for the total number of
people benefitting from services. Back::-up
documentation must be submitted.
Financial Summary
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c o Q 'c
o c ~ ~ £
Service Provided ¢ a` v > m ~
Communit Service 0 0
Entre reneurshi Trainin 0 0
Famil Conferences 0 0
Health Screenin s 0 0
Home Visits 0 0
Intakes & Assessments 0 0
MB Hel ers Trainin 0 0
Meals 0 0
MDTA Tokens 0 0
Tutorin 0 0
TOTALS 0 0 0
Miami Beach .......:,: ~:........
Success University Initiative
Office Use Only
Date Received: Date Processed for Payment:
CIRCULAR NO. A-122
Revised
SUBJECT: Cost Principles for Non-Profit Organizations
1. Purpose. This Circular establishes principles for determining costs of grants, contracts and other
agreements with non-profit organizations. It does not apply to colleges and universities which are covered
by Office of Management and Budget (OMB) Circular A-21, "Cost Principles for Educational
Institutions"; State, local, and federally-recognized Indian tribal governments which are covered by OMB
Circular A-87, "Cost Principles for State, Local, and Indian Tribal Governments"; or hospitals. The
principles are designed to provide that the Federal Government bear its fair share of costs except where
restricted or prohibited by law. The principles do not attempt to prescribe the extent of cost sharing or
matching on grants, contracts, or other agreements. However, such cost sharing or matching shall not be
accomplished through arbitrary limitations on individual cost elements by Federal agencies. Provision for
profit or other increment above cost is outside the scope of this Circular.
2. Supersession. This Circular supersedes cost principles issued by individual agencies for non-profit
organizations.
3. Applicability.
a. These principles shall be used by all Federal agencies in determining the costs of work
performed bynon-profit organizations under grants, cooperative agreements, cost reimbursement
contracts, and other contracts in which costs are used in pricing, administration, or settlement. All
of these instruments are hereafter referred to as awards. The principles do not apply to awards
under which an organization is not required to account to the Federal Government for actual costs
incurred.
b. All cost reimbursement subawards (subgrants, subcontracts, etc.) are subject to those Federal
cost principles applicable to the particular organization concerned. Thus, if a subaward is to a non-
profit organization, this Circular shall apply; if a subaward is to a commercial organization, the
cost principles applicable to commercial concerns shall apply; if a subaward is to a college or
university, Circular A-21 shall apply; if a subaward is to a State, local, or federally-recognized
Indian tribal government, Circular A-87 shall apply.
4. Definitions.
a. Non-profit organization means any corporation, trust, association, cooperative, or other
organization which:
(1) is operated primarily for scientific, educational, service, charitable, or similar purposes
in the public interest;
(2) is not organized primarily for profit; and
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(3) uses its net proceeds to maintain, improve, and/or expand its operations. For this
purpose, the term "non-profit organization" excludes (i) colleges and universities; (ii)
hospitals; (iii) State, local, and federally-recognized Indian tribal governments; and (iv)
those non-profit organizations which are excluded from coverage of this Circular in
accordance with paragraph 5.
b. Prior approval means securing the awarding agency's permission in advance to incur cost for
those items that are designated as requiring prior approval by the Circular. Generally this
permission will be in writing. Where an item of cost requiring prior approval is specified in the
budget of an award, approval of the budget constitutes approval of that cost.
5. Exclusion of some non-profit organizations. Some non-profit organizations, because of their
size and nature of operations, can be considered to be similar to commercial concerns for purpose
of applicability of cost principles. Such non-profit organizations shall operate under Federal cost
principles applicable to commercial concerns. A listing of these organizations is contained in
Attachment C. Other organizations maybe added from time to time.
6. Responsibilities. Agencies responsible for administering programs that involve awards to non-
profit organizations shall implement the provisions of this Circular. Upon request, implementing
instruction shall be furnished to OMB. Agencies shall designate a liaison official to serve as the
agency representative on matters relating to the implementation of this Circular. The name and
title of such representative shall be furnished to OMB within 30 days of the date of this Circular.
7. Attachments. The principles and related policy guides are set forth in the following
Attachments:
Attachment A- General Principles
Attachment B -Selected Items of Cost
Attachment C -Non-Profit Organizations Not Subject To This Circular
8. Requests for exceptions. OMB may grant exceptions to the requirements of this Circular when
permissible under existing law. However, in the interest of achieving maximum uniformity,
exceptions will be permitted only in highly unusual circumstances.
9. Effective Date. The provisions of this Circular are effective immediately. Implementation shall
be phased in by incorporating the provisions into new awards made after the start of the
organization's next fiscal year. For existing awards, the new principles maybe applied if an
organization and the cognizant Federal agency agree. Earlier implementation, or a delay in
implementation of individual provisions, is also permitted by mutual agreement between an
organization and the cognizant Federal agency.
10. Inquiries. Further information concerning this Circular maybe obtained by contacting the
Office of Federal Financial Management, OMB, Washington, DC 20503, telephone (202) 395-
3993.
Attachments
Cost Allocation Plan (Circular A-122) 2
Miami Beach Service Partnership
ATTACHMENT A
Circular No. A-122
GENERAL PRINCIPLES
Table of Contents
A. Basic Considerations
1. Composition of total costs
2. Factors affecting allowability of costs
3. Reasonable costs
4. Allocable costs
5. Applicable credits
6. Advance understandings
7. Conditional exemptions
B. Direct Costs
C. Indirect Costs
D. Allocation of Indirect Costs and Determination of Indirect Cost Rates
1. General
2. Simplified allocation method
3. Multiple allocation base method
4. Direct allocation method
5. Special indirect cost rates
E. Negotiation and Approval of Indirect Cost Rates
1. Definitions
2. Negotiation and approval of rates
ATTACHMENT A
Circular No. A-122
GENERAL PRINCIPLES
A. Basic Considerations
1. Composition of total costs. The total cost of an award is the sum of the allowable direct and
allocable indirect costs less any applicable credits.
2. Factors affecting allowability of costs. To be allowable under an award, costs must meet the
following general criteria:
a. Be reasonable for the performance of the award and be allocable thereto under these principles.
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b. Conform to any limitations or exclusions set forth in these principles or in the award as to types
or amount of cost items.
c. Be consistent with policies and procedures that apply uniformly to both federally-financed and
other activities of the organization.
d. Be accorded consistent treatment.
e. Be determined in accordance with generally accepted accounting principles (GAAP).
f. Not be included as a cost or used to meet cost sharing or matching requirements of any other
federally-financed program in either the current or a prior period.
g. Be adequately documented.
3. Reasonable costs. A cost is reasonable if, in its nature or amount, it does not exceed that which
would be incurred by a prudent person under the circumstances prevailing at the time the decision
was made to incur the costs. The question of the reasonableness of specific costs must be
scrutinized with particular care in connection with organizations or separate divisions thereof
which receive the preponderance of their support from awards made by Federal agencies. In
determining the reasonableness of a given cost, consideration shall be given to:
a. Whether the cost is of a type generally recognized as ordinary and necessary for the operation of
the organization or the performance of the award.
b. The restraints or requirements imposed by such factors as generally accepted sound business
practices, arms length bargaining, Federal and State laws and regulations, and terms and
conditions of the award.
c. Whether the individuals concerned acted with prudence in the circumstances, considering their
responsibilities to the organization, its members, employees, and clients, the public at large, and
the Federal Government.
d. Significant deviations from the established practices of the organization which may
unjustifiably increase the award costs. >dd>
4. Allocable costs.
a. A cost is allocable to a particular cost objective, such as a grant, contract, project, service, or
other activity, in accordance with the relative benefits received. A cost is allocable to a Federal
award if it is treated consistently with other costs incurred for the same purpose in like
circumstances and if it:
(1) Is incurred specifically for the award.
(2) Benefits both the award and other work and can be distributed in reasonable proportion
to the benefits received, or
(3) Is necessary to the overall operation of the organization, although a direct relationship
to any particular cost objective cannot be shown.
b. Any cost allocable to a particular award or other cost objective under these principles may not
be shifted to other Federal awards to overcome funding deficiencies, or to avoid restrictions
imposed by law or by the terms of the award.
5. Applicable credits.
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a. The term applicable credits refers to those receipts, or reduction of expenditures which operate
to offset or reduce expense items that are allocable to awards as direct or indirect costs. Typical
examples of such transactions are: purchase discounts, rebates or allowances, recoveries or
indemnities on losses, insurance refunds, and adjustments of overpayments or erroneous charges.
To the extent that such credits accruing or received by the organization relate to allowable cost,
they shall be credited to the Federal Government either as a cost reduction or cash refund, as
appropriate.
b. In some instances, the amounts received from the Federal Government to finance organizational
activities or service operations should be treated as applicable credits. Specifically, the concept of
netting such credit items against related expenditures should be applied by the organization in
determining the rates or amounts to be charged to Federal awards for services rendered whenever
the facilities or other resources used in providing such services have been financed directly, in
whole or in part, by Federal funds.
c. For rules covering program income (i.e., gross income earned from federally-supported
activities) see Sec. _.24 of Office of Management and Budget (OMB) Circular A-110, "Uniform
Administrative Requirements for Grants and Agreements with Institutions of Higher Education,
Hospitals, and Other Non-Profit Organizations."
6. Advance understandings. Under any given award, the reasonableness and allocability of
certain items of costs maybe difficult to determine. This is particularly true in connection with
organizations that receive a preponderance of their support from Federal agencies. In order to
avoid subsequent disallowance or dispute based on unreasonableness or nonallocability, it is often
desirable to seek a written agreement with the cognizant or awarding agency in advance of the
incurrence of special or unusual costs. The absence of an advance agreement on any element of
cost will not, in itself, affect the reasonableness or allocability of that element.
7. Conditional exemptions.
a. OMB authorizes conditional exemption from OMB administrative requirements and cost
principles circulars for certain Federal programs with statutorily-authorized consolidated planning
and consolidated administrative funding, that are identified by a Federal agency and approved by
the head of the Executive department or establishment. A Federal agency shall consult with OMB
during its consideration of whether to grant such an exemption.
b. To promote efficiency in State and local program administration, when Federal non-entitlement
programs with common purposes have specific statutorily-authorized consolidated planning and
consolidated administrative funding and where most of the State agency's resources come from
non-Federal sources, Federal agencies may exempt these covered State-administered, non-
entitlement grant programs from certain OMB grants management requirements. The exemptions
would be from all but the allocability of costs provisions of OMB Circulars A-87 (Attachment A,
subsection C.3), "Cost Principles for State, Local, and Indian Tribal Governments," A-21 (Section
C, subpart 4), "Cost Principles for Educational Institutions," and A-122 (Attachment A, subsection
A.4), "Cost Principles for Non-Profit Organizations," and from all of the administrative
requirements provisions of OMB Circular A-110, "Uniform Administrative Requirements for
Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit
Organizations," and the agencies' grants management common rule.
c. When a Federal agency provides this flexibility, as a prerequisite to a State's exercising this
option, a State must adopt its own written fiscal and administrative requirements for expending
and accounting for all funds, which are consistent with the provisions of OMB Circular A-87, and
extend such policies to all subrecipients. These fiscal and administrative requirements must be
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sufficiently specific to ensure that: funds are used in compliance with all applicable Federal
statutory and regulatory provisions, costs are reasonable and necessary for operating these
programs, and funds are not be used for general expenses required to carry out other
responsibilities of a State or its subrecipients.
B. Direct Costs
1. Direct costs are those that can be identified specifically with a particular final cost objective,
i.e., a particular award, project, service, or other direct activity of an organization. However, a cost
may not be assigned to an award as a direct cost if any other cost incurred for the same purpose, in
like circumstance, has been allocated to an award as an indirect cost. Costs identified specifically
with awards are direct costs of the awards and are to be assigned directly thereto. Costs identified
specifically with other final cost objectives of the organization are direct costs of those cost
objectives and are not to be assigned to other awards directly or indirectly.
2. Any direct cost of a minor amount maybe treated as an indirect cost for reasons of practicality
where the accounting treatment for such cost is consistently applied to all final cost objectives.
3. The cost of certain activities are not allowable as charges to Federal awards (see, for example,
fundraising costs in paragraph 23 of Attachment B). However, even though these costs are
unallowable for purposes of computing charges to Federal awards, they nonetheless must be
treated as direct costs for purposes of determining indirect cost rates and be allocated their share of
the organization's indirect costs if they represent activities which (1) include the salaries of
personnel, (2) occupy space, and (3) benefit from the organization's indirect costs.
4. The costs of activities performed primarily as a service to members, clients, or the general
public when significant and necessary to the organization's mission must be treated as direct costs
whether or not allowable and be allocated an equitable share of indirect costs. Some examples of
these types of activities include:
a. Maintenance of membership rolls, subscriptions, publications, and related functions.
b. Providing services and information to members, legislative or administrative bodies, or the
public.
c. Promotion, lobbying, and other forms of public relations.
d. Meetings and conferences except those held to conduct the general administration of the
organization.
e. Maintenance, protection, and investment of special funds not used in operation of the
organization.
f. Administration of group benefits on behalf of members or clients, including life and hospital
insurance, annuity or retirement plans, financial aid, etc.
C. Indirect Costs
1. Indirect costs are those that have been incurred for common or joint objectives and cannot be
readily identified with a particular final cost objective. Direct cost of minor amounts maybe
treated as indirect costs under the conditions described in subparagraph B.2. After direct costs
have been determined and assigned directly to awards or other work as appropriate, indirect costs
are those remaining to be allocated to benefiting cost objectives. A cost may not be allocated to an
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award as an indirect cost if any other cost incurred for the same purpose, in like circumstances, has
been assigned to an award as a direct cost.
2. Because of the diverse characteristics and accounting practices of non-profit organizations, it is
not possible to specify the types of cost which maybe classified as indirect cost in all situations.
However, typical examples of indirect cost for many non-profit organizations may include
depreciation or use allowances on buildings and equipment, the costs of operating and maintaining
facilities, and general administration and general expenses, such as the salaries and expenses of
executive officers, personnel administration, and accounting.
3. Indirect costs shall be classified within two broad categories: "Facilities" and "Administration."
"Facilities" is defined as depreciation and use allowances on buildings, equipment and capital
improvement, interest on debt associated with certain buildings, equipment and capital
improvements, and operations and maintenance expenses. "Administration" is defined as general
administration and general expenses such as the director's office, accounting, personnel, library
expenses and all other types of expenditures not listed specifically under one of the subcategories
of "Facilities" (including cross allocations from other pools, where applicable). See indirect cost
rate reporting requirements in subparagraphs D.2.e and D.3.g.
D. Allocation of Indirect Costs and Determination of Indirect Cost Rates
1. General.
a. Where anon-profit organization has only one major function, or where all its major functions
benefit from its indirect costs to approximately the same degree, the allocation of indirect costs
and the computation of an indirect cost rate maybe accomplished through simplified allocation
procedures, as described in subparagraph 2.
b. Where an organization has several major functions which benefit from its indirect costs in
varying degrees, allocation of indirect costs may require the accumulation of such costs into
separate cost groupings which then are allocated individually to benefiting functions by means of a
base which best measures the relative degree of benefit. The indirect costs allocated to each
function are then distributed to individual awards and other activities included in that function by
means of an indirect cost rate(s).
c. The determination of what constitutes an organization's major functions will depend on its
purpose in being; the types of services it renders to the public, its clients, and its members; and the
amount of effort it devotes to such activities as fundraising, public information and membership
activities.
d. Specific methods for allocating indirect costs and computing indirect cost rates along with the
conditions under which each method should be used are described in subparagraphs 2 through
5.
e. The base period for the allocation of indirect costs is the period in which such costs are incurred
and accumulated for allocation to work performed in that period. The base period normally should
coincide with the organization's fiscal year but, in any event, shall be so selected as to avoid
inequities in the allocation of the costs.
2. Simplified allocation method.
a. Where an organization's major functions benefit from its indirect costs to approximately the
same degree, the allocation of indirect costs maybe accomplished by (i) separating the
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organization's total costs for the base period as either direct or indirect, and (ii) dividing the total
allowable indirect costs (net of applicable credits) by an equitable distribution base. The result of
this process is an indirect cost rate which is used to distribute indirect costs to individual awards.
The rate should be expressed as the percentage which the total amount of allowable indirect costs
bears to the base selected. This method should also be used where an organization has only one
major function encompassing a number of individual projects or activities, and maybe used where
the level of Federal awards to an organization is relatively small.
b. Both the direct costs and the indirect costs shall exclude capital expenditures and unallowable
costs. However, unallowable costs which represent activities must be included in the direct costs
under the conditions described in subparagraph B.3.
c. The distribution base may be total direct costs (excluding capital expenditures and other
distorting items, such as major subcontracts or subgrants), direct salaries and wages, or other base
which results in an equitable distribution. The distribution base shall generally exclude participant
support costs as defined in paragraph 34 of Attachment B.
d. Except where a special rate(s) is required in accordance with subparagraph 5, the indirect cost
rate developed under the above principles is applicable to all awards at the organization. If a
special rate(s) is required, appropriate modifications shall be made in order to develop the special
rate(s).
e. For an organization that receives more than $10 million in Federal funding of direct costs in a
fiscal year, a breakout of the indirect cost component into two broad categories, Facilities and
Administration as defined in subparagraph C.3, is required. The rate in each case shall be stated
as the percentage which the amount of the particular indirect cost category (i.e., Facilities or
Administration) is of the distribution base identified with that category.
3. Multiple allocation base method
a. General. Where an organization's indirect costs benefit its major functions in varying degrees,
indirect costs shall be accumulated into separate cost groupings, as described in subparagraph b.
Each grouping shall then be allocated individually to benefitting functions by means of a base
which best measures the relative benefits. The default allocation bases by cost pool are described
in subparagraph c.
b. Identification of indirect costs. Cost groupings shall be established so as to permit the allocation
of each grouping on the basis of benefits provided to the major functions. Each grouping shall
constitute a pool of expenses that are of like character in terms of functions they benefit and in
terms of the allocation base which best measures the relative benefits provided to each function.
The groupings are classified within the two broad categories: "Facilities" and "Administration," as
described in subparagraph C.3. The indirect cost pools are defined as follows:
(1) Depreciation and use allowances. The expenses under this heading are the portion of
the costs of the organization's buildings, capital improvements to land and buildings, and
equipment which are computed in accordance with paragraph 11 of Attachment B
("Depreciation and use allowances").
(2) Interest. Interest on debt associated with certain buildings, equipment and capital
improvements are computed in accordance with paragraph 23 of Attachment B
("Interest, fundraising, and investment management costs").
(3) Operation and maintenance expenses. The expenses under this heading are those that
have been incurred for the administration, operation, maintenance, preservation, and
protection of the organization's physical plant. They include expenses normally incurred
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for such items as: janitorial and utility services; repairs and ordinary or normal alterations
of buildings, furniture and equipment; care of grounds; maintenance and operation of
buildings and other plant facilities; security; earthquake and disaster preparedness;
environmental safety; hazardous waste disposal; property, liability and other insurance
relating to property; space and capital leasing; facility planning and management; and,
central receiving. The operation and maintenance expenses category shall also include its
allocable share of fringe benefit costs, depreciation and use allowances, and interest costs.
(4) General administration and general expenses..The expenses under this heading are
those that have been incurred for the overall general executive and administrative offices
of the organization and other expenses of a general nature which do not relate solely to any
major function of the organization. This category shall also include its allocable share of
fringe benefit costs, operation and maintenance expense, depreciation and use allowances,
and interest costs. Examples of this category include central offices, such as the director's
office, the office of finance, business services, budget and planning, personnel, safety and
risk management, general counsel, management information systems, and library costs.
In developing this cost pool, special care should be exercised to ensure that costs incurred for the
same purpose in like circumstances are treated consistently as either direct or indirect costs. For
example, salaries of technical staff, project supplies, project publication, telephone toll charges,
computer costs, travel costs, and specialized services costs shall be treated as direct costs wherever
identifiable to a particular program. The salaries and wages of administrative and pooled clerical
staff should normally be treated as indirect costs. Direct charging of these costs maybe
appropriate where a major project or activity explicitly requires and budgets for administrative or
clerical services and other individuals involved can be identified with the program or activity.
Items such as office supplies, postage, local telephone costs, periodicals and memberships should
normally be treated as indirect costs.
c. Allocation bases. Actual conditions shall be taken into account in selecting the base to be used
in allocating the expenses in each grouping to benefitting functions. The essential consideration in
selecting a method or a base is that it is the one best suited for assigning the pool of costs to cost
objectives in accordance with benefits derived; a traceable cause and effect relationship; or logic
and reason, where neither the cause nor the effect of the relationship is determinable. When an
allocation can be made by assignment of a cost grouping directly to the function benefited, the
allocation shall be made in that manner. When the expenses in a cost grouping are more general in
nature, the allocation shall be made through the use of a selected base which produces results that
are equitable to both the Federal Government and the organization. The distribution shall be made
in accordance with the bases described herein unless it can be demonstrated that the use of a
different base would result in a more equitable allocation of the costs, or that a more readily
available base would not increase the costs charged to sponsored awards. The results of special
cost studies (such as an engineering utility study) shall not be used to determine and allocate the
indirect costs to sponsored awards.
(1) Depreciation and use allowances. Depreciation and use allowances expenses shall be
allocated in the following manner:
(a) Depreciation or use allowances on buildings used exclusively in the conduct of a single
function, and on capital improvements and equipment used in such buildings, shall be assigned to
that function.
(b) Depreciation or use allowances on buildings used for more than one function, and on capital
improvements and equipment used in such buildings, shall be allocated to the individual functions
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performed in each building on the basis of usable square feet of space, excluding common areas,
such as hallways, stairwells, and restrooms.
(c) Depreciation or use allowances on buildings, capital improvements and equipment related
space (e.g., individual rooms, and laboratories) used jointly by more than one function (as
determined by the users of the space) shall be treated as follows. The cost of each jointly used unit
of space shall be allocated to the benefitting functions on the basis of:
(i) the employees and other users on a full-time equivalent (FTE) basis or salaries and
wages of those individual functions benefitting from the use of that space; or
(ii) organization-wide employee FTEs or salaries and wages applicable to the benefitting
functions of the organization.
