2-6 Administrative Requirements.pdf

Administrative Requirements for Social Services Contracts Awarded Under the City of Albuquerque

Administrative Requirements for Social Services Contracts Awarded Under the

City of Albuquerque

Effective: July 1, 2023

Prepared by:

City of Albuquerque Department of Family and Community Services P.O. Box 1293 Albuquerque, New Mexico 87103

(505) 768-2860 www.cabq.gov/family/partner-resources/request-for-proposals/administrative-requirements

This issuance supersedes any announcements issued prior to July 1, 2023

Table of Contents

1.

2.

3.

4.

5.

6. ..3

7. Responsibility For .3 8.

9.

10.

11. .14

12. Budgetary Guidelines for Social Services Contracts .14

13. Accounting for Social Services Contract Funds .27

14. Program Performance for Social Services Contracts .46

15. Waivers

16. Suspension and Termination Procedures .53

17. Interpretation of a Rule .55

18. Standard Forms for City Contracts .55

19. Appendix: Resources for Administrative Requirements .56

1. Issuing Agency

Department of Family and Community Services of the City of Albuquerque.

2. Scope

Social Services Contracts issued by the City of Albuquerque.

3. Statutory Authority

ROA, 1994, §2-15-1, et. seq., §5-5-1 et. seq., in particular §5-5-19, 5-5-20.

4. Duration

Permanent.

5. Effective Date

July 1, 2023, unless a later date is specified at the end of a section.

6. Objective

To standardize the administrative requirements for social services contracts between the City and governmental agencies and both for-profit and nonprofit entities, applied in conjunction with the Social Services Contracts Procurement Rules and Regulations City of Albuquerque.

7. Responsibility for Administration

The Department issuing the Social Services Agreement shall be responsible for administering these requirements or requirements promulgated by the issuing Department.

8. Definitions

The following words and terms when used in this regulation shall have the following meanings unless the context clearly indicates otherwise:

A.

governmental agencies and both for-profit and nonprofit entities under contract with the City of Albuquerque to carry out programs, services or activities funded by Social Services Contracts

B. -profit and nonprofit entities that have requested or are in the process of receiving a contract with the City of Albuquerque to carry out programs, services or activities funded by social services contracts.

C. Authorized Official refers to a member of an organization's Governing Board or designee who has been authorized by action of that board to bind the organization.

D. Bonus an amount of money added to wages or salary on a one-time or seasonal basis, especially as a reward for good performance, that is not otherwise considered a standard increase in wages or salary.

E. Capital Expenditure money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and Equipment.

F. Contractor's cash outlay, including the outlay of money contributed to the Contractor by non-City third parties.

G. City refers to the municipal government of the City of Albuquerque.

H. Close Relative refers to any spouse, ex-spouse, child, stepchild, mother, father, grandparent, grandchild, mother-in-law, father-in-law, sister, brother, sister-in-law, brother-in-law, daughter-in-law, son-in-law, first cousin, niece, nephew, aunt, uncle or the spouse or domestic partner of such person.

I. Community Development Strategy Area refers to those areas of the City of Albuquerque formally designated by the City as target areas for programs supported by federal Community Development Block Grant (CDBG) funds.

J.

violation of the terms of the contract or applicable regulations, or is a less serious issue of noncompliance, or may also be a problem which may be considered to be an isolated incident or not directly related to a City contract. Each Concern reported must include

Staff or Accountant. An Agency does not need to address Concerns in its formal monitoring response unless indicated.

K.

expenditure of contract funds.

L. Contractor in these Administrative Requirements, unless otherwise specified, refers to governmental agencies and both for-profit and nonprofit entities under contract with the City of Albuquerque to carry out programs, services or activities funded by Social Services Contracts.

M. Cost Allocation Plan written summary of the methods and procedures that the organization uses to allocate costs to various programs, grants, contracts and agreements.

N. Cost-plus-a-percentage-of-cost refers to a procurement agreement to provide a percentage profit over and above the actual cost of the item or service.

O.

by the City.

P. Department refers to the City of Albuquerque Department issuing the Social Service Agreement.

Q. Director refers to the Director of the Department issuing the Social Service Agreement or its successor in the organizational chart of the City, regardless of the name of such subdivision or Department of the City.

R. Useful Life of more than one year and an acquisition cost of $5,000 or more per unit.

S. Real Property and Equipment.

T. Finding serious issue of non-compliance identified by City staff during the monitoring visit when the Contractor has not complied with the terms of the contract, or applicable regulations, or the Agency policies and procedures, and can be substantiated with a citation from the contract, applicable regulations, or Agency policy and procedures. Each Finding reported shall by the Contractor to bring performance into compliance with the terms of the contract.

