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HomeMy WebLinkAboutItem 08 - Informational Report for the California Department of Social Services Child Care Grant City Manager’s Office www.santa-ana.org/cm Item # 8 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report September 16, 2025 TOPIC: Informational Report for the California Department of Social Services Child Care Grant AGENDA TITLE Informational Report for the California Department of Social Services Child Care Grant RECOMMENDED ACTION Receive and file informational report for the California Department of Social Services (CDSS) child care grant. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The purpose of this report is to provide information to the public regarding the cancellation of the CDSS child care grant. Background During FY22-23, Parks, Recreation, and Community Services Agency (PRCSA) staff submitted an application to CDSS for an after-school child care program with a proposal to begin service fall 2023. On May 23, 2023, the City received notification from CDSS of a proposed award of $6.7 million to fund a multi-year program. The CDSS issued a local agreement to Santa Ana on July 1, 2024 for an initial year of funding in the amount of $915,583 for start-up costs to initiate the program and provide a minimum of 12 days of operation during FY24-25. Future actual grant receipts would be based on attendance and compliance with CDSS Funding Terms and Conditions (explained further below). On November 19, 2024, the City Council approved the PRCSA recommendation to accept the CDSS grant (Exhibit 1). To satisfy the requirement to provide a minimum 12 days of operation during FY24-25, the City had a deadline of May 12, 2025 to establish the program. After follow-up with PRCSA staff regarding the status of program implementation, and a site visit to the City of La Habra that operates a CDSS funded child-care program, City Management Informational Report for the California Department of Social Services Child Care Grant September 16, 2025 Page 2 5 3 3 9 discovered a series of challenges associated with the program. Some of these challenges were not identified until shortly before the May 12 deadline to begin child care service. Funding Terms and Conditions The CDSS Funding Terms and Conditions (Exhibit 2, an 81-page document available on the CDSS website) require grantee compliance with the following: •Title 45 Code of Federal Regulations addressing public welfare; •Any applicable Welfare and Institutions Code statutes; •Title 5 California Code of Regulations addressing educational requirements, staff qualifications, program administration, and parent involvement; •Title 22 California Code of Regulations addressing facility licensing, health and safety standards, and staff background checks; •Specific program requirements; •The CDSS Audit Guide; •The California School Accounting Manual; •Uniform administrative requirements, cost principles, and audit requirements for federal awards, known as Uniform Guidance; and •Any other applicable regulations. During the initial stages of planning, PRCSA staff believed the program would be exempt from Title 5 and Title 22 Regulations. Shortly after receiving the award notification, CDSS clarified the City would indeed need to adhere to these regulations, as outlined in the Funding Terms and Conditions document on the CDSS website. The regulations were not addressed in the November 19, 2024 staff report to City Council. Examples include: •Site licensing with facility compliance and inspections, such as the provision of separate bathrooms for adults and children with different sized fixtures; which cannot be accommodated by the City’s current facilities without significant capital improvements. •Food distribution safety requirements, which PRCSA staff planned to satisfy by utilizing the Santa Ana Unified School District (SAUSD) food distribution system. There was no written agreement with SAUSD to provide these services. Distributing food in-house would necessitate significant capital improvements for kitchen and food-safety compliance, such as allergy management. •Minimum staffing requirements. •Medical training for staff. •Certified teachers to develop and manage a curriculum. •Specific insurance requirements. •Development of numerous policies to address child pick-up safeguards, discipline procedures, and parent-teacher communications. Informational Report for the California Department of Social Services Child Care Grant September 16, 2025 Page 3 5 3 3 9 •Specific requirements for enrollment, attendance tracking, and determining student eligibility. Without implementing a specialized software system, these requirements would be difficult to comply with and regular state audits come with a high level of scrutiny. As part of the initial application (Exhibit 3), PRCSA planned to serve 515 school-aged children at seven (7) different City facilities with a staff to child ratio of 1:10 resulting in a plan for 52 qualified staff members. Title 22 Regulations only require a ratio of 1:14 for school-aged children, resulting in a need for 37 qualified staff members. PRCSA staff planned to hire an experienced Site Director to subsequently hire certified teaching staff and to develop a curriculum and a plan to comply with Title 5 and Title 22 Regulations. This would place significant risk of City liability in one new employee’s hands. The City currently lacks the institutional experience, resources, and capacity to effectively and successfully implement a program compliant with all applicable regulations within the initial contract period. Grantee Agencies City Management was able to find recent CDSS award information for the child care program. •FY21-22 – only 3 of 113 awardees were cities (Colton, Los Angeles, and Oakland) •FY22-23 – only 1 of 108 awardees was a city (Santa Ana) •FY23-24 – no award information posted •FY24-25 – no cities were among the 108 awardees The overwhelming majority of awardees were non-profit organizations and educational agencies that have existing resources and facilities to provide education and childcare. PRCSA staff advised City Management that Santa Ana was the last applicant accepted to the program before CDSS stopped accepting new applications citing projected future state budget shortfalls. Fiscal Review The City has an internal requirement for departments to submit grant information to Finance for a fiscal review before a grant award is accepted. PRCSA staff did not submit the grant information for a fiscal review as they saw the award as “contract funds” as opposed to a grant, even though the proposed resolution for City Council on November 19 included an authorization to execute any documents “necessary to accept the grant award.” The program does not provide assurances for future reimbursements of the City’s total costs associated with the program. For example, the City would not be reimbursed for charges that are not in full compliance with the Funding Terms and Conditions. As another example, the City would be required to enter into contracts with families served Informational Report for the California Department of Social Services Child Care Grant September 16, 2025 Page 4 5 3 3 9 by the program and, if the state ceased to provide funding for the program, the City would be required to honor the agreed-to services for families without state reimbursement. Award Relinquishment On May 2, 2025, at the direction of City Management, PRCSA staff issued an award relinquishment letter to CDSS (Exhibit 4). The City had not yet spent any of the funding award. The decision was based on the City’s lack of preparation to meet the May 12, 2025 deadline, the City’s lack of experience and resources to comply with regulations, the risk associated with relying on a single new employee to ensure program compliance, the potentially significant capital improvements necessary for facilities, the potential need to operate the program without reimbursements, and the City’s financial outlook with the impending decrease of local sales tax. The City Manager apprised the City Council of the relinquishment during individual meetings with each City Council Member. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with the recommendation. EXHIBIT(S) 1. November 19, 2024 City Council agenda item to accept the CDSS award 2. CDSS Funding Terms and Conditions 3. Initial Application for Funding 4. Award Relinquishment Letter Submitted By: Kathryn Downs, Assistant City Manager Approved By: Alvaro Nuñez, City Manager 28.Resolution Approving the Acceptance of Contract Funds from the California Department of Social Services (CDSS) Department(s): Recommended Action: 1. Adopt a resolution approving the acceptance of contract funds from CDSS for startup funding for after school care and full day camps for child care and development programming. RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACCEPTING CONTRACT FUNDS FROM THE CALIFORNIA DEPARTMENT OF SOCIAL SERVICES FOR PROVISION OF CHILD CARE AND DEVELOPMENT SERVICES AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO NEGOTIATE AND EXECUTE ANY AGREEMENTS OR AMENDMENTS THERETO THAT MAY BE NECESSARY 2. Approve the agreement with CDSS for child care and development programming (Agreement No. A-2024-XXX). 3. Approve an appropriation adjustment for program startup funding to recognize $915,583 from the CDSS in the PRCSA Revenue Account, Center Programs (13113002-53301) and appropriate the same amount in the PRCSA, Child Development Services expenditure accounts (13113251-various). (Requires five affirmative votes) 4. Adopt a resolution amending the current fiscal year 2024-2025 annual budget to adjust full-time positions in the Parks, Recreation, and Community Services Agency, including additions and a reallocation. (Requires five affirmative votes) RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND THE CURRENT FISCAL YEAR 2024- 2025 ANNUAL BUDGET TO ADD FULL-TIME POSITIONS IN THE PARKS, RECREATION AND COMMUNITY SERVICES AGENCY EXHIBIT 1 Parks, Recreation, and Community Services Agency www.santa-ana.org/parks Item # 28 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 19, 2024 TOPIC: Child Care and Development Programming AGENDA TITLE Resolution Approving the Acceptance of Contract Funds from the California Department of Social Services (CDSS) RECOMMENDED ACTION 1. Adopt a resolution approving the acceptance of contract funds from CDSS for startup funding for after school care and full day camps for child care and development programming. RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACCEPTING CONTRACT FUNDS FROM THE CALIFORNIA DEPARTMENT OF SOCIAL SERVICES FOR PROVISION OF CHILD CARE AND DEVELOPMENT SERVICES AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO NEGOTIATE AND EXECUTE ANY AGREEMENTS OR AMENDMENTS THERETO THAT MAY BE NECESSARY 2. Approve the agreement with CDSS for child care and development programming (Agreement No. A-2024-XXX). 3. Approve an appropriation adjustment for program startup funding to recognize $915,583 from the CDSS in the PRCSA Revenue Account, Center Programs (13113002-53301) and appropriate the same amount in the PRCSA, Child Development Services expenditure accounts (13113251-various). (Requires five affirmative votes) 4. Adopt a resolution amending the current fiscal year 2024-2025 annual budget to adjust full-time positions in the Parks, Recreation, and Community Services Agency, including additions and a reallocation. (Requires five affirmative votes) RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND THE CURRENT FISCAL YEAR 2024-2025 ANNUAL BUDGET TO ADD FULL-TIME POSITIONS IN THE PARKS, RECREATION AND COMMUNITY SERVICES AGENCY EXHIBIT 1 Child Care and Development Programming November 19, 2024 Page 2 4 6 4 7 GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION The City of Santa Ana Parks, Recreation, and Community Services Agency (PRCSA) applied for contract funds from California’s General Child Care and Development (CCTR) program operated through CDSS. CDSS accepted the application for funding from PRCSA to implement an after-school program and full day summer day camp for students ages five to thirteen, in grades first through sixth. The after-school program will take place weekly between the hours of 3:00 and 6:00 p.m., with modified programming hours on Wednesdays to be in alignment with the Santa Ana Unified School District Elementary School bell schedule. The full-day summer day camp will take place for 10 weeks during summer recess from 7:00 a.m. to 5:30 p.m. Each location will be able to serve a minimum of 28 participants, with larger centers hosting as many as 56 participants. By leveraging existing partnerships PRCSA has developed with community-based organizations, the program will focus on enrichment activities and recreation programing including dramatic and creative arts, music, Science, Technology, Engineering, Art, Mathematics (S.T.E.A.M.) curriculum, athletic activities, homework assistance, and much more. The summer day camp will mirror the current Summer Splash Day camp format including access to arts and crafts activities, outdoor play, Learn-to-Swim Lessons, Recreation Swim Opportunities, and weekly excursions and activities related to themed-weeks throughout summer recess. The program consists of low to no-cost care for qualified families who meet the income guidelines provided by the State for CDSS Contract Programs (Exhibit 4). The intake and application process will determine if families are responsible for any costs associated for their children to participate in the program. Program Location Estimated Program Opening Timeframe Maximum Amount of Participants Garfield Community Center Spring 2025 28 Salgado Recreation Center Fall/Winter 2025 56 Jerome Recreation Center Fall/Winter 2025 56 El Salvador Community Center Fall/Winter 2025 28 Action taken to accept this contract will assist up to 515 school-age participants and their families by providing consistent after school and summer day camp care at up to seven PRCSA sites throughout the City. The initial planned program locations that have been identified as the first to go through the licensing process are Garfield Community Center, El Salvador Community Center, Jerome Recreation Center, and Salgado EXHIBIT 1 Child Care and Development Programming November 19, 2024 Page 3 4 6 4 7 Recreation Center. Additional PRCSA programming locations will be evaluated to determine if CIP considerations are needed to align with licensing requirements. After hiring the recently approved Full-time Site Director classification, the process of obtaining facility licenses will begin. The Site Director is required to attend a Child Care Centers Orientation as well as an Operations and Recordkeeping Orientation. Once certified in both Child Care Centers and Operations and Record Keeping, the Site Director will submit applications for each of the identified centers to become a licensed California State Child Care Provider. The overall process can take up to one to three months, depending on the readiness of each facility and meeting the current guidelines set forth by the State of California. Initial licensing fees total $968 with recertification fees totaling $484 that are paid annually and can be renewed without issue, as long as there are no new requirements designated by State governing bodies. The City is not required to have additional insurance, as we currently provide similar childcare with our drop-in programs after school and our summer day camps. Programming would include partnership agreements with local community-based organizations to provide additional enrichment and learning opportunities for participants. PRCSA