(d) Depreciation or use allowances on certain capital improvements to land, such as paved parking
areas, fences, sidewalks, and the like, not included in the cost of buildings, shall be allocated to
user categories on a FTE basis and distributed to major functions in proportion to the salaries and
wages of all employees applicable to the functions.
(2) Interest. Interest costs shall be allocated in the same manner as the depreciation or use
allowances on the buildings, equipment and capital equipments to which the interest
relates.
(3) Operation and maintenance expenses. Operation and maintenance expenses shall be
allocated in the same manner as the depreciation and use allowances.
(4) General administration and general expenses. General administration and general
expenses shall be allocated to benefitting functions based on modified total direct costs
(MTDC), as described in subparagraph D.3.f. The expenses included in this category
could be grouped first according to major functions of the organization to which they
render services or provide benefits. The aggregate expenses of each group shall then be
allocated to benefitting functions based on MTDC.
d. Order of distribution.
(1) Indirect cost categories consisting of depreciation and use allowances, interest,
operation and maintenance, and general administration and general expenses shall be
allocated in that order to the remaining indirect cost categories as well as to the major
functions of the organization. Other cost categories could be allocated in the order
determined to be most appropriate by the organization. When cross allocation of costs is
made as provided in subparagraph (2), this order of allocation does not apply.
(2) Normally, an indirect cost category will be considered closed once it has been allocated
to other cost objectives, and costs shall not be subsequently allocated to it. However, a
cross allocation of costs between two or more indirect costs categories could be used if
such allocation will result in a more equitable allocation of costs. If a cross allocation is
used, an appropriate modification to the composition of the indirect cost categories is
required.
e. Application of indirect cost rate or rates. Except where a special indirect cost rate(s) is required
in accordance with subparagraph D.S, the separate groupings of indirect costs allocated to each
major function shall be aggregated and treated as a common pool for that function. The costs in
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the common pool shall then be distributed to individual awards included in that function by use of
a single indirect cost rate.
f. Distribution basis. Indirect costs shall be distributed to applicable sponsored awards and other
benefitting activities within each major function on the basis of MTDC. MTDC consists of all
salaries and wages, fringe benefits, materials and supplies, services, travel, and subgrants and
subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period
covered by the subgrant or subcontract). Equipment, capital expenditures, charges for patient care,
rental costs and the portion in excess of $25,000 shall be excluded from MTDC. Participant
support costs shall generally be excluded from MTDC. Other items may only be excluded when
the Federal cost cognizant agency determines that an exclusion is necessary to avoid a serious
inequity in the distribution of indirect costs.
g. Individual Rate Components. An indirect cost rate shall be determined for each separate indirect
cost pool developed. The rate in each case shall be stated as the percentage which the amount of
the particular indirect cost pool is of the distribution base identified with that pool. Each indirect
cost rate negotiation or determination agreement shall include development of the rate for each
indirect cost pool as well as the overall indirect cost rate. The indirect cost pools shall be classified
within two broad categories: "Facilities" and "Administration," as described in subparagraph
C.3.
4. Direct allocation method.
a. Some non-profit organizations treat all costs as direct costs except general administration and
general expenses. These organizations generally separate their costs into three basic categories: (i)
General administration and general expenses, (ii) fundraising, and (iii) other direct functions
(including projects performed under Federal awards). Joint costs, such as depreciation, rental
costs, operation and maintenance of facilities, telephone expenses, and the like are prorated
individually as direct costs to each category and to each award or other activity using a base most
appropriate to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated using a base which accurately
measures the benefits provided to each award or other activity. The bases must be established in
accordance with reasonable criteria, and be supported by current data. This method is compatible
with the Standards of Accounting and Financial Reporting for Voluntary Health and Welfare
Organizations issued jointly by the National Health Council, Inc., the National Assembly of
Voluntary Health and Social Welfare Organizations, and the United Way of America.
c. Under this method, indirect costs consist exclusively of general administration and general
expenses. In all other respects, the organization's indirect cost rates shall be computed in the same
manner as that described in subparagraph 2.
5. Special indirect cost rates. In some instances, a single indirect cost rate for all activities of an
organization or for each major function of the organization may not be appropriate, since it would
not take into account those different factors which may substantially affect the indirect costs
applicable to a particular segment of work. For this purpose, a particular segment of work maybe
that performed under a single award or it may consist of work under a group of awards performed
in a common environment. These factors may include the physical location of the work, the level
of administrative support required, the nature of the facilities or other resources employed, the
scientific disciplines or technical skills involved, the organizational arrangements used, or any
combination thereof. When a particular segment of work is performed in an environment which
appears to generate a significantly different level of indirect costs, provisions should be made for a
separate indirect cost pool applicable to such work. The separate indirect cost pool should be
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developed during the course of the regular allocation process, and the separate indirect cost rate
resulting therefrom should be used, provided it is determined that (i) the rate differs significantly
from that which would have been obtained under subparagraphs 2, 3, and 4, and (ii) the volume
of work to which the rate would apply is material.
E. Negotiation and Approval of Indirect Cost Rates
1. Definitions. As used in this section, the following terms have the meanings set forth below:
a. Cognizant agency means the Federal agency responsible for negotiating and approving indirect
cost rates for anon-profit organization on behalf of all Federal agencies.
b. Predetermined rate means an indirect cost rate, applicable to a specified current or future
period, usually the organization's fiscal year. The rate is based on an estimate of the costs to be
incurred during the period. A predetermined rate is not subject to adjustment.
c. Fixed rate means an indirect cost rate which has the same characteristics as a predetermined
rate, except that the difference between the estimated costs and the actual costs of the period
covered by the rate is carried forward as an adjustment to the rate computation of a subsequent
period.
d. Final rate means an indirect cost rate applicable to a specified past period which is based on the
actual costs of the period. A final rate is not subject to adjustment.
e. Provisional rate or billing rate means a temporary indirect cost rate applicable to a specified
period which is used for funding, interim reimbursement, and reporting indirect costs on awards
pending the establishment of a final rate for the period.
f. Indirect cost proposal means the documentation prepared by an organization to substantiate its
claim for the reimbursement of indirect costs. This proposal provides the basis for the review and
negotiation leading to the establishment of an organization's indirect cost rate.
g. Cost objective means a function, organizational subdivision, contract, grant, or other work unit
for which cost data are desired and for which provision is made to accumulate and measure the
cost of processes, projects, jobs and capitalized projects.
2. Negotiation and approval of rates.
a. Unless different arrangements are agreed to by the agencies concerned, the Federal agency with
the largest dollar value of awards with an organization will be designated as the cognizant agency
for the negotiation and approval of the indirect cost rates and, where necessary, other rates such as
fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a
particular non-profit organization, the assignment will not be changed unless there is a major long-
term shift in the dollar volume of the Federal awards to the organization. All concerned Federal
agencies shall be given the opportunity to participate in the negotiation process but, after a rate has
been agreed upon, it will be accepted by all Federal agencies. When a Federal agency has reason
to believe that special operating factors affecting its awards necessitate special indirect cost rates
in accordance with subparagraph D.S, it will, prior to the time the rates are negotiated, notify the
cognizant agency.
b. A non-profit organization which has not previously established an indirect cost rate with a
Federal agency shall submit its initial indirect cost proposal immediately after the organization is
advised that an award will be made and, in no event, later than three months after the effective
date of the award.
c. Organizations that have previously established indirect cost rates must submit a new indirect
cost proposal to the cognizant agency within six months after the close of each fiscal year.
Cost Allocation Plan (Circular A-122)
Miami Beach Service Partnership
d. A predetermined rate maybe negotiated for use on awards where there is reasonable assurance,
based on past experience and reliable projection of the organization's costs, that the rate is not
likely to exceed a rate based on the organization's actual costs.
e. Fixed rates maybe negotiated where predetermined rates are not considered appropriate. A
fixed rate, however, shall not be negotiated if (i) all or a substantial portion of the organization's
awards are expected to expire before the carry-forward adjustment can be made; (ii) the mix of
Federal and non-Federal work at the organization is too erratic to permit an equitable carry-
forward adjustment; or (iii) the organization's operations fluctuate significantly from year to year.
f. Provisional and final rates shall be negotiated where neither predetermined nor fixed rates are
appropriate.
g. The results of each negotiation shall be formalized in a written agreement between the
cognizant agency and the non-profit organization. The cognizant agency shall distribute copies of
the agreement to all concerned Federal agencies.
h. If a dispute arises in a negotiation of an indirect cost rate between the cognizant agency and the
non-profit organization, the dispute shall be resolved in accordance with the appeals procedures of
the cognizant agency.
i. To the extent that problems are encountered among the Federal agencies in connection with the
negotiation and approval process, OMB will lend assistance as required to resolve such problems
in a timely manner.
ATTACHMENT B
Circular No. A-122
SELECTED ITEMS OF COST
Table of Contents
1. Advertising and public relations costs
2. Alcoholic beverages
3. Bad debts
4. Bid and proposal costs (reserved)
5. Bonding costs
6. Communication costs
7. Compensation for personal services
8. Contingency provisions
9. Contributions
10. Defense and prosecution of criminal and civil proceedings, claims, appeals and patent
infringement
11. Depreciation and use allowances
12. Donations
13. Employee morale, health, and welfare costs and credits
14. Entertainment costs
15. Equipment and other capital expenditures
16. Fines and penalties
17. Fringe benefits
18. Goods or services for personal use
19. Housing and personal living expenses
20. Idle facilities and idle capacity
21. Independent research and development (reserved)
22. Insurance and indemnification
Cost Allocation Plan (Circular A-122) 13
Miami Beach Service Partnership
23. Interest, fund raising, and investment management costs
24. Labor relations costs
25. Lobbying
26. Losses on other awards
27. Maintenance and repair costs
28. Materials and supplies
29. Meetings and conferences
30. Memberships, subscriptions, and professional activity costs
31. Organization costs
32. Overtime, extra-pay shift, and multi-shift premiums
33. Page charges in professional journals
34. Participant support costs
35. Patent costs
36. Pension plans
37. Plant security costs
38. Pre-award costs
39. Professional service costs
40. Profits and losses on disposition of depreciable property or other capital assets
41. Publication and printing costs
42. Rearrangement and alteration costs
43. Reconversion costs
44. Recruiting costs
45. Relocation costs
46. Rental costs
47. Royalties and other costs for use of patents and copyrights
48. Selling and marketing
49. Severance pay
50. Specialized service facilities
51. Taxes
52. Termination costs
53. Training and education costs
54. Transportation costs
55. Travel costs
56. Trustees
ATTACHMENT B ~~~
Circular No. A-122
SELECTED ITEMS OF COST
Paragraphs 1 through 56 provide principles to be applied in establishing the allowability of
certain items of cost. These principles apply whether a cost is treated as direct or indirect. Failure
to mention a particular item of cost is not intended to imply that it is unallowable; rather,
determination as to allowability in each case should be based on the treatment or principles
provided for similar or related items of cost.
1. Advertising and public relations costs.
Cost Allocation Plan (Circular A-122) 14
Miami Beach Service Partnership
a. The term advertising costs means the costs of advertising media and corollary administrative
costs. Advertising media include magazines, newspapers, radio and television programs, direct
mail, exhibits, and the like.
b. The term public relations includes community relations and means those activities dedicated to
maintaining the image of the organization or maintaining or promoting understanding and
favorable relations with the community or public at large or any segment of the public.
c. The only allowable advertising costs are those which are solely for:
(1) The recruitment of personnel required for the performance by the organization of
obligations arising under a sponsored award, when considered in conjunction with all other
recruitment costs, as set forth in paragraph 44 ("Recruiting costs");
(2) The procurement of goods and services for the performance of a sponsored award;
(3) The disposal of scrap or.surplus materials acquired in the performance of a sponsored
award except when organizations are reimbursed for disposal costs at a predetermined
amount in accordance with OMB Circular A-110, Sec..34, "Equipment"; or
(4) Other specific purposes necessary to meet the requirements of the sponsored award.
d. The only allowable public relations costs are:
(1) Costs specifically required by sponsored awards;
(2) Costs of communicating with the public and press pertaining to specific activities or
accomplishments which result from performance of sponsored awards (these costs are
considered necessary as part of the outreach effort for the sponsored awards); or
(3) Costs of conducting general liaison with news media and government public relations
officers, to the extent that such activities are limited to communication and liaison
necessary to keep the public informed on matters of public concern, such as notices of
contract/grant awards, financial matters, etc.
e. Costs identified in subparagraphs c and d if incurred for more than one sponsored award or
for both sponsored work and other work of the organization, are allowable to the extent that the
principles in paragraphs B ("Direct Costs") and C ("Indirect Costs") of Attachment A are
observed.
f. Unallowable advertising and public relations costs include the following:
(1) All advertising and public relations costs other than as specified in subparagraphs c,
d, and e;
(2) Costs of meetings or other events related to fund raising or other organizational
activities including:
(i) Costs of displays, demonstrations, and exhibits;
(ii) Costs of meeting rooms, hospitality suites, and other special facilities used in
conjunction with shows and other special events; and
(iii) Salaries and wages of employees or cost of services engaged in setting up and
displaying exhibits, making demonstrations, and providing briefings;
Cost Allocation Plan (Circular A-122) 15
Miami Beach Service Partnership
(3) Costs of promotional items and memorabilia, including models, gifts, and souvenirs;
(4) Costs of advertising and public relations designed solely to promote the organization.
Z. Alcoholic beverages. Costs of alcoholic beverages are unallowable.
3. Bad debts. Bad debts, including losses (whether actual or estimated) arising from uncollectible
accounts and other claims, related collection costs, and related legal costs, are unallowable.
4. Bid and proposal costs. (reserved)
5. Bonding costs.
a. Bonding costs arise when the Federal Government requires assurance against financial loss to
itself or others by reason of the act or default of the organization. They arise also in instances
where the organization requires similar assurance. Included are such bonds as bid, performance,
payment, advance payment, infringement, and fidelity bonds.
b. Costs of bonding required pursuant to the terms of the award are allowable.
c. Costs of bonding required by the organization in the general conduct of its operations are
allowable to the extent that such bonding is in accordance with sound business practice and the
rates and premiums are reasonable under the circumstances.
6. Communication costs. Costs incurred for telephone services, local and long distance telephone
calls, telegrams, radiograms, postage and the like are allowable.
7. Compensation for personal services.
a. Definition. Compensation for personal services includes all compensation paid currently or
accrued by the organization for services of employees rendered during the period of the award
(except as otherwise provided in subparagraph h). It includes, but is not limited to, salaries,
wages, director's and executive committee member's fees, incentive awards, fringe benefits,
pension plan costs, allowances for off-site pay, incentive pay, location allowances, hardship pay,
and cost of living differentials.
b. Allowability. Except as otherwise specifically provided in this paragraph, the costs of such
compensation are allowable to the extent that:
(1) Total compensation to individual employees is reasonable for the services rendered and
conforms to the established policy of the organization consistently applied to both Federal
and non-Federal activities; and
(2) Charges to awards whether treated as direct or indirect costs are determined and
supported as required in this paragraph.
c. Reasonableness.
(1) When the organization is predominantly engaged in activities other than those
sponsored by the Federal Government, compensation for employees on federally-
sponsored work will be considered reasonable to the extent that it is consistent with that
paid for similar work in the organization's other activities.
Cost Allocation Plan (Circular A-122) 16
Miami Beach Service Partnership
(2) When the organization is predominantly engaged in federally-sponsored activities and
in cases where the kind of employees required for the Federal activities are not found in the
organization's other activities, compensation for employees on federally-sponsored work
will be considered reasonable to the extent that it is comparable to that paid for similar
work in the labor markets in which the organization competes for the kind of employees
involved.
d. Special considerations in determining allowability. Certain conditions require special
consideration and possible limitations in determining costs under Federal awards where amounts
or types of compensation appear unreasonable. Among such conditions are the following:
(1) Compensation to members of non-profit organizations, trustees, directors, associates,
officers, or the immediate families thereof. Determination should be made that such
compensation is reasonable for the actual personal services rendered rather than a
distribution of earnings in excess of costs.
(2) Any change in an organization's compensation policy resulting in a substantial increase
in the organization's level of compensation, particularly when it was concurrent with an
increase in the ratio of Federal awards to other activities of the organization or any change
in the treatment of allowability of specific types of compensation due to changes in Federal
policy.
e. Unallowable costs. Costs which are unallowable under other paragraphs of this
Attachment shall not be allowable under this paragraph solely on the basis that they
constitute personal compensation.
f. Fringe benefits.
(1) Fringe benefits in the form of regular compensation paid to employees during periods
of authorized absences from the job, such as vacation leave, sick leave, military leave, and
the like, are allowable, provided such costs are absorbed by all organization activities in
proportion to the relative amount of time or effort actually devoted to each.
(2) Fringe benefits in the form of employer contributions or expenses for social security,
employee insurance, workmen's compensation insurance, pension plan costs (see
subparagraph h), and the like, are allowable, provided such benefits are granted in
accordance with established written organization policies. Such benefits whether treated as
indirect costs or as direct costs, shall be distributed to particular awards and other activities
in a manner consistent with the pattern of benefits accruing to the individuals or group of
employees whose salaries and wages are chargeable to such awards and other activities.
(3) (a) Provisions for a reserve under aself-insurance program for unemployment
compensation or workers' compensation are allowable to the extent that the provisions
represent reasonable estimates of the liabilities for such compensation, and the types of
coverage, extent of coverage, and rates and premiums would have been allowable had
insurance been purchased to cover the risks. However, provisions for self-insured liabilities
which do not become payable for more than one year after the provision is made shall not
exceed the present value of the liability.
(b) Where an organization follows a consistent policy of expensing actual payments to, or
on behalf of, employees or former employees for unemployment compensation or workers'
Cost Allocation Plan (Circular A-122) 17
Miami Beach Service Partnership
compensation, such payments are allowable in the year of payment with the prior approval
of the awarding agency, provided they are allocated to all activities of the organization.
(4) Costs of insurance on the lives of trustees, officers, or other employees holding
positions of similar responsibility are allowable only to the extent that the insurance
represents additional compensation. The costs of such insurance when the organization is
named as beneficiary are unallowable.
g. Organization-furnished automobiles. That portion of the cost oforganization-furnished
automobiles that relates to personal use by employees (including transportation to and from work)
is unallowable as fringe benefit or indirect costs regardless of whether the cost is reported as
taxable income to the employees. These costs are allowable as direct costs to sponsored award
when necessary for the performance of the sponsored award and approved by awarding agencies.
h. Pension plan costs.
(1) Costs of the organization's pension plan which are incurred in accordance with the
established policies of the organization are allowable, provided:
(a) Such policies meet the test of reasonableness;
(b) The methods of cost allocation are not discriminatory;
(c) The cost assigned to each fiscal year is determined in accordance with generally
accepted accounting principles (GAAP), as prescribed in Accounting Principles Board
Opinion No. 8 issued by the American Institute of Certified Public Accountants; and
(d) The costs assigned to a given fiscal year are funded for all plan participants within six
months after the end of that year. However, increases to normal and past service pension
costs caused by a delay in funding the actuarial liability beyond 30 days after each quarter
of the year to which such costs are assignable are unallowable.
(2) Pension plan termination insurance premiums paid pursuant to the Employee
Retirement Income Security Act (ERISA) of 1974 (Pub. L. 93-406) are allowable. Late
payment charges on such premiums are unallowable.
(3) Excise taxes on accumulated funding deficiencies and other penalties imposed under
ERISA are unallowable.
i. Incentive compensation. Incentive compensation to employees based on cost reduction, or
efficient performance, suggestion awards, safety awards, etc., are allowable to the extent that the
overall compensation is determined to be reasonable and such costs are paid or accrued pursuant
to an agreement entered into in good faith between the organization and the employees before the
services were rendered, or pursuant to an established plan followed by the organization so
consistently as to imply, in effect, an agreement to make such payment.
j. Overtime, extra-pay shift, and multi-shift premiums. See paragraph 32.
k. Severance pay. See paragraph 49.
1. Training and education costs. See paragraph 53.
m. Support of salaries and wages.
(1) Charges to awards for salaries and wages, whether treated as direct costs or indirect
costs, will be based on documented payrolls approved by a responsible official(s) of the
Cost Allocation Plan (Circular A-122) 18
Miami Beach Service Partnership
organization. The distribution of salaries and wages to awards must be supported by
personnel activity reports, as prescribed in subparagraph (2), except when a substitute
system has been approved in writing by the cognizant agency. (See subparagraph E.2 of
Attachment A.)
(2) Reports reflecting the distribution of activity of each employee must be maintained for
all staff members (professionals and nonprofessionals) whose compensation is charged, in
whole or in part, directly to awards. In addition, in order to support the allocation of
indirect costs, such reports must also be maintained for other employees whose work
involves two or more functions or activities if a distribution of their compensation between
such functions or activities is needed in the determination of the organization's indirect cost
rate(s) (e.g., an employee engaged part-time in indirect cost activities and part-time in a
direct function). Reports maintained by non-profit organizations to satisfy these
requirements must meet the following standards:
(a) The reports must reflect anafter-the fact determination of the actual activity of each
employee. Budget estimates (i.e., estimates determined before the services are performed)
do not qualify as support for charges to awards.
(b) Each report must account for the total activity for which employees are compensated
and which is required in fulfillment of their obligations to the organization.
(c) The reports must be signed by the individual employee, or by a responsible supervisory
official having first hand knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by
the employee during the periods covered by the reports.
(d) The reports must be prepared at least monthly and must coincide with one or more pay
periods.
(3) Charges for the salaries and wages of nonprofessional employees, in addition to the
supporting documentation described in subparagraphs (1) and (2), must also be
supported by records indicating the total number of hours worked each day maintained in
conformance with Department of Labor regulations implementing the Fair Labor
Standards Act (FLSA) (29 CFR Part 516). For this purpose, the term "nonprofessional
employee" shall have the same meaning as "nonexempt employee," under FLSA.
(4) Salaries and wages of employees used in meeting cost sharing or matching
requirements on awards must be supported in the same manner as salaries and wages
claimed for reimbursement from awarding agencies.
8. Contingency provisions. Contributions to a contingency reserve or any similar provision made
for events the occurrence of which cannot be foretold with certainty as to time, intensity, or with
an assurance of their happening, are unallowable. The term "contingency reserve" excludes self-
insurance reserves (see subparagraphs 7.f (3) and 22.a(2)(d); pension funds (see subparagraph
7.h); and reserves for normal severance pay (see subparagraph 49.b(1)).