An Agency must formally respond to a Finding in writing with a proposed corrective action.

U. Agent refers to a Not-For-Profit Entity organization that provides fiduciary oversight, financial management, and other administrative services to help build the capacity of program delivery within the context of Social Services Agreements. The Fiscal Agent is responsible for adhering to all contractual obligations.

V. who is not a government entity, nor has been designated by the Internal Revenue Services as a non-profit entity, operates with the goal of generating revenue, and generally provides a service or product.

W. Governing Board refers to the body legally empowered to determine policy for a nonprofit organization, including authority to bind the organization by any contract or engagement or to pledge its credit or render it pecuniarily liable for any purpose or in any amount.

X. HUD refers to the U.S. Department of Housing and Urban Development.

Y. Immediate Family refers to the spouse, ex-spouse, child, stepchild, mother, father, grandparent, grandchild, mother-in-law, father-in-law, brother, sister or domestic partner of such person.

Z. to those costs that have been incurred for common or joint objectives and cannot be readily identified with a particular programmatic or service objective. Indirect costs are ongoing costs needed to operate the entity as a whole.

AA. -kind C value of non-cash contributions provided by the Contractor and third parties. In-kind Contributions may be in the form of charges for Real Property and non-expendable personal property, and the value of goods and services directly benefiting and specifically identifiable to the project or program.

BB. Less-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/her Immediate Family either directly or through corporations, trusts, or similar arrangements in which they hold a controlling interest.

CC. -Income Populations refers to the income level at or below the poverty line as defined by the Office of Management and Budget, and adjusted by the Secretary in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C.

9902(2).

DD. Nepotism is the employment of certain relatives and family members.

EE. Nonprofit Organization refers to a corporation authorized to do business in New Mexico which has received an Internal Revenue Code 501 (c)(3) designation.

FF. Not-For-Profit Entity refers to an organization authorized to do business in New Mexico which has received other designations within the Internal Revenue Code 501

(c) and may be treated on a case-by-case basis as a Nonprofit Organization in these Requirements; however, approval shall be sought and obtained from the Department during the application process.

GG. Observation staff believe should be brought to the attention of the Agency or the City, which does not fall under Finding or Concern.

HH. Contractor and the value of In-kind Contributions made by the Contractor or third parties in accomplishing the objectives of the contract during the project period.

II. Program Income all sources of revenue earned by the Contractor that is directly generated by a City-supported program or earned as a result of the City-supported program during the time of performance of an Agreement. Program income includes, but is not limited to income from fees for services performed, the use or rental of real or personal property acquired under City awards, the sale of commodities or items fabricated under a City award, license fees and royalties on patents and copyrights, and principal and interest on loans made with City award funds.

JJ. Real Property refers to land, including land improvements, structures, and appurtenances thereto, excluding movable machinery and Equipment.

KK. Registered Sex Offender is a person meeting the definition as found at Chapter 29, Article 11A NMSA 1978, of the "Sex Offender Registration and Notification Act," who, under that statute is required to register as such with the State of New Mexico, regardless of whether the person has actually registered pursuant to the Act.

LL.

residents of the City, of human services such as health care, substance abuse treatment and prevention, day care, emergency shelters, youth services, senior services, employment services, and job training; the provision of housing intended primarily for low and moderate income residents of the City; and economic development activities designed primarily to benefit low to moderate income areas of the City or to increase employment among low and moderate income residents.

MM. but are not limited to, Community Development Block Grant (CDBG), Home Investment Partnerships Program (HOME), Emergency Shelter Grant (ESG), Continuum of Care (COC), Older Americans Act (OAA), Early Head Start (EHS), Housing and Neighborhood Economic Development Fund (HNEDF) or City General Fund projects. (See also Social Services Agreement).

NN. Social Services Agreement with a nonprofit, for profit, or public governmental entity for Social Services in return for the payment by the City of costs associated with the provision of Social Services, including, but not limited to, the costs for labor, supplies, operating expenses, Equipment, and the acquisition or improvement of Real Property. (See also Social Services Contracts).

OO. Supplanting refers to deliberately reducing state or local funds because of the existence of Federal funds. An example would be when state funds are appropriated for a stated purpose and federal funds are awarded for the same purpose, the grantee replaces its state funds with federal funds, thereby reducing the total amount available for the stated purpose.

PP. an action by the City that temporarily suspends City payments under the contract, pending corrective action by the Contractor or pending a decision to terminate the contract by the City.

QQ. City sponsored contract in whole or in part, prior to the date of completion.

RR. be defined in accordance with Generally Accepted Accounting Principles (GAAP).