Headcount To begin Phase 1 of licensing and enrollment as part of the CDSS Contract, PRCSA needs the addition of four (4) positions to PRCSA’s overall personnel headcount. This includes one (1) Full-time Site Director, one (1) Full-time Site Teacher, one (1) Full-time Teacher’s Aide, and one (1) Senior Management Analyst. Recruitment for the initial Site Director will take place immediately after contract approval, as this position is critical in establishing required Child Care Center licensing and program build out. The Senior Management Analyst will follow. PRCSA Staff will act as the liaison between the Site Director and Recreation Division and will assist in bridging the processes of licensing, reporting, purchasing, and enrollment for the CDSS contract with the standards and operation requirements set forth by the City. After successfully licensing the initial PRCSA facilities, Phase 2 of program build out will commence with the hire of Full-time Site Teachers and Full-time Teacher’s Aides. These supporting roles are necessary for enrollment of participants and implementation of the program under the supervision of the Site Director. Pursuant to Section 609 of the City Charter, a budget amendment requires an affirmative vote of at least two-thirds (2/3) of the City Council. EXHIBIT 1 Child Care and Development Programming November 19, 2024 Page 4 4 6 4 7 ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The City will receive initial startup funding in the amount of $915,583, of the tentative award amount of $6,691,179. Startup funds will be used to cover the cost of new staff, licensing, training, program equipment, and facility upgrades required by the State, as well as community engagement workshops for potential program participants and their families. With approval of the appropriation adjustment, funds will be budgeted and available in the following account for fiscal year 2024-2025 and any remaining balance not expended at the end of the fiscal year will be carried forward into fiscal year 2025-2026: Fiscal Year Accounting Unit- Account # Fund Description Accounting Unit, Account Description Amount 24-25 13113251-Various Miscellaneous PRCSA-Child Development Services-Various $915,583 After initial startup funding, contract payments will be received through disbursements based on program participation and attendance as certified by PRCSA Staff with quarterly audits. The balance of the contract amount will be budgeted during the City’s fiscal year 2025-2026 budget process. Funding for this program will be ongoing contingent upon the City maintaining qualified enrolled participants as mandated by CDSS. State governing bodies have the right to withdraw or extend additional funds based on the needs of the State Budget. Historically, this program has maintained funding to keep certified programs that are in good standing active without major disruptions to service levels. Funds received from CDSS are for the exclusive use of this contract and cannot be used to supplement other programs, staffing, or additional budget items for PRCSA or the City of Santa Ana. EXHIBIT(S) 1. Proposed Award Letter 2. Resolution Accepting Contract Funding 3. Resolution Amending Current Fiscal Year Budget to Adjust Full-time Positions in PRCSA 4. State Income Guidelines for FY 24/25 Submitted By: Hawk V. Scott, Executive Director of Parks, Recreation, and Community Services Approved By: Alvaro Nuñez, City Manager EXHIBIT 1 May 23, 2023 City of Santa Ana Parks and Rec Hawk Scott 20 Civic Center Plaza, M-23 Santa Ana 92701 SUBJECT: FISCAL YEAR 2022–23 GENERAL CHILD CARE AND DEVELOPMENT PROGRAM EXPANSION FUNDS REQUEST FOR APPLICATION, ROUND TWO Dear Hawk Scott The California Department of Social Services (CDSS), Child Care and Development Division (CDDD), is pleased to inform you that your application received a score of 79 and your agency will be receiving a proposed award amount of $6,718,488.00. As set forth in the Request for Applications, agencies selected for funding were determined by the following priority order: 1. Allocated Counties 2. Local Child Care and Development Planning Council priority order 3. Highest score order Please note that this letter is not a contractual agreement, and no award money is final until a contract has been fully executed, which occurs when both parties have signed the contract. Prior to that time, the CDSS has the right to conduct additional due diligence to ensure that the award agency can fulfill all programmatic and fiscal requirements. Upon completion of contract negotiations, your agency will be mailed a contract for your signature. Any costs incurred outside the performance period of a fully executed contract may not be reimbursed. Contracts for subsequent fiscal years (July 1 through June 30, annually) are renewed each spring through a continued funding application process and are subject to CDSS approval. Please note that the contract process takes time based on when the funding is released to the CDSS following the enactment of the state budget. A Fiscal Analyst will provide EXHIBIT 1 technical assistance during the contract process to ensure that your contract is appropriately funded and to advise you on submission of expenditures eligible for reimbursement, based on when you begin operations. The CDSS looks forward to maintaining an ongoing positive relationship in support of families and children of California. If you have any questions regarding this subject, please contact the Funding Application Unit at CCTRRFA@dss.ca.gov. Sincerely, Lupe Jaime-Mileham, EdD, Deputy Director Child Care and Development Division EXHIBIT 1 Resolution No. 2024-XXX Page 1 of 3 RESOLUTION NO. 2024-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACCEPTING CONTRACT FUNDS FROM THE CALIFORNIA DEPARTMENT OF SOCIAL SERVICES FOR PROVISION OF CHILD CARE AND DEVELOPMENT SERVICES AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO NEGOTIATE AND EXECUTE ANY AGREEMENTS OR AMENDMENTS THERETO THAT MAY BE NECESSARY WHEREAS, the Legislature and Governor of the State of California have approved funds for child care and development services; and WHEREAS, the California Department of Social Services (“CDSS”) has been delegated the responsibility for the administration of the contracts for such funding; and WHEREAS, the City’s Parks, Recreation and Community Services Agency submitted an application on behalf of the City to receive funds for child care and development services; and WHEREAS, the City was notified that it has been selected for a proposed award in an amount not to exceed $6,718,488; and WHEREAS, CDSS requires, as a condition precedent to the award, that a resolution must be adopted in order to certify the approval of the City Council to enter into a transaction with the CDSS for the purpose of providing child care and development services and to authorize designated personnel to sign contract documents for Fiscal Year 2024-25. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The City Council of the City of Santa Ana hereby agrees to the terms and authorizes entering into the Local Agreement with the State of California, attached as Exhibit A, and that the designated personnel below are authorized to execute any additional documents regarding the child care and development funding on behalf of the City. Section 2 The City Council of the City of Santa Ana hereby authorizes the City Manager, or their designee, on terms acceptable to the City Attorney, to execute any documents that are necessary to accept the grant award described herein from the California Department of Social Services. EXHIBIT 1 Resolution No. 2024-XXX Page 2 of 3 Section 3. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall attest to and certify the vote adopting this Resolution. ADOPTED this _____ day of November, 2024. _______________________ Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By:_____________________ Brandon Salvatierra Deputy City Attorney AYES: Councilmembers _______________________________________ NOES: Councilmembers _______________________________________ ABSTAIN: Councilmembers _______________________________________ NOT PRESENT: Councilmembers _______________________________________ EXHIBIT 1 Resolution No. 2024-XXX Page 3 of 3 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2024-____ to be the original resolution adopted by the City Council of the City of Santa Ana on November ___, 2024. Date: ________________ ____________________________________ City Clerk City of Santa Ana EXHIBIT 1 EXHIBIT A EXHIBIT 1 LOCAL AGREEMENT FOR CHILD DEVELOPMENT SERVICES CONTRACTOR'S NAME: DATE: CONTRACT NUMBER: PROGRAM TYPE: PROJECT NUMBER: CITY OF SANTA ANA PARKS AND RECREATION CCTR-4390 30-C101-00-4 STATE OF CALIFORNIA F.Y. July 01, 2024 GENERAL CHILD CARE & DEV PROGRAMS 24 - 25 This Agreement is entered into between the State Agency and the Contractor named above. The Contractor agrees to comply with the terms and conditions of the CURRENT APPLICATION; GENERAL TERMS AND CONDITIONS (GTC 04/2017)*; the GENERAL CHILD CARE AND DEVELOPMENT PROGRAM REQUIREMENTS (Program Requirements)*; the FUNDING TERMS AND CONDITIONS (FT&C)*, as approved by the State Agency referenced at: https://www.cdss.ca.gov/inforesources/child-care-and-development/contractor-resources. Where the GTC 04/2017 conflicts with either the Program Requirements or the FT&C, the Program Requirements or the FT&C will prevail. Funding of this Agreement is contingent upon appropriation and availability of sufficient funds. This Agreement may be terminated immediately by the State if funds are not appropriated or available in amounts sufficient to fund the State's obligations under this Agreement. The period of performance for this Agreement is July 01, 2024 through June 30, 2025. For satisfactory performance of the required services, Effective November 9, 2022, the service county reimbursement rate as provided in CCB NO. 22-32: https://cdss.ca.gov/Portals/9/Additional-Resources/Letters-and-Notices/CCBs/2022/CCB_22-32.pdf?ver=2022-11-10-135821-41 0 is applicable to the sites, as located in the service counties, approved by the Child Care Development Division and indicated in the Child Development Management Information System (CDMIS), the Minimum Days of Operations (MDO), which is based on the approved program calendar, and the Maximum Reimbursable Amount (MRA) of $915,583.00 Up to $915,583.00 of the MRA may be expended as one-time-only start-up costs in accordance with WIC 10300 and the Funding Terms and Conditions. During the term of this Agreement, the Agreement Rate, the MDO and the MRA may be adjusted through an Allocation Letter issued to the Contractor by State Agency. SERVICE REQUIREMENTS Minimum Days of Operation (MDO): 12 Any provision of this Agreement found to be in violation of Federal or State statute or regulation shall be invalid but such a finding shall not affect the remaining provisions of this Agreement. Items shown with an asterisk (*), are hereby incorporated by this reference and made part of this Agreement as if attached hereto. Amendments to any of these asterisked documents during the term of this Agreement shall be incorporated by reference as of the date issued by State Agency without need for formal amendment. https://www.cdss.ca.gov/inforesources/child-care-and-development/contractor-resources . STATE AGENCY: CALIFORNIA DEPARTMENT OF SOCIAL SERVICES $ $ AMOUNT ENCUMBERED BY THIS DOCUMENT PRIOR AMOUNT ENCUMBERED FOR THIS CONTRACT TOTAL AMOUNT ENCUMBERED TO DATE STATUTE FISCAL YEARCHAPTER OBJECT OF EXPENDITURE (CODE AND TITLE) ITEM (OPTIONAL USE) FUND TITLEPROGRAM/CATEGORY (CODE AND TITLE) 702 13254-C101 915,583 2024-20252024 Child Development Programs General 915,583 5180-101-0001 B/A 30.10.020.001 SACS: Res-6105 Rev-8590 9990$ 0 IMPORTANT: Signature is not required. EXHIBIT 1 Resolution 2024-XXX Page 1 of 3 RESOLUTION NO. 2024-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND THE CURRENT FISCAL YEAR 2024-2025 ANNUAL BUDGET TO ADD FULL-TIME POSITIONS IN THE PARKS, RECREATION AND COMMUNITY SERVICES AGENCY. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines, and declares as follows: A. On June 18, 2024, the City Council passed and adopted Ordinance no. NS - 3067, establishing the City’s Budget for Fiscal Year 2024-2025 and authorizing position allocations for the Fiscal Year 2024-2025. The Ordinance also sets forth the requirement that alterations in the allocation of authorized positions be reviewed and approved by Council. B. On October 1, 2024, the City Council approved an appropriation adjustment to carryover unspent amounts from Fiscal Year 2023 -2024 to Fiscal Year 2024- 2025. C. The Executive Director of the Parks, Recreation and Community Services Agency requests to amend the Fiscal Year 2024-2025 budget to add one (1) Site Director, one (1) Site Teacher, one (1) Teacher’s Aide, and one (1) Senior Management Analyst. D. It is now desired to amend the Fiscal Year 2024-2025 budget, as amended in order to effect this change, as shown below. Section 2: The City’s annual budget for Fiscal Year 2024-2025, as amended, is hereby further amended to add the following positions in the Parks, Recreation & Community Services Agency, at the monthly seven-step range as indicated: 7-Step Salary Rate Range Effective November, 19, 2024 Classification Title Number of Positions Added Scale Monthly Salary Minimum-Maximum Site Director 1 656 $5,438 - $7,287 Site Teacher 1 626 $4,696-$6,295 Teacher’s Aide 1 576 $3,678-$4,931 EXHIBIT 1 Resolution 2024-XXX Page 2 of 3 Section 3: The City’s annual budget for Fiscal Year 2024-2025, as amended, is hereby further amended to add the following position in the Parks, Recreation & Community Services Agency, at the monthly five-step range as indicated: 5-Step Salary Rate Range Effective November 19, 2024 Classification Title Number of Positions Added Scale Monthly Salary Minimum-Maximum Senior Management Analyst 1 707 $8,641-$10,501 Section 4: All classification salary rate ranges are set forth in the City's "Salary Schedule" as periodically updated. Section 5: That except as amended by this resolution, all other provisions of the Annual Budget for the Fiscal Year 2024-2025, as amended, shall remain in full force and effect. Section 6: This Resolution is operative from and after the date upon which it is adopted. ADOPTED this 19th day of November 2024. ___________________________ Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: __________________ Laura A. Rossini Chief Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers EXHIBIT 1 Resolution 2024-XXX Page 3 of 3 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, City Clerk, do hereby attest to and certify the attached Resolution No. 2024-XXX to be the original Resolution adopted by the City Council of the City of Santa Ana on November 19, 2024. Date: ___________________ ____________________________ City Clerk EXHIBIT 1 Monthly Part- time Fee Family Size 1 or 2 Family Size 3 Family Size 4 Family Size 5 Family Size 6 Family Size 7 Family Size 8 or more $29.05 5,819 6,593 7,687 8,917 10,147 10,378 10,608 $29.45 5,897 6,681 7,790 9,036 10,282 10,516 10,750 $29.85 5,975 6,768 7,892 9,155 10,417 10,654 10,891 $30.25 6,052 6,856 7,995 9,274 10,553 10,793 11,032 $30.60 6,130 6,944 8,097 9,393 10,688 10,931 11,174 $31.00 6,207 7,032 8,200 9,511 10,823 11,069 11,315 $31.40 6,285 7,120 8,302 9,630 10,959 11,208 11,457 $31.80 6,362 7,208 8,405 9,749 11,094 11,346 11,598 $32.20 6,440 7,296 8,507 9,868 11,229 11,484 11,740 $32.55 6,518 7,384 8,609 9,987 11,365 11,623 11,881 $32.95 6,595 7,472 8,712 10,106 11,500 11,761 12,023 Monthly Full- time Fee Family Size 1 or 2 Family Size 3 Family Size 4 Family Size 5 Family Size 6 Family Size 7 Family Size 8 or more $58.10 5,819 6,593 7,687 8,917 10,147 10,378 10,608 $58.90 5,897 6,681 7,790 9,036 10,282 10,516 10,750 $59.70 5,975 6,768 7,892 9,155 10,417 10,654 10,891 $60.50 6,052 6,856 7,995 9,274 10,553 10,793 11,032 $61.20 6,130 6,944 8,097 9,393 10,688 10,931 11,174 $62.00 6,207 7,032 8,200 9,511 10,823 11,069 11,315 $62.80 6,285 7,120 8,302 9,630 10,959 11,208 11,457 $63.60 6,362 7,208 8,405 9,749 11,094 11,346 11,598 $64.40 6,440 7,296 8,507 9,868 11,229 11,484 11,740 $65.10 6,518 7,384 8,609 9,987 11,365 11,623 11,881 $65.90 6,595 7,472 8,712 10,106 11,500 11,761 12,023 Jul-24 End Worksheet Monthly Full-time Based on 2022 American Community Survey (2022ACS) Information provided by California Department of Finance, April 2024 California Department of Social Services Directions for worksheet: Monthly Part‐time table begins at cell A6 and ends at cell H 17. Monthly Full‐time table begins at cell A19 and ends at  cell H 30.  