9. Contributions. Contributions and donations by the organization to others are unallowable.
Cost Allocation Plan (Circular A-122) 19
Miami Beach Service Partnership
10. Defense and prosecution of criminal and civil proceedings, claims, appeals and patent
infringement.
a. Defmitions.
(1) Conviction, as used herein, means a judgment or a conviction of a criminal offense by
any court of competent jurisdiction, whether entered upon as a verdict or a plea, including
a conviction due to a plea of nolo contenders.
(2) Costs include, but are not limited to, administrative and clerical expenses; the cost of
legal services, whether performed by in-house or private counsel; and the costs of the
services of accountants, consultants, or others retained by the organization to assist it; costs
of employees, officers and trustees, and any similar costs incurred before, during, and after
commencement of a judicial or administrative proceeding that bears a direct relationship to
the proceedings.
(3) Fraud, as used herein, means (i) acts of fraud corruption or attempts to defraud the
Federal Government or to corrupt its agents, (ii) acts that constitute a cause for debarment
or suspension (as specified in agency regulations), and (iii) acts which violate the False
Claims Act, 31 U.S.C., sections 3729-3731, or the Anti-Kickback Act, 41 U.S.C., sections
51 and 54.
(4) Penalty does not include restitution, reimbursement, or compensatory damages.
(5) Proceeding includes an investigation.
b. (1) Except as otherwise described herein, costs incurred in connection with any criminal, civil
or administrative proceeding (including filing of a false certification) commenced by the Federal
Government, or a State, local or foreign government, are not allowable if the proceeding: (1)
relates to a violation of, or failure to comply with, a Federal, State, local or foreign statute or
regulation by the organization (including its agents and employees), and (2) results in any of the
following dispositions:
(a) In a criminal proceeding, a conviction.
(b) In a civil or administrative proceeding involving an allegation of fraud or similar
misconduct, a determination of organizational liability.
(c) In the case of any civil or administrative proceeding, the imposition of a monetary
penalty.
(d) A final decision by an appropriate Federal official to debar or suspend the organization,
to rescind or void an award, or to terminate an award for default by reason of a violation or
failure to comply with a law or regulation.
(e) A disposition by consent or compromise, if the action could have resulted in any of the
dispositions described in (a), (b), (c) or (d).
(2) If more than one proceeding involves the same alleged misconduct, the costs of all such
proceedings shall be unallowable if any one of them results in one of the dispositions
shown in subparagraph b.(1).
Cost Allocation Plan (Circular A-122) 20
Miami Beach Service Partnership
c. If a proceeding referred to in subparagraph b is commenced by the Federal Government and is
resolved by consent or compromise pursuant to an agreement entered into by the organization and
the Federal Government, then the costs incurred by the organization in connection with such
proceedings that are otherwise not allowable under subparagraph b may be allowed to the extent
specifically provided in such agreement.
d. If a proceeding referred to in subparagraph b is commenced by a State, local or foreign
government, the authorized Federal official may allow the costs incurred by the organization for
such proceedings, if such authorized official determines that the costs were incurred as a result of
(1) a specific term or condition of afederally-sponsored award, or (2) specific written direction of
an authorized official of the sponsoring agency.
e. Costs incurred in connection with proceedings described in subparagraph b, but which are not
made unallowable by that subparagraph, maybe allowed by the Federal Government, but only to
the extent that:
(1) The costs are reasonable in relation to the activities required to deal with the
proceeding and the underlying cause of action;
(2) Payment of the costs incurred, as allowable and allocable costs, is not prohibited by any
other provision(s) of the sponsored award;
(3) The costs are not otherwise recovered from the Federal Government or a third party,
either directly as a result of the proceeding or otherwise; and,
(4) The percentage of costs allowed does not exceed the percentage determined by an
authorized Federal official to be appropriate, considering the complexity of the litigation,
generally accepted principles governing the award of legal fees in civil actions involving
the United States as a party, and such other factors as maybe appropriate. Such percentage
shall not exceed 80 percent. However, if an agreement reached under subparagraph c has
explicitly considered this 80 percent limitation and permitted a higher percentage, then the
full amount of costs resulting from that agreement shall be allowable.
f. Costs incurred by the organization in connection with the defense of suits brought by its
employees or ex-employees under section 2 of the Major Fraud Act of 1988 (Pub. L. 100-700),
including the cost of all relief necessary to make such employee whole, where the organization
was found liable or settled, are unallowable.
g. Costs of legal, accounting, and consultant services, and related costs, incurred in connection
with defense against Federal Government claims or appeals, antitrust suits, or the prosecution of
claims or appeals against the Federal Government, are unallowable.
h. Costs of legal, accounting, and consultant services, and related costs, incurred in connection
with patent infringement litigation, are unallowable unless otherwise provided for in the sponsored
awards.
i. Costs which maybe unallowable under this paragraph, including directly associated costs, shall
be segregated and accounted for by the organization separately. During the pendency of any
proceeding covered by subparagraphs b and f, the Federal Government shall generally withhold
payment of such costs. However, if in the best interests of the Federal Government, the Federal
Government may provide for conditional payment upon provision of adequate security, or other
adequate assurance, and agreements by the organization to repay all unallowable costs, plus
interest, if the costs are subsequently determined to be unallowable.
11. Depreciation and use allowances.
Cost Allocation Plan (Circular A-122) 21
Miami Beach Service Partnership
a. Compensation for the use of buildings, other capital improvements, and equipment on hand may
be made through use allowances or depreciation. However, except as provided in subparagraph
f, a combination of the two methods may not be used in connection with a single class of fixed
assets (e.g., buildings, office equipment, computer equipment, etc.).
b. The computation of use allowances or depreciation shall be based on the acquisition cost of the
assets involved. The acquisition cost of an asset donated to the organization by a third party shall
be its fair market value at the time of the donation.
c. The computation of use allowances or depreciation will exclude:
(1) The cost of land;
(2) Any portion of the cost of buildings and equipment borne by or donated by the Federal
Government irrespective of where title was originally vested or where it presently resides;
and
(3) Any portion of the cost of buildings and equipment contributed by or for the
organization in satisfaction of a statutory matching requirement.
d. Where the use allowance method is followed, the use allowance for buildings and improvement
(including land improvements, such as paved parking areas, fences, and sidewalks) will be
computed at an annual rate not exceeding two percent of acquisition cost. The use allowance for
equipment will be computed at an annual rate not exceeding six and two-thirds percent of
acquisition cost. When the use allowance method is used for buildings, the entire building must be
treated as a single asset; the building's components (e.g., plumbing system, heating and air
conditioning, etc.) cannot be segregated from the building's shell. The two percent limitation,
however, need not be applied to equipment which is merely attached or fastened to the building
but not permanently fixed to it and which is used as furnishings or decorations or for specialized
purposes (e.g., dentist chairs and dental treatment units, counters, laboratory benches bolted to the
floor, dishwashers, carpeting, etc.). Such equipment will be considered as not being permanently
fixed to the building if it can be removed without the need for costly or extensive alterations or
repairs to the building or the equipment. Equipment that meets these criteria will be subject to the
six and two-thirds percent equipment use allowance limitation.
e. Where depreciation method is followed, the period of useful service (useful life) established in
each case for usable capital assets must take into consideration such factors as type of
construction, nature of the equipment used, technological developments in the particular program
area, and the renewal and replacement policies followed for the individual items or classes of
assets involved. The method of depreciation used to assign the cost of an asset (or group of assets)
to accounting periods shall reflect the pattern of consumption of the asset during its useful life. In
the absence of clear evidence indicating that the expected consumption of the asset will be
significantly greater or lesser in the early portions of its useful life than in the later portions, the
straight-line method shall be presumed to be the appropriate method. Depreciation methods once
used shall not be changed unless approved in advance by the cognizant Federal agency. When the
depreciation method is introduced for application to assets previously subject to a use allowance,
the combination of use allowances and depreciation applicable to such assets must not exceed the
total acquisition cost of the assets. When the depreciation method is used for buildings, a
building's shell maybe segregated from each building component (e.g., plumbing system, heating,
and air conditioning system, etc.) and each item depreciated over its estimated useful life; or the
entire building (i.e., the shell and all components) maybe treated as a single asset and depreciated
over a single useful life.
Cost Allocation Plan (Circular A-122) 22
Miami Beach Service Partnership
f. When the depreciation method is used for a particular class of assets, no depreciation maybe
allowed on any such assets that, under subparagraph e, would be viewed as fully depreciated.
However, a reasonable use allowance may be negotiated for such assets if warranted after taking
into consideration the amount of depreciation previously charged to the Federal Government, the
estimated useful life remaining at time of negotiation, the effect of any increased maintenance
charges or decreased efficiency due to age, and any other factors pertinent to the utilization of the
asset for the purpose contemplated.
g. Charges for use allowances or depreciation must be supported by adequate property records and
physical inventories must be taken at least once every two years (a statistical sampling basis is
acceptable) to ensure that assets exist and are usable and needed. When the depreciation method is
followed, adequate depreciation records indicating the amount of depreciation taken each period
must also be maintained.
12. Donations.
a. Services received.
(1) Donated or volunteer services maybe furnished to an organization by professional and
technical personnel, consultants, and other skilled and unskilled labor. The value of these
services is not reimbursable either as a direct or indirect cost.
(2) The value of donated services utilized in the performance of a direct cost activity shall
be considered in the determination of the organization's indirect cost rate(s) and,
accordingly, shall be allocated a proportionate share of applicable indirect costs when the
following circumstances exist:
(a) The aggregate value of the services is material;
(b) The services are supported by a significant amount of the indirect costs incurred by the
organization;
(c) The direct cost activity is not pursued primarily for the benefit of the Federal
Government,
(3) In those instances where there is no basis for determining the fair market value of the
services rendered, the recipient and the cognizant agency shall negotiate an appropriate
allocation of indirect cost to the services.
(4) Where donated services directly benefit a project supported by an award, the indirect
costs allocated to the services will be considered as a part of the total costs of the project.
Such indirect costs may be reimbursed under the award or used to meet cost sharing or
matching requirements.
(5) The value of the donated services may be used to meet cost sharing or matching
requirements under conditions described in Sec._.23 of Circular A-110. Where donated
services are treated as indirect costs, indirect cost rates will separate the value of the
donations so that reimbursement will not be made.
(6) Fair market value of donated services shall be computed as follows:
Cost Allocation Plan (Circular A-122) 23
Miami Beach Service Partnership
(a) Rates for volunteer services. Rates for volunteers shall be consistent with those
regular rates paid for similar work in other activities of the organization. In cases where the
kinds of skills involved are not found in other activities of the organization, the rates used
shall be consistent with those paid for similar work in the labor market in which the
organization competes for such skills.
(b) Services donated by other organizations. When an employer donates the services of
an employee, these services shall be valued at the employee's regular rate of pay (exclusive
of fringe benefits and indirect costs), provided the services are in the same skill for which
the employee is normally paid. If the services are not in the same skill for which the
employee is normally paid, fair market value shall be computed in accordance with
subparagraph (a).
b. Goods and space.
(1) Donated goods; i.e., expendable personal property/supplies, and donated use of space
maybe furnished to an organization. The value of the goods and space is not reimbursable
either as a direct or indirect cost.
(2) The value of the donations maybe used to meet cost sharing or matching share
requirements under the conditions described in Sec._.23 of Circular A-110. The value of
the donations shall be determined in accordance with Sec. .23 of Circular A-110. Where
donations are treated as indirect costs, indirect cost rates will separate the value of the
donations so that reimbursement will not be made.
13. Employee morale, health, and welfare costs and credits. The costs of house publications,
health or first-aid clinics, and/or infirmaries, recreational activities, employees' counseling
services, and other expenses incurred in accordance with the organization's established practice or
custom for the improvement of working conditions, employer-employee relations, employee
morale, and employee performance are allowable. Such costs will be equitably apportioned to all
activities of the organization. Income generated from any of these activities will be credited to the
cost thereof unless such income has been irrevocably set over to employee welfare organizations.
14. Entertainment costs. Costs of amusement, diversion, social activities, ceremonials, and costs
relating thereto, such as meals, lodging, rentals, transportation, and gratuities are unallowable (but
see paragraphs 13 and 30).
15. Equipment and other capital expenditures.
a. As used in this paragraph, the following terms have the meanings set forth below:
(1) "Equipment" means an article of nonexpendable, tangible personal property having a
useful life of more than one year and an acquisition cost which equals or exceeds the lesser
of (a) the capitalization level established by the organization for the financial statement
purposes, or (b) $5000. The unamortized portion of any equipment written off as a result of
a change in capitalization levels may be recovered by continuing to claim the otherwise
allowable use allowances or depreciation on the equipment, or by amortizing the amount to
be written off over a period of years as negotiated with the Federal cognizant agency.
(2) Acquisition cost means the net invoice unit price of an item of equipment, including
the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to
Cost Allocation Plan (Circular A-122) 24
Miami Beach Service Partnership
make it usable for the purpose for which it is acquired. Ancillary charges, such as taxes,
duty, protective in-transit insurance, freight, and installation shall be included in or
excluded from acquisition cost in accordance with the organization's regular written
accounting practices.
(3) Special purpose equipment means equipment which is usable only for research,
medical, scientific, or technical activities. Examples of special purpose equipment include
microscopes, x-ray machines, surgical instruments, and spectrometers.
(4) General purpose equipment means equipment which is usable for other than research,
medical, scientific, or technical activities, whether or not special modifications are needed
to make them suitable for a particular purpose. Examples of general purpose equipment
include office equipment and furnishings, air conditioning equipment, reproduction and
printing equipment, motor vehicles, and automatic data processing equipment.
b. (1) Capital expenditures for general purpose equipment are unallowable as a direct cost except
with the prior approval of the awarding agency.
(2) Capital expenditures for special purpose equipment are allowable as direct costs,
provided that items with a unit cost of $5000 or more have the prior approval of awarding
agency.
c. Capital expenditures for land or buildings are unallowable as a direct cost except with the prior
approval of the awarding agency.
d. Capital expenditures for improvements to land, buildings, or equipment which materially
increase their value or useful life are unallowable as a direct cost except with the prior approval of
the awarding agency.
e. Equipment and other capital expenditures are unallowable as indirect costs. However, see
paragraph 11 for allowability of use allowances or depreciation on buildings, capital
improvements, and equipment. Also, see paragraph 46 for allowability of rental costs for land,
buildings, and equipment.
16. Fines and penalties. Costs of fines and penalties resulting from violations of, or failure of the
organization to comply with Federal, State, and local laws and regulations are unallowable except
when incurred as a result of compliance with specific provisions of an award or instructions in
writing from the awarding agency.
17. Fringe benefits. See subparagraph 7.f.
18. Goods or services for personal use. Costs of goods or services for personal use of the
organization's employees are unallowable regardless of whether the cost is reported as taxable
income to the employees.
19. Housing and personal living expenses.
a. Costs of housing (e.g., depreciation, maintenance, utilities, furnishings, rent, etc.), housing
allowances and personal living expenses for/of the organization's officers are unallowable as
fringe benefit or indirect costs regardless of whether the cost is reported as taxable income to the
employees. These costs are allowable as direct costs to sponsored award when necessary for the
performance of the sponsored award and approved by awarding agencies.
b. The term "officers" includes current and past officers and employees.
Cost Allocation Plan (Circular A-122) 25
Miami Beach Service Partnership
20. Idle facilities and idle capacity.
a. As used in this paragraph, the following terms have the meanings set forth below:
(1) Facilities means land and buildings or any portion thereof, equipment individually or
collectively, or any other tangible capital asset, wherever located, and whether owned or
leased by the organization.
(2) Idle facilities means completely unused facilities that are excess to the organization's
current needs.
(3) Idle capacity means the unused capacity of partially used facilities. It is the difference
between that which a facility could achieve under 100 percent operating time on a one-shift
basis less operating interruptions resulting from time lost for repairs, setups, unsatisfactory
materials, and other normal delays, and the extent to which the facility was actually used to
meet demands during the accounting period. Amulti-shift basis maybe used if it can be
shown that this amount of usage could normally be expected for the type of facility
involved.
(4) Costs of idle facilities or idle capacity means costs such as maintenance, repair,
housing, rent, and other related costs, e.g., property taxes, insurance, and depreciation or
use allowances.
b. The costs of idle facilities are unallowable except to the extent that:
(1) They are necessary to meet fluctuations in workload; or
(2) Although not necessary to meet fluctuations in workload, they were necessary when
acquired and are now idle because of changes in program requirements, efforts to achieve
more economical operations, reorganization, termination, or other causes which could not
have been reasonably foreseen. Under the exception stated in this subparagraph, costs of
idle facilities are allowable for a reasonable period of time, ordinarily not to exceed one
year, depending upon the initiative taken to use, lease, or dispose of such facilities (but see
subparagraphs 48.b and d).
c. The costs of idle capacity are normal costs of doing business and are a factor in the normal
fluctuations of usage or indirect cost rates from period to period. Such costs are allowable,
provided the capacity is reasonably anticipated to be necessary or was originally reasonable and is
not subject to reduction or elimination by subletting, renting, or sale, in accordance with sound
business, economics, or security practices. Widespread idle capacity throughout an entire facility
or among a group of assets having substantially the same function maybe idle facilities.
21. Independent research and development. [Reserved]
22. Insurance and indemnification.
a. Insurance includes insurance which the organization is required to carry, or which is approved,
under the terms of the award and any other insurance which the organization maintains in
connection with the general conduct of its operations. This paragraph does not apply to insurance
which represents fringe benefits for employees (see subparagraphs 7.f and 7.h(2)).
Cost Allocation Plan (Circular A-122) 26
Miami Beach Service Partnership
(1) Costs of insurance required or approved, and maintained, pursuant to the award are
allowable.
(2) Costs of other insurance maintained by the organization in connection with the general
conduct of its operations are allowable subject to the following limitations:
(a) Types and extent of coverage shall be in accordance with sound business practice and
the rates and premiums shall be reasonable under the circumstances.
(b) Costs allowed for business interruption or other similar insurance shall be limited to
exclude coverage of management fees.
(c) Costs of insurance or of any provisions for a reserve covering the risk of loss or damage
to Federal property are allowable only to the extent that the organization is liable for such
loss or damage.
(d) Provisions for a reserve under aself-insurance program are allowable to the extent that
types of coverage, extent of coverage, rates, and premiums would have been allowed had
insurance been purchased to cover the risks. However, provision for known or reasonably
estimated self-insured liabilities, which do not become payable for more than one year
after the provision is made, shall not exceed the present value of the liability.
(e) Costs of insurance on the lives of trustees, officers, or other employees holding
positions of similar responsibilities are allowable only to the extent that the insurance
represents additional compensation (see subparagraph 7.f(4)). The cost of such insurance
when the organization is identified as the beneficiary is unallowable.
(fj Insurance against defects. Costs of insurance with respect to any costs incurred to
correct defects in the organization's materials or workmanship are unallowable.
(g) Medical liability (malpractice) insurance. Medical liability insurance is an allowable
cost of Federal research programs only to the extent that the Federal research programs
involve human subjects or training of participants in research techniques. Medical liability
insurance costs shall be treated as a direct cost and shall be assigned to individual projects
based on the manner in which the insurer allocates the risk to the population covered by
the insurance.
(3) Actual losses which could have been covered by permissible insurance (through the
purchase of insurance or aself-insurance program) are unallowable unless expressly
provided for in the award, except:
(a) Costs incurred because of losses not covered under nominal deductible insurance
coverage provided in keeping with sound business practice are allowable.
(b) Minor losses not covered by insurance, such as spoilage, breakage, and disappearance
of supplies, which occur in the ordinary course of operations, are allowable.
Cost Allocation Plan (Circular A-122) ~~
Miami Beach Service Partnership
b. Indemnification includes securing the organization against liabilities to third persons and any
other loss or damage, not compensated by insurance or otherwise. The Federal Government is
obligated to indemnify the organization only to the extent expressly provided in the award.
23. Interest, fundraising, and investment management costs.
a. Interest.
(1) Costs incurred for interest on borrowed capital or temporary use of endowment funds,
however represented, are unallowable. However, interest on debt incurred after the
effective date of this revision to acquire or replace capital assets (including renovations,
alterations, equipment, land, and capital assets acquired through capital leases), acquired
after the effective date of this revision and used in support of sponsored agreements is
allowable, provided that:
(a) For facilities acquisitions (excluding renovations and alterations) costing over $10
million where the Federal Government's reimbursement is expected to equal or exceed 40
percent of an asset's cost, the non-profit organization prepares, prior to the acquisition or
replacement of the capital asset(s), a justification that demonstrates the need for the facility
in the conduct offederally-sponsored activities. Upon request, the needs justification must
be provided to the Federal agency with cost cognizance authority as a prerequisite to the
continued allowability of interest on debt and depreciation related to the facility. The needs
justification for the acquisition of a facility should include, at a minimum, the following:
A statement of purpose and justification for facility acquisition or replacement
A statement as to why current facilities are not adequate
A statement of planned future use of the facility
A description of the financing agreement to be arranged for the facility
A summary of the building contract with estimated cost information and statement
of source and use of funds
A schedule of planned occupancy dates
(b) For facilities costing over $500,000, the non-profit organization prepares, prior to the
acquisition or replacement of the facility, alease/purchase analysis in accordance with the
provisions of Sec. _.30 through _.37 of Circular A-110, which shows that a financed
purchase or capital lease is less costly to the organization than other leasing alternatives, on
a net present value basis. Discount rates used should be equal to the non-profit
organization's anticipated interest rates and should be no higher than the fair market rate
available to the non-profit organization from an unrelated ("arm's length") third-party. The
lease/purchase analysis shall include a comparison of the net present value of the projected
total cost comparisons of both alternatives over the period the asset is expected to be used
by the non-profit organization. The cost comparisons associated with purchasing the
facility shall include the estimated purchase price, anticipated operating and maintenance
costs (including property taxes, if applicable) not included in the debt financing, less any
estimated asset salvage value at the end of the period defined above. The cost comparison
Cost Allocation Plan (Circular A-122) 2g
Miami Beach Service Partnership
for a capital lease shall include the estimated total lease payments, any estimated bargain
purchase option, operating and maintenance costs, and taxes not included in the capital
leasing arrangement, less any estimated credits due under the lease at the end of the period
defined above. Projected operating lease costs shall be based on the anticipated cost of
leasing comparable facilities at fair market rates under rental agreements that would be
renewed or reestablished over the period defined above, and any expected maintenance
costs and allowable property taxes to be borne by the non-profit organization directly or as
part of the lease arrangement.