SS. Vulnerable Population refers to a category of persons who are not able to access and use the standard community resources, which can be impacted by age, class, race, poverty, language, and other social, cultural, economic, and psychological factors. By way of example and not limitation: children under the age of 18; persons, whether adult or children, with significant physical or mental handicaps; persons over the age of 60.

TT. a formal written statement from the Department signed by the Director and when required, the City Attorney and by an agency of the state or federal government, allowing the Contractor an exception to a rule in these requirements.

UU. Work Plan refers to the major activities to be performed under the contract, the measurable outputs and outcomes for each activity, and the time frame within which the activities will be accomplished.

VV. contract budget, email, fax, letter) demonstrating approval in writing, and including the following elements: sender, recipient, clearly identified subject matter, clear indication of approval, and date. Text messages shall not be treated as an acceptable form of Written Approval.

9. Introduction

The purpose of these requirements is to provide uniform administrative guidance for City of Albuquerque Social Services Agreements awarded by any City Department. Unless specifically exempted, Contractors are expected to understand and shall comply with all applicable requirements contained herein. Failure to comply may result in disallowed costs, Suspension or Termination of contracts, or other sanctions including but not limited to returning of funds.

A. Applicability

(1) Unless otherwise specified, these requirements apply to Social Services Agreements and specify threshold requirements applicable to all Contractors.

(2) Through the City procurement process, entities may be awarded contracts for services similar to those encompassed in the definition of Social Services Agreements. In the event that such a situation arises, the administration of the contract shall be governed by these requirements.

(3) These requirements apply to all Social Services agreements awarded by the City of

Albuquerque, including agreements in which the Contractor is referred to as a sub-recipient of the City, except as noted in the Waiver provisions, or unless preempted by the requirements of a specific funding source.

(4) At the discretion of the Department, other types of contracts not falling within the definition of Social Services agreements may be required to conform to these requirements.

B. Beneficiary Populations

(1) Lower Income Populations as defined by the Request for Proposal and contract.

Documentation required for verification of income shall be specified in the contract.

(2) Beneficiary populations, as indicated by specific Departments, to meet the needs of the community, which include but not be limited to:

(a) Persons with disabilities

(b) Senior citizens

(c) Other individual requirements applicable to specific funding sources or in response to emergency needs.

10. Social Services Contract Eligibility Compliance

A. Eligibility Compliance

(1) Basic Eligibility Requirements

(a) Only Contractors who meet and maintain the minimum requirements contained in this document are eligible to hold Social Services contracts.

(b) Only Contractors who are in compliance with current and previous Social

Services or other City contracts are eligible to hold Social Services contracts.

(c) Entities that have had an Agreement terminated by the City for cause for a period of two (2) years beyond the date of Agreement Termination, unless such entities request and receive written authorization of eligibility from the Director of the Department, based upon adequate, written justification for allowing an exception. Such written justification will include an explanation of how the previous cause for Termination will not impact the project for which funding is being requested due to specific remedial actions taken by the entity. The written request and Director determination shall be maintained on file with the contracts within the two-year timeline. In the event an Agreement has been terminated for cause and the entity has additional Agreements with the City, the additional Agreements may be terminated for convenience.

(d) Only Contractors who are in compliance with federal, state and local tax reporting and payments are eligible to hold Social Services contracts.

Applicable organizations shall also be in good standing with the New Mexico Secretary of State.

(e) Entities debarred under City, federal or state requirements are not eligible.

(f) The Department shall not contract with an organization in debt to the City as a consequence of the findings of an audit or other review. These entities shall not be eligible for funding until full payment has been made to the City.

(g) Entities that have unresolved deficiencies, material weaknesses or financial statement findings identified in an audit may not be eligible.

(2) Threshold Requirements Unless otherwise specified in a particular sub-section, apply to all Contractors:

(a) Background Clearance. If the Social Services provided under such an agreement require the Contractor to work with or be in proximity to children, or other Vulnerable Populations, the Contractor shall not employ any person or volunteer who is registered as a Sex Offender in any United States jurisdiction or who has been convicted of a sex offense.

(i) The Contractor shall ensure that all its employees, interns, and volunteers directly involved in performing services have been screened for a criminal record, and registration as a Sex Offender as part of its hiring process, through the use of criminal background and reference checks, fingerprinting, and interviews. If an employee or volunteer is found to have such a record, the City Program Staff assigned to the contract shall be immediately notified in writing with available details. Based on the results of the background screening, the City may require the Agency comply with the Waiver standards set forth in 15.C of these requirements.

(ii) In the event the Agency hires someone with a criminal record of a non-sexual offender nature, sufficient documentation must be included in their personnel file to warrant the hire.