All information is aligned to column A. Family Monthly Fee Schedule California Department of Social Services – Effective: July 1, 2024 State enrollment cutoff = 85% of 2024 State Median Income (SMI) from CA DOF (2022 ACS) Monthly Part-time EXHIBIT 1 1 EXHIBIT 2 CALIFORNIA DEPARTMENT OF SOCIAL SERVICES FUNDING TERMS AND CONDITIONS (FT&C) FT&C For: CalWORKs Stage 2 (C2AP) CalWORKs Stage 3 (C3AP) Alternative Payment Program (CAPP) General Childcare and Development (CCTR) Family Childcare Home Education Networks (CFCC) Programs for Children with Severe Disabilities (CHAN) Migrant Alternative Payment Program (CMAP) Migrant Childcare and Development Program (CMIG) Local Childcare and Development Council (CLPC) Resource and Referral Program (CRRP) Effective July 1, 2024 2 Table of Contents I. INTRODUCTION .................................................................................................. 6 II. GENERAL PROVISIONS ..................................................................................... 7 A. Notification of Address Change (5 CCR 18014) ........................................ 7 B. Notification of Email Contact Changes ...................................................... 8 C. Materials Developed with Contract Funds (5 CCR 18016) ........................ 8 D. Issuance and Use of Checks (5 CCR 18018) ............................................ 8 E. Prohibition against Loans and Advances (5 CCR 18019) .......................... 8 F. Contracts with Multiple Service Areas (5 CCR 18022)............................... 9 G. Compliance Reviews (5 CCR 18023(b)(d)) ................................................ 9 H. Error Rate ................................................................................................ 10 I. Applicability of Corporations Code ........................................................... 10 J. Conflicts of Interest (WIC 10266.5) .......................................................... 10 K. Unlawful Denial of Services (GC 11135 and 5 CCR 4900) ...................... 12 L. Computer Software Copyright Compliance .............................................. 12 M. Recycled Paper Certification (PCC 12205, 12209, 12320) ...................... 12 N. Healthy Schools Act ................................................................................. 13 O. Technical Assistance (WIC 10397(c)) ...................................................... 14 P. Resolution of Contract Administration Disputes (WIC 10391 and 5 CCR 18301) ...................................................................................................... 14 III. COSTS, EARNINGS AND REIMBURSEMENT .................................................. 15 A. Contract Amount Adjustments (Applies to C2AP, C3AP) (5 CCR 18033, 18034) ...................................................................................................... 15 B. Reasonable and Necessary Costs (5 CCR 18013(s), 18033, WIC 10213.5, 2 CFR 200.404) ....................................................................................... 15 C. Indirect Costs (5 CCR 18013(m), 18013(n), 2 CFR 200.414) .................. 15 D. Administrative Costs (WIC 10302, 5 CCR 18013(c)) ............................... 16 E. Service Level Exemption (Start-Up Costs) for New or Expanded Center- based Programs (WIC 10300, 10238) ..................................................... 16 F. Costs for Travel and Per Diem & Restrictions (WIC 10280 and 10285; GC 11139.8, 5 CCR 18031, 18034, and 18041) ............................................ 17 G. Specific Items of Reimbursable Costs (WIC 10280; 5 CCR 18034) ........ 18 H. Non-reimbursable Costs (5 CCR 18035) ................................................. 19 I. Charging of Expenditures (WIC 10280; 5 CCR 18037) ........................... 21 3 J. Recoupment of Advanced Contract Funds (WIC 10280; and 5 CCR 18038) ...................................................................................................... 21 K. Determination of Reimbursable Amount (WIC 10280, 5 CCR 18054, Section 18, Chapter 193, Statutes of 2023 (SB 140) ............................... 21 L. Child Care Provider Reimbursement (Section 24, Chapter 41, Statutes of 2024, (AB 116)) ....................................................................................... 23 M. Minimum Days of Operation (5 CCR 18055) ........................................... 23 N. Reduction, Withholding, and Canceling Apportionments to Contractors (WIC 10267.5 and 10285; 5 CCR 18056) ................................................ 24 O. Order of Expenditure (5 CCR 18057)....................................................... 24 IV. ACCOUNTING AND REPORTING REQUIREMENTS ....................................... 24 A. General Provisions (5 CCR 18063) ......................................................... 24 B. Child Development Fund and Interest-Bearing Accounts (5 CCR 18064) 25 C. Enrollment and Attendance Accounting (WIC 10227.5 5 CCR 18065, Section 18, Chapter 193, Statutes of 2023 (SB 140)) .............................. 25 D. Attendance and Absences (5 CCR 18066) .............................................. 26 E. Abandonment of Care (5 CCR 18066.5) .................................................. 27 F. General Record Keeping Requirements (WIC 10232, 10232.5, 10233, 10269, EC, 33421 and 5 CCR 18067) ..................................................... 27 G. Attendance and Expenditure Reports ...................................................... 28 H. Voucher-based and CFCC Expenditure Reports ..................................... 30 I. Caseload Reports (Applies to C2AP, C3AP, CAPP and CMAP) ............. 31 J. Subsidized Provider Report (WIC 10422(c)(1)) ....................................... 31 K. CRRP Expenditure Reports (5 CCR 18068) ............................................ 31 L. Service Data Report for Resource and Referral Programs (5 CCR 18069) ................................................................................................................. 32 M. CLPC Reporting ....................................................................................... 33 N. Child Development Data Collection (5 CCR 18070) ................................ 33 O. Other Report Data (5 CCR 18070) .......................................................... 34 P. Budget and Calendar ............................................................................... 34 Q. Reserve Accounts (WIC 10441) .............................................................. 35 V. AUDIT REQUIREMENTS ................................................................................... 36 A. Annual Financial and Compliance Audits (WIC 10229.5, 10440, 5 CCR 18071 and) ............................................................................................... 36 4 B. Review of Audit by the CDSS Office of Audit Services (OAS) (5 CCR 18072) ...................................................................................................... 37 C. Delinquent Audits and One-Time-Only Extensions (5 CCR 18073) ......... 38 D. California State Auditor (GC 8546.7) ....................................................... 38 VI. SUBCONTRACTS .............................................................................................. 38 A. Subcontracts Excluded from Requirements of this Section (5 CCR 18026, 18027) ...................................................................................................... 38 B. Required Subcontract Provisions (5 CCR 18031) .................................... 39 C. Private Agencies-Bids for Subcontracts (5 CCR 18027 & 2 CFR 200.320(f)) ............................................................................................... 41 D. Public Agencies Subcontracts ................................................................. 41 E. Prior CDSS Approval for Subcontracts $10,000 and Above (5 CCR 18028- 18030) ...................................................................................................... 41 F. Audit Requirements for Subcontracts (5 CCR 18032) ............................. 42 VII. FACILITIES AND EQUIPMENT .......................................................................... 43 A. Facilities and Equipment Expenditures .................................................... 43 B. Buildings and Improvements (5 CCR 18034(h)) ...................................... 43 C. Renovation and Repair (5 CCR 18034(f)) ................................................ 44 D. Depreciation and Use Allowance (5 CCR 18034(h)) ................................ 44 E. Preapproval Requirements (2 CFR 200.33, 200.439(b)(1) 5 CCR 18029 and 18040) ............................................................................................... 45 F. Obtaining Bids for Equipment Purchases, Leases, Replacements, and Improvements for Private Agencies (2 CFR 200 and 5CCR 18040) ........ 46 G. Obtaining Bids for Equipment Purchases for Public Agencies ................. 47 H. Asset Management .................................................................................. 47 I. Title, Use, Disposition and Retention (5 CCR 18025) .............................. 48 VIII. FUNDING ELIGIBILITY, CONTINUED FUNDING, CONTRACT STATUS, TERMINATIONS, AND APPEALS ...................................................................... 49 A. Eligibility for Funding (5 CCR 18001) ....................................................... 49 B. Review of Contracts for Continued Funding (5 CCR 18010) ................... 50 C. Contract Classifications ........................................................................... 51 D. Administrative Review of Changes in Contract Status (5 CCR 18303) .... 51 E. Conditional Contract Status Procedure .................................................... 52 F. Contract Termination Procedure .............................................................. 54 G. Independent Appeals (WIC 10392, 10393) .............................................. 57 5 H. Procedures For Independent Appeals (5 CCR 18301 and GC 11500) .... 58 IX. BUILDING A BETTER EARLY CARE AND EDUCATION SYSTEM (BBECES) (WIC 10420-10429.5; CIVIL CODE 1798.17; 42 US 9858C(2)(D) AND (U); 45 CFR 98.16(AA), 98.33 AND 98.42) .................................................................... 60 A. Submission and Disclosure of Childcare Provider Information ............... 60 B. Notices and Communications .................................................................. 61 C. Reimbursement ....................................................................................... 61 D. Memorandum of Understanding .............................................................. 62 E. Interference .............................................................................................. 62 F. Training Partnership ................................................................................ 62 X. DEFINITIONS ..................................................................................................... 62 6 I. INTRODUCTION These are the Funding Terms and Conditions (FT&C) for childcare and development contracts effective July 1, 2024. Each contractor is required as a condition of its contract (Contract) with the California Department of Social Services (CDSS), to adhere to the following laws and documents: A. Title 45 Code of Federal Regulations (45 CFR, Part 98, and Part 99) B. Any applicable Welfare and Institutions Code (WIC) statutes; C. Title 5 California Code of Regulations (5 CCR) Division 1, Chapter 19 and 19.5, Sections 18000 et seq. D. Title 22 California Code of Regulations (22 CCR), Division 12, community care facilities license regulations, including childcare centers; E. The FT&C; F. The specific Program Requirements; G. The CDSS Audit Guide; H. The California School Accounting Manual; I. The procedures and standards set forth in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (2 CFR Part 200 and 45 CFR Part 75), hereinafter referred to as Uniform Guidance (UG); J. Pilot Plan addendum for agencies participating in approved Individualized Child Care Subsidy plan, pursuant to Chapter 187, Part 1.8, Division 9 of WIC commencing with Section 10350. K. In addition to all other applicable laws and regulations, including any applicable law and regulations that may become effective during the term of this contract. Any non-compliance with these provisions may subject the contractor to termination of the contract. Any variance from The Contract must be authorized in writing by the CDSS and signed by the Deputy Director of the Childcare and Development Division (CCDD) or the Deputy Director’s authorized representative. Unless otherwise noted, these compliance requirements apply to all programs. Contractors may adopt any reasonable policies relating to the administration of the program so long as such policies are not in conflict with law, regulations, or the terms of the Contract, including any amendments. Those potentially affected by the policies shall be duly notified, as provided for in statute and regulation, and be afforded all required due process. 7 California Welfare and Institutions Code (WIC) Section 10388(f) requires all childcare and development contracts entered into by the CDSS for means -tested childcare and development programs, including, but not limited to, Alternative Payment, General Childcare, and Childcare for Recipients of the California Work Opportunities and Responsibility to Kids (CalWORKs) Programs (described in WIC 10225, WIC 10240, and WIC 10370) to implement best practices in consultation with CDSS. Childcare and Development Division contracts are funded with state general funds, federal funds, or a combination of funds. The funding amounts are listed on the contract encumbrance page. Contracts may be fully or partially funded through a grant f rom the federal Department of Health and Human Services and subject to Code of Federal Regulations, Title 45 (45 CFR), Parts 98 and 99, the Childcare and Development Block Grant (CCDBG) Act of 1990, as amended by the CCDBG Act of 2014, Public Law 1113-186, the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, 42 USC 9858. If the Catalogue of Federal Domestic Assistance (CFDA) number is 93596, shown as FC# in the funding block, the fund title is Childcare Mandatory and Matchin g Funds of the Childcare and Development Fund. If the CFDA number is 93575, the fund title is Childcare and Development Block Grant subject to the Childcare and Development Block Grant Act of 1990, as amended by the CCDBG Act of 2014, Public Law 1113-186, the Omnibus Budget Reconciliation Act of 1990, Section 5082, Public Law 101-508, as amended, Section 658J and 658S, and Public Law 102-586. II. GENERAL PROVISIONS A. Notification of Address Change (5 CCR 18014) 1. Contractors shall notify the CDSS in writing of any change in the mailing address for communication regarding the contract (administrative address) within ten (10) calendar days of the address change. For non-public agencies, the notification must be accompanied by: a. Board minutes verifying the change in address; and b. A copy of the notification to the Internal Revenue Service of the address change. 