(c) The actual interest cost claimed is predicated upon interest rates that are no higher than
the fair market rate available to the non-profit organization from an unrelated ("arm's
length") third party.
(d) Investment earnings, including interest income, on bond or loan principal, pending
payment of the construction or acquisition costs, are used to offset allowable interest cost.
Arbitrage earnings reportable to the Internal Revenue Service are not required to be offset
against allowable interest costs.
(e) Reimbursements are limited to the least costly alternative based on the total cost
analysis required under subparagraph (b). For example, if an operating lease is
determined to be less costly than purchasing through debt financing, then reimbursement is
limited to the amount determined if leasing had been used. In all cases where a
lease/purchase analysis is performed, Federal reimbursement shall be based upon the least
expensive alternative.
(f) Non-profit organizations are also subject to the following conditions:
(i) Interest on debt incurred to finance or refinance assets acquired before or reacquired
after the effective date of this Circular is not allowable.
(ii) For debt arrangements over $1 million, unless the non-profit organization makes an
initial equity contribution to the asset purchase of 25 percent or more, non-profit
organizations shall reduce claims for interest expense by an amount equal to imputed
interest earnings on excess cash flow, which is to be calculated as follows. Annually, non-
profit organizations shall prepare a cumulative (from the inception of the project) report of
monthly cash flows that includes inflows and outflows, regardless of the funding source.
Inflows consist of depreciation expense, amortization of capitalized construction interest,
and annual interest expense. For cash flow calculations, the annual inflow figures shall be
divided by the number of months in the year (usually 12) that the building is in service for
monthly amounts. Outflows consist of initial equity contributions, debt principal payments
(less the pro rata share attributable to the unallowable costs of land) and interest payments.
Where cumulative inflows exceed cumulative outflows, interest shall be calculated on the
excess inflows for that period and be treated as a reduction to allowable interest expense.
The rate of interest to be used to compute earnings on excess cash flows shall be the three
month Treasury Bill closing rate as of the last business day of that month.
(iii) Substantial relocation offederally-sponsored activities from a facility financed by
indebtedness, the cost of which was funded in whole or part through Federal
reimbursements, to another facility prior to the expiration of a period of 20 years requires
Cost Allocation Plan (Circular A-122) 29
Miami Beach Service Partnership
notice to the Federal cognizant agency. The extent of the relocation, the amount of the
Federal participation in the financing, and the depreciation and interest charged to date
may require negotiation and/or downward adjustments of replacement space charged to
Federal programs in the future.
(iv) The allowable costs to acquire facilities and equipment are limited to a fair market
value available to the non-profit organization from an unrelated ("arm's length") third
p~Y•
(2) For non-profit organizations subject to "full coverage"' under the Cost Accounting
Standards (CAS) as defined at 48 CFR 9903.201, the interest allowability provisions of
subparagraph a do not apply. Instead, these organizations' sponsored agreements are
subject to CAS 414 (48 CFR 9903.414), cost of money as an element of the cost of
facilities capital, and CAS 417 (48 CFR 9903.417), cost of money as an element of the cost
of capital assets under construction.
(3) The following definitions are to be used for purposes of paragraph 23:
(a) Re-acquired assets means assets held by the non-profit organization prior to the
effective date of this revision that have again come to beheld by the organization, whether
through repurchase or refinancing. It does not include assets acquired to replace older
assets.
(b) Initial equity contribution means the amount or value of contributions made bynon-
Federal entities for the acquisition of the asset or prior to occupancy of facilities.
(c) Asset costs means the capitalizable costs of an asset, including construction costs,
acquisition costs, and other such costs capitalized in accordance with GAAP.
b. Costs of organized fundraising, including financial campaigns, endowment drives, solicitation
of gifts and bequests, and similar expenses incurred solely to raise capital or obtain contributions
are unallowable.
c. Costs of investment counsel and staff and similar expenses incurred solely to enhance income
from investments are unallowable.
d. Fundraising and investment activities shall be allocated an appropriate share of indirect costs
under the conditions described in subparagraph S.3 of Attachment A.
24. Labor relations costs. Costs incurred in maintaining satisfactory relations between the
organization and its employees, including costs of labor management committees, employee
publications, and other related activities are allowable.
25. Lobbying.
a. Notwithstanding other provisions of this Circular, costs associated with the following activities
are unallowable:
(1) Attempts to influence the outcomes of any Federal, State, or local election, referendum,
initiative, or similar procedure, through in kind or cash contributions, endorsements,
publicity, or similar activity;
Cost Allocation Plan (Circular A-122) 3 ~
Miami Beach Service Partnership
(2) Establishing, administering, contributing to, or paying the expenses of a political party,
campaign, political action committee, or other organization established for the purpose of
influencing the outcomes of elections;
(3) Any attempt to influence: (i) The introduction of Federal or State legislation; or (ii) the
enactment or modification of any pending Federal or State legislation through
communication with any member or employee of the Congress or State legislature
(including efforts to influence State or local officials to engage in similar lobbying
activity), or with any Government official or employee in connection with a decision to
sign or veto enrolled legislation;
(4) Any attempt to influence: (i) The introduction of Federal or State legislation; or (ii) the
enactment or modification of any pending Federal or State legislation by preparing,
distributing or using publicity or propaganda, or by urging members of the general public
or any segment thereof to contribute to or participate in any mass demonstration, march,
rally, fundraising drive, lobbying campaign or letter writing or telephone campaign; or
(5) Legislative liaison activities, including attendance at legislative sessions or committee
hearings, gathering information regarding legislation, and analyzing the effect of
legislation, when such activities are carried on in support of or in knowing preparation for
an effort to engage in unallowable lobbying.
b. The following activities are excepted from the coverage of subparagraph a:
(1) Providing a technical and factual presentation of information on a topic directly related
to the performance of a grant, contract or other agreement through hearing testimony,
statements or letters to the Congress or a State legislature, or subdivision, member, or
cognizant staff member thereof, in response to a documented request (including a
Congressional Record notice requesting testimony or statements for the record at a
regularly scheduled hearing) made by the recipient member, legislative body or
subdivision, or a cognizant staff member thereof; provided such information is readily
obtainable and can be readily put in deliverable form; and further provided that costs under
this section for travel, lodging or meals are unallowable unless incurred to offer testimony
at a regularly scheduled Congressional hearing pursuant to a written request for such
presentation made by the Chairman or Ranking Minority Member of the Committee or
Subcommittee conducting such hearing.
(2) Any lobbying made unallowable by subparagraph a(3) to influence State legislation
in order to directly reduce the cost, or to avoid material impairment of the organization's
authority to perform the grant, contract, or other agreement.
(3) Any activity specifically authorized by statute to be undertaken with funds from the
grant, contract, or other agreement.
c. (1) When an organization seeks reimbursement for indirect costs, total lobbying costs shall be
separately identified in the indirect cost rate proposal, and thereafter treated as other unallowable
activity costs in accordance with the procedures of subparagraph B.3 of Attachment A.
(2) Organizations shall submit, as part of the annual indirect cost rate proposal, a certification that
the requirements and standards of this paragraph have been complied with.
Cost Allocation Plan (Circular A-122) 31
Miami Beach Service Partnership
(3) Organizations shall maintain adequate records to demonstrate that the determination of costs as
being allowable or unallowable pursuant to paragraph 25 complies with the requirements of this
Circular.
(4) Time logs, calendars, or similar records shall not be required to be created for purposes of
complying with this paragraph during any particular calendar month when: (1) the employee
engages in lobbying (as defined in subparagraphs (a) and (b)) 25 percent or less of the
employee's compensated hours of employment during that calendar month, and (2) within the
preceding five-year period, the organization has not materially misstated allowable or unallowable
costs of any nature, including legislative lobbying costs. When conditions (1) and (2) are met,
organizations are not required to establish records to support the allowabliliy of claimed costs in
addition to records already required or maintained. Also, when conditions (1) and (2) are met, the
absence of time logs, calendars, or similar records will not serve as a basis for disallowing costs by
contesting estimates of lobbying time spent by employees during a calendar month.
(5) Agencies shall establish procedures for resolving in advance, in consultation with OMB, any
significant questions or disagreements concerning the interpretation or application of paragraph
25. Any such advance resolution shall be binding in any subsequent settlements, audits or
investigations with respect to that grant or contract for purposes of interpretation of this Circular;
provided, however, that this shall not be construed to prevent a contractor or grantee from
contesting the lawfulness of such a determination.
26. Losses on other awards. Any excess of costs over income on any award is unallowable as a
cost of any other award. This includes, but is not limited to, the organization's contributed portion
by reason of cost sharing agreements or any under-recoveries through negotiation of lump sums
for, or ceilings on, indirect costs.
27. Maintenance and repair costs. Costs incurred for necessary maintenance, repair, or upkeep
of buildings and equipment (including Federal property unless otherwise provided for) which
neither add to the permanent value of the property nor appreciably prolong its intended life, but
keep it in an efficient operating condition, are allowable. Costs incurred for improvements which
add to the permanent value of the buildings and equipment or appreciably prolong their intended
life shall be treated as capital expenditures (see paragraph 15).
28. Materials and supplies. The costs of materials and supplies necessary to carry out an award
are allowable. Such costs should be charged at their actual prices after deducting all cash
discounts, trade discounts, rebates, and allowances received by the organization. Withdrawals
from general stores or stockrooms should be charged at cost under any recognized method of
pricing consistently applied. Incoming transportation charges may be a proper part of material
cost. Materials and supplies charged as a direct cost should include only the materials and supplies
actually used for the performance of the contract or grant, and due credit should be given for any
excess materials or supplies retained, or returned to vendors.
29. Meetings and conferences.
a. Costs associated with the conduct of meetings and conferences include the cost of renting
facilities, meals, speakers' fees, and the like. But see paragraph 14, Entertainment costs, and
paragraph 34, Participant support costs.
Cost Allocation Plan (Circular A-122) 32
Miami Beach Service Partnership
b. To the extent that these costs are identifiable with a particular cost objective, they should be
charged to that objective (see paragraph B of Attachment A). These costs are allowable,
provided that they meet the general tests of allowability, shown in paragraph A of Attachment A
to this Circular.
c. Costs of meetings and conferences held to conduct the general administration of the
organization are allowable.
30. Memberships, subscriptions, and professional activity costs.
a. Costs of the organization's membership in business, technical, and professional organizations
are allowable.
b. Costs of the organization's subscriptions to business, professional, and technical periodicals are
allowable.
c. Costs of meetings and conferences, when the primary purpose is the dissemination of technical
information, are allowable. This includes costs of meals, transportation, rental of facilities, and
other items incidental to such meetings or conferences.
d. Costs of membership in any civic or community organization are allowable with prior approval
by Federal cognizant agency.
e. Costs of membership in any country club or social or dining club or organization are
unallowable.
31. Organization costs. Expenditures, such as incorporation fees, brokers' fees, fees to promoters,
organizers or management consultants, attorneys, accountants, or investment counselors, whether
or not employees of the organization, in connection with establishment or reorganization of an
organization, are unallowable except with prior approval of the awarding agency.
32. Overtime, extra-pay shift, and multi-shift premiums. Premiums for overtime, extra-pay
shifts, and multi-shift work are allowable only with the prior approval of the awarding agency
except:
a. When necessary to cope with emergencies, such as those resulting from accidents, natural
disasters, breakdowns of equipment, or occasional operational bottlenecks of a sporadic nature.
b. When employees are performing indirect functions, such as administration, maintenance, or
accounting.
c. In the performance of tests, laboratory procedures, or other similar operations which are
continuous in nature and cannot reasonably be interrupted or otherwise completed.
d. When lower overall cost to the Federal Government will result.
33. Page charges in professional journals. Page charges for professional journal publications are
allowable as a necessary part of research costs, where:
a. The research papers report work supported by the Federal Government; and
b. The charges are levied impartially on all research papers published by the journal, whether or
not by federally-sponsored authors.
34. Participant support costs. Participant support costs are direct costs for items such as stipends
or subsistence allowances, travel allowances, and registration fees paid to or on behalf of
participants or trainees (but not employees) in connection with meetings, conferences, symposia,
or training projects. These costs are allowable with the prior approval of the awarding agency.
Cost Allocation Plan (Circular A-122) 33
Miami Beach Service Partnership
35. Patent costs.
a. Costs of (i) preparing disclosures, reports, and other documents required by the award and of
searching the art to the extent necessary to make such disclosures, (ii) preparing documents and
any other patent costs in connection with the filing and prosecution of a United States patent
application where title or royalty-free license is required by the Federal Government to be
conveyed to the Federal Government, and (iii) general counseling services relating to patent and
copyright matters, such as advice on patent and copyright laws, regulations, clauses, and employee
agreements are allowable (but see paragraph 39).
b. Cost of preparing disclosures, reports, and other documents and of searching the art to the
extent necessary to make disclosures, if not required by the award, are unallowable. Costs in
connection with (i) filing and prosecuting any foreign patent application, or (ii) any United States
patent application, where the award does not require conveying title or a royalty-free license to the
Federal Government, are unallowable (also see paragraph 47).
36. Pension plans. See subparagraph 7.h.
37. Plant security costs. Necessary expenses incurred to comply with Federal security
requirements or for facilities protection, including wages, uniforms, and equipment of personnel
are allowable.
38. Pre-award costs. Pre-award costs are those incurred prior to the effective date of the award
directly pursuant to the negotiation and in anticipation of the award where such costs are necessary
to comply with the proposed delivery schedule or period of performance. Such costs are allowable
only to the extent that they would have been allowable if incurred after the date of the award and
only with the written approval of the awarding agency.
39. Professional service costs.
a. Costs of professional and consultant services rendered by persons who are members of a
particular profession or possess a special skill, and who are not officers or employees of the
organization, are allowable, subject to subparagraphs b and c when reasonable in relation to the
services rendered and when not contingent upon recovery of the costs from the Federal
Government.
b. In determining the allowability of costs in a particular case, no single factor or any special
combination of factors is necessarily determinative. However, the following factors are relevant:
(1) The nature and scope of the service rendered in relation to the service required.
(2) The necessity of contracting for the service, considering the organization's capability in
the particular area.
(3) The past pattern of such costs, particularly in the years prior to Federal awards.
(4) The impact of Federal awards on the organization's business (i.e., what new problems
have arisen).
(5) Whether the proportion of Federal work to the organization's total business is such as to
influence the organization in favor of incurring the cost, particularly where the services
Cost Allocation Plan (Circular A-122) 34
Miami Beach Service Partnership
rendered are not of a continuing nature and have little relationship to work under Federal
grants and contracts.
(6) Whether the service can be performed more economically by direct employment rather
than contracting.
(7) The qualifications of the individual or concern rendering the service and the customary
fees charged, especially on non-Federal awards.
(8) Adequacy of the contractual agreement for the service (e.g., description of the service,
estimate of time required, rate of compensation, and termination provisions).
c. In addition to the factors in subparagraph b, retainer fees to be allowable must be supported by
evidence of bona fide services available or rendered.
40. Profits and losses on disposition of depreciable property or other capital assets.
a. (1) Gains and losses on sale, retirement, or other disposition of depreciable property shall be
included in the year in which they occur as credits or charges to cost grouping(s) in which the
depreciation applicable to such property was included. The amount of the gain or loss to be
included as a credit or charge to the appropriate cost grouping(s) shall be the difference between
the amount realized on the property and the undepreciated basis of the property.
(2) Gains and losses on the disposition of depreciable property shall not be recognized as a
separate credit or charge under the following conditions:
(a) The gain or loss is processed through a depreciation reserve account and is reflected in
the depreciation allowable under paragraph 11.
(b) The property is given in exchange as part of the purchase price of a similar item and the
gain or loss is taken into account in determining the depreciation cost basis of the new
item.
(c) A loss results from the failure to maintain permissible insurance, except as otherwise
provided in subparagraph 22.a(3).
(d) Compensation for the use of the property was provided through use allowances in lieu
of depreciation in accordance with paragraph 11.
(e) Gains and losses arising from mass or extraordinary sales, retirements, or other
dispositions shall be considered on a case-by-case basis.
b. Gains or losses of any nature arising from the sale or exchange of property other than the
property covered in subparagraph a shall be excluded in computing award costs.
41. Publication and printing costs.
a. Publication costs include the costs of printing (including the processes of composition, plate-
making, press work, binding, and the end products produced by such processes), distribution,
promotion, mailing, and general handling.
Cost Allocation Plan (Circular A-122) 35
Miami Beach Service Partnership
b. If these costs are not identifiable with a particular cost objective, they should be allocated as
indirect costs to all benefiting activities of the organization.
c. Publication and printing costs are unallowable as direct costs except with the prior approval of
the awarding agency.
d. The cost of page charges in journals is addressed paragraph 33.
42. Rearrangement and alteration costs. Costs incurred for ordinary or normal rearrangement
and alteration of facilities are allowable. Special arrangement and alteration costs incurred
specifically for the project are allowable with the prior approval of the awarding agency.
43. Reconversion costs. Costs incurred in the restoration or rehabilitation of the organization's
facilities to approximately the same condition existing immediately prior to commencement of
Federal awards, fair wear and tear excepted, are allowable.
44. Recruiting costs.
a. Subject to subparagraphs b, c, and d, and provided that the size of the staff recruited and
maintained is in keeping with workload requirements, costs of "help wanted" advertising,
operating costs of an employment office necessary to secure and maintain an adequate staff, costs
of operating an aptitude and educational testing program, travel costs of employees while engaged
in recruiting personnel, travel costs of applicants for interviews for prospective employment, and
relocation costs incurred incident to recruitment of new employees, are allowable to the extent that
such costs are incurred pursuant to awell-managed recruitment program. Where the organization
uses employment agencies, costs that are not in excess of standard commercial rates for such
services are allowable.
b. In publications, costs of help wanted advertising that includes color, includes advertising
material for other than recruitment purposes, or is excessive in size (taking into consideration
recruitment purposes for which intended and normal organizational practices in this respect), are
unallowable.
c. Costs of help wanted advertising, special emoluments, fringe benefits, and salary allowances
incurred to attract professional personnel from other organizations that do not meet the test of
reasonableness or do not conform with the established practices of the organization, are
unallowable.
d. Where relocation costs incurred incident to recruitment of a new employee have been allowed
either as an allocable direct or indirect cost, and the newly hired employee resigns for reasons
within his control within twelve months after being hired, the organization will be required to
refund or credit such relocation costs to the Federal Government.
45. Relocation costs.
a. Relocation costs are costs incident to the permanent change of duty assignment (for an
indefinite period or for a stated period of not less than 12 months) of an existing employee or upon
recruitment of a new employee. Relocation costs are allowable, subject to the limitation described
in subparagraphs b, c, and d, provided that:
(1) The move is for the benefit of the employer.
(2) Reimbursement to the employee is in accordance with an established written policy
consistently followed by the employer.
Cost Allocation Plan (Circular A-122) 36
Miami Beach Service Partnership
(3) The reimbursement does not exceed the employee's actual (or reasonably estimated)
expenses.
b. Allowable relocation costs for current employees are limited to the following:
(1) The costs of transportation of the employee, members of his immediate family and his
household, and personal effects to the new location.
(2) The costs of finding a new home, such as advance trips by employees and spouses to
locate living quarters and temporary lodging during the transition period, up to maximum
period of 30 days, including advance trip time.
(3) Closing costs, such as brokerage, legal, and appraisal fees, incident to the disposition of
the employee's former home. These costs, together with those described in (4), are limited
to 8 per cent of the sales price of the employee's former home.
(4) The continuing costs of ownership of the vacant former home after the settlement or
lease date of the employee's new permanent home, such as maintenance of buildings and
grounds (exclusive of fixing up expenses), utilities, taxes, and property insurance.
(5) Other necessary and reasonable expenses normally incident to relocation, such as the
costs of canceling an unexpired lease, disconnecting and reinstalling household appliances,
and purchasing insurance against loss of or damages to personal property. The cost of
canceling an unexpired lease is limited to three times the monthly rental.
c. Allowable relocation costs for new employees are limited to those described in (1) and (2) of
subparagraph b. When relocation costs incurred incident to the recruitment of new employees
have been allowed either as a direct or indirect cost and the employee resigns for reasons within
his control within 12 months after hire, the organization shall refund or credit the Federal
Government for its share of the cost. However, the costs of travel to an overseas location shall be
considered travel costs in accordance with paragraph 55 and not relocation costs for the purpose
of this paragraph if dependents are not permitted at the location for any reason and the costs do not
include costs of transporting household goods.
d. The following costs related to relocation are unallowable:
(1) Fees and other costs associated with acquiring a new home.
(2) A loss on the sale of a former home.
(3) Continuing mortgage principal and interest payments on a home being sold.
(4) Income taxes paid by an employee related to reimbursed relocation costs.
46. Rental costs.
a. Subject to the limitations described in subparagraphs b through d, rental costs are allowable
to the extent that the rates are reasonable in light of such factors as: rental costs of comparable
property, if any; market conditions in the area; alternatives available; and the type, life expectancy,
condition, and value of the property leased.
b. Rental costs under sale and leaseback arrangements are allowable only up to the amount that
would be allowed had the organization continued to own the property.
Cost Allocation Plan (Circular A-122) 3 7
Miami Beach Service Partnership
c. Rental costs under less-than-arms-length leases are allowable only up to the amount that would
be allowed had title to the property vested in the organization. For this purpose, ales-than-arms-
length lease is one under which one party to the lease agreement is able to control or substantially
influence the actions of the other. Such leases include, but are not limited to those between (i)
divisions of an organization; (ii) organizations under common control through common officers,
directors, or members; and (iii) an organization and a director, trustee, officer, or key employee of
the organization or his immediate family either directly or through corporations, trusts, or similar
arrangements in which they hold a controlling interest.
d. Rental costs under leases which are required to be treated as capital leases under GAAP, are
allowable only up to the amount that would be allowed had the organization purchased the
property on the date the lease agreement was executed, i.e., to the amount that minimally would
pay for depreciation or use allowances, maintenance, taxes, and insurance. Interest costs related to
capitalized leases are allowable to the extent they meet criteria in subparagraph 23.a.