(iii) If required, the Contractor will obtain a criminal records report in a form satisfactory to the City.

(iv) Agency standards must include a written procedure for criminal background checks to ensure a safe environment and proper protection of children under 18 years of age who are receiving services from the Agency. The written standards must include the following:

(1) Background checks must be conducted prior to the time of hire. If an individual has had a nationwide background check conducted in the past 180 days, evidence of such shall be sufficient for the background check.

may work under direct supervision.

(2) Any arrest, conviction or substantiated referral that occurs after a background check has been completed by the Agency, must be reported to the Agency supervisor.

(3) The requirement for the criminal background check is in accordance with the New Mexico State Regulation, New Mexico Administrative Code, Title 8, Chapter 8, Part 3 - Social Services, Children, Youth and Families General Provisions, Governing Background Checks and

Employment History Verification or the Caregivers Criminal History Screening Act NMSA 29-17-1 et seq.

(b) Conflict of Interest:

(i) Agency standards must include written Conflict of Interest policies and procedures which apply to the procurement and disposition of all Real Property, Equipment, supplies, and services by the Contractor and to the Contractor's provision of assistance to individuals, businesses, and other entities.

(ii) Conflict of Interest policies and procedures must provide that no person who exercises any functions or responsibilities with respect to organization or Agency activities, or who are in a position to participate in a decision-making process, may obtain a personal or financial interest or benefit from an organization or Agency activity, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter.

(c) Confidentiality and Disclosure of Information:

Contractors providing certain services, including but not limited to, substance use treatment, domestic violence, education, financial services, behavioral/mental health and health services, shall inform their clientele of federal, state and local laws regarding confidentiality and disclosure of information.

(3) Only as to nonprofit entities contracting with the C nonprofit

(a) Financial Policies and Procedures. The nonprofit shall have and use a written set of financial, accounting and procurement policies and procedures adopted by its Governing Board which meet the Administrative Requirements established by the City for contract accounting as detailed below.

(b) Governing Board. The nonprofit shall document that its Governing Board is constituted in compliance with approved bylaws and nationally (e.g. Robert's Rules of Order) and locally (New Mexico Statutes and Court Rules Annotated) accepted standards and that it actively fulfills its responsibilities for policy direction, including regularly scheduled meetings for which minutes are kept.

The organization shall verify board compliance with the City Open Meeting ordinance ROA, 1994, §2-5-1, et. seq. When there are changes in the Board of Directors, Officers and/or Directors, the City shall be notified within thirty (30) calendar days of the change.

(c) Nepotism. The nonprofit shall not employ Immediate Family or any Close

Relative of any board member, officer or managing/supervisory employee.

Agency standards must include written procedure for disclosing employment of any two people who are Immediate Family or Close Relatives of each other in their personnel file.

B. Insurance Requirements All Contractors under Social Services Contracts will be required to procure and maintain through the life of their contract, insurance in accordance with the contract requirements.

C. Required Documents

(1) Contractors shall maintain current copies of:

(a) their certificate of incorporation;

(b) the articles of incorporation approved by the Secretary of State;

(c) bylaws;

(d) any licenses applicable to proposed activities;

(e) a listing of current Governing Board members;

(f) a current organizational chart;

(g) the organization personnel policies;

(h) the organization accounting and procurement procedures;

(i) Certificate of Good Standing and Comparison issued within thirty (30) days from the New Mexico Secretary of State;

(j) the organization travel reimbursement policies, if travel funds are requested;

(k) the organization independent audit, including the management letter if available;

(2) Nonprofit Contractors shall maintain a copy of:

(a) the Internal Revenue Service (IRS) status letter indicating tax exempt status and documentation showing that the status has not been revoked by the IRS.

(3) Contractors shall submit within 30 days to assigned program staff any changes or updates to:

(a)

(b)

(c) a copy of updated insurance policies; and

(d) management letter if available.

(4) Required assurances

(a) Compliance with Civil Rights Laws and Executive Orders. Contractors are required to comply and act in accordance with all federal laws and Executive Orders related to the enforcement of Civil Rights. In addition, recipients will be required to comply with all New Mexico State Statutes and City of Albuquerque Ordinances regarding enforcement of Civil Rights.

(b) ADA Compliance. Contractors shall agree to meet all the requirements of the

Americans with Disabilities Act of 1990 (ADA), and all applicable rules and regulations which are imposed directly on the Contractor or which would be imposed on the City as a public entity. The Contractor shall agree to be responsible for knowing all applicable requirements of the ADA and to defend, indemnify and hold harmless the City, its officials, agents and employees from and against any and all claims, actions, suits or proceedings of any kind brought as a result of any actions or omissions of the Contractor or its agents in violation of the ADA.