2. Contractors shall notify the CDSS in writing of any proposed change in operating facility address(es) at least thirty (30) calendar days in advance of the change unless such change is required by an emergency such as fire, flood, or earthquake. 8 B. Notification of Email Contact Changes 1. Contractors shall assure that at all times the email address on file at the CDSS is accurate for contacting the following individuals: a. Executive Officer b. Program Director 2. Contractors shall utilize procedures provided by the CDSS to electronically add new addresses or delete old addresses, as needed. C. Materials Developed with Contract Funds (5 CCR 18016) 1. If the contractor receives income from materials developed with contract funds, the use of the income shall be restricted to the childcare and development program. 2. If the materials were developed in part with contract funds, the income from the sale of the materials that shall be used in the child development and development program shall be computed in direct proportion to the share of contract funds used in development of the materials. 3. Materials developed with contract funds shall contain: a. An acknowledgement of the use of state funds in the development of materials; b. A disclaimer that the contents do not necessarily reflect the position or policy of the CDSS. D. Issuance and Use of Checks (5 CCR 18018) Except for external payroll services, private contractors: 1. Shall not use any pre-signed, pre-authorized, or pre-stamped checks without the prior written approval of the CDSS; and 2. Shall require two (2) authorized signatures on all checks unless: a. The contractor has a policy approved by its governing board requiring dual signatures only on checks above a specified dollar amount. b. The annual audit verifies that appropriate internal controls are maintained. E. Prohibition against Loans and Advances (5 CCR 18019) 1. Contractors shall not loan contract funds to individuals, corporations, organizations, public or private agencies. 9 2. Contractors shall not advance unearned salary to employees. 3. Contractors shall not make advance payments to subcontractors and shall compensate subcontractors after services are rendered or goods are received except for: a. Subcontractors providing childcare and development services; and b. Subcontractors with subcontracts exempt from the provisions of Section VI, paragraph A, Contracts Excluded from Requirements of This Section. F. Contracts with Multiple Service Areas (5 CCR 18022) 1. CCTR, CHAN, and CMIG contractors with more than one service delivery area as specified in and funded through a single contract shall maintain service at the same level, plus or minus ten percent (10%) of the contracted child hours or child days of enrollment as applicable, in the individual service area(s) specified in its current contract. 2. The contractor may request approval from the CDSS to vary service levels by more than ten percent (10%) if the contractor can demonstrate that the need for services in the designated area(s) has changed. 3. The CDSS shall approve or deny the variable service level request within thirty (30) calendar days of receipt of the request. 4. If the variable service level request is denied, the contractor may appeal this decision in accordance with paragraph P, Resolution of Contract Administration Disputes, below. 5. Non-CalWORKs Alternative Payment program and CFCC contractors with more than one service delivery area, as specified in and funded through a single contract, shall maintain service at the same level in the individual service area(s) as most recently approved by CDSS. G. Compliance Reviews (5 CCR 18023(b)(d)) 1. At least once every three (3) years, and as resources permit, the CDSS shall conduct reviews at the contractor's office(s) and operating facility(ies) to determine the contractor's compliance with applicable laws, regulations and/or contractual provisions. 2. The compliance reviews shall be conducted according to the provisions of CMR Manual. 3. The compliance reviews shall be conducted by consultants, analysts, and/or management staff of the CDSS or other State of California representatives. 10 H. Error Rate Annually, the CDSS shall conduct a review of select voucher-based contract agency to determine an error rate in each of the following area s: 1. Eligibility; 2. Need; 3. Family Fee Assessment; and 4. Provider payments I. Applicability of Corporations Code Except for partnerships and sole proprietorships, private contractors shall be subject to all applicable sections of the Corporations Code including stan dards of conduct and management of the organization. J. Conflicts of Interest (WIC 10266.5) 1. All transactions shall be fair and reasonable and conducted at arm’s length where the contractor is a party to a transaction and the other party is one of the following: a. An officer or employee of the contractor or of an organization having financial interest in the contractor; or b. A partner or controlling stockholder or an organization having a financial interest in the contractor; or c. A family member of a person having a financial interest in the contractor. 2. No person employed by the CDE or CDSS in a policymaking position in the area of childcare and development programs shall serve as a member of the board of directors, advisory council, or advisory committee for any agency receiving funds pursuant WIC, Part 1.8 Child Care and Development Services Act. The provisions of this subdivision shall not apply to any person appointed prior to January 1, 1985. 3. No retired, dismissed, separated, or formerly employed person of the CDE or CDSS employed under the State Civil Service or otherwise appointed to serve in the CDE or CDSS may enter into a contract pursuant to WIC 10268.5 in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by the CDE or CDSS. The prohibition contained in this subdivision shall apply to the person only during the two-year period beginning on the date the person left state employment. 11 4. For a period of twelve (12) months following the date of his or her retirement, dismissal, or separation from state service, no person employed under State Civil Service or otherwise appointed to serve in the CDE or CDSS may enter into a contract pursuant to WIC 10268.5 if he or she was employed by the department in a policymaking position in the area of childcare and development programs within the twelve (12) month period prior to his or her retirement, dismissal, or separation. 5. For a period of twelve (12) months following the date of his or her retirement, dismissal, or separation from state service, no person employed under State Civil Service or otherwise appointed to serve in the CDE or CDSS may be employed by a contractor pursuant to WIC 10268.5 if he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by the CDE or CDSS. 6. The provisions above shall not apply to any persons who were already in the situations described by these subdivisions prior to January 1, 1985. 7. Based on corporate law (Corporations Code Sections 310, 5233-5234, 7233 and 9243 as applicable), the general rules to be followed to ensure that transactions are conducted at arm's length include: a. Prior to consummating the transaction, the governing body should authorize or approve the transaction in good faith and the board should require the interested party, or parties, to make full disclosure to the board both in writing and during the board meeting where the transaction is being discussed; and b. All parties having a financial interest in the transaction should refrain from voting on the transaction and it should be so noted in the board minutes. 8. If the transaction involves the renting of property, either land or buildings, owned by affiliated organizations, officers or other key personnel of the contractor or their families, the board of directors shall request the interested party to obtain a fair market rental estimate from an independent appraiser, licensed by the California Office of Real Estate Appraisers that supports all reimbursable costs under the transaction. a. A new fair market rental estimate for each change, adjustment, or escalation to any reimbursable costs under a transaction is required. b. If the contractor has no board or is a sole proprietor, the requirement for a fair market rental estimate shall also apply. 9. The contractor has the burden of supporting the reasonableness of rental costs. If the property is owned by the contractor, rental costs are not 12 reimbursable and costs may be claimed only as depreciation or use allowance. 10. Any transaction described in this section shall be disclosed by the auditor in the notes to the financial statement in the annual audit. (Uniform Guidance, Subpart F) 11. Rental costs for equipment owned by affiliated organizations, officers, or other key personnel of the contractor or their families are allowable only as depreciation or use allowance. K. Unlawful Denial of Services (GC 11135 and 5 CCR 4900) As used in this section, disability means any mental or physical disability as defined in GC 12926. 1. No person in the State of California shall, on the basis of race, national origin, ethnic group identification, religion, age, sex, sexual orientation, color, genetic information, or disability be unlawfully denied full and equal access to the benefits of, or be unlawfully subjected to discrimination under, any program or activity that is conducted, operated, or administered by the state or by any state agency, is funded directly by the state, or receives any financial assistance from the state. 2. With respect to discrimination on the basis of disability, programs and activities subject to 5 CCR 4900(a) shall meet the protections and prohibitions contained in Section 202 of the Americans with Disabilities Act of 1990 (42 USC Section 12132), and the federal rules and regulations adopted in implementation thereof, except that if the laws of this state prescribe stronger protections and prohibitions, the programs and activities subject to subdivision (a) shall be subject to the stronger protections and prohibitions. L. Computer Software Copyright Compliance By signing this agreement, the contractor certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this contract for the acquisition, operation, or maintenance of computer software in violation of copyright laws. M. Recycled Paper Certification (PCC 12205, 12209, 12320) The contractor agrees to certify in writing to the CDSS, under penalty of perjury, the minimum, if not exact, percentage of recycled content, both post-consumer waste and secondary waste as defined in Public Contract Code (PCC), Sections 12161 and 12200, in materials, goods or supplies offered or products used in the performance of this Agreement, regardless of whether the product meets the required recycled product percentage as defined in the PCC, Sections 12161 and 12200. Contractor may certify that the product contains zero recycled content. 13 N. Healthy Schools Act 1. All childcare and development center-based contractors are subject to the requirements of the Healthy Schools Act (HSA) as specified in California Education Code (EC) Sections 17608 to 17614. 2. For more information about the requirements of the HSA, contact the Department of Pesticide Regulation (DPR), Integrated Pest Management (IPM) via email at ccipmlist@cdpr.ca.gov, or visit the DPR School and Childcare IPM website. 3. To comply with the provisions of the HSA, childcare and development center - based contractors shall, among other requirements: a. Identify a school designee. Choose a center employee who will make sure the requirements of the Healthy Schools Act (HSA) are met when pesticides are used at your center. b. Develop an IPM plan Create an IPM plan using the DPR IPM Plan template available on the DPR School and Childcare IPM website; or get a self-drafted center IPM plan approved by DPR. c. Provide annual written notification. Send parents, guardians, and staff a written notification of pesticides you expect to apply at your center during the year. d. Establish individual notification registry. Establish a registry for all interested parents, guardians, and staff to sign up and receive notifications of individual pesticide applications. e. Post warning signs Post signs where you will apply pesticides. f. Keep Records Keep records of pesticide applications made by center staff and pest management contractors for at least four years. g. Send pesticide use reports to DPR Send pesticide use reports for pesticide applications made by center employees to DPR at least once per year. 14 h. Never use prohibited pesticides Always check the list of Pesticide Products Prohibited from Use in California Schools and Childcare Facilities prior to using a new pesticide product. i. Complete Annual IPM Training Take a DPR-approved training course before applying pesticides and renew annually. O. Technical Assistance (WIC 10397(c)) Technical assistance shall be provided to any contracting agency making a written request to its assigned consultant or administrator within sixty (60) days of receipt of the request. P. Resolution of Contract Administration Disputes (WIC 10391 and 5 CCR 18301) 1. The procedure specified in this section shall be used to resolve disputes between contractors and the CDSS that may arise regarding the interpretation and application of any term or condition of a contract, including, but not limited to, requests for waivers, app roval of subcontracts or expenditures requiring approval, requests for reimbursement rate adjustments, or reductions in the total amount of contract reimbursement that are not appealable. 2. The contractor shall attempt to resolve contract disputes at the lowest staff level within the CDSS. 3. If the dispute is not resolved at the lowest staff level, the contractor may appeal the decision by submitting a written description of the issues and the basis for the dispute to the Bureau Chief of the CDSS having jurisdiction over the contractor's service delivery area. The Bureau Chief shall make a determination and shall send a written notification of the decision to the contractor, together with the reasons for the decision, within thirty (30) calendar days of the receipt of the appeal. The contractor may appeal the decision of the Bureau Chief to the Branch Chief of the CCDD by submitting a written description of the issues in dispute, and a copy of the Bureau Chief’s decision. The Branch Chief of the CCDD shall send notification of the decision to the contractor and shall specify the reason(s) for the decision within thirty (30) calendar days of the receipt of the appeal by the Branch Chief. The decision of the Branch Chief of the CCDD shall be the final administrative action afforded the contractor. 