FY15 SMART START REACH OUR AND READ GRANT CONTRACTSMART START FINANCIAL ASSISTANCE CONTRACT
3- 15 -3 -03 -0225
Between
SMART START OF NEW HANOVER COUNTY
And
NEW HANOVER COUNTY PUBLIC LIBRARY
FEDERAL TAX ID #56- 6000324
Parties to this Contract:
This Contract is hereby entered into by and between Smart Start of New I lanover County (the
"Local Partnership ") and the New Hanover County Public Library, (the "Contractor ") (referred to
collectively as the "Parties ").
2. Effective Period:
This Contract shall be effective on January 1, 2015 and shall terminate on June 30, 2015.
Independent Contractor:
The Contractor is and shall be deemed to be an independent contractor in the performance of this
Contract and as such shall be wholly responsible for the work to be performed and for the
supervision of its employees. The Contractor represents that it has, or shall secure at its own
expense, all personnel required in performing the services under this Contract. Such employees
shall not be employees of, or have any individual contractual relationship with, the Local
Partnership.
4. Subcontracting:
The Contractor shall not subcontract any of the work contemplated under this Contract without
prior written approval from the Local Partnership. Any approved subcontract shall be subject to
all conditions of this Contract. The Local Partnership shall not be obligated to pay for work
performed by any unapproved subcontractor. The Contractor shall be responsible for the
performance of all of its subcontractors.
5. Assignment:
No assignment of the Contractor's obligations or the Contractor's right to receive payment
hereunder shall be permitted.
6. Beneficiaries:
Except as herein specifically provided otherwise, this Contract shall inure to the benefit of and be
binding upon the Parties hereto and their respective successors. It is expressly understood and
agreed that the enforcement of the terms and conditions of this Contract, and all rights of action
relating to such enforcement, shall be strictly reserved to the Local Partnership and the named
Contractor. Nothing contained in this document shall give or allow any claim or right of action
whatsoever by any other third person. It is the express intention of the Local Partnership and
Contractor that any such person or entity, other than the Local Partnership or the Contractor,
receiving services or benefits under this Contract shall be deemed an incidental beneficiary only.
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7. Key Personnel:
The Contractor shall not replace any of the key personnel assigned to the performance of this
Contract without prior written approval of the Local Partnership. The individuals designated as
"key personnel" for purposes of this Contract are those specified in the Contractor's proposal and
such others as the Parties may agree.
8. Indemnification:
The Contractor agrees to indemnify and hold harmless the State of North Carolina (the "State "),
the Division of Child Development and Early Education of the North Carolina Department of
Health and Human Services (the "Division "), The North Carolina Partnership for Children, Inc.
( "NCPC "), the Local Partnership and any of their officers, agents and employees, from any
claims of third parties arising out of any act or omission of the Contractor in connection with the
performance of this Contract.
This Section shall not apply to state agencies.
9. Contract Administrators:
All notices pennitted or required to be given by one Party to the other and all questions about this
Contract from one Party to the other shall be addressed and delivered to the other Party's Contract
Administrator. The name, post office address, street address, telephone number, fax number, and
email address of the Parties' respective initial Contract Administrators are set out below. Either
Party may change the name, post office address, street address, telephone number, fax number, or
email address of its Contract Administrator by giving timely written notice to the other Party.
For the Local Partnership: For the Contractor:
Jane Morrow, Executive Director
Smart Start of New Hanover County
3534 South College Road, Suite F
Wilmington, NC 28412
Telephone: (910) 815 -3731
Fax: (910) 815 -3733
Email: jane.morrow@newhanoverkids.org
10. Choice of Law:
Harry Tuchmayer, Director
New Hanover County Public Library
201 Chestnut Street
Wilmington, NC 28401
Telephone: (910) 798 -6321
Fax: (910) 798 -6312
Email: lrtiuchmayerAnhcilov.com.
The validity of this Contract and any of its terms or provisions, as well as the rights and duties of
the Parties to this Contract, are governed by the laws of North Carolina. The Contractor, by
signing this Contract, agrees and submits, solely for matters concerning this Contract, to the
exclusive jurisdiction of the courts of North Carolina and agrees, solely for such purpose, that the
exclusive venue for any legal proceedings shall be New Hanover County, North Carolina. The
place of this Contract, and all transactions and agreements relating to it, and their sites and forum,
shall be New Hanover County, North Carolina, where all matters, whether sounding in contract or
tort, relating to the validity, construction, interpretation, and enforcement shall be determined.
11. Precedence Among Contract Documents:
This Contract and any documents incorporated herein by reference represent the entire agreement
between the Parties and supersede all prior oral or written statements or agreements. In the event
of a conflict between or among the terms in the Contract Documents, the terms in the Contract
Document with the highest relative precedence shall prevail. The Contract Documents include
this Contract, any amendments thereto, and the Attachments. The Contract Documents have the
highest precedence, followed by the Contractor's proposal. If there are multiple Contract
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Amendments, the most recent amendment shall have the highest precedence and the oldest
amendment shall have the lowest precedence.
12. Survival of Promises:
All promises, requirements, terms, conditions, provisions, representations, guarantees, and
warranties contained herein shall survive this Contract expiration or termination date unless
specifically provided otherwise herein, or unless superseded by applicable federal or State
statutes of limitation.
13. Availability of Funds:
The Parties to this Contract agree and understand that the payment of the sums specified in this
Contract is dependent and contingent upon and subject to the appropriation, allocation, and
availability of finds for this purpose to the Local Partnership. In the event funds are unavailable,
the Local Partnership may terminate this Contract by giving written notice to the Contractor
specifying the effective date of termination.
14. Authorized Use of Funds:
The Contractor shall use or expend the funds provided by this Contract only for the purposes for
which they were appropriated by the North Carolina General Assembly and as defined in the
Early Childhood legislation. Further, the funds provided by the Local Partnership shall be used
by the Contractor only for the purposes and activities specified in Attachment 1, which is
attached hereto; any amendments or additions to Attachment I; and the Contractor's proposal,
which is incorporated by reference as if fully set forth herein.
15. Responsibilities of the Local Partnership:
The Local Partnership shall perform the following:
A. Reimburse the Contractor for its allowable costs of services incurred in providing the
activities described in Attachment I in accordance with the approved budget in Attachment II
and subsequent amendments to these Attachments;
B. Perform on -site financial and programmatic monitoring of the Contractor for compliance
with the terms of this Contract; and
C. Specify reports and other deliverables required from the Contractor.
16. Responsibilities of the Contractor:
The Contractor shall perform the following:
A. Provide the services described in the Contract Activity Description in Attachment I in
accordance with the approved budget in Attachment I1; to achieve the Program Outcomes
identified in Attachment III and address the goals of the Service Communications Agreement
in Attachment IV, and in compliance with the Smart Start Cost Principles in Attachment V;
and subsequent amendments to the Attachments. Any portion of payment under this Contract
not used for these purposes must revert to the Local Partnership and thereafter to the funding
source as appropriate. Any condition or purpose set forth in this Contract shall take
precedence over any conflicting provision in the proposal submitted by the Contractor.