(c) Use of Funds for Sectarian Religious Purposes. Contractors are required to assure that no funds awarded through the program will be used for sectarian religious purposes, specifically that: a) there will be no religious test for admission for services; b) there will be no requirement for attendance at religious services; c) there will be no inquiry as to a client's religious preference or affiliation; d) there will be no proselytizing; and e) services provided will be secular and non-sectarian.

(d) Assurance of Drug Free Facilities. Contractors are required to administer a policy designed to ensure that the assisted program is free from the illegal use, possession or distribution of drugs or alcohol by its staff and beneficiaries.

(5) Documentation of Review and Approval of Contract

Social Services Contracts shall be signed by an Authorized Official. If the Authorized Official is not a member of the Board of Directors, documentation reflecting the authority of the Authorized Official approved by the Board of Directors, and reflected in Board minutes shall be provided. Regardless of signer, City contracts must be reviewed and approved by the Board. Copies of the minutes of the board meeting at which the contract was reviewed and approved by the Board shall be maintained on file at the organization.

(6) Certification of Receipt of Administrative Requirements

Contractor for funding shall submit a certification signed by an Authorized Official and the organization director of receipt and adherence to the Administrative Requirements for Social Services Contracts and Procurement Regulations.

11. Retention of Contract Documentation

A. General Requirements

(1) Contractors are required to:

(a) Retain all program records, including Accounting Records and related original and supporting documents that substantiate costs charged to contract activities, identifiable by contract number.

(b) Assure the safekeeping of all contract records and to be able to promptly produce them upon the request of authorized City, state, or federal representatives.

(2) If the Contractor should be unable to maintain custody or control of the records for any reason the original records shall be delivered to the City for safe keeping.

B. Time Limitation on Record Retention

(1) Except as otherwise authorized by the Department, or unless the law requires a different time limitation:

(a) Contract records shall be retained for at least five (5) years after the end date of the contract or, if applicable, after the final audit of the contract has been completed.

(b) In all cases, an overriding requirement exists to retain records until resolution of any audit question relating to individual contracts even if the period exceeds the normal five-year period. 1.21.2.112 NMAC N, 10/01/2015.

12. Budgetary Guidelines for Social Services Contracts

A. Allowable Costs The following principles apply to certain cost items when required by the contract.

Failure to mention a specific item of cost is not intended to imply that it is unallowable, rather determining an allowable cost in each case should be based on applicable federal, state or local regulations and the treatment or principles provided for similar or related items of cost.

(1) Advocacy

(a) Educating legislators, decision-makers, organization members or the public about an issue, topic or policy and its effects without a call to action or vote;

(b) Providing a technical and factual presentation of information on a topic directly related to the performance of a contract through hearing, testimony, statements or letters to the Congress, state legislature or City Council or subdivision, member, or staff member thereof, in response to a documented request made by the recipient member, legislative body or subdivision, or a staff member thereof; provided such information is readily obtainable and can be readily put in deliverable form and further provided that the costs under this section for travel, lodging, or meals are unallowable unless incurred to offer testimony at a regularly scheduled Congressional or State Legislative 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;

(c) Influencing state or local legislation in order to directly reduce costs related to the program.

(2) Background Checks The costs associated with conducting background checks on employees working on City funded projects requiring background checks per these requirements.

(3) Bonding Costs

Costs of bonding required by terms of the contract are allowable as are costs of bonding required by the organization in the general conduct of its operation. Bonding costs shall be in accordance with sound business practice and the rates and premiums shall be reasonable under the circumstances.

(4) Communication Costs

Costs incurred for telephone services, local and long-distance telephone calls, postage, pager or cell phone services and the like that are related to the project are allowable.

(5) Compensation for Personnel Services

This cost item includes all compensation paid currently or accrued by the organization for services of employees rendered during the period of the contract. It includes, but is not limited to, salaries, wages, fringe benefits, payroll taxes, insurances and pension plan costs.

(a) Except as otherwise provided, the costs of such compensation are allowable to the extent that total compensation to individual employees is reasonable for the service rendered, conforms to the established policy of the organization consistently applied to City and non-City activities, and only in accordance with the approved budget by title and position;

(b) Reasonableness:

(i) If the organization is engaged in activities other than those sponsored by the

City, compensation for employees on City-sponsored work shall be consistent with that paid for similar work in the organization's other activities.

(ii) Compensation for City-sponsored activities shall 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.

(c) Fringe Benefits:

(i) Fringe benefits in the form of regular compensation paid to employees during periods of authorized absences from the job such as vacation leave are allowable provided such costs are absorbed proportionately at the same salaries and wages in the budget. Accrued leave can be paid out in accordance with Agency standards, if and only if, the accrued leave was accrued while working on the City funded contract as part of regular pay.