Unallowable costs include amounts paid for profit, management fees, and taxes that would not
have been incurred had the organization purchased the facility.
47. Royalties and other costs for use of patents and copyrights.
a. Royalties on a patent or copyright or amortization of the cost of acquiring by purchase a
copyright, patent, or rights thereto, necessary for the proper performance of the award are
allowable unless:
(1) The Federal Government has a license or the right to free use of the patent or copyright.
(2) The patent or copyright has been adjudicated to be invalid, or has been administratively
determined to be invalid.
(3) The patent or copyright is considered to be unenforceable.
(4) The patent or copyright is expired.
b. Special care should be exercised in determining reasonableness where the royalties may have
arrived at as a result ofless-than-arm's-length bargaining, e.g.:
(1) Royalties paid to persons, including corporations, affiliated with the organization.
(2) Royalties paid to unaffiliated parties, including corporations, under an agreement
entered into in contemplation that a Federal award would be made.
(3) Royalties paid under an agreement entered into after an award is made to an
organization.
c. In any case involving a patent or copyright formerly owned by the organization, the amount of
royalty allowed should not exceed the cost which would have been allowed had the organization
retained title thereto.
48. Selling and marketing. Costs of selling and marketing any products or services of the
organization (unless allowed under paragraph 1 as allowable public relations costs) are
unallowable. These costs, however, are allowable as direct costs, with prior approval by awarding
agencies, when they are necessary for the performance of Federal programs.
Cost Allocation Plan (Circular A-122) 3 8
Miami Beach Service Partnership
49. Severance pay.
a. Severance pay, also commonly referred to as dismissal wages, is a payment in addition to
regular salaries and wages, by organizations to workers whose employment is being terminated.
Costs of severance pay are allowable only to the extent that in each case, it is required by (i) law,
(ii) employer-employee agreement, (iii) established policy that constitutes, in effect, an implied
agreement on the organization's part, or (iv) circumstances of the particular employment.
b. Costs of severance payments are divided into two categories as follows:
(1) Actual normal turnover severance payments shall be allocated to all activities; or,
where the organization provides for a reserve for normal severances, such method will be
acceptable if the charge to current operations is reasonable in light of payments actually
made for normal severances over a representative past period, and if amounts charged are
allocated to all activities of the organization.
(2) Abnormal or mass severance pay is of such a conjectural nature that measurement of
costs by means of an accrual will not achieve equity to both parties. Thus, accruals for this
purpose are not allowable. However, the Federal Government recognizes its obligation to
participate, to the extent of its fair share, in any specific payment. Thus, allowability will
be considered on a case-by-case basis in the event or occurrence.
c. Costs incurred in certain severance pay packages (commonly known as "a golden parachute"
payment) which are in an amount in excess of the normal severance pay paid by the organization
to an employee upon termination of employment and are paid to the employee contingent upon a
change in management control over, or ownership of, the organization's assets are unallowable.
d. Severance payments to foreign nationals employed by the organization outside the United
States, to the extent that the amount exceeds the customary or prevailing practices for the
organization in the United States are unallowable, unless they are necessary for the performance of
Federal programs and approved by awarding agencies.
e. Severance payments to foreign nationals employed by the organization outside the United States
due to the termination of the foreign national as a result of the closing of, or curtailment of
activities by, the organization in that country, are unallowable, unless they are necessary for the
performance of Federal programs and approved by awarding agencies.
50. Specialized service facilities.
a. The costs of services provided by highly complex or specialized facilities operated by the
organization, such as electronic computers and wind tunnels, are allowable, provided the charges
for the services meet the conditions of either subparagraph b or c and, in addition, take into
account any items of income or Federal financing that qualify as applicable credits under
subparagraph A.5 of Attachment A.
b. The costs of such services, when material, must be charged directly to applicable awards based
on actual usage of the services on the basis of a schedule of rates or established methodology that
(i) does not discriminate against federally-supported activities of the organization, including usage
by the organization for internal purposes, and (ii) is designed to recover only the aggregate costs
of the services. The costs of each service shall consist normally of both its direct costs and its
allocable share of all indirect costs. Advance agreements pursuant to subparagraph A.6 of
Attachment A are particularly important in this situation.
c. Where the costs incurred for a service are not material, they maybe allocated as indirect costs.
Cost Allocation Plan (Circular A-122) 39
Miami Beach Service Partnership
51. Taxes.
a. In general, taxes which the organization is required to pay and which are paid or accrued in
accordance with GAAP, and payments made to local governments in lieu of taxes which are
commensurate with the local government services received are allowable, except for (i) taxes from
which exemptions are available to the organization directly or which are available to the
organization based on an exemption afforded the Federal Government and in the latter case when
the awarding agency makes available the necessary exemption certificates, (ii) special assessments
on land which represent capital improvements, and (iii) Federal income taxes.
b. Any refund of taxes, and any payment to the organization of interest thereon, which were
allowed as award costs, will be credited either as a cost reduction or cash refund, as appropriate, to
the Federal Government.
52. Termination costs. Termination of awards generally give rise to the incurrence of costs, or the
need for special treatment of costs, which would not have arisen had the award not been
terminated. Cost principles covering these items are set forth below. They are to be used in
conjunction with the other provisions of this Circular in termination situations.
a. Common items. The cost of items reasonably usable on the organization's other work shall not
be allowable unless the organization submits evidence that it would not retain such items at cost
without sustaining a loss. In deciding whether such items are reasonably usable on other work of
the organization, the awarding agency should consider the organization's plans and orders for
current and scheduled activity. Contemporaneous purchases of common items by the organization
shall be regarded as evidence that such items are reasonably usable on the organization's other
work. Any acceptance of common items as allocable to the terminated portion of the award shall
be limited to the extent that the quantities of such items on hand, in transit, and on order are in
excess of the reasonable quantitative requirements of other work.
b. Costs continuing after termination. If in a particular case, despite all reasonable efforts by the
organization, certain costs cannot be discontinued immediately after the effective date of
termination, such costs are generally allowable within the limitations set forth in this Circular,
except that any such costs continuing after termination due to the negligent or willful failure of the
organization to discontinue such costs shall be unallowable.
c. Loss of useful value. Loss of useful value of special tooling, machinery and equipment which
was not charged to the award as a capital expenditure is generally allowable if
(1) Such special tooling, machinery, or equipment is not reasonably capable of use in the
other work of the organization.
(2) The interest of the Federal Government is protected by transfer of title or by other
means deemed appropriate by the awarding agency;
d. Rental costs. Rental costs under unexpired leases are generally allowable where clearly shown
to have been reasonably necessary for the performance of the terminated award less the residual
value of such leases, if (i) the amount of such rental claimed does not exceed the reasonable use
value of the property leased for the period of the award and such further period as maybe
reasonable, and (ii) the organization makes all reasonable efforts to terminate, assign, settle, or
otherwise reduce the cost of such lease. There also maybe included the cost of alterations of such
leased property, provided such alterations were necessary for the performance of the award, and of
reasonable restoration required by the provisions of the lease.
e. Settlement expenses. Settlement expenses including the following are generally allowable:
Cost Allocation Plan (Circular A-122) 40
Miami Beach Service Partnership
(1) Accounting, legal, clerical, and similar costs reasonably necessary for:
(a) The preparation and presentation to awarding agency of settlement claims and
supporting data with respect to the terminated portion of the award, unless the termination
is for default (see Sec. _.61 of Circular A-110); and
(b) The termination and settlement of subawards.
(2) Reasonable costs for the storage, transportation, protection, and disposition of property
provided by the Federal Government or acquired or produced for the award, except when
grantees or contractors are reimbursed for disposals at a predetermined amount in
accordance with Sec. _.30 through _.37 of Circular A-110.
(3) Indirect costs related to salaries and wages incurred as settlement expenses in
subparagraphs (1) and (2). Normally, such indirect costs shall be limited to fringe
benefits, occupancy cost, and immediate supervision.
f. Claims under subawards. Claims under subawards, including the allocable portion of
claims which are common to the award, and to other work of the organization are generally
allowable. An appropriate share of the organization's indirect expense maybe allocated to
the amount of settlements with subcontractors and/or subgrantees, provided that the
amount allocated is otherwise consistent with the basic guidelines contained in
Attachment A. The indirect expense so allocated shall exclude the same and similar costs
claimed directly or indirectly as settlement expenses.
53. Training and education costs.
a. Costs of preparation and maintenance of a program of instruction including but not limited to
on-the job, classroom, and apprenticeship training, designed to increase the vocational
effectiveness of employees, including training materials, textbooks, salaries or wages of trainees
(excluding overtime compensation which might arise therefrom), and (i) salaries of the director of
training and staff when the training program is conducted by the organization; or (ii) tuition and
fees when the training is in an institution not operated by the organization, are allowable.
b. Costs of part-time education, at an undergraduate orpost-graduate college level, including that
provided at the organization's own facilities, are allowable only when the course or degree pursued
is relative to the field in which the employee is now working or may reasonably be expected to
work, and are limited to:
(1) Training materials.
(2) Textbooks.
(3) Fees charges by the educational institution.
(4) Tuition charged by the educational institution or, in lieu of tuition, instructors' salaries
and the related share of indirect costs of the educational institution to the extent that the
sum thereof is not in excess of the tuition which would have been paid to the participating
educational institution.
(5) Salaries and related costs of instructors who are employees of the organization.
Cost Allocation Plan (Circular A-122) 41
Miami Beach Service Partnership
(6) Straight-time compensation of each employee for time spent attending classes during
working hours not in excess of 156 hours per year and only to the extent that
circumstances do not permit the operation of classes or attendance at classes after regular
working hours; otherwise, such compensation is unallowable.
c. Costs of tuition, fees, training materials, and textbooks (but not subsistence, salary, or any other
emoluments) in connection with full-time education, including that provided at the organization's
own facilities, at apost-graduate (but not undergraduate) college level, are allowable only when
the course or degree pursued is related to the field in which the employee is now working or may
reasonably be expected to work, and only where the costs receive the prior approval of the
awarding agency. Such costs are limited to the costs attributable to a total period not to exceed one
school year for each employee so trained. In unusual cases the period maybe extended.
d. Costs of attendance of up to 16 weeks per employee per year at specialized programs
specifically designed to enhance the effectiveness of executives or managers or to prepare
employees for such positions are allowable. Such costs include enrollment fees, training materials,
textbooks and related charges, employees' salaries, subsistence, and travel. Costs allowable under
this paragraph do not include those for courses that are part of adegree-oriented curriculum, which
are allowable only to the extent set forth in subparagraphs b and c.
e. Maintenance expense, and normal depreciation or fair rental, on facilities owned or leased by
the organization for training purposes are allowable to the extent set forth in paragraphs 11, 27,
and 46.
f. Contributions or donations to educational or training institutions, including the donation of
facilities or other properties, and scholarships or fellowships, are unallowable.
g. Training and education costs in excess of those otherwise allowable under subparagraphs b
and c may be allowed with prior approval of the awarding agency. To be considered for approval,
the organization must demonstrate that such costs are consistently incurred pursuant to an
established training and education program, and that the course or degree pursued is relative to the
field in which the employee is now working or may reasonably be expected to work.
54. Transportation costs. Transportation costs include freight, express, cartage, and postage
charges relating either to goods purchased, in process, or delivered. These costs are allowable.
When such costs can readily be identified with the items involved, they maybe directly charged as
transportation costs or added to the cost of such items (see paragraph 28). Where identification
with the materials received cannot readily be made, transportation costs maybe charged to the
appropriate indirect cost accounts if the organization follows a consistent, equitable procedure in
this respect.
55. Travel costs.
a. Travel costs are the expenses for transportation, lodging, subsistence, and related items incurred
by employees who are in travel status on official business of the organization. Travel costs are
allowable subject to subparagraphs b through e, when they are directly attributable to specific
work under an award or are incurred in the normal course of administration of the organization.
b. Such costs maybe charged on an actual basis, on a per diem or mileage basis in lieu of actual
costs incurred, or on a combination of the two, provided the method used results in charges
consistent with those normally allowed by the organization in its regular operations.
c. The difference in cost between first-class air accommodations and less than first-class air
accommodations is unallowable except when less than first-class air accommodations are not
reasonably available to meet necessary mission requirements, such as where less than first-class
Cost Allocation Plan (Circular A-122) 42
Miami Beach Service Partnership
accommodations would (i) require circuitous routing, (ii) require travel during unreasonable hours,
(iii) greatly increase the duration of the flight, (iv) result in additional costs which would offset the
transportation savings, or (v) offer accommodations which are not reasonably adequate for the
medical needs of the traveler.
d. Necessary and reasonable costs of family movements and personnel movements of a special or
mass nature are allowable, pursuant to paragraphs 44 and 45, subject to allocation on the basis of
work or time period benefited when appropriate. Advance agreements are particularly important.
e. Direct charges for foreign travel costs are allowable only when the travel has received prior
approval of the awarding agency. Each separate foreign trip must be approved. For purposes of
this provision, foreign travel is defined as any travel outside of Canada and the United States and
its territories and possessions. However, for an organization located in foreign countries, the term
"foreign travel" means travel outside that country.
56. Trustees. Travel and subsistence costs of trustees (or directors) are allowable. The costs are
subject to restrictions regarding lodging, subsistence and air travel costs provided in paragraph
55.
ATTACHMENT C
Circular No. A-122
NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR
Aerospace Corporation, El Segundo, California
Argonne National Laboratory, Chicago, Illinois
Atomic Casualty Commission, Washington, D.C.
Battelle Memorial Institute, Headquartered in Columbus, Ohio
Brookhaven National Laboratory, Upton, New York
Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts
Environmental Institute of Michigan, Ann Arbor, Michigan
Hanford Environmental Health Foundation, Richland, Washington
IIT Research Institute, Chicago, Illinois
Institute for Defense Analysis, Alexandria, Virginia
Mitre Corporation, Bedford, Massachusetts
National Radiological Astronomy Observatory, Green Bank, West Virginia
National Renewable Energy Laboratory, Golden, Colorado
Oak Ridge Associated Universities, Oak Ridge, Tennessee
Rand Corporation, Santa Monica, California
Research Triangle Institute, Research Triangle Park, North Carolina
Riverside Research Institute, New York, New York
Southern Research Institute, Birmingham, Alabama
Southwest Research Institute, San Antonio, Texas
SRI International, Menlo Park, California
Syracuse Research Corporation, Syracuse, New York
Universities Research Association, Incorporated (National Acceleration Lab), Argonne, Illinois
Non-profit insurance companies, such as Blue Cross and Blue Shield Organizations
Other non-profit organizations as negotiated with awarding agencies
Cost Allocation Plan (Circular A-122) 43
Miami Beach Service Partnership
Cost Allocation Plan (Circular A-122) 44
Miami Beach Service Partnership
~~ Y t ~ ~/~` S ~ 1 ~ ildncn
Child Abuse and Incident Reporting Guidelines
Child Abuse Reporting -
As an employee/contractor providing services to the City of Miami Beach's
Success University Program, you shall immediately report knowledge or
reasonable suspicion of abuse, neglect, or abandonment of a child, aged person,
or disabled adult to the Florida Abuse Hotline on the statewide toll-free telephone
number 1-800-96-ABUSE.
Incident Reporting -
An employee/contractor of the City of Miami Beach's Success University
Program shall complete an incident report within 24 hours in the event of any
serious bodily injury of a program participant.
An employee/contractor of the City of Miami Beach's Success University
Program shall complete an incident report within 24 hours in the event a client or
employee makes an allegation of sexual harassment, sexual misconduct or
sexual assault by an employee/contractor of the City of Miami Beach's Success
University Program.
Compliance with these guidelines is a condition of employment and/or contract.
hereby agree to comply with the Child Abuse and Incident Reporting
Guidelines.
Print Name
Signature
Date
Rev 3/08
Confidentiality Agreement
The City of Miami Beach, the Miami Beach Service Partnership and The Children's
Trust understand that during the course of your employment you may have access
to certain confidential information in order to further the performance of the services
to clients. The City of Miami Beach requires all employees who may come in contact
with such information to sign the statement below indicating compliance with the
Confidentiality Agreement. Compliance is a condition of employment and/or contract.
I agree to:
• Protect confidential information and comply with applicable federal and state
laws on confidentiality to prevent unauthorized use, dissemination, or
publication of confidential information.
• Prevent the disclosure of confidential information to any third party, or to any
employee or agency that does not have a need to know such information,
which need is related to my current employment or contractual status.
• Ensure that any employee or agency that receives confidential information
received by you, on behalf of the City of Miami Beach, the Miami Beach
Service Partnership, and Partnering agency agrees to the same restrictions
and conditions that apply through this agreement with respect to such
information.
• Document such disclosures of confidential information as would be required
by the City of Miami Beach, the Miami Beach Service Partnership, and
Partnership agency to respond to a request by an individual for a disclosure.
This Confidentiality Agreement imposes no obligation upon the employee/contractor
with respect to confidential information which is disclosed under the operation of law
and/or disclosed by the receiving party with the client's prior written consent.
This Confidentiality Agreement shall remain in full force and effect after your term of
employment or contract with the City of Miami Beach, the Miami Beach Service
Partnership and Partner agency.
I hereby agree to comply with this Confidentiality Agreement.
Print Name
Signature
Date
~~Iia«~i Be~~ci~ S~;rt~ice I'~jr~nershil~ -- l/~n~~Ic>~re:e I~'ile
t~evised ~~/EJ8
Service Evaluation Form
Presenter: Training:
Date: Loca tion:
Please take a moment to evaluate today's service. Rate each item from poo r to excell ent. Your
information is used to better improve services. Thanks in advance for your feedback.
Content
N/A Poor Fair Good Excellent
Objective and scope of service ^ ^ ^ ^ ^
Organization of event and agency staff ^ ^ ^ ^ ^
Understandability of communications with staff ^ ^ ^ ^ ^
Relevance of event/service to your objectives ^ ^ ^ ^ ^
Instructor
N/A Poor Fair Good Excellent
Presentation of information ^ ^ ^ ^ ^
Participation by attendees encouraged ^ ^ ^ ^ ^
Discussions managed well ^ ^ ^ ^ ^
Questions responded to satisfactorily ^ ^ ^ ^ ^
Facility
N/A Poor Fair Good Excellent
Facility's conduciveness to service ^ ^ ^ ^ ^
Use of technology to enhance the training experience ^ ^ ^ ^ ^
Accessibility to service site ^ ^ ^ ^ ^
Overall Experience
N/A Poor Fair Good Excellent
Overall experience ^ ^ ^ ^ ^
What was best about the service?
What aspect of the service did not meet our ex ectations?
CONTRACT NO. 903-109
BETWEEN THE CHILDREN'S TRUST
AND The City of Miami Beach
FOR The Miami Beach Service Partnership 2008-09
THIS CONTRACT, made and entered into by and between The Children's Trust whose address is 3150 S.W. 3rd
Avenue, 8th Floor, Miami, Florida 33129 and The City of Miami Beach hereinafter referred to as the "Provider" whose
address is 555 17th Street, Miami Beach, FL. 33139 states the conditions and covenants for the rendering of services
to children and families (hereafter referred to as "Services") for The Children's Trust.
In consideration of the mutual covenants herein, The Children's Trust and the Provider (sometimes hereafter referred
to as "Parties") agree as follows:
A. EFFECTIVE TERM
The effective term of this Contract shall be from June 1, 2008 through May 31, 2009, subject to funding availability
and Provider's performance as expressly provided below.
B. TERMS OF RENEWAL, if applicable
In the sole discretion of The Children's Trust this Contract may be renewed twice and with the acknowledgement of
the Provider, each renewal may not exceed a term equal to the term of the initial contract, for a total maximum of
three (3) terms. In considering the exercise of any contract renewal The Children's Trust in its sole discretion will
consider, but is not limited to, the following:
1. Provider meeting the performance requirements specified in this Contract.
2. Continued demonstrated and documented need for the services funded;
3. Program performance and fiscal compliance by the Provider that is deemed satisfactory in The Children's
Trust's sole discretion; and
4. The availability of funds from The Children's Trust. The Children's Trust is prohibited from creating obligations
in anticipation of budgeted revenues from one fiscal year to another without year to year extension provisions
in the contract.
5. If applicable, The Children's Trust in its sole discretion will initiate re-negotiation of this Contract before the
contract term expires.
C. SCOPE OF SERVICES
1. Provider agrees to render services in accordance with the Scope of Services, Attachment A, to this Contract.
Provider shall implement the Scope of Services, Attachment A, in a manner deemed satisfactory to The
Children's Trust. Any modification to the Scope of Services shall not be effective until approved, in writing, by
The Children's Trust and the Provider.
2. Provider agrees that all funding provided by The Children's Trust, pursuant to this Contract will be used
exclusively for Services in and for the benefit of Miami-Dade County residents.
D. TOTAL FUNDING
Subject to the availability of funds, the maximum amount payable for Services rendered under this Contract shall not
exceed $499,550.83. The Parties agree that should available funding to The Children's Trust be reduced, the amount
payable under this Contract will be proportionately reduced at the sole option of The Children's Trust, with a
proportionate reduction in the Services. Provider agrees to adhere to the Budget and Method of Payment outlined in
Attachment B to this Contract.
E. FISCAL MANAGEMENT
1. Double Payments
Provider costs or earnings claimed under this Contract may not also be claimed under another contract or
grant from The Children's Trust or, unless such claim is denied by The Children's Trust, from any other
agency. Any claim for double payment by Provider shall be a material breach of this Contract.
2. No Supplanting of Existing Public Funds
The Children's Trust funding may not be used by any provider as a substitute for existing resources or for
resources that would otherwise be available for children's services, or to replace funding previously provided
The City of Miami Beach 1
Contract #903-109, Resolution 2008-22
by and currently available from local and state funding sources for the same purpose. Government agencies
must certify that they have maintained their previous funding level when applying for additional funding from
The Children's Trust. A violation of this section shall be considered a material breach of this Contract.
3. Use of Cost Allocation Methodology
Provider attests that no other reimbursement is available or used for invoiced Services unless expressly
authorized in writing by The Children's Trust. Provider shall develop and maintain a cost allocation
methodology and a copy shall be submitted to The Children's Trust.