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B. Receive approval from the Local Partnership of any activity changes by the Contractor prior
to implementation. Budget amendments must also receive advance approval from the Local
Partnership.
C. Report all expenditures on the cash basis of accounting. The Contractor will submit to the
Local Partnership, in such form and by such date as specified by the Local Partnership, a
financial status report for each activity in order to claim reimbursement for allowable costs
incurred under this Contract.
The certified expenditure report must be submitted no less frequently than monthly to the
Local Partnership.
D. Make available all records, including general and subsidiary ledgers, reports, vouchers,
books, program documentation, correspondence, or other documentation or evidence at
reasonable times for review, inspection or audit by duly authorized officials of the Local
Partnership, NCPC, the Division, or the North Carolina Office of the State Auditor or
applicable Federal agencies. The Contractor agrees that the Local Partnership or its agent has
the right to audit the records of the Contractor pertaining to this Contract both during
performance and after completion.
E. Submit to the Local Partnership any other plans, reports, documents or other products that the
Local Partnership may require in the form specified by the Local Partnership.
F. Attend scheduled meetings with the Local Partnership and/or NCPC as requested.
G. Use Program Income earned under this Contract, with written permission of the Local
Partnership, only to enhance the activities performed under this Contract or to decrease the
cost to the Local Partnership of performing those activities. Program income includes, but is
not limited to, income from services rendered, the use or rental of personal property acquired
with State funds, sales of commodities acquired with State finds, and interest earnings on
State- funded deposits.
H. Submit to the Local Partnership with the final report of expenditures, in such form as
specified by the Local Partnership, an accounting of all program income earned and
expended.
I. Publicize the activities performed under this Contract as being funded by the Local
Partnership and Smart Start.
J. Obtain or supply program match cash and in -kind (volunteers, goods, services, facilities)
contributions of 15% percentage of this Contract amount; retain written documentation of
program match cash and in -kind contributions, and quantify and report to the Local
Partnership on a quarterly basis these contributions and any other direct or indirect finding
the Local Partnership funds have leveraged.
K. Report suspected child abuse, neglect, or dependency as defined in N.C.G.S. §713-101.
L. Ensure that no funds from this Contract will be used to carry on propaganda or otherwise to
attempt to influence legislation, to influence the outcome of any public election, or to carry
on directly or indirectly any voter registration drive.
M. Ensure adherence to N.C.G.S. §14313-168.10.-14313-168.16. and as modified by applicable
Session Law.
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N. Participate in the Local Partnership's evaluation process and develop measurable outcomes
for evaluating funded activities.
O. Ensure that this Contract and all referenced attachments and subsequent amendments thereto
have been reviewed.
17. Compliance with Cost Principles:
The Contractor will not be reimbursed for expenditures incurred under this Contract that do not
comply with the Smart Start Cost Principles, which are incorporated herein as Attachment V, and
North Carolina State cost principles, as applicable.
18. Amount of Payment:
The Local Partnership shall reimburse the Contractor in the manner and in the amount specified
in the Contract Documents. The amount paid by the Local Partnership for provision of services
under this Contract shall not exceed $10,350.00 (Ten thousand, three hundred fifty dollars).
19. Payment Provisions:
A. Payment Procedure:
1. Monthly reimbursements shall be made for actual expenditures made in accordance with
the approved budget on file with both Parties and reported in the monthly expenditure
report submitted by the Contractor.
2. In June 2015 the Contractor may receive an advance for the final reimbursement under
this Contract.
B. Withholding of Payment:
The Local Partnership has the authority to withhold payment if the Contractor fails to make
significant progress toward achieving outcomes as defined in the activity proposal as approved by
the Local Partnership, or if the quality of services provided fails to meet Local Partnership
standards and expectations for any reason, or if the Contractor fails to submit required reports.
C. Reimbursements:
Reimbursements for expenditures under this Contract will not occur subsequent to June 30, 2015.
20. Reversion of Unexpended Funds:
Any unexpended funds held by the Contractor upon termination or completion of this Contract
shall be reported and reverted to the Local Partnership with the final report of expenditures.
21. Reporting and Audit Requirements:
The Contractor shall comply with all rules and reporting requirements established by statute
or administrative rules.
NCAC Title 09 NCAC 03M, "Uniform Administration of State Grants," establishes reporting
thresholds and requirements for nongovernmental grantees and subgrantees of State funds.
The three reporting thresholds are:
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A. A grantee that receives, uses, or expends State funds in an amount less than $25,000
within its fiscal year must, within six months after the end of its fiscal year, submit to the
Local Partnership:
1) A certification completed by the grantee Board and management stating that the State
funds were received, used, or expended for the purposes for which they were granted;
and
2) An accounting of the State funds received, used, or expended.
B. A grantee that receives, uses, or expends State finds in an amount of at least $25,000 and
up to and including $500,000 within its fiscal year must, within six months after the end
of its fiscal year, submit to the Local Partnership:
1) A certification completed by the grantee Board and management stating that the State
funds were received, used, or expended for the purposes for which they were granted;
2) An accounting of the State funds received, used, or expended; and
3) A description of activities and accomplishments undertaken by the grantee with the
State funds.
C. A grantee that receives, uses, or expends State funds in the amount greater than $500,000
within its fiscal year must, within nine months after the end of its fiscal year, submit to
the Local Partnership:
1) A certification completed by the grantee Board and management stating that the State
finds were received, used, or expended for the purposes for which they were granted;
2) An audit prepared and completed by a licensed Certified Public Accountant; and
3) A description of activities and accomplishments undertaken by the grantee with the
State funds.
The Contractor shall use the forms specified by the Local Partnership in making reports to the
Local Partnership.
The Contractor's fiscal year runs from July 1 to June 30.
22. Subgrantees:
The Contractor has the responsibility to ensure that all subgrantees, if any, provide all information
necessary to permit the Contractor to comply with the standards set forth in this Contract.
23. Sales /Use Tax Refunds:
If eligible, the Contractor and all subgrantees shall (a) ask the North Carolina Department of
Revenue for a refund of all sales and use taxes paid by them in the performance of this Contract,
pursuant to N.C.G.S. § 105 - 164.14; and (b) exclude all refundable sales and use taxes from all
reportable expenditures before the expenses are entered in the reimbursement reports.
24. Care of Property:
The Contractor agrees that it shall be responsible for the proper custody and care of any property
furnished to it for use in connection with the performance of this Contract and will reimburse the
Local Partnership for loss of, or damage to, such property. When the property provided or
purchased is no longer needed or used for the performance of services under this Contract, or at
the termination of this Contract, the Contractor shall contact the Local Partnership for instructions
as to the disposition of such property and shall comply with these instructions.