(ii) Fringe benefits in the form of employer contributions or expenses for Social

Security, employee insurance, worker's compensation insurance, and pension plan costs are allowable provided all other benefits are granted in accordance with established, written organization policies. Such benefits shall be charged to City contracts 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 contracts. Benefits charged to City contracts that are furnished by a provider plan (such as health care, retirement, etc.) shall be based on a valid and binding contract between the Contractor and the benefit provider.

(d) Support of Salaries and Wages:

(i) Charges to City contracts for salaries and wages shall be based on documented payrolls approved by a responsible official(s) of the organization. Charges of salaries and wages to City contracts shall be supported by payroll register, general ledger, and paystubs and the personnel activity reports as specified in this part of these requirements.

Other acceptable documentation will be based on the review and approval by the Department.

(ii) Personnel Activity Report (PAR). PARs reflecting the distribution of activity of each employee shall be maintained for all staff members whose compensation is charged in whole or in part directly to City contracts. A sample PAR is available upon request to City staff. Reports maintained by Contractors shall meet the following standards:

(1) The PAR shall reflect an after the fact determination of the actual activity of each employee and reflect applicable funding sources.

(2) Each PAR shall account for the total activity for which employees are compensated and which is required in fulfillment of their obligations to the organization. Charges for the salaries and wages of employees, in addition to the supporting documentation described above, shall also be supported by PARs including indicating the total number of hours worked each day. Each PAR shall include the activity conducted and activity key, job title of person conducting the work, and name of person conducting the work.

(3) The PAR shall be signed and approved by the individual employee, and by a responsible supervisory official having first-hand knowledge of the activities performed by the employee, stating that the distribution of activity represents a reasonable estimate of the actual work performed by the employee during the periods covered by the reports. If for any reason a staff person is unable to sign their PAR, then the supervisor has authority to indicate the staff is unavailable for signature and may authorize on the sta Approval is not required for the report of the Executive Director or comparable official who reports directly to the organization Electronic approval of PARs is allowable with documentation of approval.

(4) The PARs shall be submitted with each request for reimbursement. The titles and employee names should match the backup documentation. In cases of when names do not match, a note in the employee file must validate the discrepancy.

(5) For employees that are 100% funded by a single Agreement, or if a time study is used to allocate time, PARs will not be required. Charges of salaries and wages of such individuals shall be supported by payroll register, general ledger, and paystubs. Other acceptable documentation will be based on the review and approval by the Department. A copy of the completed time study shall be provided to the City. The time study must be conducted annually for a one-month period to arrive at the allocation, detailing the time directly related to work on each project, and time not associated with any specific program (indirect time). The indirect time is allocated using the percentage of time calculated for the programs. Agencies utilizing time studies must detail their time study process in agency policies and procedures. Estimates (i.e., time study estimates determined before the services are performed) alone do not qualify as support for charges to Agreements, but may be used for interim accounting purposes, provided that:

(a) The system for establishing the estimates produces reasonable approximations of the activity actually performed;

(b) Significant changes in the corresponding work activity (as entered into the records in a timely manner. Short term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and

(c) to review after-the-fact interim charges made to the Agreement based on budget estimates. All necessary adjustment must be made such that the final amount charged to the City is accurate, allowable, and properly allocated.

(iii) For each employee for whom salaries and wages are charged to a City contract, the Organization shall maintain a personnel file which includes, at minimum:

(1) A job description for the position currently held by the employee which specifies the duties of the position, the minimum qualifications for the position, the salary range for the position, and other terms and conditions for employment;

(2) An application form, résumé, or other documentation that the employee meets the minimum qualifications for the position as established in the job description and, as applicable, a criminal background check upon hire;

(3) Personnel action records which document the hiring or assignment of the employee in his/her current position and officially establish his/her rate of compensation, including benefits, and the basis for this determination. Compensation shall be within the salary range established for the position and salary and benefits shall conform to approved organization personnel policies. Documentation shall be provided which indicates that any changes in salary or benefits occurring during the term of a City contract have been made in accord with policies and procedures approved by the Board of Directors.

(4) A statement signed by the employee that he/she has received or had an opportunity to review a copy of the organization's personnel policies and understands his/her rights and obligations thereunder;

(5) A statement signed by the employee that he/she has received a copy of the organization -free workplace policy;

(6) An INS (I-9) form, in accordance with federal regulations; and

(7) A current IRS W-4 form.

(8) All Contractors receiving funds to provide clinical/medical services, shall provide verification of appropriate licensure in compliance with the State of New Mexico regulations.