4. Capital Equipment
Capital equipment is included in the definition of "property" under Florida Statutes, Chapter 274, and Florida
Administrative Code, Section 69I-73.002, and is defined for purposes of this Contract as individual items with
a value of $1,000 or greater which have a life expectancy of more than one year. Capital equipment
purchased with Trust funds by Provider become assets of The Children's Trust; are intended for The Children's
Trust funded programs; are owned by The Children's Trust; and must be tagged at the time of purchase as an
asset of The Children's Trust. The Children's Trust will work with Provider to tag the asset and receive all
information regarding the capital equipment. Provider must maintain a record of any capital equipment
purchased with funds provided by The Children's Trust. When Provider is no longer funded by The Children's
Trust, the equipment will be returned to The Children's Trust for use by another funded program unless it is
fully depreciated. Provider must initiate return of such capital equipment to The Children's Trust. Ownership
of capital equipment will be transferred to Provider and removed from The Children's Trust's fixed asset
system if the capital equipment is fully depreciated and in the possession of Provider unless The Children's
Trust has approved the retainage of any fees collected by Provider.
5. Assignments and Subcontracts
Neither Provider nor The Children's Trust shall assign this Contract to another party. Provider shall not
subcontract any Services contemplated under this Contract without prior written approval of The Children's
Trust. Provider shall incorporate appropriate language from The Children's Trust contract into its subcontract
and shall require that all subcontractors providing services shall be governed by the terms and conditions of
this contract. All sub-contracted providers must agree to be monitored by or on behalf of The Children's Trust
in the same manner as Provider under the terms of this contract.
Provider shall be responsible for all services performed and all expenses incurred with this Contract, including
services provided and expenses incurred by any and all subcontractors. It is understood by Provider that The
Children's Trust shall not be liable to a subcontractor for any expenses or liabilities incurred under any
subcontract and Provider shall be solely liable under the subcontract. Provider agrees, at Provider's sole
expense, to hold harmless and defend The Children's Trust against any such claims, demands or actions
related to any subcontract.
In no event shall The Children's Trust directly provide funds to any subcontractor. All payments to any
authorized subcontractor shall be paid directly by Provider to the subcontractor.
6. Religious Purposes
Organizations and their faith-based community partners shall not use funds provided under this Contract to
support inherently religious activities, such as religious instruction, worship, or proselytization.
7. Lobbying
Provider shall not use any funds provided under this Contract or any other funds provided by The Children's
Trust for lobbying any federal, state or local government or legislators.
8. Adverse Action or Proceeding
Provider shall not utilize the funds provided under this Contract or any other funds provided. by The Children's
Trust to retain any legal counsel for any action or proceeding against The Children's Trust or any of its agents,
employees or officials.
F. INDEMNIFICATION BY PROVIDER
1. Government Entity
Subject to the limitations and sovereign immunity provisions of Florida Statute, Sec. 768.28, Provider shall
indemnify and hold harmless The Children's Trust and its officers, employees, agents and instrumentalities
from any and all liability, losses or damages, including attorneys' fees and costs of defense, which its officers,
employees, agents or instrumentalities may incur as a result of claims, demands, suits, causes of actions or
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Contract #903-109, Resolution 2008-22
proceedings of any kind or nature arising out of, relating to or resulting from the performance of this Contract
by Provider or its employees, agents, servants, partners, principals or subcontractors.
Subject to the limitations and sovereign immunity provisions of Florida Statutes, Sec. 768.28, Provider shall
pay all claims and losses in connection therewith and shall investigate and defend all claims, suits or actions of
any kind or nature in the name of The Children's Trust, where applicable, including appellate proceedings, and
shall pay all costs, judgments, and reasonable attorney's fees which may issue thereon.
2. All Other Providers
Provider shall indemnify and hold harmless The Children's Trust and its officers, employees, agents and
instrumentalities from any and all liability, losses or damages, including reasonable attorneys' fees and costs
of defense, which The Children's Trust or its officers, employees, agents or instrumentalities may incur as a
result of claims, demands, suits, causes of action or proceedings of any kind or nature arising out of, relating
to or resulting from the performance of this Contract by the Provider or its employees, agents, servants,
partners, principals or sub contractors, except to the extent arising from The Children's Trust's willful or
wanton acts or omissions, or those of its employees or principals.
To the extent arising from a liability that is covered by the foregoing indemnification, Provider shall pay all
claims and losses in connection therewith and shall investigate and defend all claims, suits or actions of any
kind or nature in the name of The Children's Trust, where applicable, including appellate proceedings, and
shall pay all costs, judgments, and reasonable attorney's fees which may issue thereon. Provider expressly
understands and agrees that any insurance protection required by this Contract or otherwise provided by
Provider shall in no way limit the responsibility to indemnify, keep and save harmless and defend The
Children's Trust or its officers, employees, agents as herein provided.
The provisions of this section on indemnification shall survive the expiration or termination of this Contract.
G. COPYRIGHTS AND RIGHT TO DATAJMATERIALS
Where activities supported by this Contract produce original writing, data, sound recordings, pictorial reproductions,
drawings or other graphic representations and works of similar nature, The Children's Trust has a license to
reasonably use, duplicate and disclose such materials in whole or in part in a manner consistent with the purposes
and terms of this Contract, and to have others acting on behalf of The Children's Trust to do so, provided that such
use does not compromise the validity of any copyright, trademark or patent. If the data/materials so developed are
subject to copyright, trademark or patent, legal title and every right, interest, claim or demand of any kind in and to
any patent, trademark or copyright, or application for the same, will vest in the Provider or with any applicable third
party who has licensed or otherwise permitted the Provider to use the same. Provider agrees to allow The Children's
Trust and others acting on behalf of The Children's Trust to have reasonable use of the same consistent with the
purposes and terms of this Contract, at no cost to The Children's Trust, provided that such use does not compromise
the validity of such copyright, trademark or patent.
H. OWNERSHIP AND LICENSING OF INTELLECTUAL PROPERTY RIGHTS
The Parties understand that this Contract is subject to the provisions, limitations and exceptions of Chapter 119,
Florida Statutes, regarding public records. Accordingly to the extent permitted by Chapter 119, Florida Statutes, the
Provider retains sole ownership of intellectual property developed under this Contract. It is the responsibility of the
Provider to pay all required licensing fees if intellectual property owned by other parties is incorporated by the
Provider into the services required under this Contract. Such licensing should be in the exclusive name of the
Provider. Payment for any such licensing fees or costs arising from the use of others' intellectual property rights must
be made by the Provider from funds available under this Contract
As applicable under Fla. Stat. Section 768.28, and to the extent permitted by and within the limitations of Fla. Stat.
Section 768.28, the Parties shall indemnify and hold each other harmless from liability of any nature or kind, including
costs and expenses for or on account of third party allegations that use of any intellectual property owned by the third
party and provided, manufactured or used by the indemnifying Party in the performance of this Contract violates the
Intel-ectual property rights of that third party.
I. BREACH OF CONTRACT AND REMEDIES
1. Breach
A material breach by the Provider shall have occurred under this Contract if the Provider through action or
omission causes any of the following:
a. Fails to provide the Services outlined in the scope of services (Attachment A) within the effective term
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Contract #903-109, Resolution 2008-22
of this Contract;
b. Ineffectively or improperly uses The Children's Trust funds allocated under this Contract;
c. Does not furnish the certificates of insurance required by this Contract or as determined by The
Children's Trust;
d. Does not meet or satisfy the conditions of award required by this Contract;
e. Fails to submit or submits incorrect or incomplete proof of expenditures to support disbursement
requests or advance funding disbursements, or fails to submit or submits incomplete or incorrect
detailed reports of requests for payment, expenditures or final expenditure reports;
f. Does not submit or submits incomplete or incorrect required reports pursuant to the scope of Services
in this Contract;
g. Refuses to allow The Children's Trust access to records or refuses to allow The Children's Trust to
monitor, evaluate and review the Provider's program, including required client data;
h. Fails to comply with child abuse and incident reporting requirements;
i. Attempts to meet its obligations under this Contract through fraud, misrepresentation or material
misstatement;
j. Fails to correct deficiencies found during a monitoring, evaluation or review within a specified
reasonable time;
k. Fails to meet the terms and conditions of any obligation or repayment schedule to The Children's Trust
or any of its agencies;
I. Fails to maintain the confidentiality of client files, pursuant to Florida and federal laws;
m. Fails to fulfill in a timely and proper manner any and all of its obligations, covenants, contracts and
stipulations in this Contract;
n. Fails to comply with Background Screening, as required under this Contract.
Waiver of breach of any provisions of this Contract shall not be deemed to be a waiver of any other breach
and shall not be construed to be a modification of the terms of this Contract.
2. Remedies
If the Provider breaches this Contract, and fails to cure any such breach within thirty (30) days after receiving
written notice from The Children's Trust identifying the breach, The Children's Trust may pursue any of the
following remedies:
The Children's Trust may, at its sole discretion, enter into a written performance improvement plan with the
Provider to cure any breach of this Contract as may be permissible under state or federal law. Any such
remedial plan shall be an addition to this Contract and shall not affect or render void or voidable any other
provision contained in this Contract, costs, and any judgments entered by a court of appropriate jurisdiction.
The Children's Trust may suspend payment in whole or in part under this Contract by providing written notice
to the Provider of such suspension and specifying the effective date thereof, at least five business days before
the effective date of suspension. On the effective date of suspension the Provider may (but shall not be
obligated to) continue to perform the services provided for in this Contract, but the Provider shall promptly
cease using The Children's Trust's logo and any other reference to The Children's Trust in connection with such
services. All payments to the Provider as of this date shall cease, except that The Children's Trust shall
continue to review and pay requests for payment for services that were performed and/or for deliverables that
were substantially completed at the sole discretion of The Children's Trust, prior to the effective date of such
suspension. If payments are suspended, The Children's Trust must specify in writing the actions that must be
taken by the Provider as condition precedent to resumption of payments and shall specify a reasonable date
for compliance. The Children's Trust may also suspend any payments in whole or in part under any other
contracts entered into between The Children's Trust and the Provider by providing separate written notice to
the Provider of each such suspension and specifying the effective date thereof, which must be at least five
business days before the effective date of such suspension, in any event The Children's Trust shall continue to
review. and pay requests for payment as provided for in such other contracts for services that were pertormed
and/or for deliverables that were substantially completed at the sole discretion of The Children's Trust prior to
the effective date of such suspension. The Provider shall be responsible for all direct and indirect costs
associated with such termination including reasonable attorney's fees.
The Children's Trust may terminate this Contract by giving written notice to the Provider of such termination
and specifying the date thereof at least five (5) business days before the effective date of termination. In the
event of such termination, The Children's Trust may (a) request the Provider to deliver to The Children's Trust
clear and legible copies of all finished or unfinished documents, studies, surveys, reports prepared and
secured by the Provider with Trust funds under this Contract subject to the rights of the Provider thereto as
provided for in Paragraphs G and H above; (b) seek reimbursement of any Trust funds which have been
The City of Miami Beach 4
Contract #903-109, Resolution 2008-22
improperly paid to the Provider under this Contract; (c) terminate further payment of Trust funds to the
Provider under this Contract, except that The Children's Trust shall continue to review and pay requests for
payment for services that were performed and/or deliverables that were substantially completed at the sole
discretion of The Children's Trust prior to the effective date of such termination; and/or (d) terminate or
cancel any other contracts entered into between The Children's Trust and the Provider by providing separate
written notice to the Provider of each such termination and specifying the effective date thereof, which must
be at least five business days before the effective date of such termination, in which event The Children's
Trust shall continue to review and pay requests for payment as provided for in such other contracts for
services that were performed and/or for deliverables that were substantially completed at the sole discretion
of The Children's Trust prior to the effective date of such termination. The Provider shall be responsible for all
direct and indirect costs associated with such termination, including reasonable attorney's fees.
The Children's Trust may seek enforcement of this Contract including but not limited to filing an action with a
court of appropriate jurisdiction. The Provider shall be responsible for all direct and indirect costs associated
with such enforcement, including reasonable attorney's fees, costs, and any judgments entered by a court of
appropriate jurisdiction, including all direct and indirect costs and reasonable attorneys' fees through
conclusion of all appellate proceedings, and including any final settlement.
The provisions of this Paragraph I shall survive the expiration or termination of this Contract.
]. INSURANCE REQUIREMENTS *Note: City of Miami Beach is entirely self-insured.
Except as required by Florida law for government entities, prior to execution of this Contract and as a condition to
execution, Provider shall provide to The Children's Trust Certificates of Insurance or, as applicable, a letter of self-
insurance indicating coverage applicable to a Florida municipal corporation or written verification (binders) required
under this section or as determined by The Children's Trust. The Children's Trust shall be named as an additional
insured on all applicable policies. The Children's Trust shall not disburse any funds until The Children's Trust is
provided with the necessary Certificates of Insurance, letter of self-insurance or written verification (binders) and The
Children's Trust has approved such documents. The Children's Trust shall have the rights to review said certificates or
letters and if applicable, reasonably require updating of types and amounts of coverage provided upon any renewal of
this Contract.
Provider will carry insurance policies in the amounts and with the requirements indicated below:
1. Worker's Compensation Insurance for all employees and non-incorporated independent contractors and or
consultants of the Provider, as required by Florida Statutes, Chapter 440. The employer's liability portion will
be $500,000/$500,000/$500,000 as a minimum.
2. Comprehensive General Liability insurance in an amount not less than $500,000 combined single limit per
occurrence and $1,000,000 aggregate in a policy year. Deductibles exceeding $ 1,000 are discouraged, unless
Provider can provide financials to support a higher deductible. The general liability policy must contain
coverage for the following:
a) Bodily Injury;
b) Property Damage;
c) No exclusions for Abuse, Molestation or Corporal
Punishment;
d) No endorsement for premises only operations.
The Children's Trust must be designated and shown as an "Additional Insured as Their Interest May Appear"
with respects to this coverage.
3. If applicable, Special Events Coverage, as determined by The Children's Trust. The liability coverage will be
the same as the coverage and limits required for comprehensive general liability and The Children's Trust must
be designated and shown as "Additional Insured as Their Interest May Appear." Special Events policies are for
short term functions and not meant to replace annual liability policies. The coverage is for the day or days of
the event and must provide coverage the day prior and the day following the event.
4. Automobile liability coverage for all owned and/or leased vehicles of the Provider and non-owned coverage for
their employees and /or sub-contractors transporting program participants. The amount of coverage is
$1,000,000 combined single limit per occurrence for bodily injury and property damage. The Children's Trust
must be designated and shown as an "Additional Insured as Their Interest May Appear" with respects to this
coverage. Coverage can be purchased as non-owned without hired auto coverage, but rental cars can not be
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Contract #903-109, Resolution 2008-22
used in the course of the Provider's regular operations. Rental cars may be used for travel to attend
conferences outside the tri-county area.
5. Automobile liability coverage for all owned and/or leased vehicles of the Provider and non-owned coverage for
their employees and /or sub-contractors not transporting program participants. The minimum amount of
coverage is $300,000 combined single limit per occurrence for bodily injury and property damage. The
Children's Trust must be designated and shown as an "Additional Insured as Their Interest May Appear" with
respects to this coverage. Coverage can be purchased as non-owned without hired auto coverage, but rental
cars can not be used in the course of the Provider's regular operations. Rental cars may be used for travel to
attend conferences outside the tri-county area.
6. If applicable, Professional Liability insurance, as determined by The Children's Trust, with coverage amounts
determined by The Children's Trust but not less than $250,000 per claim and in the aggregate. Defense costs
may be inside the limits of liability and the policy can be written on claims made form. The Children's Trust is
not required to be named as an Additional Insured.
7. If applicable, Proof of Property Coverage is required when the Provider has capital equipment paid for by The
Children's Trust and said capital equipment is under the care custody and control of the Provider. The
Children's Trust must be shown on the evidence of property coverage as a Loss Payee.
Certificate holder must read:
The Children's Trust
3150 SW 3~d Avenue, 8th Floor
Miami, Florida 33129
Classification and Rating
All insurance policies required above shall be issued by companies authorized to do business under the laws of the
State of Florida, with the following qualifications:
The company must be rated no less than "B" as to management, and no less than "Class V" as the financial strength,
by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its
equivalent, subject to the reasonable approval of The Children's Trust's Risk Management Division, or The company
must hold a valid Florida Certificate of Authority as shown in the latest "List of All Insurance Companies Authorized or
Approved to Do Business in Florida" issued by the State of Florida Department of Insurance and are members of the
Florida Guaranty Fund.
The Provider shall notify The Children's Trust, in writing, of any material changes in insurance coverage, including,
but not limited, to any renewals of existing insurance policies, not later than thirty (30) days prior to the effective
date except for ten (10) days for lack of payment changes.
In the event of any change in the Provider's Scope of Services, Attachment A, The Children's Trust may increase,
waive or modify, in writing any of the foregoing insurance requirements. Any request by a Provider to decrease,
waive or modify any of the foregoing insurance requirements shall be approved, in writing, by The Children's Trust
prior to any such decrease, waiver or modification.
In the event that an insurance policy is canceled during the effective period of this Contract, The Children's Trust shall
withhold all payments from the Provider until a new Certificate of Insurance or written verification (binders) of
insurance required under this section is submitted and approved by The Children's Trust. The new insurance policy
shall cover the time period commencing from the date of cancellation of the prior insurance policy.
The Children's Trust may require the Provider to furnish additional and different insurance coverage, or both, as may
be required from time to time under applicable federal or state laws. Provision of insurance by Provider, in no
instance, shall be deemed to be a release, limitation, or waiver of any claim, cause of action or assessment that The
Children's Trust may have against the Provider for any liability of any nature related to performance under this
Contract or otherwise.
All insurance required hereunder may be maintained by the Provider pursuant to a master or blanket policy or policies
of insurance.
K. PROOF OF TAX STATUS
Provider is required to keep on file the following documentation for review by The Children's Trust.
The Internal Revenue Service (I.R.S.) tax status determination letter;
The most recent (two years) I.R.S. form 990 or applicable tax return filing within six (6) months after the Provider's
fiscal year end or other appropriate filing period permitted by law;
If required by applicable law to be filed by the Provider, IRS 941 -quarterly federal tax return reports within thirty-
The City of Miami Beach 6
Contract #903-109, Resolution 2008-22
five (35) calendar days after the quarter ends and if the 941 reflects a tax liability, proof of payment must be
submitted within sixty (60) calendar days after the quarter ends.
L. NOTICES
All notices pursuant to this Contract shall be in writing and sent by certified mail to the addresses for each Party
appearing on the first page of this Contract, and in the case of notices to The Children's Trust, marked to the attention
of its President and CEO. It is each Party's responsibility to advise the other Party in writing of any changes in name,
address and/or telephone number.
M. AUTONOMY
Both Parties agree that this Contract recognizes the autonomy of, and stipulates or implies no affiliation between, the
contracting parties. It is expressly understood and intended that Provider is only a recipient of funding support and is
not an agent or instrumentality of The Children's Trust, and that Provider's agents and employees are not agents or
employees of The Children's Trust.
N. RECORDS, REPORTS, AUDITS AND MONITORING
1. Accounting records
Provider shall keep accounting records which conform to generally accepted accounting principles. All such
records will be retained by Provider for not less than five years beyond the last date that all applicable terms of
this Contract have been complied with and final payment has been received and appropriate audits have been
submitted to and accepted by the appropriate entity. However, if any audit, claim, litigation, negotiation or other
action involving this Contract or Modification hereto has commenced before the expiration of the retention period,
the records shall be retained until completion of the action and resolution of all issues which arise from it or until
the end of the regular retention period, which ever is later.
2. Financial audit
Within 180 days of the close of its fiscal year, Provider agrees to submit to The Children's Trust an Annual
Financial Audit performed by an independent audit firm of all its corporate activities and any accompanying
management -etter(s) or report(s) on other matters related to internal control, for each year during which this
Contract remains in force and until all funds expended from this Contract have been audited. This audit shall be
conducted in accordance with auditing standards generally accepted in the United States of America and standards
contained in the Government Auditing Standards issued by the Comptroller General of the United States.
If Provider receives a combined total of $300,000 or more from The Children's Trust from this or any other The
Children's Trust contract, related to the fiscal year under audit, the Provider agrees to have aerogram-specific
audit relating to The Children's Trust contracts, in addition to the annual financial audit of the Provider's entire
organization. This program-specific audit is to encompass an audit of The Children's Trust contract amounts and
requires:
• Submission of: (a) schedule of total expenditures, reflecting expenditures during the audit period for each
The Children's Trust contract by contract number, (b) summary of schedule of prior audit findings, (c)
disclosure of any significant finding(s) relating to The Children's Trust contract(s), (d) disclosure of all
questioned costs and liabilities due to The Children's Trust, with a reference to the contract number
involved, and (e) a recommendation for a corrective action plan on any finding;
• Report whether the schedule of expenditure(s) is fairly stated;
• Provide notes to the schedule of expenditures that describe the significant accounting policies used in
preparing the schedule;
• Report whether contractual matching requirements were met, if applicable;
• Report whether the provider has internal controls in place to provide reasonable assurance of compliance
with The Children's Trust applicable contractual requirements and on the reliability of financial operations.
Format of report is provided in Attachment D.
A provider that does not meet the program-specific audit threshold requirement of a combined total of $300,000
or more from The Children's Trust, in the fiscal year being audited, will be exempt from the program-specific audit
requirement in the fiscal year that the audit threshold is not met.
Providers that are required to have a single audit conducted under OMB Circular A-133, Audit of States, Local
Government and Non-Profit Organizations or the Florida Single Audit Act, Florida Statutes 215.97 agree to submit
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Contract #903-109, Resolution 2008-22
the schedule of expenditures pertaining to awards, summary schedule of prior audit findings, applicable auditor's
reports and the corrective action plan when the schedule of findings and questioned costs prepared by the
independent auditor discloses audit findings. In the event that the independent auditor does not disclose audit
findings, Provider shall provide written notification to The Children's Trust that an audit of Provider was conducted
in accordance with applicable laws and regulations and that the findings and questioned costs disclosed no audit
findings related to this Contract; and, that the summary schedule of prior audit findings did not report on the
status of any audit findings relating to awards that The Children's Trust provided.