For personal property costing in excess of $500 per item, controls and procedures shall include at
a minimum the following:
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A. Detailed asset records that accurately include description and location of the asset, acquisition
date, cost, and serial number, if applicable.
B. A control system shall be in place to ensure adequate safeguards to prevent loss, damage, or
theft of personal property.
C. Adequate maintenance procedures to ensure that property is maintained in good condition.
25. Access to Persons and Records:
The State Auditor shall have access to persons and records as a result of this Contract in
accordance with N.C.G.S. § 147 -64.7. Additionally, as funding authorities, the State, the
Division, NCPC, and the Local Partnership shall have access to persons and records as a result of
this Contract.
The Office of the State Auditor has audit oversight for all organizations that receive, use or
expend State funds. The Contractor shall, upon request, furnish to the Office of the State Auditor,
the Division, the Local Partnership, and NCPC all financial books, records, and other information
requested by them to provide full accountability for the use and expenditure of State funds. In
addition, the Office of the State Auditor, the Division, NCPC, and the Local Partnership shall
have access to the working papers of the Contractor's independent auditor for review as
considered necessary.
26. Records Retention:
The State's basic records retention policy requires all grant records to be retained for a minimum
of five years following completion or tennination of this Contract or until all audit exceptions
have been resolved, whichever is longer. If any litigation, claim, negotiation, audit, disallowance
action, or other action involving this Contract has been started before expiration of the five -year
retention period described above, the records must be retained until completion of the action and
resolution of all issues which arise from it, or until the end of the regular five -year period
described above, whichever is later.
If the Contractor becomes unable to maintain these records for the period described above, the
Contractor must provide the records to the Local Partnership.
27. Conflict of Interest Policy:
The Contractor expressly asserts that it presently has no interest and shall not acquire any interest,
direct or indirect, which would conflict in any manner or degree with the performance of services
required to be performed under this Contract. The Contractor shall not employ any person or
subcontractor having such interest during the performance of this Contract. The Contractor
further agrees to notify the Local Partnership in writing of any instances that might have the
appearance of a conflict of interest.
The Local Partnership shall not be required to make any payments until it has received a
notarized copy of the Contractor's policy addressing conflict of interest. The policy shall address
situations in which the Contractor's employees and the members of its board of directors or other
governing body may directly or indirectly benefit from the Contractor's disbursing of funds under
this Contract and shall include actions to be taken by the Contractor or the individual, or both, to
avoid conflicts of interest and the appearance of impropriety.
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28. Insurance:
Providing and maintaining adequate insurance coverage is a material obligation of the Contractor
and is of the essence of this Contract. All such insurance shall meet all laws of the State of North
Carolina. Such insurance coverage shall be obtained from companies that are authorized to
provide such coverage and that are authorized by the Commissioner of Insurance to do business
in North Carolina. The Contractor shall at all times comply with the terms of such insurance
policies, and all requirements of the insurer under any such insurance policies, except as they may
conflict with existing North Carolina laws or this Contract. The limits of coverage under each
insurance policy maintained by the Contractor shall not be interpreted as limiting the Contractor's
liability and obligations under this Contract.
During the term of this Contract, the Contractor shall provide commercial insurance of such type
and with such terms and limits as may be reasonably associated with this Contract. At a
minimum, the Contractor shall provide and maintain Workers' Compensation, Commercial
General Liability, and Automobile Liability Insurance covering all owned, hired and non -owned
vehicles used in the performance of this Contract as required to protect the State, the Division,
NCPC, and the Local Partnership against claims that may arise from the Contractor's
performance.
29. Confidentiality: 7!
Any information, data, instruments, documents, studies or reports given to or prepared or
assembled by the Contractor under this Contract shall be kept as confidential and not divulged or
made available to any individual or organization without the prior written approval of the Local
Partnership. The Contractor acknowledges that in receiving, storing, processing or otherwise
dealing with any confidential information it will safeguard and not further disclose the
information except as otherwise provided in this Contract.
30. Copyrights and Ownership of Deliverables:
All deliverable items produced pursuant to this Contract are the exclusive property of the Local
Partnership. The Contractor shall not assert a claim of copyright or other property interest in such
deliverables.
31. Equal Employment Opportunity:
The Contractor shall comply with all federal and State laws relating to equal employment
opportunity.
32. Compliance with Laws:
The Contractor shall comply with all laws, ordinances, codes, rules, regulations, and licensing
requirements that are applicable to the conduct of its business, including those of federal, State,
and local agencies having jurisdiction and /or authority.
33. Advertising:
The Contractor shall not use the award of this Contract as a part of any news release or
commercial advertising.
34. Statement of No Overdue Tax Debts:
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The Contractor certifies that it does not have any overdue tax debts, as defined by N.C.G.S. § 105-
243. 1, at the federal, State, or local level. The Contractor understands that any person who makes
a false statement in violation of N.C.G.S. § 143C-6 -23(c) is guilty of a criminal offense
punishable as provided by N.C.G.S. §143C -10 -1.
35. Supplementation of Expenditure of Public Funds:
The Contractor assures that funds received pursuant to this Contract shall be used only to
supplement, not supplant, the total amount of federal, State, and local public funds that the
Contractor otherwise expends for services on behalf of young children and their families. Funds
received pursuant to this Contract shall be used to provide additional public funding for such
services; the funds shall not be used to reduce the Contractor's total expenditure of other public
funds for such services. In the event of supplantation, the Local Partnership may immediately
reduce or terminate funding under this Contract.
36. Disbursements:
As a condition of this Contract, the Contractor acknowledges and agrees to make disbursements
in accordance with the following requirements:
A. Implement adequate internal controls over disbursements;
B. Pre -audit all vouchers presented for payment to determine:
1) Validity and accuracy of payment
2) Payment due date
3) Adequacy of documentation supporting payment
4) Legality of disbursement;
C. Assure adequate control of signature stamps /plates;
D. Assure that an individual does not sign a check payable to himself /herself or to an
organization for which there is a real or perceived conflict of interest; and,
E. Implement accounting procedures to ensure that expenditures incurred under this
Contract may be readily identified and reported.
37. Health Insurance Portability and Accountability Act ( HIPAA):
The Contractor agrees that, if the Local Partnership determines that some or all of the activities
within the scope of this Contract are subject to the Health Insurance Portability and
Accountability Act of 1996, P.L. 104 -191, as amended ( "HIPAA "), or its implementing
regulations, it will comply with the HIPAA requirements and will execute such agreements and
practices as the Local Partnership may require to ensure compliance.
38. Amendment:
This Contract may not be amended orally or by performance. Any amendment must be made in
written form and executed by duly authorized representatives of the Local Partnership and the
Contractor.
39. Force Majeure:
Neither Party shall be deemed to be in default of its obligations hereunder if and so long as it is
prevented from performing such obligations by any act of war, hostile foreign action, nuclear
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explosion, riot, strikes, civil insurrection, earthquake, hurricane, tornado, or other catastrophic
natural event or act of God.