(iv) Charges to a City contract for salaries or wages independent of appropriate charges for payroll taxes and fringe benefits are not allowable. All requests for salaries under a contract with the City shall also include requests for payroll taxes and fringe benefits required by law and by organization personnel policies in proportion to the amount requested for salaries.

(6) Direct Assistance to Beneficiary

Participant support costs for items such as wages, payroll taxes, benefits, stipends, incentives, subsistence allowances, travel allowances and the cost of food, clothing, and other goods and services purchased directly on behalf of clients are allowable only with the prior Written Approval of the Department. Requests for direct assistance to beneficiary costs must include adequate justification as to how these costs support the program objectives and are in alignment with program outcomes.

Agency procedures must include mechanisms to track direct assistance to beneficiary costs including, but not limited to, client identifier, rationale for use of line item, date, and actual cost. Rental assistance is an allowable cost under direct assistance to beneficiaries, and backup documentation must include copies of checks which may include copies of bank statements.

(7) Education Costs

Costs of certification, education and continuing education for employees are allowable on a case-by-case basis with the prior Written Approval of the Department.

(8) Equipment and Other Capital Expenditures

(a) Capital Expenditures for tangible personal property having a Useful Life of more than one year and an acquisition cost of $5,000 or more per unit is allowable only with the prior Written Approval of the Department.

(b) Ownership of Equipment purchased in whole or in part with City funding will remain with the City unless otherwise stipulated by the funding source.

Equipment owned by the City shall also be included on the Contractor's inventory list the

(c) Contractors are responsible for the cost of replacing or repairing Equipment purchased with City funds in whole or in part which is stolen, lost, damaged, or destroyed, or reimbursing the City for the value of the loss. The cost of insurance for replacement coverage covering the risk of loss or damage to Equipment is allowable.

(d) When utilizing the Equipment budget line item, depreciation and salvage will be in accordance with t , provided upon request.

(9) Fuel and Vehicle Maintenance

Costs incurred for fuel and vehicle maintenance not covered under local travel are allowable, i.e. fuel for a bus, maintenance for an Agency owned vehicle used only within City funded project, fuel for an Agency owned vehicle used only within City funded project.

(10) Insurance and Indemnification

(a) Costs of insurance required or approved under the terms of the contract are allowable.

(b) Costs of other insurance maintained by the organization in connection with the general conduct of its operations are allowable provided that the types and extent of coverage is in accordance with sound business practice and the rates and premiums are reasonable under the circumstances.

(11) Maintenance and Repair Costs

Costs incurred for necessary maintenance, repair, or upkeep of buildings and Equipment 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.

(12) Materials and Supplies

The costs of materials and supplies necessary to carry out a contract are allowable.

Such costs shall be charged at their actual prices after deducting any discounts, rebates, or allowances received by the organization. Materials and supplies charged as a direct cost should include only the materials actually used for the performance of the contract, with due credit given for any excess materials or supplies retained or returned to vendors.

(13) Meetings and Conferences

Costs associated with the conducting of meetings and conferences related to the purposes of the contract are allowable. Reasonable expenditures for food or beverages are allowable only for community education events. If food or beverage expenses exceed $200.00, prior Written Approval shall be obtained from the City.

(14) Memberships, Subscriptions, and Professional Activity Costs

(a) Costs of the organization's membership in civic, business, technical, and professional organizations related to the purposes of the contract are allowable.

(b) Costs of subscriptions to civic, business, professional, and technical periodicals related to the purposes of the contract are allowable.

(c) Costs of attendance at meetings and conferences sponsored by others which are related to the purposes of the contract are allowable, including costs of meals, transportation, and other items incidental to such attendance, to the extent to which these costs conform to written policies consistently applied.

(15) Organization Costs

Costs such as incorporation fees, broker fees, fees to attorneys, and the like incurred in connection with the reorganization of an organization are allowable only with the prior Written Approval of the Department.

(16) Overtime, Extra-pay Shift, and Multi-shift Premiums

Overtime, extra-pay shifts, and multi-shift work are allowable only with the prior Written Approval of the Department (i.e., contract budget) except 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.

(17) Plant Operations Costs

Necessary expenses incurred for facility security, janitorial services, elevator services, upkeep of grounds, and the like are allowable to the extent that they are not otherwise included in rental or other charges for space. Costs charged to the City shall be consistent with the share of the space occupied by the City-funded program.

(18) Professional and Contractual Service Costs

(a) Professional and contractual service costs are allowable only with prior Written

Approval of the Department. In determining the allowable costs in a particular case, no single factor or any special combination of factors is necessarily determinative. However, the following factors are relevant:

(i) 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 the provision below when reasonable in relation to the services rendered and when not contingent upon recovery of the costs from the Government.