Audit extensions may be granted in writing by The Children's Trust, after proper approval has been obtained from
The Children's Trust's Finance Department, upon receipt in writing of such request with appropriate justification by
the Provider.
3. Access to records
The Children's Trust reserves the right to require Provider to submit to an audit by an auditor of The Children's
Trust's choosing at The Children's Trust's expense. Provider shall provide access to all of its records which relate
to this Contract at its place of business during regular business hours. Provider agrees to provide such assistance
as may be necessary to facilitate their review or audit by The Children's Trust to insure compliance with applicable
accounting and financial standards, including access by The Children's Trust or its designee, to Provider's
independent auditor's working papers for complying with federal, state or local requirements.
4. Monitoring
Provider agrees to permit The Children's Trust personnel or contracted agents to perform random scheduled
and/or unscheduled monitorings, reviews, and evaluations of the program which is the subject of this Contract
including any subcontracts under this Contract using The Children's Trust approved monitoring tools. The
Children's Trust or contracted agents shall monitor both fiscal/administrative and programmatic compliance with
all the terms and conditions of the Contract. Provider shall permit The Children's Trust or contracted agents to
conduct site visits, client interviews, client assessment surveys, fiscal/administrative review and other techniques
deemed reasonably necessary in The Children's Trust's sole discretion to fulfill the monitoring function. A report
of monitoring findings will be delivered to Provider and Provider will rectify all deficiencies cited within the period
of time specified in the report.
5. Client Records
Pursuant to Florida Statute 119.071(5), The Children's Trust collects the social security numbers of child
participants of funded programs and services for the following purposes: (a) to research, track and measure the
impact of The Children's Trust funded programs and services in an effort to maintain and improve such programs
and services for the future (individual identifying information will not be disclosed); (b) to identify and match
individuals and data within and among various systems and other agencies for research purposes. The Children's
Trust does not collect social security numbers for adult participants.
Provider shall maintain a separate file for each child/family served. This file shall include all pertinent information
regarding program enrollment and participation. At a minimum, the file will contain enrollment information
(including parent registration consents and child demographics), service plans, outcome measures (as set forth in
Attachment A), and notes documenting referrals, special needs, or incident reports. These files shall be subject to
the audit and inspection requirements under this Contract, subject to applicable confidentiality requirements. All
such records will be retained by the Provider for not less than five calendar years after the participant is no longer
enrolled. Provider agrees to comply with all applicable state and federal laws on privacy and confidentiality.
6. Internal Documentation/Records Retention
Provider agrees to maintain and provide for inspection to The Children's Trust, during regular business hours the
following as may be applicable, subject to applicable confidentiality requirements: (1) personnel files of employees
which include hiring records, background screening results, job descriptions, and evaluation procedures; (2)
authorized time sheets, records, and attendance sheets to document the staff time billed to provide Services
pursuant to this Contract; (3) daily activity logs and monthly calendars of the provision of Services pursuant to
this Contract; (4) training modules; (5) pre and post session questionnaires; (6) participant consent and
information release forms; (7) agency policies and procedures; and (8) such other information related to Service
provision as described in Attachment A; all upon request by The Children's Trust. Provider shall retain all records
for not less than five years beyond the last date that all applicable terms of this Contract have been complied with
and final payment has been received, and appropriate audits have been submitted to and accepted by the
appropriate entity.
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Contract #903-109, Resolution 2008-22
7. Confidentiality
Provider and The Children's Trust understand that during the course of performing the Services hereunder, each
party may have access to certain confidential and proprietary information and materials of the other party in order
to further performance of the Services. The Parties shall protect confidential information and comply with
applicable federal and state laws on confidentiality to prevent unauthorized use, dissemination or publication of
confidential information as each party uses to protect its own confidential information in a like manner. The
Parties shall not disclose the confidential information to any third party (except that such information may be
disclosed to such Party's attorneys), or to any employee of such Party who does not have a need to know such
information, which need is related to performance of a responsibility hereunder. However, this Contract imposes
no obligation upon the Parties with respect to confidential information which (a) was lawfully known to the
receiving party before receipt from the other, (b) is or becomes a matter of public knowledge through no fault of
the receiving party, (c) is rightfully received by the receiving party from a third party without restriction on
disclosure, (d) is independently developed by or for that party, (e) is disclosed under operation of law, (f) is
disclosed by the receiving party with the other party's prior written approval or (g) is subject to Chapter 119 of
the Florida Statutes or is otherwise required to be disclosed by law. The confidentiality provision of this Contract
shall remain in full force and effect after the termination of this Contract.
8. Security Obligation
Provider shall maintain an appropriate level of data security for the information Provider is collecting or using in
the performance of this Contract. This includes, but is not limited to, approving and tracking all Provider
employees who request system or information access and ensuring that user access has been removed from all
terminated employees of Provider.
O. MODIFICATIONS
Any alterations, variations, modifications, extensions or waivers of provisions of this Contract including but not limited
to amount payable and effective term shall only be valid when they have been reduced to writing, duly approved and
signed by both Parties.
P. GOVERNING LAW & VENUE
This Contract shall be interpreted and construed in accordance with and governed by the laws of the State of Florida
without regard to its conflicts of laws provisions. Any controversies or legal problems arising out of the terms of this
Contract and any action involving the enforcement or interpretation of any rights hereunder shall be submitted to the
jurisdiction of the state courts of the Eleventh Judicial Circuit, in and for, Miami-Dade County, Florida.
Q. EMPLOYEE BACKGROUND SCREENING
In accordance with Sections 943.0542, 984.01, Chapter 435, 402, 39.001, and 1012.465 Florida Statutes, as
applicable, employees, volunteers and subcontracted personnel who work in direct contact with children must
complete a satisfactory Level 2 background screening. Level 2 Background screenings must be completed through the
Florida Department of Law Enforcement (FDLE), VECHS Program. Satisfactory background screening documentation
will be accepted for those agencies that already conduct business with either the Department of Children and Families
(DCF) or the Department of Juvenile Justice (DJJ) or the Miami Dade County Public School System (MDCPS). A
clearance letter from MDCPS Office of Employment Standards indicating the person has successfully completed a Level
2 screening will be accepted. In addition, an Attestation of Good Moral Character must be completed annually for
each employee, volunteer, and subcontracted personnel who work in direct contact with children. The Provider shall
re-screen each employee, volunteer and/or subcontractor every five years.
All provider personnel or sub-contracted agency personnel assigned to work at a site where they have access to
children shall have a Level 2 screening.
R. CHILDREN WITH DISABILITIES AND THEIR FAMILIES
Provider understands that The Children's Trust expects Provider to meet the federal standards under the Americans
with Disabilities Act. By policy of The Children's Trust, providers must also implement reasonable programmatic
accommodations to include children with disabilities and their families, whenever possible. Notwithstanding anything
to the contrary, the Provider shall not be required to make any alteration to any public school building or other
building or structure which is not owned by the Provider.
S. REGULATORY COMPLIANCE
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Contract #903-109, Resolution 2008-22
1. Non-discrimination and Civil Rights
Provider shall not discriminate against an employee, volunteer, or client of the Provider on the basis of race,
color, gender, pregnancy, marital status, familial status, sexual orientation, religion, ancestry, national origin,
disability, or age, except that programs may target services for specific target groups as may be defined in the
competitive solicitation.
Provider shall demonstrate that it has standards, policies, and practices necessary to render services in a
manner that respects the worth of the individual and protects and preserves the dignity of people of diverse
cultures, classes, races, religions, sexual orientation, and ethnic backgrounds.
Provider agrees to abide by Chapter 11A of the Code of Miami-Dade County ("County Code"), as amended,
which prohibits discrimination in employment, housing and public accommodations; Title VII of the Civil Rights
Act of 1968, as amended, which prohibits discrimination in employment and public accommodation; the Age
Discrimination Act of 1975, 42 U.S.C. Section 6101, as amended, .which prohibits discrimination in
employment because of age; Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794, as amended,
which prohibits discrimination on the basis of disability; and the Americans with Disabilities Act, 42 U.S.C.
§12101 et seq., which prohibits discrimination in employment and public accommodations because of
disability.
It is expressly understood that upon receipt of evidence of discrimination under any of these laws, The
Children's Trust shall have the right to terminate all or any portion of this Contract. If Provider or any owner,
subsidiary, or other firm affiliated with or related to Provider, is found by the responsible enforcement agency
or the courts to be in violation of these laws, said violation will be a material breach of this Contract and The
Children's Trust will conduct no further business with Provider.
2. Public Entities Crime Act
Provider will not violate the Public Entities Crimes Act (Section 287.133, Florida Statutes), which essentially
provides that a person or affiliate who is a Provider, consultant or other provider and who has been placed on
the convicted vendor list following a conviction for a Public Entity Crime may not submit a bid on a contract to
provide any goods or services to The Children's Trust, may not submit a bid on a contract with The Children's
Trust for the construction or repair of a public building or public work, may not submit bids on leases of real
property to The Children's Trust, may not be awarded or perform work as a Provider supplier, sub Provider, or
consultant under a contract with The Children's Trust, and may not transact any business with The Children's
Trust in excess of the threshold amount provided in Section 287.017, Florida Statutes, for category two
purchases for a period of thirty-six (36) months from the date of being placed on the convicted vendor list.
Violation of this section shall result in cancellation of this Contract and recovery of all monies paid hereto, and
may result in debarment from The Children's Trust's competitive procurement activities.
3. Conflict of Interest
Provider represents that the execution of this Contract does not violate Miami Dade County's Conflict of
Interest and Code of Ethics Ordinance, www.miamidade.oov/ethics/library/Ethics-Brochure-2005 pdf and
Florida Statutes §112 as amended, which are incorporated herein by reference as if fully set forth herein.
Provider agrees to abide by and be governed by these conflict of interest provisions throughout the course of
this Contract and in connection with its obligations hereunder.
4. Compliance with Sarbanes-Oxley
Provider shall comply with the following provisions of the Sarbanes-Oxley Act (SOX) that apply.
Provider agrees not to alter, cover up, falsify, or destroy any document that may be relevant to an official
investigation (SOX, Section 1512 of Title 18, USC).
Provider agrees not to punish whistleblowers or retaliate against any employee who reports suspected cases of
fraud or abuse (SOX, Section 1513 of Title 18, USC).
5. Licensing
The Provider shall obtain and maintain in full force and effect during the term of this Contract any and all
licenses, certifications, approvals, insurance, permits and accreditations, required by the State of Florida,
Miami-Dade County, The Children's Trust or the federal government.
6. Proof of Policies
Provider shall keep on file copies of its policies on non-discrimination, equal opportunity and/or affirmative
action, Americans with Disabilities Act, and drug-free workplace.
7. Incident Reporting
Provider shall immediately report knowledge or reasonable suspicion of abuse, neglect, or abandonment of a
child, aged person, or disabled adult to the Florida Abuse Hotline on the statewide toll-free telephone number
(1-800-96-ABUSE). As required by Chapters 39 and 415, Florida Statutes, this is binding upon both the
The City of Miami Beach 10
Contract #903-109, Resolution 2008-22
Provider and its employees.
Provider shall complete an incident report in the event of any serious bodily injury to anyone within the scope
of this Contract or arising out of the performance of this Contract. Provider shall provide written notification of
the incident together with a copy of the incident report to The Children's Trust within three (3) working days
after Provider is informed of such incident. Provider shall provide written notification to The Children's Trust,
within seven (7) days after service on Provider of any legal action which is filed as a result of such an injury.
8. Sexual Harassment
Provider shall complete an incident report in the event a client or employee makes an allegation of sexual
harassment, sexual misconduct or sexual assault by a Provider employee arising out of the performance of
this Contract and the Provider has knowledge thereof. Provider shall provide written notification to The
Children's Trust within three (3) business days after Provider is informed of such an allegation. Provider shall
provide written notification to The Children's Trust, within seven (7) business days after service on Provider of
any legal action which is filed as a result of such an alleged incident.
T. CONSENT
Demographic and service information on program participants will be provided to The Children's Trust as part of The
Children's Trust's research mission. Provider will ask participants to sign a voluntary Consent to Photograph and for
Communications. The form is available in English, Spanish, and Creole and must be downloaded from
www.thechildrenstrust.org. All signed Consent forms will be submitted to the Contract Manager, with a copy filed in
the participant's record. Any refusal of consent must be properly documented and signed by the parent or legal
guardian on the Consent form. Provider will exercise its best efforts to have each program participant's contact
information is current and updated upon exiting the program.
U. PROGRAMMATIC DATA REPORTING
Provider agrees to comply and participate in any data collection reporting, including participant data as required by
The Children's Trust and described in Attachment C to this contract, Programmatic Data Reporting Requirements,
subject to confidentiality requirements. In addition, Provider agrees to furnish The Children's Trust with quarterly
program narrative reports in the format to be reasonably specified by The Children's Trust.
V. PUBLICITY
Provider agrees that events funded by this Contract shall recognize The Children's Trust as a funding source. Provider
shall ensure that all publicity, public relations, advertisements and signs within its control recognize The Children's
Trust for the support of all contracted activities. The use of the official The Children's Trust logo is permissible.
Provider shall use its best efforts ensure that all media representatives, when inquiring with the Provider about the
activities funded by this Contract, are informed that The Children's Trust is a funding source. Provider shall distribute
a press release announcing that it has been awarded funding by The Children's Trust. Provider shall, if it possesses
the appropriate technology, provide a link between the website and The Children's Trust's website.
W. PUBLICATIONS
Provider agrees to supply The Children's Trust, without charge, up to three copies of any publication developed in
connection with implementation of programs addressed by this Contract. Such publications will state that the
program is supported by The Children's Trust. Provider agrees that The Children's Trust will have use of copyrighted
materials developed under this Contract to the extent provided in, and subject to, the provisions of Paragraphs G and
H above.
To the extent permitted by the applicable journal or other publication source, Provider shall include The Children's
Trust logo and the following paragraph in all materials featuring programs funded by The Children's Trust, including
but not limited to newsletters, press releases, brochures, fliers, homepage of websites or any other materials for
dissemination to the media or general public:
English:
The City of Miami Beach -Success University is funded in part) by The Children's Trust. The
Children's Trust is a dedicated source of revenue established by voter referendum to improve the
lives of children and families in Miami-Dade County.
The City of Miami Beach 11
Contract #903-109, Resolution 2008-22
Spanish:
The City of Miami Beach -Success University esta financiado por EI Fidecomiso de los Ninos (The
Children's Trust). EI Fidecomiso de los Nirios es una fuente de financiacion, establecida por
referendum para mejorar las vidas de Winos y familias en el Condado de Miami-Dade.
Kreyol:
The City of Miami Beach -Success University finanse ("in part" or equivalent to be translated into
Creole) pa "The Children's Trust". Trust la, ce yon sous lajan ke gouvenman amerikin vote an
referandom you ke' li investi bien Wan pwogram kap ameliore la Vi Ti Moun ak fanmi yo Wan Miami
Dade.
Note: In cases where funding by The Children's Trust represents only a percentage of the Provider's overall funding,
the above language can be altered to read "The (organization) is funded in part by The Children's Trust..."
X. HEADINGS, USE OF SINGULAR AND GENDER
Paragraph headings are for convenience only and are not intended to expand or restrict the scope or substance of the
provisions of this Contract. Wherever used herein, the singular shall include the plural and plural shall include the
singular, and pronouns shall be read as masculine, feminine or neuter as the context requires.
Y. TOTALITY OF CONTRACT/SEVERABILITY OF PROVISIONS
This Contract with its attachments as referenced below contains all the terms and conditions agreed upon by the
parties:
Attachment A: Scope of Services
Attachment B: Budget & Method of Payment
Attachment C: Reporting Requirements
Attachment D: Financial Audit and Financial Report Requirements
Attachment E: Performance Improvement Plan
No other contract, oral or otherwise, regarding the subject matter of this Contract shall be deemed to exist or bind
any of the parties hereto. If any provision of this Contract is held invalid or void, the remainder of this Contract shall
not be affected thereby if such remainder would then continue to conform to the terms and requirements of applicable
law.
[Agency Name] CITY OF T4It~'~II BEACH
N~A1~9-I-BAB€-G8U#TY7-F bAR~BA-
By:
( ign u e of Authorized r ntative)
JORGE M. GONZALEZ
Type or Print Name
Date:
Approved as to form and legal sufficiency
~,~~-~/ ~
County Attorney
The Children's
by:
. Al~C4, ~esid
Date: Q {O U
Date: e_!~-F ~!ia-00~'
This contract is not valid until signed by both parties
APPROVED AS TO
FORM & LANGUAGE
ION
The City of Miami Beach
Contract #903-109, Resolution 2008-22
at
ATTACHMENT A:
Scope of Services
The City of Miami Beach 13
Contract #903-109, Resolution 2008-22
Attachment A
Scope of Services -Service Partnership
Agency Name: City of Miami Beach
Program Name: Success University
1. Program Summary:
Success University is an integrated service program that partners 11 community agencies to provide
Miami Beach youth entrepreneurship training with personal and academic supports, while providing their
families with holistic, comprehensive services to ensure family stability and youth success. Success
University utilizes the principles of the 7 Habits of Highly Successfully People to create an operating
platform that seeks to prepare youth and families for personal success, positive cohesion and economic
betterment. Service components include: tutoring, family assessments, home visits, 7 Habits training for
youth and their families, Family Conferencing, community service opportunities, MB Helpers training, and
entrepreneurship training.
2. Program Schedule:
Success University provides after-school and evening programming beginning June 1, 2008 and continues
through the end of the school year. Services will be provided after-school at Miami Beach Senior High
School, evenings at Biscayne Elementary and evenings and weekends in the participants' homes.
3. Target Population (Include numbers in table and a narrative description of participant
characteristics, including ages, geography, disabilities, etc.):
- Total number of unduplicated
Population ~, ' 4 ~~ ~ k~ ~ x~~;~; ~~,
~tiTS~
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ar
-
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Children/Youth 240
Parents/Primar Care fivers 300
Other populations (e.g., staff professionals, general 120
ublic
- Children/Youth -Participants attend Miami Beach Senior High School and reside within the City's North
Beach neighborhood (33141). Participants are aged 13 to 18 and predominantly have indicators showing them to
be at-risk as demonstrated by school absences, family stability, and economic/social attachment to community.
- Parents/Primary Caregivers -Represent the parents and/or caregivers for the targeted children/youth.
These adults serve as head of household and/or live within the participants' home.
- Other Populations -Participants are encouraged to include friends, extended family, teachers and others in
addition to their family members when engaging in the Family Team Conferencing. For the home visits and 7
Habits f Highly Effective Families programming, services will be provided to everyone that resides in the home
with the youth clients.
4. Service Locations:
P ovider Name
X .:. i ,
~ Site Name ,
1 y ~_j n Address , ~,,~ ~ ~ ~
F !:~ ~ 1 Cam" Z aiL I~A'~^~ •;b City
1 ~ } ~~J- r~.i Stater
..1 fi1~ fC.;)'S. _ ~ ZIP
j(" ~.F ~. r~
Choices
Et AI, City of Biscayne Elementary 800 - 77th Street Miami Beach Florida 33141
Miami Beach, South
Florida Center for Family
Counseling &Unidad of
Miami Beach
Aspira of Florida, Miami Beach Senior 2231 Prairie Avenue Miami Beach Florida 33139
Junior Achievement, & High School
Unidad of Miami Beach
The City of Miami Beach 14
Contract #903-109, Resolution 2008-22
5. Service Delivery:
TYPE 1 ACTIVITIES (3 or more contacts with participants)
<
Activities/Service Name & < Provider Name '~ Total # <;; x; ~ .,' 'Minimum #yi ; Expected i
_
" -` ,-~ ~ ' t ~
Description (Include ~
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Home visits (1 home visits p/month x 1 hour
each x every 3 months for a total of 4 visits per
year): Case worker home visits, intake & South Florida Center for 240 youth, 300 parents 204 youth, 255
assessment, development case plan, provision Family Counseling & & 120 siblings or other parents, 102 2
of referrals when applicable and educate family Unidad of Miami Beach family members siblings
on service elements of program. Visits 2-4 to
asses family progress, service audit, and
identif and identif follow-u issues/needs
7 Habits of Highly Effective Families
(Two modalities are offered. 4 sessions x 2
hours each) -Sessions will be offered Monday
through Thursday, lpm - 9pm and will address
content as indicated below:
* The 7 Habits of Highly Effective Families
are:
1. Be Proactive -The idea is to base your
reaction on principles and values rather
than on moods and conditions.
2. Begin With the End -The creation of a
family mission statement and values.
3. Put First Things First -The focus is to
have behavior driven by purpose instead
of agendas or external forces. 120 youth, 150 parents 102 youth, 127
4. Think Win-Win -The goal is to City of Miami Beach; 3 (2-hour
cooperate and find solutions that Maggie Pacheco & 60 siblin s or other
g arents, 51
p sessions)
incorporate the "we" instead of the "I." family members siblings
5. Seek First to Understand and Then to
Be Understood -This habit enforces the
need to understand each other prior to
pushing forth one's own agenda or
values.
6. Synergize -Synergy follows the win-
win mindset and adheres to the need to
first understand to then be understood.
With synergy, differences are celebrated.
7. Family Renewal - The focus is to
promote family time and bonding to
renew the spirit of family and, therefore,
keep it from growing apart.
*Because services are being offered during
traditional mealtimes, meals will be provided to
encoura a full famil artici ation.
7 Habits of Highly Effective Families
(Two modalities will be offered: 1 session x 7
hours. Sessions will be offered all day Saturday
and will address content as indicated below* 120 youth, 150 parents 102 youth, 127
City of Miami Beach;
*
Maggie Pacheco & 60 siblings or other parents, 51 1
The 7 Habits of Highly Effective Families family members siblings
are:
1. Be Proactive -The idea is to base your
reaction on principles and values rather
than on moods and conditions.
The City of Miami Beach 15
Contract #903-109, Resolution 2008-22
2. Begin With the End -The creation of a
family mission statement and values.
3. Put First Things First -The focus is to
have behavior driven by purpose instead
of agendas or external forces.
4. Think Win-Win -The goal is to
cooperate and find solutions that
incorporate the "we" instead of the "I."