40. Suspension:
This Contract may be suspended in whole or in part upon 10 days written notice, to the Contract
Administrator noted in Section 9, by the Local Partnership if the Contractor has materially failed
to comply with the terms and conditions of this Contract, including all attachments and
amendments thereto.
Suspension shall remain in effect until:
A. the Contractor has taken corrective action as approved by the Local Partnership; or
B. the Contractor has given written assurances satisfactory to the Local Partnership that
corrective action will be taken; or
C. this Contract is terminated by either Party or by mutual consent of both Parties.
After receipt of a notice of suspension and except as otherwise directed by the Local Partnership,
the Contractor shall immediately cease work under this Contract on the date and to the extent
specified in the notice of suspension, and take all reasonable steps to minimize the costs incurred
tinder this Contract.
41. Default and Termination:
A. The Parties may terminate this Contract by mutual consent with 10 days notice to the other
Party.
B. This Contract may be terminated in whole or in part by either Party, with 30 days written
notice to the other Party's Contract Administrator as noted in Section 9, delivered by certified
mail with return receipt requested, or in person.
C. If, through any cause, the Contractor shall fail to fulfill its obligations under this Contract in a
timely and proper manner, the Local Partnership shall have the right to terminate this
Contract by giving written notice to the Contractor's Contract Administrator as noted in
Section 9, delivered by certified mail with return receipt requested, or in person, and
specifying the effective date thereof.
After receipt of a notice of termination and except as otherwise directed by the Local
Partnership, the Contractor shall cease work under this Contract on the date and to the extent
specified in the notice of termination. In the event of termination in part, both Parties shall
continue the performance of this Contract to the extent not terminated.
In that event, all finished or unfinished deliverable items prepared by the Contractor under
this Contract shall, at the option of the Local Partnership, become its property, and the
Contractor shall be entitled to receive just and equitable compensation for any satisfactory
work completed on such materials, minus any payment or compensation previously made.
Notwithstanding the foregoing provision, the Contractor shall not be relieved of Liability to
the Local Partnership for damages sustained by the Local Partnership by virtue of the
Contractor's breach of this agreement, and the Local Partnership may withhold any payment
due the Contractor for the purpose of setoff until such time as the exact amount of damages
due the Local Partnership from such breach can be determined. The filing of a petition for
bankruptcy by the Contractor shall be an act of default under this Contract.
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D. The Local Partnership may terminate this Contract on any date specified by the Local
Partnership if funds are no longer available.
42. Waiver of Default:
Waiver by the Local Partnership of any default or breach in compliance with the terms of this
Contract by the Contractor shall not be deemed a waiver of any subsequent default or breach and
shall not be construed to be modification of the terms of this Contract unless stated to be such in
writing, signed by an authorized representative of the Local Partnership and the Contractor and
attached to this Contract.
43. Severability:
In the event that a court of competent jurisdiction holds that a provision or requirement of this
Contract violates any applicable law, each such provision or requirement shall continue to be
enforced to the extent it is not in violation of law or is not otherwise unenforceable and all other
provisions and requirements of this Contract shall remain in full force and effect.
44. Time of the Essence:
Time is of the essence in the performance of this Contract.
45. Signature Warranty:
The undersigned represent and warrant that they are authorized to bind their principals to the
terns of this Contract.
In Witness Whereof, the Local Partnership and the Contractor have executed this Contract in duplicate
originals, with one original being retained by each Party.
SMART START OF NEW HANOVER COUNTY
BY:
Jane Morrow, Executive Director Date
NEW HANOVER COUNTY PUBLIC LIBRARY
lA
Harry Tuchmayer, Director
NEW
BY:
County Man e►
LINTY
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Date
DD
Date
Attachment III
Contract #: 3- 15 -3 -03 -0225
New Hanover County Public Library
Page 1 of 1
CONTRACT ACTIVITY DESCRIPTION
Smart Start of New Hanover County
Direct Service Provider: New Hanover County Public Library
The services to be purchased or provided under this contract are limited to those
described and indicated below:
Activity name: Smart Start Reach Out and Read
The New Hanover County Public Library will employ up to 1FTE staff to implement (Smart
Start) Reach Out and Read® (ROR), a national evidence -based model that promotes early
literacy. Medical care providers at selected medical practices in New Hanover County will be
trained to deliver early literacy guidance to parents of children 6 months - 5 years of age during
each well -child visit. During the well -child visit, in the examination room, the provider will
give the child a new, developmentally and culturally— appropriate children's book to take home,
building a collection of 10 new books in the home before the child goes to kindergarten. ROR
staff may assist with any required evaluation or other reporting processes and support book
acquisitions; and facilitate the creation of literacy -rich waiting rooms, including gently used
books for waiting rooms, or for siblings to take home.
Attachment II
Approved Budget for Direct Services Provider Activity
Partnership: Smart Start of New Hanover County
Direct Services Provider: NHC Public Library
Smart Start Funds
Effective: January 1, 2015
Contract #: 3- 15 -3 -03 -0225
Activity Name: Smart Start Raising A Reader
11) Personnel
$5,160.00
12) Contracted Services
$0.00
13) Total Personnel /Contracted Services
$5,160.00
14) Office Supplies & Materials
15) Service- Related Supplies and Materials
16) Total Supplies & Materials
$0.00
17) Travel
$200.00
18) Communications & Postage
19) Utilities
20) Printing & Binding
21) Repair and Maintenance
22) Meeting /Conference Expense
23) Employee Training (no travel)
24) Advertising and Outreach
25) Not Available for Use
26) Total Non -Fixed Operating Expenses
$200.00
27) Office Rent (Land, Buildings, etc.)
28) Furniture Rental
29) Equipment Rental (Phones, Computer, etc.)
30) Vehicle Rental
31) Dues, Subscriptions & Fees
32) Insurance & Bonding
33) Books (Library Reference Materials)
34) Not Available for Use
35) Other Expenses
36) Total Fixed Charges & Other Expenses
$0.00
37) Not Available for Use
38) Not Available for Use
39) Furniture /Non- Computer Eqpt., $500+ per item
40) Computer Equipment/Printers, $500+ per item
41) Furniture /Eqpt., under $500 per item
42) Total Property & Equipment Outlay
$0.00
43) Purchases of Services
44) Not Available for Use
45) Stipends & Scholarships
46) Cash Grants & Awards
47) Non -Cash Grants & Awards
$4,990.00
48) Total Services /Contracts /Grants
$4,990.00
50 Total Budgeted Expenditures
$10,350.00
SSROR BUDGET Spreadsht 2015
Smart Start
Reach Out and Read
Projected Outcomes — 2015:
Attachment III
Contract #: 3- 15 -4 -03 -0225
New Hanover County Public Library
Page 1 of 1
By June 30, 2015, 90% (x /x) of medical providers will report improved capacity
for modeling age- appropriate book engagement with families during well child
visits.