(ii) The nature and scope of services rendered in relation to the service required.

(iii) The necessity of contracting for the service, considering the organization's capability in the particular area.

(iv) The past pattern of such costs, particularly in the years prior to City awards.

(v) The impact of City awards on the organization's business.

(vi) Whether the service can be performed more economically by direct employment rather than contracting.

(vii) The qualifications of the individual or entity rendering the service and the customary fees charged, especially on non-City awards.

(viii) The adequacy of the contractual agreement for the services (e.g. description of the service, estimate of the time required, rate of compensation, and termination provisions).

(19) Public Information Service Costs

Public information costs include the cost associated with pamphlets, news releases, and other information services. These costs are allowable when incurred to inform or instruct individuals, groups or the general public about the City-funded project;

to interest individuals or groups in participating in the City-funded service program;

or to disseminate the results of sponsored activities. As appropriate to the needs of the project, ensure public information includes the City logo, and references to City funding of the project.

(20) Publication and Printing Costs

Publication and printing costs directly related to the City contract are allowable.

(21) Recruiting Costs

The following costs incurred for the recruitment of personnel required to carry out activities under a City contract are allowable:

(a) Cost of "help wanted" advertising, operating costs of an employment office, costs of operating a testing program, and fees paid to an employment agency not in excess of standard commercial rates for such services.

(b) Travel expenses of employees while engaged in recruiting personnel, travel costs of applicants for interviews for prospective employment, and relocation costs incurred incidental to recruitment of new employees are allowable only with the prior Written Approval of the Department.

(22) Rental Costs

Subject to the limitations described below:

(a) Rental costs for real property or Equipment are allowable to the extent that the rates are reasonable in light of such factors as: rental costs of comparable property; market conditions in the area; alternatives available; and the type, life expectancy, condition, and value of the property leased.

(b) 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 and only with the prior Written Approval of the Department.

(c) Rent costs under sale and lease back, rental/purchase, or lease with option-to-purchase agreements are allowable only with prior Written Approval of the

(23) Shipping Costs

Shipping costs including freight, express, cartage, and postage charges related either to goods purchased, in process, or delivered are allowable to the extent that such goods are required by the program and the costs can readily be identified with the items involved.

(24) Taxes

In general, taxes which the organization is required to pay and which are paid or accrued in accordance with generally accepted accounting principles are allowable, except for:

(a) Taxes from which exemptions are available to the organization directly; and

(b) special assessments on land which represent capital improvements.

(25) Travel Costs

Expenses for transportation, lodging, food, and related items incurred by employees and/or board members traveling on official business are allowable when:

(a) The expenses are directly attributable to specific work under the contract and payment is made in conformity with federal travel requirements. Actuals or per diems at the published GSA rate, as applicable.

(b) Actual cost reimbursement for travel only with prior Written Approval from the

Department. Reimbursements for actual costs shall be supported by appropriate documentation.

(c) Local travel mileage is reimbursable for local mileage and shall not exceed the federal rate for that time period.

(26) Utilities Costs The costs of utilities, including internet, electrical services, heating and cooling, sewer, water, and other charges are allowable to the extent that they are not otherwise included in rental or other charges for space. Charges to a City contract for utilities shall be based on the actual cost of service, with the City share of total utility costs consistent with the percentage of space occupied by the City-funded program.

B. Unallowable Costs The following is a list of common types of expenditures which are not properly chargeable to City contracts. Failure to include an item in this listing does not imply that cost is allowable.

(1) Alcohol

(2) Bad Debts

Bad debts, including losses (whether actual or estimated) arising from uncollectible accounts and other claims, related collection costs, and related legal costs.

(3) Bonus

Wage and salary Bonuses, incentive Bonuses, Bonuses to board members, severance payments, etc.

(4) Cash Advance

Payments before expenses are incurred.

(5) Ceremonials

Ceremonials and costs relating thereto, such as meals, lodging rentals, transportation, and gratuities.

(6) Contingency Provisions

Contributions to a contingency reserve or any similar provision made for events, the occurrence of which cannot be foretold with certainty.

(7) Contributions

Contributions and donations by the organization to others.

(8)

(9) Electioneering and Lobbying

Costs associated with:

(a) Attempting to influence the outcome of any federal, state, or local election, referendum, initiative or similar procedure through in-kind or cash expenditure, personnel activities, endorsements, publicity, or similar activity;

(b) Establishing, administering, paying the expenses of, or making a cash or In-kind Contribution to a political party, campaign, political action committee, other organization or individual for the…