5. Seek First to Understand and Then to
Be Understood -This habit enforces the
need to understand each other prior to
pushing forth one's own agenda or
values.
6. Synergize -Synergy follows the win-
win mindset and adheres to the need to
first understand to then be understood.
With synergy, differences are celebrated.
7. Family Renewal - The focus is to
promote family time and bonding to
renew the spirit of family and, therefore,
keep it from growing apart.
*Because services are being offered during
traditional mealtimes, meals will be provided to
encoura a full famil artici ation.
Entrepreneurship Training - (Junior
Achievement/Aspira) - 12 sessions x 1 hour
each after School) The Miami Beach Service
Partnership is offering the Signature
Program entrepreneurship curricula by
Junior Achievement. The curriculum is
provided by Junior Achievement and the Junior Achievement,
instruction is provided by Aspira of Florida Aspira of Florida &Unidad of 240 youth 204 youth 7 of 12 Sessions
and Unidad of Miami Beach. The Signature Miami Beach
Program offers entrepreneurship, financial
literacy, work readiness, life roles, public
speaking, communications/presentations,
etc. Junior Achievement has been
recognized nationally for its impact and
success with outh.
Community service -Participants will complete
a minimum of 10 hours of service. Multiple
events will be available for youth to complete
their required hours (commencing July 2008).
The organization of community service
events/activities for students to meet/exceed
community service graduation requirements, Teen Job Corps 240 youth 204 youth 2 sessions
Service activities are done in conjunction with
the MB Chamber of Commerce (Chamber
sponsored events) and Miami Dade DERM
(environmental impact studies). It is anticipated
that the community service activities will occur
after youth have received the 7 Habits of Highly
Effective Teens and Families.
FCAT Preparation - Provision of tutoring
services for FCAT preparation. Services will be
offered after school 3 times per week, 2 hrs per
day, for 18 weeks prior FCAT. Preference will
be given to youth participating in the Success 120 youth 100 youth 18 out of 54
University program. However, other youth will sessions
be allowed to participate. Attendance will be
tracked for all youth attending, but outcomes
will be documented solely for those Success
Universit students.
The City of Miami Beach 16
Contract #903-109, Resolution 2008-22
TYPE 2 ACTIVITIES (less than 3 contacts with participants)
~Activittes/Service ~ Name; & Provider Name ;Total, # participants to; Total #Nof sessions
Description ~, ~ ~r~ t` ~ >~, ~
7 ~
~' ~ j ~ x.,, ~ .. ; ,~'~ } , ~be ~ served- 4_ (specify ~ if to ~ beer, offered',, by
,
' f
`
` '~
frequency, 2 length &
~ Include ;
;
~, ~ r ~ `children youth; parents
.• ,. ,., prov~der~ ¢"; across?'
r
.
~ `-
duration of sessions. - ~
_ or, others) ~~ 4 ', '' ; :,
__ cycles and sites'
_
Family Conferencing (1 session x 2 hours+ each
by December 1, 2008). Family Conferencing
engages youth, parents, siblings, friends,
teachers and others to identify and qualify ways
in which they could support the youth's personal
goals. This process has been successfully used Choices Et AI, Inc.,
by the state's juvenile judicial system to reduce South Florida Center for 240 youth, 300 parents & 120
recidivism and promote positive behaviors. Family Counseling &Unidad other family members 240
During the conferences, priorities and values of Miami Beach
are defined and roles are ascribed to attendees
to ensure achievement or support of identified
goals and values. The resulting contract
establishes the framework upon which all
subsequent services are provided.
7 Habits of Highly Effective Teens (1 session x 8
hours by March 1, 2009). 7 Habits of Highly
Effective Teens is a one day, 8-hour training
that addresses the 7 Habits as they relate to City of Miami Beach & 240 youth 15
teenagers and their goals, values and Maggie Pacheco
aspirations. Its language is geared towards
teenagers.
MB Helpers Training (youth). MB Helpers,
modeled after Natural Helpers, addresses
empowering people to become change agents
within their homes, neighborhoods and schools
by recognizing when someone is in trouble,
knowing where needed resources are located
within the community, and connecting needy
people to needed services/resources. The
training, utilizing the 7 Habits as a training Aspira of Florida & 240 youth 8
platform, covers empathic listening, referrals Unidad of Miami Beach
and cultural competence in service delivery. The
youth program focuses on youth issues such as
addiction, relationship problems, familial
problems, etc.
*Because services are being offered during
traditional mealtimes, meals will be provided to
encoura a full famil artici ation.
MB Helpers Training (caregiver), nne Helpers,
modeled after Natural Helpers, addresses
empowering people to become change
agents within their homes, neighborhoods
and schools by recognizing when someone
is in trouble, knowing where needed
resources are located within the City of Miami Beach 24 parents/caregivers 2
community, and connecting needy people to
needed services/resources. The training,
utilizing the 7 Habits as a training platform,
covers empathic listening, referrals and
cultural competence in service delivery. The
adult program focuses more time on
economic roblems.
The City of Miami Beach 17
Contract #903-109, Resolution 2008-22
Health screenings for youth participants (1
medical encounter per participant) Miami Beach Community
*Because services are being offered during
Health Center 240 youth 240
traditional mealtimes, meals will be provided to
encoura a full famil artici ation.
TYPE 3 ACTIVITIES (Other deliverables that are not direct services)
Activities Name' & Description Provider Name
i `F ~ '- Count /
Number -
Public Service Announcement. One PSA will be developed and broadcast on City of Miami Beach
Channel 77 for a month. The purpose is to bring awareness about the program 1
and recruit artici ants.
Recruitment events at youth-serving organizations/locations with the objective of Aspira of Florida
recruiting eligible youth for the program. It is expected that Aspira will complete Unidad of Miami Beach 18 events
17 resentations/recruitment events and Unidad 1.
6. Performance Measure:
Provider shall measure outcome achievement and report on a basis as outlined in Attachment C of this
contract.
Service Provision Outcomes:
;;
Outcomes ~
~I r '. F A T+' ~ f~<
0utcome Indicators
Measurement .Timin when will
9(
r .~
<
,;
tools
r be :Associated Activities ~~
<: I
(from~~~;~~,r Service;,
t [-
~ ~.~~ r j
~ ~ ~: 4 ~ -~
;* ~ 3r~?-,;_ }~ ~=r ~ ~,~.> Tool
, ~ s ~ ~
,
,
n
r
ad ~ ~ini tered ' ~:~_,~
S ,_ ~
. p 'Ve *~ ,.
Increase school 75% of youth will experience a School Attendance Prior school year 7 Habits of Highly Effective
attendance 10% reduction in school absences Report (benchmark); Teens; 7 Habits of Highly
compared to prior school year (M-DCPS) Every 9 weeks; Effective Families; Family
End of school year Team Conferencing; FCAT
Pre aration
Increase 75% of youth will experience a 5% Report cards Prior school year 7 Habits of Highly Effective
academic increase in academic achievement (M-DCPS) (benchmark); Teens; 7 Habits of Highly
achievement as measured by Grade Point Every 9 weeks; Effective Families; Family
Average End of school year Team Conferencing; FCAT
Pre aration
Increase family 85% of youth and parents will 7 Habits of Highly Before and after trainings 7 Habits of Highly Effective
attachment experience at least a 10% Effective Families People; 7 Habits of Highly
increase in resiliency and family Pre- & Post Test Effective Families; Family
attachment Team Conferencin
Enhanced 85% of youth will increase Entrepreneurial Before and after trainings Entrepreneurship training; MB
entrepreneurial entrepreneurial skills and knowledgelskills Helpers Training; 7 Habits of
and leadership community resource knowledge surveys; MB Helpers Highly Effective Teens;
skills skills surve Communi Service
Partnership Outcomes:
Outcomes"~°
:.~ t 'lt i ~
«~ ~ ~~ ~-
aTj ~
,~ :: ~.- ~ ~ ~ Outcome Indicators
ti ( ,. ty L ~: .r '~
~~~~ ~r ~;~ , -~~ x
L~ ~ 8 rr
# `. ~r.4~ i ,1.\ li /
~R. ~° '~ ~'= F ~~~s ~' ~,~~ Measurement 7`
- J,~.++1 '~„
Tool ~~ ~~~ ~
i :r ~ r
~ .~ IJZ ~
4"~ u ~ ~~~ ~ ~~ Timing (when will
Ir '? ~ f.-w L
tools~s t~ ~~~ be
~ ~ tt 1
.~ E`,.~ f~ 41 ~~L;1
a rri i iste d ,, ~ti~~k~ Associated Activities.
`~ Ry~"4 `i ~'i~'1
(from ~ ~~, ~- Service;
ry c
0 ~~y ~, ~~( 1 K.l ~f ~~ { _
D'e,! ve v , ~ ~`
Improved systems ^ 100% of Partnership members ^ Executed MOUs Upon execution of ^ Intake & assessment
of care within North will have an executed contracts Family Team ~~
Beach
Memoranda of Understanding ,
Conferencing
neighborhood A Governance Structure is Adopted Policies & Upon creation of 7 Habits of Highly
established Procedures & Partnership Effective Families
Governance Structure
^ The Partnership will meet Governance Board Monthly Governance 'Home visits 'I
regularly to address collective meeting attendance Board meetings
concerns via its Governing sheets
Board meetings
^ 100% of Partners will have at ^ Me Helpers ^ MB Helpers trainings
least one staff member trained in Training Attendance offered at least once each
MB Helpers sheets quarter
The City of Miami Beach 18
Contract #903-109, Resolution 2008-22
^ 100% of Partners will receive a Partnership ^ Quarterly (using monthly
Partnership Performance Rating Performance Ratings progress reports)
of 80% or greater at least 3 of 4 (measuring service
quarters of operating year levels, partnership
artici ation, etc.
7. Staff Qualifications:
Provider represents that all persons delivering the Services required by this Contract have the knowledge
and skills, either by training, experience, education, or a combination thereof, to adequately and
competently perform the duties, obligations, and Services set forth in the Scope of Services (Attachment
A) and to provide and perform such Services to The Trust's satisfaction.
# & Position ~ Qualiftcations: ~ Duties F e r
Statu: (specify staff, Required, Education &Y _ ~~~"~~~ „~~~ ^ ~ ;~„t~'~E~` ~"=r~ '~~ e'~~ ~~
s 7 '
~ volunteer or Experience
+:~~
~
~~- ~ ''~ T
~
r
~~~
r sub' ~~ ~r ~,; ~ ~_ 5,
~
~ r
~
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1- FT Division Director Bachelor's or greater in Public Overall project management; vendor contract
Administration or other related field management; 7 Habits of Highly Effective Families
and at least one year community training; 7 Habits of Highly Effective Teens training;
involvement experience. MB Helpers training
1-FT Program Coordinator Bachelor's or greater in Public Day-to-day program supervision, contractor
Administration or other related field supervision, and program report preparation.
and at least one year community
involvement experience.
1 - FT Case Worker 2 See attached job description. Data Tracker management, referral tracking, client
file verification & auditing
2- PT Case Worker 2 See attached description. Position will provide transportation to youth and their
families to Family Team Conferencing and 7 Habits
of Highly Effective Families as well as: pick-up and
deliver participant meals, ensure document
completion by attendees during aforementioned
sessions, provide supervision and activities for
family members between 3 and 6 years of age, and
man a referral services desk during these events to
facilitate access to community-based services for
participating families.
1-PT Employment/Job See attached description. Position will provide transportation to youth and their
Specialist families to Family Team Conferencing and 7 Habits
of Highly Effective Families as well as: pick-up and
deliver participant meals, ensure document
completion by attendees during aforementioned
sessions, provide supervision and activities for
family members between 3 and 6 years of age, antl
man a referral services desk during these events to
facilitate access to community-based services for
participating families.
8. Best practices
Activit. Name _ _ _-_ ,.
Related -Best Practice. Model ' ~ ~ ° '
Famil Trainin 7 Habits of Hi hl Effective Families
Youth Trainin 7 Habits of Hi hl Effective Teens
Famil Em owerment/Su ort Famil Team Conferencin
Entre reneurshi Trainin Junior Achievement Si nature Pro ram
The City of Miami Beach 19
Contract #903-109, Resolution 2008-22
ATTACHMENT B
Budget &
Method of Payment
The City of Miami Beach 20
Contract #903-109, Resolution 2008-22
ATTACHMENT B
FISCAL REQUIREMENTS, BUDGET & METHOD OF PAYMENT
Advance pavm~nt requests
The Children's Trust offers advance payments up to 15% of the total contract amount. Advance requests shall be
limited to governmental entities and not-for-profit corporations, in accordance with subsection 216.181 (16) (b), F.S.
The advance request is to include the amount requested and the justification. Advance payment requests must be
submitted using the designated form and must be approved in writing by The Children's Trust's Contract Manager and
Chief Financial Officer or their designee(s).
Advanced funds if not used shall be invested by the provider in an insured interest bearing account, in accordance
with subsection 216.181 (16) (b), F.S. Interest earned on advanced funds shall be returned to The Children's Trust
on a quarterly basis or applied against the amount of the contract owed by The Children's Trust.
Advance aavmen
Within 60 calendar days of receipt of an advance, Provider shall report the actual expenditures paid by or charged to
the advanced funds using the reporting "invoice" form provided by The Children's Trust. If the "invoice" amount is
less than the amount advanced, The Children's Trust will deduct the difference from the next applicable monthly
payment request. Provider may request, in writing, an extension of the repayment of the advance. A fiscal need
must be clearly demonstrated and substantiated by the Provider in order for an extension request to be considered by
The Children's Trust.
Budget revisions
Budget revision(s) require prior written approval from the Contract Manager and The Children's Trust's Chief Financial
Officer or their designee(s). Request for budget revisions must be submitted to the Contract Manager using the
appropriate form, as determined by The Children's Trust. The Provider must request a budget revision to add, delete,
and/or modify any line item(s). Budget revisions can not exceed the contracted amount. Budget revisions will be
incorporated into the Contract.
Indirect Administrative Costs
In no event shall The Children's Trust fund indirect administrative costs in excess of ten (10%) percent of the total
contract award.
Cost Reimbursement Method of Payment
The parties agree that this is a cost reimbursement method of payment contract; the Provider shall be paid in
accordance with the approved budget and/or approved budget revision as set forth in this Attachment.
Invoice Requirements
The Provider shall submit an original request for payment, in the format prescribed by The Children's Trust and in
accordance with the approved budget or approved budget revision. The request for payment is due on or before the
fifteenth (15th) day of the month following the month in which expenditures were incurred (exclusive of legal holidays
or weekends). The Children's Trust agrees to reimburse Provider on a monthly billing basis. The Children's Trust
reserves the right to request any supporting documentation.
A final request for payment (last payment) from the Provider will be accepted by The Children's Trust up to forty-five
(45) days after the expiration of this Contract. If Provider fails to comply, all rights to payment shall be forfeited. If
The Children's Trust determines that Provider has been paid funds not in accordance with this Contract, and to which
it is not entitled, Provider shall return such funds to The Children's Trust or submit appropriate documentation to
support the payment. The Children's Trust shall have the sole discretion in determining if Provider is entitled to such
funds in accordance with this Contract and The Children's Trust's decision on this matter shall be binding if in
accordance with this Contract.
The City of Miami Beach 21
Contract #903-109, Resolution 2008-22
If the Provider fails to serve the number of participants and/or fails to utilize the funds in accordance with the
Contract, The Children's Trust may amend the Contract to reduce the amount of dollars. Any delay in amendment by
The Children's Trust is not deemed a waiver of The Children's Trust's right to amend or seek reimbursement for
under-serving participants in accordance with the Contract.
In order for a request for payment to be deemed proper as defined by the Florida Prompt Payment Act, all requests
for payment must comply with the requirements set forth in this Contract and must be submitted on the forms as
prescribed by The Children's Trust. Requests for payment and/or documentation returned to Provider for corrections
may be cause for delay in receipt of payment. Late submission may result in delay in receipt of payment. The
Children's Trust shall pay Provider within thirty (30) calendar days of receipt of Provider's properly submitted Request
for Payment and/or other required documentation.
In the event that Provider, its independent auditor or The Children's Trust discovers that an overpayment has been
made, Provider shall repay said overpayment within thirty (30) calendar days without prior notification from The
Children's Trust.
The Children's Trust shall retain any payments due until all required reports or deliverables are submitted and
accepted by The Children's Trust.
Supporting Documentation Requirements
Provider shall keep accurate and complete records of any fees collected, reimbursement, or compensation of any kind
received from any client or other third party, for any Service covered by this Contract, and shall make all such records
available to The Children's Trust upon request.
The Provider shall maintain records documenting actual expenditures and services provided according to the approved
budget and scope of services as required.
The City of Miami Beach 22
Contract #903-109, Resolution 2008-22
GENERAL INFORMATION
Areas in Blue to be completed by the Agency
Organization Name: City of Miami Beach
Agency Fiscal Year Begins: 1-Oct (for example: July 1)
_ _ ___
Program Title: Success University
AGENCY BUDGET
Agency Source of Funding Program Budget Agency Budget % of Agency
Budget
Trust Grant Amount Rested _ 499,550.83 499,550.83 84.2%
Trust Other Fundi~_ ___ ___ _ ______ 0.0%
Miami-Dade County Grants(Local) _ _ 0.0%
Federal Grants __
- __._____ __ 0.0%
State Grant _
_ _ 0.0%
Foundations/Charitable Funds 0.0%
Cash/Fees/Other Revenue ___ ___.-_______-_-_-_-.-___ 0.0%
-
In-Kind Contributions - ------- --- --- _ _ . -
93,891.70
_
_ - - - - ---- -- -
_ ____ _ ____931891_70 15.8%
__ __-____
__ __
_ 0.0%
0.0%
0.0%
Total Annual A enc Bud et 593 442.53 593 442.53 100.0%
23
Attachment B, Contract #903-109, Resolution #2008-22
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ATTACHMENT C
Reporting Requirements
The City of Miami Beach 27
Contract #903-109; Resolution 2008-22
Attachment C
Programmatic Data Reporting Requirements
Contract No.
Agency name: The City of Miami Beach
Program name: Success University
The Provider shall submit to The Children's Trust individual participant demographics,
attendance, additional output information, and outcome data, as noted in the Scope
of Service (Attachment A). Reporting will include direct submission of information
into the electronic web-based reporting application (Data Tracker), as well as
standard paper reports, as noted below.
DEMOGRAPHICS ATTENDANCE & OTHER OUTPUTS (electronic reporting in Data
Tracker; requires attendance at training and user login)
Activities with 3 or more contacts with the same participant will enter:
Participant Demographics (including all the items noted below), shall be
entered within seven (7) days of entry into the program. All participant
demographics shall be updated on an ongoing basis if and when new
information is collected.
Participant Attendance shall be entered by the fifteenth (15th) day of the
month following the end of each month, exclusive of legal holidays or
weekends.
Activities with less than 3 contacts per participant:
• Dates, number served, and locations (address and zip code) for each service
activity delivered.
• Monthly updates on the status or percent achieved toward other products or
materials noted in the Scope of Service.
Demographics required for participants with 3 or more contacts:
• Is participant a parent? (yes/no)
• Name (last, first, middle initial)
• Street Address, City, and Zip Code
• Gender (male, female)
• Date of Birth
• Race (American Indian/Alaska Native, Asian, Black/African American, Pacific
Islander, White, Other)
• Ethnicity (Hispanic, Haitian, Other)
• Preferred Language (primary spoken in home) (English, Spanish, Haitian
Creole, Other)
• Adult's Highest Grade Completed
• Child's Social Security # (n/a for adult participants)
• Child's Miami-Dade County Public Schools ID Number (n/a for adult
participants)
• Child's Current Grade Level (n/a for adult participants)
• Child's Current School (n/a for adult participants)
• Does child have a disability? (yes/no)
• If disabled, what type? (Autism, Chronic Medical Condition, Emotional and/or
The City of Miami Beach 28
Contract #903-109; Resolution 2008-22
Behavioral Disorder, Hearing Impairment, Learning Disability, Mental
Retardation, Physical Disability, Visual Impairment, Other)
OUTCOMES & NARRATIVE REPORTS Paper Reporting -Excel and Word Documents)
• Outcomes Measurement and Results (Excel spreadsheet reports customized
for each program/provider, based on current contract Scope of Service)-due
monthly by the 15th of each month for the previous month.
• Quarterly Program Narrative Report (using standard Word document format
provided by The Trust) captures a BRIEF report of successes, challenges and
supports needed-due quarterly by the 15th of the month following the end of
the quarter.
SCHEDULE OF REPORTS DEADLINES
Required Report Reporting ~ Due Date
Frequency
Outcomes Measurement and ~ Monthly By 15th of each month for the previous
Results (Excel) ! month
Data Tracker Electronic Reporting j Monthly gy 15th of each month for the previous
of Demographics, Attendance, ', month
and other outputs
Quarterly Program Narrative Quarterly For June, July and August-
Report (Word) DUE September 15t", 2008
For September, October, and November -
DUE December 15t", 2008
For
The City of Miami Beach
Contract #903-109; Resolution 2008-22
December, January, and February-
DUE March 15t", 2009
For March, April, and May -
DUE June 15t", 2009
29
Attachment D
Financial Audit and Financial Report Requirements
The auditor's report(s) as to the program specific audit shall state that the
audit was conducted in accordance with the program specific audit
requirements listed in The Children's Trust contract and include the following:
An opinion (or disclaimer of opinion) as to whether the financial statement(s)
of the provider is presented fairly in all material respects in conformity with
the stated accounting policies;
An opinion (or disclaimer of opinion) as to whether the schedule of
expenditures is presented fairly in all material respects in conformity with the
stated accounting policies;
A report on internal control related to The Children's Trust contract, which
shall describe the scope of testing of internal control and the results of the
tests;
A report on compliance which includes an opinion (or disclaimer of opinion) as
to whether the auditee complied with laws, regulations, and the provisions of
contract(s) with The Children's Trust which could have a direct and material
effect on the program; and
A schedule of findings and questioned costs for The Children's Trust contract
that includes a summary of the auditor's results relative to The Children's
Trust and findings and questioned costs.
The City of Miami Beach 30
Contract #903-109; Resolution 2008-22
Attachment E
Performance Improvement Plan
The City of Miami Beach 31
Contract #903-109; Resolution 2008-22