15 III. COSTS, EARNINGS AND REIMBURSEMENT A. Contract Amount Adjustments (Applies to C2AP, C3AP) (5 CCR 18033, 18034) Child Development and Fiscal Services (CDFS) shall conduct monthly analyses of caseloads and expenditures and adjust agency contract maximum reimbursable amounts and allocations as necessary to ensure that funds are distributed in proportion to need. Prior to such action, however, CDFS will notify the contractor of the proposed action and the contractor will be gi ven an opportunity to provide written documentation that demonstrates the CDFS projections are inaccurate. Because of the need to transfer funds to an under- funded agency as quickly as possible, the contractor shall have three (3) working days from the date of notification to respond. B. Reasonable and Necessary Costs (5 CCR 18013(s), 18033, WIC 10213.5, 2 CFR 200.404) Contractors may be reimbursed for actual costs that are reasonable and necessary to the performance of the contract. Reasonable and necessary costs are those costs that do not exceed what an ordinarily prudent person would incur in the conduct of a competitive business under the circumstances prevailing at the time of the decision to incur the cost, and whether the cost is of a type recognized as ordinary and necessary for the operation of the entity or the proper and efficient performance of the award. Consideration must be given to market prices for comparable goods or services for the geographic area. C. Indirect Costs (5 CCR 18013(m), 18013(n), 2 CFR 200.414) 1. If indirect costs are claimed, an indirect cost allocation plan must be on file with the contractor and available for review by the CDSS staff and auditors. 2. The maximum indirect cost rate shall be ten percent (10%) of the modified total direct costs. 3. For any non-federal entity that has a negotiated indirect cost rate with CDE, which includes all school districts and county offices of education, the maximum indirect cost rate shall be the lesser of the CDE negotiated indirect cost rate or ten percent (10%). 4. Pursuant to 2 CFR 200.414(f), a non-federal agency that does not have a current negotiated rate, except for those non-Federal entities described in appendix VII to this part, paragraph D.1.b, may elect to charge a de minimis rate of ten percent (10%) of modified total direct costs (MTDC) which may be used indefinitely. No documentation is required to justify the 10% de minimis indirect cost rate. 16 5. This rate is applied to budget categories 1000 -5000 only in determining the maximum amount of indirect costs that are reimbursable under the contract. 6. The amount of cost allocable to this contract shall not exceed the benefits to this contract. The allocation method must quantify this benefit among all similar programs and then distribute the costs accordingly. 7. The indirect cost rate shall not include consideration of any costs otherwise non-reimbursable. If depreciation or use allowance is included in the indirect cost rate, such allowance shall not be claimed on the asset as a direct cost. 8. When determining reimbursable amounts, in accordance with paragraph K, Determination of Reimbursable Amount, below; indirect costs and administrative costs combined shall not exceed 15%. D. Administrative Costs (WIC 10302, 5 CCR 18013(c)) 1. Contractors may claim administrative costs, as defined in 5 CCR 18013(c), which are related to the administration of the childcare and development program. 2. Reimbursement of administrative costs shall not exceed fifteen percent (15%) of the net reimbursable program costs or actual administrative costs, whichever is less. 3. The fifteen percent (15%) includes any allowance for indirect costs, as described in paragraph C, Indirect Costs, above, and audits. Contractors shall maintain written documentation of the rationale used in determining direct and administrative costs. E. Service Level Exemption (Start-Up Costs) for New or Expanded Center- based Programs (WIC 10300, 10238) 1. Allowable start-up costs will be in an amount not to exceed fifteen percent (15%) of the expansion or increase of each agency’s total contract amount. 2. Start-up costs must be necessary for the establishment and stability of new childcare and development programs and include: a. Employment and orientation of necessary staff; b. Setting up of the program and facility; c. Finalization of rental agreements and necessary deposits; d. Purchase of a reasonable inventory of materials and supplies; and e. Purchase of an initial premium for insurance. 17 3. Contractors shall maintain an auditable record of start-up costs which shall be included within the audit at the end of the year. 4. Reimbursable start-up costs shall occur prior to attainment of full enrollment. 5. If all or part of the fifteen percent (15%) allowable start-up costs is needed and spent, that portion will not have to be earned through provision of services. 6. If the contractor neither needs nor chooses to claim any of the fifteen percent (15%) start-up costs, the full-service requirements shall be earned at the contract rate. 7. Migrant childcare and development agencies operating on a seasonal basis shall be reimbursed up to fifteen percent (15%) of the contract amount annually for approved start-up and close-down costs associated with starting up and closing down agency operations to correspond with periods of service needed by migrant families as specified in WIC, Division 9, Part 1.8, Chapter 6 (10235-10238). F. Costs for Travel and Per Diem & Restrictions (WIC 10280 and 10285; GC 11139.8, 5 CCR 18031, 18034, and 18041) 1. Contractors and subcontractors shall be reimbursed for travel and per diem expenses at rates not exceeding those amounts paid to the CDSS's represented employees computed in accordance with the California Department of Human Resources regulations, California Code of Regulations, Title 2, Division 1, Chapter 3, Subchapter 1, Article 2. 2. Contractors with collective bargaining agreements allowing higher rates of reimbursement shall not pay the difference out of contract funds. 3. The CDSS shall notify the contractor of a change in expense rates within thirty (30) calendar days after the CDSS has received notification of a change in rates from the California Department of Human Resources. 4. Contractors shall be reimbursed for out-of-state travel expenses only with prior written approval from the CDSS. The CDSS shall not approve out-of- state travel expenses: a. For more than one employee, per contract per year. b. For contractors with delinquent accounts payable which are delinquent more than ninety (90) calendar days after the date of the original invoice. c. For contractors on conditional status. d. When there is no clear benefit to the state. 18 e. When the benefit to the state can be obtained within California. 5. The CDSS shall approve or deny the request for out-of-state travel within thirty (30) calendar days of the receipt of the request. If the request is denied, the contractor may appeal the decision in accordance with instructions specified in the Section I, paragraph P, Resolution of Contract Administration Disputes. 6. Out-of-state travel to states identified in California’s travel ban will not be considered. Costs associated with traveling to banned states will not be reimbursable. G. Specific Items of Reimbursable Costs (WIC 10280; 5 CCR 18034) Reimbursable costs include, but are not limited to, the following: 1. Start-up costs of child development agencies or facilities in an amount not to exceed fifteen percent (15%) of the expansion or increase of each agency’s total contract amount. 2. Close down costs for Migrant Programs as specified in WIC 10238. 3. Administrative costs, which includes indirect costs if applicable, shall not exceed fifteen percent (15%) of net reimbursable program costs. 4. Employee compensation, including fringe benefits, and personal service contracts. 5. Equipment and equipment replacement with prior CDSS approval i f required in the Section VII, Facilities and Equipment. 6. Supplies purchased in accordance with procurement practices found in 2 CFR Sections 200.317 to 200.326, including bidding requirements for micro- purchases that exceed $10,000. 7. Improvement of sites and adjacent grounds to meet or continue to meet 22 CCR Community Care Licensing Standards in accordance with Section VII, paragraph C, Renovation and Repair. 8. Taxes, insurance, and maintenance for buildings and/or equipment. 9. Depreciation based on the useful life of an asset in accordance with the Section VII, paragraph D, Depreciation Use Allowance. 10. A use allowance for buildings and improvements in accordance with the Section VII, paragraph D, Depreciation Use Allowance. 19 11. Travel and per diem expenses, including approved out-of-state travel, in accordance with Section III, paragraph F, Costs for Travel and Per Diem & Restrictions. 12. An indirect cost rate based on an indirect cost allocation plan, as defined in Section X, Definitions below, or indirect cost rate negotiated with CDE as specified in Section III, paragraph C, Indirect Costs 13. (Applies to CCTR, CHAN, and CMIG,) Lease payments or depreciation and interest on loans incurred to acquire, rehabilitate, or construct licensable facilities not to exceed fair market rents in the community in which the facility is located in accordance with guidelines issued by the CDSS. 14. (Applies to CCTR, CHAN, and CMIG) Interest on private sector debt financing for purchase, lease-purchase, repair or renovation of childcare and development facilities owned or leased for providing center-based care upon demonstration that the amount of interest paid in a year does not exceed the value obtained by the state in the use of the facilities for the childcare and development program during the year in accordance with guidelines issued by the CDSS. 15. Payments to providers made in accordance with applicable state laws and regulations. 16. (Applies to C2AP, C3AP, CAPP, CMAP, CFCC) Support services as specified in the Section X, Definitions. H. Non-reimbursable Costs (5 CCR 18035) The following costs shall not be reimbursable under the childcare and development contract: 1. 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); 2. Contributions; 3. Costs of amusement or entertainment; 4. Costs of fines or penalties; 5. 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 CDSS; 6. Costs incurred after the contract has been terminated; 7. Fund raising costs except as specified in 5 CCR 18277. 20 8. Interest expenses except: a. Interest on borrowed funds when apportionments are withheld because of a delay or error attributable to the state and the amount of interest claimed is approved by the CDSS. b. When interest is part of a lease purchase agreement. c. When the interest is part of payments on a loan incurred to acquire, rehabilitate, or construct licensable facilities, not to exceed fair market rents existing in the community in which the facility is located. d. When the interest is on private sector debt financing for the purchase, lease-purchase, repair or renovation of childcare and development facilities owned or leased by the contractor, and it has been demonstrated that the amount of interest paid in a year does not exceed the value obtained by the state in the use of the facilities for the childcare and development program during the year in accordance with guidelines issued by the CDSS. 9. Investment management costs; 10. Costs of organization of a nonprofit corporation such as incorporation fees or consultant fees; 11. Public relations consultant fees; 12. Costs of legal, consulting and accounting services incurred in prosecution of claims against the state; 13. State and federal income taxes; 14. Costs for the acquisition of sites and buildings except through depreciation; 15. Bonuses, unless part of a collective bargaining agreement; 16. Compensation to the members of the board of directors except for: a. Reimbursement for travel and/or per diem, computed in accordance with paragraph F, Costs for Travel and Per Diem, incurred while the members are conducting business for the organization. b. As provided in the California Corporation Code Section 5227, et seq. 17. Costs of subcontracts, which increase the contractor's cost or subcontracts, which contain a provision for reimbursement for cost-plus-a-percentage-of- costs; 21 18. Costs incurred in prior or future years, with the exception of the cost of an annual independent audit, which may be claimed either in the contract period, which was the subject of the audit, or during the contract period in which the audit is completed; 19. Costs that are not adequately documented. I. Charging of Expenditures (WIC 10280; 5 CCR 18037) Net reimbursable program costs must be incurred during the contract period. Contractors shall not use current year contract funds to pay prior or future year obligations. However, the cost of the annual independent audit may be claimed either in the contract period which was the subject of the audit or during the contract period in which the audit is completed. J. Recoupment of Advanced Contract Funds (WIC 10280; and 5 CCR 18038) The CDSS shall recoup any payments made for costs which were not reasonable and necessary. The amount recouped shall be the excess payment over the reasonable or fair market value, or one hundred pe rcent (100%) of the cost if the cost was not necessary. The CDSS may elect to recover any costs associated with recouping advanced contract funds, including collection services or attorney fees. 1. Use of Subsidized Family Fees (5 CCR 18039) Family fees received from subsidized parents are to be expended and earned by the contractor before contract funds shall be claimed for reimbursement. 2. For CCTR, CHAN and CMIG, Family fees shall be expended on reimbursable costs and earned by providing child days of enrollment. In order to be reimbursed the full contract amount, in addition to the fees received from subsidized parents, the contractor must have additional reimbursable expenditures and provide child days of enrollment beyond the minimum required by the contract. K. Determination of Reimbursable Amount (WIC 10280, 5 CCR 18054, Section 18, Chapter 193, Statutes of 2023 (SB 140) 1. CCTR, CHAN, CMIG contractors, that are open and continue to operate in accordance with their approved program calendar, shall be reimbursed for an audited claim that is the least of the following: a. The maximum reimbursable amount as stated in the annual childcare and development contract; b. The actual and allowable net costs. 22 2. C2AP, C3AP, CAPP, CMAP contractors shall be reimbursed for an audited claim that is the least of the following: a. The maximum reimbursable amount as stated in the annual childcare and development contract; or b. The amount earned, which are reimbursable expenditures of: i. Direct payments to providers, (which consist of the rate charged by the provider in accordance with applicable statutory and regulatory provision, not to exceed the Regional Market Rate Ceiling), and which includes family fees for certified children and interest earned on advanced contract funds; and ii. Actual administrative and costs for support services, as defined in section X, Definitions, which combined cannot exceed seventeen- and one-half percent (17.5%) of the total contract amount. No more than fifteen percent (15%) may be for administrative costs, as described in paragraph D, Administrative Costs, above, alone. 3. CFCC contractors shall be reimbursed for an audited claim that is the lesser of the following: a. The maximum reimbursable amount as stated in the annual child development contract; or b. The amount earned which is defined as net reimbursable program costs, of which at least seventy percent (70%) must be payments for direct services, not more than thirty percent (30%) may be for support services and administrative costs together, and no more than fifteen percent (15%) may be for administrative costs, including indirect costs if applicable, alone. 4. CRRP contractors shall be reimbursed for an audited claim that is the lesser of the following: a. The maximum reimbursable amount as stated in the annual childcare and development contract; or b. The actual and allowable net costs. 