By June 30, 2015, 90% (x/x) of children in participating sites ages birth to 5
years will have received a prescription to read and an age- appropriate book to
take home.
By June 30, 2015, 50% (x /x) of families responding to a survey will report an
increase in the number of times a parent looks at/reads a book with their child
after receiving a least one ROR book.
Attachment IV
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SERVICE COMMUNICATIONS AGREEMENT
This Service Communications Agreement is entered into by and between Smart Start of
New Hanover County (Smart Start) and the New Hanover County Public Library - the
latter being a Direct Service Provider (DSP) receiving Smart Start funding for the Smart
Start Reach Out and Read activity in New Hanover County as outlined in the Smart Start
Contract.
The primary purpose of this Agreement is to assure that all DSP's provide consistent and
regular information to clients and other community members in support of Smart Start's
Vision, Mission, and programs. (see Addendum A)
By initialing each of the following, the person(s) authorized to sign the Smart Start
Contract and any of the Contractor's applicable agents /employees related to the
aforementioned activity, agree to work with Smart Start's Programming & Evaluation
Director and Smart Start's Outreach staff in fulfilling the specific goals set forth herein:
Identify the Agency and it's contracted activity as a Smart Start partner
through the display of the Smart Start logo, as provided, at a mutually
agreed upon location at the Contractor's facility site and at service
delivery sites, and on all communications and materials directly related to
the Smart Start activity to promote the partnership between each entity.
Preface official program titles with "Smart Start" and incorporate the
official program title in activity descriptions, etc. Likewise, use Smart
Start titles and standardized language as provided by Smart Start in all of
the program's forms of communication with the public to indicate Smart
Start's affiliation with the contracted service. (Note: includes email
signatures & voicemail messaging)
Identify the Contractor's partnership with Smart Start in news releases,
Public Service Announcements, public affairs programs, community
presentations, and other such events whenever appropriate.
Work directly with Smart Start's Outreach staff to create the above -
mentioned materials, statements, etc., and to develop all contract - related
materials (i.e., brochures, newsletters, applications, training rosters /logs)
prior to distribution and /or usage.
Regularly acknowledge Smart Start as the primary funding source for the
provision of the contracted service both formally and informally as
applicable.
*per in -kind support documentation
SSNI IC DSP Contract FYI
Attachment IV
Page 2 of 2
Clearly label and inventory all equipment and materials purchased with
Smart Start funds.
Facilitate awareness of this program to both personnel and the public at
large, and promote it and all Smart Start programs as partners in the
fulfillment of the Smart Start Vision and Mission.
Provide information pertaining to the contracted service on the
Contractor's website as feasible.
Communicate to clients the availability of other Smart Start services as
appropriate /applicable.
Assure that head of the contractor's agency /organization officially
demonstrates support for Smart Start by participating in at least one
SSNHC event during the contract year.
SSNIIC DSP Contract FYI
Attachment IV
Addendum A
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T
a NEW HANOVER COUNTY
"Building Bridges to the Future"
Our Vision -
Smart Start of New Hanover County envisions every child entering school with the health, family
support, and early education necessary to succeed.
• All families will receive the support that they need in order to have healthy children with
necessary preventive and routine health care;
• Every child will grow up in an environment that is free of abuse, neglect and violence;
• Families and their children will have necessary assistance in their efforts to reach their full
potential;
• Affordable, quality early education will be available to all families, as appropriate, meeting
individual child and family needs;
• New Hanover County corporate, philanthropic and community leaders will make quality
early childhood services for children and their families a priority.
Our Mission -
Smart Start of New Hanover County seeks to build bridges to develop, sustain and enhance
health, family support and early education services for all children, ages birth to five.
Beliefs:
• The well being and success of every child is critical regardless of race, ethnicity,
socio- economic status, or developmental and learning disabilities;
• The quality of life for young children is basic to adult well being and the future economic
vitality of our community;
• Parents are a child's first and most important teachers;
• A broad community -based partnership committed to young children should be available to
assist parents in their role as primary caregivers;
• The community has the responsibility to provide effective strategies and services to support
early education as well as the development of mentally and physically healthy children.
Principles:
• Program and fiscal accountability are key to producing appropriate, measurable and
quality outcomes;
• Collaborative and cooperative efforts with community partners working on behalf of
children are most effective and essential;
• The planning, allocation and evaluation activities of Smart Start of New Hanover
County significantly involve key stakeholders- parents, community members, agency
representatives, business and political leaders, and representatives of the faith
community are strategically important;
• Our resources will be maximized by developing human and fiscal supports;
• The concept of Smart Start's locally- funded programs is promoted within the
community at large.
SSNHC DSP Contract FYI
Attachment IV
Addendum A
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Smart Start Programs & Services
2014 -15
Early Care & Education:
Smart Start
Early Childhood Connections
PUZZLES Center and Resource Room
Intervention/Inclusion Services
Raising A Reader TM
Child Care Advantage (Subsidy)
Health:
Smart Start
Family & Health Services
ABCD (Assuring Better Child Health & Development)
Family Support:
Smart Start
Baby FASTTM
Child Care Resource & Referral
FathereadTM
Motheread B.A.B.Y.TM
Parents as TeachersTM
PUZZLES Center & Resource Room
Reach Out and ReadTM
Triple P® (Positive Parenting Program) Level 4 Group services
Mandated Oversight:
Smart Start
Programming & Evaluation
NOTE: For descriptions of and contact information for individual programs please see the Smart Start Services
Sheet in the FYI SSNHC Contractor Handbook. Program and contact information can also be found in the
SSNHC 2014 -15 Services brochure and on our website at www.newhanoverkids.org
SSNHC DSP Contract FYI
The North Carolina Partnership for Children, Inc.
Smart Start Cost Principles
Effective July 1, 2012
Purpose
Attachment V
This document establishes principles for deten-nining costs that may be paid with State
Smart Start funds. These Cost Principles are not intended to address all items of cost.
Effective July 1, 2005, the State adopted new administrative rules, Title 09 NCAC 03M,
"Uniform Administration of State Grants," applicable to non -State entities that receive
grants of State funds. These rules provide that Federal Office of Management and
Budget (OMB) Circular A -87, "Cost Principles for State, Local and Indian Tribal
Governments," be used in the determination of allowable uses of State funds.
OMB Circular A -87 specifies that OMB Circular A -122, "Cost Principles for Non - Profit
Organizations," should be used by not- for - profit organizations. Accordingly, these Cost
Principles incorporate the relevant provisions of OMB Circular A -122.
The 2012 Smart Start Cost Principles are applicable only to Smart Start funds, including
program income, and supersede any prior guidance for the items listed. Other sources of
funds may have specific guidelines and principles that must be followed for their funds.
Accordingly, each grant agreement or contract related to sources of funds other than
Smart Start should be reviewed carefully to ensure compliance with requirements.
