The following costs shall not be reimbursable under the child development contract:
(a) Bad debts, including losses arising from uncollectible accounts and any related legal costs. Uncollected parent fees are not considered to be bad debts if documentation of collection attempts exists;
(c) Costs of amusement or entertainment;
(d) Costs of fines or penalties;
(e) Costs of idle facilities unless those costs are related to a partial year program and the costs of the idle facilities have been approved by the Child Development Division;
(f) Costs incurred after the contract has been terminated;
(g) Fund raising costs except as specified in Section 18277 of this Division;
(h) Consumer interest except:
(1) Interest on borrowed funds when apportionments are withheld because of a delay or error attributable to the State and the amount of interest claimed is approved by the Child Development Division; or
(2) when interest is part of a lease purchase agreement.
(i) Investment management costs;
(j) Costs of organization of a nonprofit corporation such as incorporation fees or consultant fees;
(k) Public relations consultant fees;
) Costs of legal, consulting and accounting services incurred in prosecution of claims against the State;
(m) State and federal income taxes;
(n) Costs for the acquisition of sites and buildings except through depreciation;
(o) Bonuses unless part of a collective bargaining agreement;
(p) Compensation to the members of the board of directors except for:
(1) reimbursement, computed in accordance with Section 18034 of this Division, for travel and/or per diem incurred while the members are conducting business for the organization; and
(2) as provided in the California Corporation Code Section 5227, et seq.
(q) Costs of subcontracts which increase the contractor's cost or subcontracts which contain a provision for reimbursement for cost-plus a percentage-of-costs.
Note: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8208(o) and 8269, Education Code.
1. New section filed 11-21-88; operative 1-1-89 (Register 88, No. 50).
This database is current through 11/24/23 Register 2023, No. 47.
Cal. Admin. Code tit. 5, § 18035, 5 CA ADC § 18035