5. CLPC contractors shall be reimbursed for an audited claim that is the lesser of the following: a. The maximum reimbursable amount as stated in the annual childcare and development contract; or 23 b. The actual and allowable net costs which include the Local Match Requirement. Each contractor shall contribute a match in the form of monetary and/or in-kind services, equal to 25% of the annual 1998/99 LPC grant award amount. The local contribution for this contract is shown on the contract face sheet. This amount must be reported on the quarterly expenditure report under revenue and expenses in CPARIS. CPARIS can be accessed on DSS’s website at CPARIS. If you need more information about how to submit your Support Contract Expenses report, contact your assigned fiscal analyst. L. Child Care Provider Reimbursement (Section 24, Chapter 41, Statutes of 2024, (AB 116)) 1. Contractors utilizing a Family Child Care Home Education Network service delivery model, under a CMIG, CCTR, or CFCC contract, shall reimburse providers who are open and available to provide services based upon a families’ certified schedule as follows: a. Providers shall be reimbursed based on the maximum authorized hours of care regardless of attendance. b. For families certified for a variable schedule, providers shall be reimbursed based on the maximum authorized hours, regardless of attendance. c. Reimbursement, for providers participating in a family child care home education network, shall be made within 21 calendar days of the submission of a daily sign-in/sign-out sheet. 2. Voucher-based contractors shall reimburse childcare providers based on the following criteria: a. The certified schedule, regardless of attendance. b. For families with variable schedules, the maximum hours approved on the certified schedule, regardless of attendance. c. For license-exempt providers the maximum hours approved on the certified schedule, regardless of attendance. d. Reimbursement to providers shall be made within 21 calendar days of the receipt of a complete invoice for services. M. Minimum Days of Operation (5 CCR 18055) If the contractor fails to operate at least ninety-eight percent (98%) of the minimum days of operation as specified in the agencies approved program calendar, ceases operation or the contract is terminated prior to the end of the contract period, the maximum reimbursable amount shall be reduced in 24 proportion to the percentage of the contract minimum days of operation that the contractor was not in operation. N. Reduction, Withholding, and Canceling Apportionments to Contractors (WIC 10267.5 and 10285; 5 CCR 18056) The CDSS shall reduce, withhold, or cancel any scheduled apportionment when one (1) or more of the following conditions exist: 1. The contractor has not submitted an acceptable audit for any prior year of operation on or before the date due. 2. The contractor has not submitted the required reports on or before the date due. 3. The contractor will not earn the full contract amount based on the current year projected and the prior year actual net reimbursable program costs as determined by the CDFS. 4. A creditor of the contractor has placed a lien on the contractor's scheduled apportionments. 5. The contractor has accounts payable which are: a. More than ninety (90) days delinquent to the CDSS, and b. Not the subject of an appeal 6. If any apportionment is to be reduced, withheld, or cancelled, the CDSS shall provide the contractor prior written notice of the intended action. O. Order of Expenditure (5 CCR 18057) Expenditures from the Child Development Fund shall occur in the following order: 1. Fees collected from parents of certified children shall be first in and first out; 2. State or federal contract funds apportioned by the CDSS shall be second in and second out; and 3. Interest received on advanced contract funds shall be last in and last out. IV. ACCOUNTING AND REPORTING REQUIREMENTS A. General Provisions (5 CCR 18063) Contractors shall follow the accounting procedures specified in the most recent edition of the California School Accounting Manual. Contractors shall report revenue and expenditures on an accrual basis. The School Accounting Manual 25 specifies that under an accrual basis of accounting, revenues are recorded when earned and expenditures are recorded when a liability is incurred, regardless of when the receipt or payment of cash takes place. B. Child Development Fund and Interest-Bearing Accounts (5 CCR 18064) 1. All contractors shall establish a fund to be known as the Child Development Fund as specified in WIC 10336, except that private contractors shall establish the fund in a federally insured banking institution located in California. Contractors with multiple fund sources shall establish separate program cost accounts for each source of funds. (WIC Sections 10267.5(c)(2) and 10285) 2. If a contractor places advanced contract funds in an interest-bearing account, the interest-bearing account shall be a separate account within the Child Development Fund. 3. Interest earned shall be retained by the contractor if a. It is expended on reimbursable costs and b. Except for Resource and Referral programs, earned by providing subsidized child days of enrollment, beyond the minimum required to earn the maximum reimbursable amount, at a rate equal to the lesser of the daily contract rate or the actual program costs. C. Enrollment and Attendance Accounting (WIC 10227.5 5 CCR 18065, Section 18, Chapter 193, Statutes of 2023 (SB 140)) 1. A child shall not be enrolled in more than one program for the same time period on the same day. 2. CCTR, CHAN, CMIG and CFCC contractors shall use daily sign-in/sign-out sheets as a primary source document for audit and reimbursement purposes. a. On a daily basis, one of the following persons shall enter the time of arrival and departure on a sign-in/sign-out sheet and shall sign the sheet using their full signature for both arrival and departure times: i. The parent or other adult authorized by the parent to drop off/pick up a child; or ii. The staff person designated by the contractor as the person responsible for entering the times of arrival and departure if the child is not dropped off/picked up by a parent or other adult authorized by the parent. 26 b. First and last initials of the contractor’s authorized representative, along with a notation of the time, are required to be documented when a school- age child departs for and returns from school during the day. 3. C2AP, C3AP, CAPP, and CMAP, contractors shall use the monthly attendance record or invoice as the primary source document for audit and reimbursement purposes. a. Childcare providers shall submit a monthly attendance record or invoice, for each child who received services, Childcare providers shall maintain attendance records or invoices in the original format in which they were created. b. The monthly attendance record or invoices shall include, at a minimum: i. The dates and actual times the child entered and left care each day. This information shall be documented on a daily basis. ii. The signature of the parent or guardian, the name of the child receiving services and signature of the childcare provider attesting under penalty of perjury that the information included on the monthly attendance record or invoice is true and accurate. iii. A provider may submit a monthly attendance record or invoice without a parent’s signature when the parent has not communicated with the provider for seven consecutive days and the provisions of paragraph E, Abandonment of Care, below have been adhered to. D. Attendance and Absences (5 CCR 18066) (Applies only to CCTR, CHAN, CMIG and CFCC) 1. Attendance includes excused absences because of illness or quarantine of the child, illness or quarantine of their parent, family emergency, court - ordered visitations or a reason which is clearly in the best interest of the child. 2. If the absence is claimed by the contractor as an excused absence, the attendance accounting records shall contain verification including: a. The name of the child; b. The date(s) of absence; c. The specific reason for the absence; and d. The signature of the parent or the contractor's authorized representative if verification is made by telephone. 27 3. If an excused absence is based on time spent with a parent or other relative as required by a court of law, the family data file shall contain a copy of the Court Order. 4. Contractors shall adopt reasonable policies delineating circumstances that would constitute an excused absence for family emergency and in the best interest of the child. 5. Except for children who are recipients of protective services or at risk of abuse or neglect, excused absences in the best interest of the child shall be limited to ten (10) days during the contract period . 6. Contractors shall not disenroll any family due to excessive absences, except in circumstances of abandonment of care described in the Section IV, paragraph E, Abandonment of Care. E. Abandonment of Care (5 CCR 18066.5) 1. When the family has not been in communication with the provider for seven (7) consecutive calendar days and has not notified the provider of the reason the family is not using services, the provider shall promptly notify the contractor. 2. Using the contact information on file, the contractor shall attempt to contact the parent through a variety of communication methods. At least one communication attempt shall be in writing, which may be through electronic methods. The contractor shall keep documentation of all communication attempts, including a copy of all written communication, in the family data file . The contractor shall inform the parent in these communications that failure to communicate with the contractor or provider may result in termination of childcare and development services. 3. The contractor shall issue a notice of action to disenroll the family on the basis of abandonment of care when there has been no communication with the provider or the contractor for a total of 30 consecutive calendar days. F. General Record Keeping Requirements (WIC 10232, 10232.5, 10233, 10269, EC, 33421 and 5 CCR 18067) 1. All records shall be retained by each contractor at least five (5) years or where an audit has been requested by a state agency, until the date the audit is resolved, whichever is longer. Claims for reimbursement shall not be paid unless there are documents to support the claims. The contractor has the burden of supporting claims for reimbursement. 2. Pursuant to EC 35254, public contractors must ensure that no original records be destroyed prior to the second July 1st succeeding the completion of the audit. 28 3. Pursuant to EC 10232, contractors may maintain records electronically, in compliance with state and federal standards, as determined by the department. Any conversion from a paper record to an electronic format, as well as the storage of the electronic record, shall comply with the minimum standards described in Section 12168.7 of the Government Code and the standards for trustworthy electronic document or record preservation described in Chapter 15 (commencing with Section 22620.1) of Division 7 of Title 2 of the California Code of Regulations. Contractors are not required to create records electronically. 4. Contractors may use a digital signature that complies with state and federal standards, as determined by the department, that may be a marking that is either computer generated or produced by electronic means and is intended by the signatory to have the same effect as a handwritten signature. The use of a digital signature shall have the same force and effect as the use of a manual signature if the requirements for digital signatures and their acceptable technology, as provided in Section 16.5 of the Government Code and in Chapter 10 (commencing with Section 22000) of Division 7 of Title 2 of the California Code of Regulations, are satisfied. 5. Voucher-based programs and providers may use digital forms to allow families to apply for services if those forms comply with state and federal standards. 6. If the contractor has more than one (1) CDSS program, then the method used to allocate administrative costs must be documented. 7. Contractors shall document and maintain records of indirect costs allocation plan. 8. Contractors are required to maintain records to support salaries and benefits charged to childcare and development programs in accordance with the California School Accounting Manual. 9. State employees or representatives shall be allowed access to all program related or fiscal records during normal work hours. (EC 33421 and 5 CCR 18301(c)(4)) G. Attendance and Expenditure Reports (Applies to CCTR, CHAN, CMIG) (WIC Sections 10267.5, 10285, and 10397; 5 CCR 18068) 1. Contractors on conditional and provisional status shall report monthly (due to CDFS by the 20th of the following month). All other contractors shall submit four (4) cumulative attendance and fiscal reports to CDFS for the quarters ending September 30, December 31, March 31, and June 30 . Reports not received in CDFS by the 20th of the month, following the end of the 29 contractor’s reporting period, shall be deemed delinquent and apportionment(s) shall be withheld until the required report is received. If the 20th falls on a weekend or a holiday, then the report is due the next business day. 2. Contractors shall submit reports containing the following information for each contract to the CDFS: a. Days of enrollment, as indicated on the family’s Notice of Action, for all children served in the program in the current reporting period and year to date. b. Days of attendance, per the child’s sign in and out records and other accompanying attendance records, for all children served in the program in the current reporting period and year to date. c. Total days of operation in the current reporting period and year to date. d. All services, revenues, and expenditures for both subsidized and non- subsidized children, if non-subsidized and subsidized children are commingled as defined in Section X, Definitions. e. Amount and sources of all revenues, including restricted and unrestricted income utilized for the child development program, other than advanced contract funds for the current reporting period and the year-to-date. f. Restricted income that is not expended during the contract period remains restricted and shall be considered deferred revenue and is not reported on the Attendance and Expenditure Reports until expended, at which time it is reported as restricted income. g. Total expenditures related to the program operation for the current reporting period and the year-to-date total, including all expenses for specific purposes, as designated by restricted income and all non- reimbursable expenses. 3. Reports not received by the due date shall be considered delinquent. Reductions for delinquent reporting are specified in Section III, paragraph N, Reduction, Withholding, and Canceling Apportionments. 4. Contractors on conditional status or provisional status shall report monthly. 5. Contractors will submit and certify reports online and they will be certified by staff authorized to confirm that the information contained in the report is correct and complete to the best of your knowledge. Contractors have sixty (60) days from the audit submission due date to submit a revised final report . For local educational agencies, the final report shall be the final accounting of 30 any amount payable to or receivable from the contractor pursuant to this contract. H. Voucher-based and CFCC Expenditure Reports 1. C2AP, C3AP, CMAP, shall report monthly (due to CDFS by the 20th of the following month). 