These Cost Principles are effective July 1, 2012, and apply to The North Carolina
Partnership for Children, Inc. (NCPC), the Local Partnerships, and their direct service
providers and grantees. More restrictive provisions apply to direct service providers and
grantees in four areas (Section B.7. Condolences, Section B.10. Employee Salaries and
Fringe Benefits; Section B.17. Interest; and Section B.28. Severance Pay) as identified in
bold text below.
Stricter principles may be adopted if desired.
General Principles
A. Basic Considerations
1. Factors affecting allowability of costs.
In order to be paid from Smart Start fiords, costs must meet the following general
criteria:
a. Be reasonable and in compliance with these principles.
b. Conform to any limitations or exclusions set forth in these principles.
c. Be consistent with policies and procedures of NCPC and the local partnership.
d. Be adequately documented.
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2. Reasonable costs.
A cost is reasonable if, in its nature or amount, it does not exceed that which
would be prudent under the circumstances prevailing at the time the decision is
made to incur the cost. 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 services.
b. The restraints or requirements imposed by such factors as generally accepted
sound business practices, fair and open competitive bidding, Federal and State
laws and regulations, and terms and conditions of the Smart Start contract or
grant agreement.
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 State.
B. Selected Items of Cost
1. Advertising
The term "advertising costs" means the costs of advertising media. Advertising
media include magazines, newspapers, internet, radio and television programs,
direct mail, exhibits, and the like.
a. The following costs are allowable:
(1) Classified advertising for recruitment of employees;
(2) Advertising for the procurement of goods and services;
(3) Advertising related to the disposition of property and equipment;
(4) Yellow page advertisements that publicize direct services for children,
families and providers who serve children and families;
(5) Display advertisements that publicize direct services for children, families
and providers who serve children and families,
(6) Radio, television and internet advertisements that publicize direct services
for children, families and providers who serve children and families; and,
(7) Listings in community and resource directories.
b. The following costs are unallowable:
(1) Yellow page, display, classified, radio, television or internet
advertisements other than those to publicize direct services for children,
families and providers who serve children and families, and
(2) Billboards.
c. Also see Section B.24. Promotion and Public Relations.
2. Alcoholic Beverages
Costs of alcoholic beverages are unallowable.
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3. Apparel and Jewelry
Costs of most apparel are unallowable. Apparel includes, but is not limited to,
t- shirts, jackets, aprons and hats. Unallowable apparel includes, but is not
limited to:
• T- shirts, polo shirts or other clothing for staff, parents, child care
providers, board members, or people in the community; and
• Apparel for children in child care for special events, such as caps and
gowns for a prekindergarten graduation ceremony.
b. Costs of the following apparel are allowable, if reasonable and necessary as a
component of an approved Smart Start service activity:
nursing bras;
children's costumes for use in dramatic play and/or cover -ups for use in
art projects, cooking, etc.; and
onesies and similar infant clothes.
c. Costs of jewelry (including watches and charms) are unallowable.
4. Audit Services
a. Costs of audit services are unallowable for local partnerships.
b. Costs of audit services for direct service providers or grantees are allowable
only if an audit is required by the State (resulting from total State funding
exceeding $500,000). Costs are allowable only in the proportion of
revenues that Smart Start represents of the total revenues.
5. Bad Debts
Bad debts, including losses (whether actual or estimated) arising from special
events or fundraisers, uncollectible accounts and other claims, related collection
costs, and related legal costs, are unallowable. See also Section B.15. Fund
Raising and Section B.27. Selling and Marketing Expenses.
6. Capital and Repair and Maintenance
a. Capital expenditures are prohibited by legislation and are unallowable.
b. The term "capital" is defined as "land acquisitions, new construction, or
rehabilitation of existing facilities, and repairs and renovations" (N.C.G.S. §
143 - 34.40).
c. Costs incurred for improvements which: 1) add to the permanent value of the
buildings and/or for land; or 2) appreciably prolong the life of the asset, shall
be treated as capital expenditures.
d. Capital "repairs and renovations" are defined by N.C.G.S. § 143 -15.3A to
include the following types of projects:
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(1) Roof repairs and replacements;
(2) Structural repairs;
(3) Repairs to electrical, plumbing, heating, ventilating, and air - conditioning
systems;
(4) Improvements and renovations to improve use of existing space;
(5) Improvements to roads, walks, drives, utilities infrastructure;
(6) Historical restoration; and
(7) Improvements to meet safety or Federal and State standards.
e. Costs incurred for necessary, recurring minor maintenance, repair, or upkeep
of buildings that do not add to the permanent value of the property or
appreciably prolong its intended life, but keep it in an efficient operating
condition, are allowable.
7. Condolences
Costs of condolences, such as flowers, plants, fruit baskets, and the like are
allowable only in the following circumstances:
a. The total cost of the item(s) including delivery or service charge does not
exceed $75; and one of the following situations exists:
• Condolences to a Partnership employee upon the death of a spouse, parent,
or child of the employee;
• Condolences to the Partnership employee's family in the event of the
death of a Partnership employee;
• Condolences to a Partnership employee in the event of his or her
hospitalization;
• Condolences to a Partnership board member upon the death of a spouse,
parent, or child of the board member;
• Condolences to a Partnership board member's family in the event of the
death of the board member; and
• Condolences to a Partnership board member in the event of his or her
hospitalization.
b. Costs of condolences are unallowable for direct service providers or
grantees.
c. Also see Section B13. Flowers, Plants and Trees.
8. Contributions and Donations
Contributions and donations to others are unallowable other than cash and non -
cash grants to individuals or organizations identified with an approved service
activity. Also see Section B.20. Memberships.
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9. Defense and Prosecution of Criminal and Civil Proceedings, Claims and
Appeals
a. Legal costs incurred in connection with any criminal, civil or administrative
proceeding commenced by the Federal Government, or a State, or local
government are not allowable if the proceeding:
(1) Relates to a violation, or failure to comply with, a Federal, State or local
statute or regulation; and
(2) Results in any of the following dispositions:
i. In a criminal proceeding, a conviction.
ii. In a civil or administrative proceeding involving an allegation of
fraud or similar misconduct, a determination of organizational
liability.
iii. In the case of any civil or administrative proceeding, the imposition
of a monetary penalty.
iv. A disposition, by consent or compromise, if the action could have
resulted in any of the dispositions described above.
b. Legal costs incurred in connection with proceedings described in paragraph
a, but which are not made unallowable by that paragraph, are allowable to the
extent that they are reasonable and necessary and cannot be recovered from
another party.