2. All CAPP contractors shall report the current year and the prior year on a monthly basis (due to CDFS by the 20th of the following month). Report data to the prior year data until fully expended, then report data to the current year CAPP contract. 3. CFCC contractors on clear status shall submit four (4) cumulative fiscal reports to CDFS for the quarters ending September 30, December 31, March 31, and June 30. Contractors on conditional or provisional status shall report monthly (due to CDFS by the 20th of the following month. 4. All reports must be submitted strictly through the internet via CDSS’ AP/CalWORKs Online Reporting System. 5. Reports not received by the 20th of the month, following the end of the contractor’s reporting period, shall be deemed delinquent and apportionment(s) shall be withheld until the required report is received. 6. Contractors shall submit reports containing the following information for each contract: a. Amount and sources of all revenues, other than advanced contract funds for the current reporting period and year-to-date, restricted and unrestricted income shall be reported as follows: i. Restricted income expended during the contract period shall be reported as restricted. Restricted income that is not expended during the contract period remains restricted and shall be considered deferred revenue and is not reported on the Attendance and Expenditure Reports until expended, at which time it is reported as restricted income. ii. All unrestricted income shall be reported as unrestricted. b. Total expenditures related to the program operation for the current reporting period and the year-to-date total, including all expenses for specific purposes as designated by restricted income and all non- reimbursable expenses. 7. Each report shall include a certification of the person authorized by the contractor that the information contained in the report is correct and complete. 31 8. Contractors have sixty (60) days from the due date for submission of the audit to submit a revised final report. For local educational agencies, the final report shall be the final accounting of any amount payable to or receivable from the contractor pursuant to this contract. 9. C2AP, C3AP, CAPP, CMAP, and CFCC contractors will include the days of operation in the current reporting period and year to date. I. Caseload Reports (Applies to C2AP, C3AP, CAPP and CMAP) 1. In addition to submitting a monthly expenditure report, C2AP, C3AP, CAPP and CMAP contractors shall submit an Alternative Payment/CalWORKs Caseload Report(s) on a monthly basis. Caseload reports shall be submitted strictly through the internet via CDSS’ AP/CalWORKs Online Reporting System and are due to CDFS by the 20th of the following month. 2. Caseload reports not received by CDFS by the 20th of the month, following the end of the contractor’s reporting period, shall be deemed delinquent and apportionment(s) shall be withheld until the required report(s) is received. 3. If a contractor provides services in more than one (1) county, the contractor is required to submit a separate CalWORKs Caseload Report for each county in which services are being provided. 4. CalWORKs Caseload Reports shall represent actual service and expenditure data for the report month. 5. Each report shall include a certification of the person authorized by the contractor that the information contained in the report is correct and complete. J. Subsidized Provider Report (WIC 10422(c)(1)) Contractors shall collect and report by the 20th of each month, via the Child Development Management Information System (CDMIS), the names of the family child care providers, as defined in Section X Definitions, who were paid a subsidy or subsidies in the month prior to the report month . This list shall include information for each provider pursuant to Section IX, paragraph A, Submission and Disclosure of Child Care Provider Information. K. CRRP Expenditure Reports (5 CCR 18068) 1. Contractors on conditional and provisional status shall report monthly (due to CDFS by the 20th of the following month). All other contractors shall submit four (4) cumulative fiscal reports to CDFS for the quarters ending September 30, December 31, March 31, and June 30. 32 2. Reports not received in CDFS by the 20th of the month, following the end of the contractor’s reporting period, shall be deemed delinquent and apportionment(s) shall be withheld until the required report is received. 3. Contractors shall submit reports containing the following information for each contract to the CDFS: a. Total days of operation in the current reporting period and year to date; b. Amount and sources of all revenues, other than advanced contract funds, for the current reporting period and the year-to-date total; c. Total expenditures related to the program operation for the current reporting period and the year-to-date total. 4. Contractors will submit and certify reports online by staff authorized to confirm that the information contained in the report is correct and complete. 5. Contractors have sixty (60) days from the due date for submission of the audit to submit a revised final fiscal report. For local educational agencies, the final report shall be the final accounting of any amount payable to or receivable from the contractor pursuant to this contract. L. Service Data Report for Resource and Referral Programs (5 CCR 18069) CRRP contractors shall submit reports to the CDSS which contain the following data on a quarterly basis. Penalties for delinquent reporting are specified. 1. Number of requests for general childcare information and childcare referrals; 2. Age categories of childcare requests and referrals: a. Infant (birth to eighteen months); b. Toddlers (eighteen months to thirty-six months); c. Preschool (three years to kindergarten enrollment; and d. School age (kindergarten enrollment to age 13). 3. Time categories of childcare referrals: a. Full-time; b. Part-time. 4. Number of children needing: a. Before and/or after school; 33 b. Summer only childcare; c. Other childcare (evening, overnight, weekends, drop -in, etc.). 5. Reasons for requesting referrals: a. Employed; b. Looking for work; c. In school/training; d. Other parental needs; e. Child protective services (CPS)/respite referral; f. Alternative/back-up care; g. Mildly ill child; h. Enrichment and/or development. 6. Number of: a. Licensed childcare centers; b. Licensed family day care homes; c. License-exempt childcare centers d. Other license-exempt providers (optional). M. CLPC Reporting LPCs shall submit reports in accordance with reporting requirements specified in the CLPC Local Childcare and Development Planning Council Program Requirements. N. Child Development Data Collection (5 CCR 18070) The contractor shall submit the following: 1. Monthly Childcare Population Information (CDD-801A) submitted electronically in accordance with instructions from the CDSS. 2. If the contractor is selected and notified by mail to submit sample data, they must complete the Child Development Data Collection Sample Report (CDD - 801B) electronically in accordance with the instructions from the CDSS. 34 3. Contractors shall submit complete, accurate reports to the CDSS by the date specified, and in the format specified in the CDSS’s request for this information. Incomplete, inaccurate, or incorrectly formatted reports, and reports not received by the required date, shall be considered delinquent. Penalties for delinquent reporting are specified in Section II, paragraph N, Reduction, Withholding, and Canceling Apportionments to Contractors. O. Other Report Data (5 CCR 18070) 1. Contractors shall submit statistical, cost and program data as requested by the CDSS in order for the CDSS to prepare various legislatively mandated reports, to meet state and federal reporting requirements and for the effective administration of childcare and development programs. 2. Contractors submitting data to the CDSS will include a certification that the data are correct and complete, and the signature of the person authorized by the contractor to certify the data. The signature may be electronic as specified by the CDSS. 3. Contractors shall submit complete, accurate data to the CDSS by the date specified, and as specified, in the CDSS's request for this information. Incomplete, inaccurate, or incorrectly formatted reports, and reports not received by the required due date shall be considered delinquent . Penalties for delinquent reporting are specified. P. Budget and Calendar 1. State Budget Contingency Clause: a. It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect. In this event, CDSS shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Agreement and Grantee shall not be obligated to perform any provisions of this Agreement. b. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, CDSS shall have the option to either cancel this Agreement with no liability occurring to the State or offer an agreement amendment to Grantee to reflect the reduced amount. 2. Contractors shall submit a revised program calendar to the CCDD and CDFS whenever there are changes to the most recent version submitted . Contractors shall submit revised budgets as requested. 35 Q. Reserve Accounts (WIC 10441) 1. All contractors are encouraged to develop and maintain a reserve within the Child Development Fund. This reserve is derived from earned, but unexpended contract funds. Reserve account funds are state funds the contractor holds in reserve as deferred revenue until they are p roperly spent or returned to the CDSS. a. C2AP, C3AP, CAPP, CMAP, CFCC contractors may retain a reserve balance of up to eight percent (8%) of the maximum allowable administration and support costs for the aggregate sum of all alternative payment contracts or one thousand dollars ($1,000), whichever is greater. b. CCTR, CHAN, and CMIG contractors may retain a reserve balance equal to fifteen percent (15%) of the sum of the maximum reimbursable amounts of all contracts to which the contractor is a party, or two thousand dollars ($2,000), whichever is greater. c. CRRP contractors may retain a reserve balance not to exceed three percent (3%) of the contract maximum reimbursable amount. This reserve is derived from unexpended contract funds. 2. The following criteria must be followed when establishing and using any reserve account: a. Each agency wishing to establish a reserve shall submit a letter of intent no later than July 20 following the close of the fiscal year for which the reserve will be established. The letter of intent must be on the form provided by CDFS and signed by the executive director (or authorized designee for public agencies). b. Each reserve must be maintained in an interest-bearing account and the amount of interest earned will be included in the reserve balance. c. Reserve monies can only be used for expenses that are allowable reimbursable expenses. Transfers from one reserve account type (or category) to another are not allowable. However, transfers to a current- year contract in the same reserve category are allowable and shall be reported as restricted program income on that contract’s attendance and fiscal report. d. Reserve monies are generated from current year contracts, therefore, the transferable amount generated during the contract period will not be available until July 1 of the subsequent fiscal year. 36 e. Transfers to the reserve will be authorized by CDFS only once per fiscal year. Upon receipt of the June final report, preliminary reserve amounts will be calculated by CDFS and reported to the contractor. If the contractor is an LEA, this may be the official notification provided there are no further amendments. For agencies required to submit an audit to the CDSS, the amount will not be final until the audit is closed by the OAS and there are no outstanding billings. f. Participating agencies must submit a Reserve Account Activity Report with a copy of their supporting General Ledger for each reserve account category type along with their June attendance and fiscal report due July 20. Reports not received in CDFS by July 20 shall be deemed delinquent and apportionment(s) shall be withheld until the required report is received. g. Upon closure of a reserve account or termination of childcare and development contracts, all monies in any reserve account shall be returned to the CDSS. V. AUDIT REQUIREMENTS A. Annual Financial and Compliance Audits (WIC 10229.5, 10440, 5 CCR 18071 and) 1. Contractors shall submit to the CDSS, Office of Audit Services (OAS), an acceptable annual financial and compliance audit as follows: a. The audits for school districts and county offices of education for the contract period shall be submitted to the State Controller and the CDE by December 15, in accordance with EC 41020 and extensions shall only be granted in accordance with EC 41020.2. b. The audit reports for community colleges are due to CDSS by December 31. c. All other contractors shall submit their annual audit to CDSS by the 15th day of the fifth month following the end of the contractor’s fiscal year, or earlier if specified by CDSS. The audit report must meet the requirements of the Audit Guide, including the requirements for childcare and development specific supplementary information. If a contractor receives less than twenty-five thousand dollars ($25,000) per year from any state agency, the audit shall be conducted and submitted biennially, unless the CDSS deems there is evidence of fraud or other violation of state law in connection with the contract. If the contract is terminated during the contract period, then the audit required under this paragraph shall cover the period from the beginning of the contract through the date of termination. 37 2. All audits shall be performed by one of the following: a. A Certified Public Accountant who possesses a valid license to practice within the State of California; b. A Public Accountant licensed on or before December 31, 1970, and currently certified and licensed by the State of California; c. A member of the CDSS's staff of auditors. d. Public contractors may have their audits prepared by in -house auditors or internal audit staff that performs auditing functions and meets the tests of independence found in the Government Auditing Standards, issued by the Comptroller General of the United States. 3. Any contractor who subcontracts their childcare and development services to another entity (see Subcontract for childcare and development services in Definitions) is required to submit an audit report that complies with the Audit Guide for their subcontractor(s) as well as for their agency. 4. Private agencies (including proprietary entities) that expend seven hundred fifty thousand dollars ($750,000) or more in total federal funds are required to have an Organization Wide Audit (OWA) performed in accordance with the Uniform Guidance and the Audit Guide. 5. Governmental and other public agencies (excluding school districts, county offices of education and community college districts) must comply with the requirements of the Uniform Guidance and the Audit Guide . All other agencies (excluding school districts, county offices of education and community colleges) must submit a contractor audit performed in accordance with the Audit Guide. 6. The audits for voucher-based contactors shall include, but not be limited to, a sampling of the evidence of fees charged to, and paid by, families of non - subsidized children, the daily enrollment of subsidized children, the number of days of service provided to subsidized children, the assessment and collection of parent fees, and the availability of support services to subsidized children and their families as needed pursuant to the terms of the contract. B. Review of Audit by the CDSS Office of Audit Services (OAS) (5 CCR 18072) 1. The OAS shall conduct a review of the audit to determine whether the audit is acceptable and to determine the contractor's net reimbursable program costs. 