10. Employee Salaries and Fringe Benefits
a. Costs for salaries and wages must be based on documented timesheets
approved by a responsible member of the organization.
b. Timesheets that reflect the distribution of activity of each employee must be
maintained for all staff members (exempt and non - exempt).
c. Costs for salaries and wages must reflect an after -the fact determination of the
actual time spent on each activity. Budget estimates are not allowed.
d. Employee 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 and the like are allowable.
e. Employee fringe benefits in the form of extended paid leave, such as
sabbatical or unearned paid family medical leave, are unallowable.
f. Pension plan costs incurred in accordance with established policies are
allowable, provided such policies meet the test of reasonableness and are not
discriminatory.
g. Employee fringe benefits in the form of gifts or gift certificates are
unallowable, with the exception of token items (i.e., value of $25 or less per
item) to recognize Partnership employees for years of service or exemplary
performance.
h. Costs of fringe benefits in the form of gifts or gift certificates are
unallowable for direct service providers or grantees.
i. Continuing benefit costs after termination, such as health insurance, are
unallowable for former employees of direct service providers or grantees.
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j. Payout upon termination for more than 10 days of accrued vacation,
accrued sick leave, and/or accrued paid time off (combined) are
unallowable for direct service provider or grantee staff.
11. Entertainment
a. When designed for the benefit of adults, costs of activities for amusement,
diversion, and social activities and any costs directly associated with such
costs (such as tickets to shows, amusement parks or sports events; meals and
lodging; rentals; and transportation) are unallowable. Also see Section 13.25.
Recognition Events.
b. Costs of the age - appropriate and developmentally - appropriate
entertainment /education for young children are allowable, if reasonable and
necessary as a component of an approved Smart Start service activity.
12. Fines, Penalties and Fees
a. Costs of fines and penalties resulting from violations of, or failure of the
Partnership to comply with Federal, State, and local laws and regulations are
unallowable.
b. Costs of non - sufficient fund (NSF) fees are unallowable.
13. Flowers, Plants and Trees
a. Costs of flowers, plants and related materials are allowable only if reasonable
and necessary as a component of an approved Smart Start service activity (for
example, a quality improvement plan for an outdoor learning environment for
young children). Allowable materials in such circumstances include, but are
not limited to:
• Non -toxic vegetable plants, flowers, seeds, or other garden plants;
• Fruit trees;
• Shade trees; and
• Related planting supplies (soil, stakes, etc.).
b. Costs of purely decorative flowers, floral arrangements, or plants (live or
artificial) are unallowable under any circumstances.
c. Also see Section 13.7. Condolences.
14. Food
Costs of food are allowable only in the following circumstances:
(1) For Partnership Board or Board Committee meetings; or
(2) For service and grant activities for which food purchases have a
documented legitimate business purpose and are needed to accomplish the
purpose of the activity.
(3) Also see Section 13.19. Meetings and Conferences and Section 13.25.
Recognition Events.
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b. All events at which food is served must be w=ork- related and must involve
persons other than partnership employees.
c. Due care and judgment must be used to ensure that purchases of food are not,
or could not be perceived as, unreasonable or excessive with regard to either
purpose or cost.
15. Fund Raising
a. Costs of organized fund raising for contributions that do not qualify as a
Smart Start program match, including financial campaigns, endowment
drives, solicitation of gifts and bequests, and similar expenses incurred solely
to raise capital or obtain contributions, are unallowable.
b. Costs of fund raising, including financial campaigns and the solicitation of
cash and in -kind donations to meet the legislative mandate for program match
are allowable.
c. Losses arising from fundraising events are unallowable. Also see 'Section
.5. Bad Debts.
16. Goods or Services for Personal Use
The terra "goads or services for personal use" includes beach mats, umbrellas,
coolers, tote bags, pen sets, lotions, and other "giveaway " items.
a. Costs of goods, equipment or services for personal use are unallowable, with
the exception of token items (i.e., value of $25 or less per item) for
partnership board member appreciation or employee recognition for years of
service or exemplary performance.
b. Costs of goods, equipment or services for personal use by or for young
children are allowable if reasonable and necessary as a component of an
approved Smart Start service activity. These items include, but are not limited
to: thermorneters, bibs, diapers, s ppya cups, educational books and toys that
are developmentally appropriate for the recipients.
Also see Section B.10. Employee Salaries and Fringe Benefits and Section
B.25. Recognition Events.
17. Interest
a. Interest costs on borrowed capital or for the use of funds borrowed from the
organization's non -Smart Start funds are unallowable.
b. Interest on debt incurred subsequent to June 30, 2001, to acquire or replace
capital assets is unallowable.
c. Interest on debt incurred prior to July 1, 2001 . to acquire or replace capital
assets is allowable.
d. See Section B.6. Capital and Repair and Maintenance, for the definition of
"capital."
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e. Interest costs are unallowable for direct service providers or grantees.
18. Lobbying
a. 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;
(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 paragraph a:
(1) Providing a technical and factual presentation of information on a topic
directly related to the performance of the Smart Start Program 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 made by the recipient member,
legislative body or subdivision, or a cognizant staff member thereof,
(2) Educating any member of the public about the work of, and services
provided by, the partnership;
(3) Any lobbying made unallowable by paragraph a(3) to influence State
legislation in order to directly reduce the cost, or to avoid material
impairment of authority to perform Smart Start services;
(4) Any activity specifically authorized by statute to be undertaken with Smart
Start funds; and
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(5) Communications with any legislative body whose actions might affect the
organization's existence, powers and duties, tax - exempt status, or the
deductibility of contributions.
19. Meetings and Conferences
a. Costs associated with the conduct of meetings and conferences include the
cost of renting facilities, meals, speakers' fees, etc.
b. To the extent that these costs are identifiable with a specific service activity,
they should be charged to that activity. These costs are allowable, provided
that they have a legitimate business purpose.
c. Due care and judgment must be used to ensure that meeting and conference
costs are not, or could not be perceived as, unreasonable or excessive with
regard to either purpose or cost.
d. Also see Section B.11. Entertainment and Section B.14. Food.
20. Memberships
a. Costs of membership in civic or community organizations that provide
benefits to the organization, such as training and networking, are allowable.
b. Costs of memberships in any country club or social or dining club or
organization are unallowable.
c. Costs for charitable or political donations that are invoiced with membership
dues are unallowable: also see Section B. 8. Contributions and Donations.
d. Costs of memberships for lobbying or advocacy, as well as lobbyist
registration fees, are unallowable.
e. Due care and judgment must be used to ensure that membership costs are not,
or could not be perceived as, unreasonable or excessive with regard to either
purpose or cost.
21. Participant Costs
a. Participant support costs are costs for items such as stipends, travel
allowances, and registration fees paid to or on behalf of participants or
trainees (but not employees) in conjunction with meetings, conferences, or
training.
b. These costs are allowable as part of an approved service activity.
22. Patents, Royalties and Copyrights
Costs related to patents, royalties and copyrights are allowable with prior NCPC
approval.
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23. Professional Services Costs
a. Costs of professional and consultant services provided by persons who are
members of a particular profession or possess a special skill, and who are not
also officers or employees of the organization to which services are
provided, are allowable subject to paragraphs b and e when reasonable.
b. In determining the allowability of costs in a particular case, the following
factors are relevant:
(1) The nature and scope of the services rendered in relation to the service
required;
(2) 'The necessity of contracting for the service, considering the organization's
capacity;
(3) Whether the service can be performed more economically by direct
employment rather than contracting;
(4) Adequacy of the contractual agreement for the service (e.g., description of
the service, estimate of time required, rate of compensation, and
termination provisions).
Allocation or assignment of costs among activities must be based on
documented distributions approved by a responsible member of the
organization.
NOTE: For professional services contracts with individuals, the organization
must comply with Internal Revenue Service regulations regarding the
determination of the status of the individual as an independent contractor
versus an employee.
24. Promotion and Public Relations
a. Pursuant to Smart Start legislation, expenditures of Smart Start funds for
promotional activities are unallowable. Promotional activities are those that
promote the Smart Start Initiative and /or organization in a general manner and
do not publicize specific available services or provide educational information
about early care and education.
b. Also see Section B.I. Advertising.
c. The terms "promotion" or "public relations" include 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.
d. Costs associated with the development or design of a logo, including
separately billed "set -up" fees, are unallowable.
e. Other costs associated with the printing of logos on various items are
allowable in the following circumstances:
(1) Signs, banners and display boards that also include contact information for
services to children, families, or providers who serve children and
families; and
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(2) Other materials that include printing where the addition of the logo does
not increase the total cost.
f. Costs associated with the following items are allowable:
(1) Communicating with the public and press pertaining to specific activities
or accomplishments which result from performance of the Smart Start
Initiative (these costs are considered necessary as part of the outreach
effort);
(2) Conducting general liaison with news media and government officials, 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.;
(3) Sponsorship of, or participation in, community health fairs or children's
fairs that focus on the provision of service to parents and children,
including reasonable costs of signage to publicize the partnership's
sponsorship of, or participation in, the event;
(4) Parent and provider education materials or online media (parent education
videos, educational displays, resource guides, resources for "Welcome
Baby" packets, etc.);
(5) Newsletters, educational brochures and annual reports:
(6) Websites;
(7) Advertisements, newspaper inserts, radio or television announcements,
and online media that publicize direct services for children, families or
providers who serve children and families;
(8) Advertisements, newspaper inserts, radio or television announcements,
and online media that provide educational information about early care
and education; and
(9) Signage for quality improvement items purchased for child care centers,
libraries, etc. (labels for books or signage that provides information that
Smart Start provided the service).
g. The following costs for general promotion are unallowable:
(1) Costs of meetings or other events related to general promotional activities
including:
i. Displays, posters, banners, demonstrations, and exhibits; and
ii. Costs of meeting rooms, hospitality suites, and other special facilities
used in conjunction with shows and other promotional events;
(2) General promotional videos (not parenting videos);
(3) Public relations consultants for general promotion of the partnership; and
(4) Advertisements, newspaper inserts, and radio or television announcements
other than those that publicize direct services for children, families, or
providers who serve children and families, or provide educational
information about early care and education.
h. The following costs of promotional items and memorabilia (with or without a
logo) are unallowable, including, but not limited to:
(1) "Giveaway" items, including but not limited to, lunch bags, umbrellas,
coffee mugs, stadium cups, license plates, stress balls, frisbees, etc.; and
(2) Jewelry, stickers and tattoos.
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i. The costs of billboards are unallowable.
j. Due care and judgment roust be used to ensure that public relation casts are
not, or could not be perceived as, unreasonable or excessive with regard to
either purpose or cost.
25. Recognition Events
a. Recognition events are defined as events to recognize individuals or agencies
for performance. Costs associated with recognition events include the cost of
renting facilities.. meals, speakers' fees and the life.
b. To the extent that these costs are identifiable with a specific service activity,
they should be charged to that activity. These costs are allowable, provided
that they have a documented legitimate business purpose and the event is
identified in the contract activity description.
c. Due care and judgment must be used to ensure that recognition events are not
or could not be perceived as, unreasonable or excessive with regard to either
purpose or cost..
d. Also see Sections B,2, Alcoholic Beverages; B.11, Entertainment; B.14,
Food; and 1.16, Goods or Services for Personal Use.
26. Rental Costs
a. 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 partnership continued to own the
property.
27. Selling and Marketing Expenses
a. Costs of selling and marketing any products or services must be netted against
any income derived.
b. Losses on sales of products or services are unallowable. Also see Section
B.. Bad Debts..
28. Severance Pay
a. Severance pay is a payment to employees whose employment is being
involuntarily terminated. Severance pay is defined as an additional payment
upon termination other than regular salaries and wages or vacation and sick
leave payouts.
b. Reasonable costs of severance pay are allowable only to the extent that in
each ease, it is required by (1) law, (ii) employer- employee contractual
Cost Principles tuk 2012 for contracts
Smart Start Cost Principles
Effective July 1, 2012
Page 13 of 13
agreement; or (iii) policy approved by the Partnership Board of Directors in
place at time of termination.
c. Costs of severance pay are unallowable for direct service providers or
grantees.
d. Also see Section B.10, Employee Salaries and Fringe Benefits.
29. Travel
a. Travel costs are the expenses for transportation, lodging, subsistence, and
related items incurred by individuals traveling on business.
b. The maximum allowable payment for meals shall be the rates set by the State.
c. Individuals may receive payment for meals for partial days of travel when
traveling overnight and the partial day is the day of departure or the day of
return.
d. Individuals may receive payment for breakfast and evening meals when
traveling when the following applies:
(1) Breakfast — departure from duty station/home prior to 6:00 a.m.
(2) Dinner — return to duty station/home after 8:00 p.m.
e. Payment for lunch for travel away from home or duty station is unallowable if
travel does not involve an overnight stay, with the exception that employees
may receive payment for lunch when the employee's job requires attendance
at a meeting in his or her official capacity and involves persons not employed
by the same entity.
f. Payment for meals is unallowable if the meal is provided during a conference
or workshop, or if the cost of the meal is included in the registration fee.
g. Payment for breakfast for travel away from home or duty station on business
is allowable even if the lodging establishment offers a free continental
breakfast.
h. The maximum allowable mileage reimbursement rate for the use of personal
vehicles is the rate set by the State.
i. Reimbursement of mileage for commuting is unallowable. "Commuting" is
defined as "traveling between your home and your place of work."
j. Every effort should be made to obtain the State rate for lodging. Excess
lodging authorization must be obtained from the partnership Executive
Director or his or her designee in order to reimburse for actual costs that
exceed the State rate.
k. Charges for recreation fees, such as movies and gym use, are unallowable.
1. The actual cost of moderately- priced coach airfare is allowable. Due care
should be taken to obtain economical airfare.
m. The actual cost of moderately- priced vehicle rental is allowable.
n. Attendance by multiple employees at out -of -state conferences should be
limited. Staff attending should share information with other staff.
o. International travel is unallowable.
Cost Principles July 2012 for contracts