2. The contractor may appeal the OAS findings according to the procedures specified, if the amount of the demand for remittance meets or exceeds the threshold specified in WIC 10392(a)(3). 38 C. Delinquent Audits and One-Time-Only Extensions (5 CCR 18073) 1. If an audit is not received on or before the required due date and an extension has not been granted, the audit shall be considered delinquent, and all apportionments shall be withheld. 2. Except for contractors on conditional status, the OAS may annually grant a contractor a one-time-only, thirty (30) calendar day extension of the audit due date provided the inability of the contractor to submit the audit by the due date was beyond the fault and control of the contractor. 3. Contractors shall be liable for all CDSS costs incurred in obtaining an independent audit if the contractor fails to produce or submit an acceptable audit. D. California State Auditor (GC 8546.7) Contractors shall be subject to the examination and audit of the California State Auditor for a period of three (3) years after final payment under this contract. VI. SUBCONTRACTS A written subcontract as defined in Section X. Definitions, is required for all service agreements except as outlined below. A. Subcontracts Excluded from Requirements of this Section (5 CCR 18026, 18027) 1. The following types of relationships are not subject to the requirements contained in this section: a. Employment agreements; b. Facility rental or lease agreements except as set forth below; c. Payment arrangements with family childcare homes and/or providers; d. Medical or dental service agreements; e. Bookkeeping/auditing agreements, except that agencies must still follow requirements in paragraph C, Private Agencies-Bids for Subcontracts, below. f. Food services agreements; g. Janitorial and grounds keeping agreements; h. A subcontract with a public agency, except for a subcontract with a public agency to provide childcare and development services; and 39 i. Subcontracts with an individual for less than ten thousand dollars ($10,000), except that agencies must still follow requirements in the paragraph C, Private Agencies-Bids for Subcontracts, below. 2. No subcontract shall in any way relieve the contractor of any responsibility for performance under this contract. 3. Contractors are responsible for ensuring financial and compliance audits of all subcontractors. B. Required Subcontract Provisions (5 CCR 18031) The following provisions apply to all subcontracts unless exempted in paragraph (A) above. Every subcontract shall be in writing and specify: 1. The dates within which the subcontractor is to perform the contract. 2. The time for subcontractor performance shall not begin prior to, nor shall the time extend beyond, the time period of the contract between the contractor and the state. 3. The dollar amount of the subcontract or specify an amount not to exceed a maximum dollar amount. 4. The service(s) to be provided under the subcontract and the responsibilities of each party under the subcontract. 5. The subcontractor, and the agents and employees of the subcontractor, in the performance of the subcontract, are acting in an independent capacity and not as officers, employees or agents of the State of California. 6. Modifications of the subcontract shall be in writing, and for subcontracts in excess of ten thousand dollars ($10,000), prior written CDSS approval is required unless the subcontract is otherwise exempt from prior CDSS approval. 7. The subcontract is the complete and exclusive statement of the mutual understanding of the parties and that the subcontract supersedes and cancels all previous written and oral agreements and communications relating to the subject matter of the subcontract. 8. The remedies, in case of a breach of contract, for subcontracts in excess of ten thousand dollars ($10,000). 9. The State of California retains title to any equipment or supplies purchased with state funds and the equipment shall be returned to the contractor upon 40 termination of the subcontract. The subcontract shall also specify that the subcontractor shall obtain prior written approval from the contractor and the CDSS for any unit of equipment that costs in excess of five thousand dollars ($5,000). 10. The subcontractor shall be reimbursed for travel and per diem expenses only at rates that do not exceed the rates paid to the CDSS's non-represented employees computed in accordance with California Department of Human Resources regulations, California Code of Regulations, Title 2, Division 1, Chapter 3, Subchapter 1. 11. The subcontractor agrees to indemnify and hold harmless the State of California, its officers, agents and employees from any and all claims and losses occurring or resulting to any and all contractors, subcontractors, materialmen, laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of the subcontract, and from any and all claims and losses occurring or resulting to any person, firm or corporation that may be injured or damaged by the subcontractor in the performance of the subcontract. 12. For those subcontracts requiring prior approval, the subcontractor shall maintain records for program review, evaluation, audit and/or other purposes and make the records available to agents of the state for a period of five (5) years. 13. The provisions of the Nondiscrimination Clause included in the prime contract as specified in the 2 CCR 11105. 14. Funding of the subcontract should be made subject to the appropriation and availability of funds from the state. 15. All subcontracts should contain a provision that the subcontractor is liable for any audit exception caused by, or as a result of, th e subcontractor's lack of performance as required by the subcontract. 16. The subcontract should provide that the subcontractor, its agents, and employees, in the performance of the subcontract, are acting in an independent capacity and not as agents or employees of the contractor. 17. Subcontracts for ten thousand dollars ($10,000) or more cannot become effective and binding on either the prime contractor or the subcontractor until approved in writing by the CDSS, and any work performed by the subcontractor prior to the date of such approval shall not be used as a claim against the state. Modifications to any contracts for $10,000 or more shall also not be effective until approved in writing by the CDSS and any work in performance of such modification prior to the date of approval of the modification shall not be used as a claim against the state . Specific approval 41 requirements are set forth in paragraph E, Prior CDSS Approval for Subcontracts $10,000 and Above, below. 18. The consideration paid to the subcontractor, as provided in the subcontract, should be stated to be the full compensation for all the subcontractor's expenses incurred in the performance of the subcontract. 19. All subcontracts, rental agreements and other contractual arrangements should include a termination for convenience clause permitting termination of such agreements without cost to the contractor. C. Private Agencies-Bids for Subcontracts (5 CCR 18027 & 2 CFR 200.320(f)) 1. Private contractors shall obtain at least three (3) bids or estimates for subcontracts exceeding five thousand dollars ($5,000), prior to cost allocation 2. If three (3) bids or estimates cannot be obtained, the private contractor shall maintain documents in its records that establish: a. The reasons three (3) bids or estimates could not be obtained; and b. The reasonableness of the proposed expenditure without three (3) bids or estimates. c. Documentation for the single-source vendor or service provider, including the reason that vendor should be approved, must be submitted for approval in lieu of three (3) bids. 3. The subcontract shall be awarded to the lowest responsible bidder. 4. The contractor shall not split subcontracts to avoid competitive bidding requirements. D. Public Agencies Subcontracts Public Agencies shall award subcontracts in accordance with the Public Contract Code. E. Prior CDSS Approval for Subcontracts $10,000 and Above (5 CCR 18028- 18030) 1. Contractors shall obtain prior written approval from the CDSS for subcontracts of ten thousand dollars ($10,000) or more, prior to cost allocation, that are otherwise not excluded from the provisions as stated in paragraph (A) above. 2. Prior to execution of a subcontract and commencement of work, the contractor shall submit two (2) copies of the proposed subcontract to the 42 CDSS for approval, including a proposed line-item budget which shows the costs of the services to be performed. The budget for a proposed subcontract for renovation and repair shall show the total cost of labor and the total cost of materials. Bids, if applicable, shall be submitted to the CDSS when requesting approval. If three (3) bids were not obtained, the contractor shall provide written justification when the subcontract is submitted to the CDSS for prior approval. Contractors shall demonstrate that approval of the subcontract is cost effective to the state. 3. For proposed capital outlay subcontracts, private agencies shall include documents showing that the bidder selected by the contractor has obtained a payment bond in an amount not less than one -half (1/2) the amount of the proposed subcontract. 4. Requests for approval of subcontracts for transportation services shall include a Certificate of Insurance of the subcontractor in an amount not less than $1 million per occurrence (or a greater amount if required by the Public Utilities Commission regulations), listing the contractor and the state as additional named insured. 5. One copy of the subcontract will be retained by the CDSS, and the other copy returned to the contractor approved or disapproved within thirty (30) calendar days of receipt of all required documents. 6. No reimbursement shall be made to the contractor or subcontractor for work performed prior to CDSS approval. A disapproved contract will include a statement of the reason(s) for not approving the subcontract . If the request for approval of a subcontract is denied, the contractor may appeal the decision in accordance with instructions specified in Section II, paragraph P, Resolution of Contracts and Administrative Disputes. 7. The CDSS does not assume any responsibility for performance of approved subcontracts nor does the CDSS assume responsibility for any unpaid debt of the contractor resulting from subcontracting liens. 8. Subcontracts which increase the contractor’s cost of performance are non - reimbursable. Subcontracts which contain a provision for reimbursement for cost-plus-a-percentage-of-cost are not reimbursable. F. Audit Requirements for Subcontracts (5 CCR 18032) 1. An organization that operates a childcare and development program under a direct service contract with the CDSS is called a contractor. The contractor may choose to enter into an agreement with another organization (subcontractor), where the subcontractor operates one or more of the contractor’s childcare and development programs. Consequently, an entity may be acting in the dual capacity of contractor and subcontractor for one or 43 more CDSS contractors – each having one or more CDSS contracts. In some cases, a subcontractor may not directly contract with the CDSS. 2. The organization receiving funds from the state shall be responsible for obtaining the required financial and compliance audits of the organization and any subcontractors, except for subcontracts exempt from CDSS review, as agreed to by the Departments of Finance (DOF) and Department of General Services (DGS). 3. The audit of the subcontract shall be submitted to the CDSS as follows: a. School districts, county offices of education, community colleges, and direct funded charter schools, shall submit the audit of the subcontract by the fifteenth day of the fifth month following the fiscal year in which the subcontracted services were performed; b. All other contractors shall submit the subcontract audit along with the contractor’s audit as specified Section V, paragraph A, Annual Financial and Compliance Audits. VII. FACILITIES AND EQUIPMENT A. Facilities and Equipment Expenditures Facilities and Equipment Expenditures are subdivided into two categories: 1. Capitalized a. Buildings and Improvements: Sites; renovations and repairs of sites; buildings; renovations and repairs of buildings, building fixtures, services systems; and b. Capitalized Equipment: Tangible personal property (including information technology systems) having a useful life of more than one year and a per- unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the contractor for financial statement purposes, or $5,000. (2 CFR 200.33) 2. Non-capitalized Non-capitalized equipment expenditures are those for tangible personal property with a useful life of more than one year other than those described in Capitalized Equipment above. B. Buildings and Improvements (5 CCR 18034(h)) 1. Buildings are only reimbursable as depreciation or use allowance. 44 2. To be reimbursable as direct costs, prior written approval by the CDSS is required for improvements to land, buildings, or equipment which materially increase their value or useful life. (2 CFR 200.439(b)(3)). 3. If the Contractor wishes to share the use of real property among multiple programs, the associated reimbursable capital expenditures shall be prorated among the programs according to the benefits received . 4. Building and improvement expenditures are not reimbursable as indirect costs, except as depreciation or use allowance. C. Renovation and Repair (5 CCR 18034(f)) Improvement of sites and adjacent grounds to meet or exceed the 22 CCR, Community Care Licensing Standards are reimbursable for both private and public agencies. Reimbursable improvements are those that: 1. Do not unnecessarily increase the value, as defined in Section X, Definitions, of a facility; and 2. The contractor has obtained prior CDSS approval for proposed work for ten thousand dollars ($10,000) or more. D. Depreciation and Use Allowance (5 CCR 18034(h)) 1. Depreciation and use allowance may be claimed on eligible, appropriate capital assets. 2. Depreciation shall not be claimed on land, donated assets or assets purchased with public funds, on any fully depreciated asset or on idle or excess facilities. 3. A use allowance shall not be claimed on land or assets purchased with contract funds or on assets for which depreciation has been claimed. 4. When depreciation is applied to assets acquired in prior years, the annual charges shall not exceed the amounts that would have resulted had depreciation been claimed from the date of acquisition. 5. The use allowance for buildings and improvements is computed at an annual rate not to exceed two percent (2%) of acquisition costs. 6. The use allowance for equipment is computed at an annual rate not to exceed six and two-thirds percent (6 2/3%) of acquisition costs. 7. To be reimbursable, interest paid on private sector debt for the purchase, lease-purchase, repair or renovation of childcare and development facilities owned or leased by contractors providing center-based care must be actual 45 interest paid, not to exceed a fair market rate of interest. This provision does not apply to family childcare home facilities. E. Preapproval Requirements (2 CFR 200.33, 200.439(b)(1) 5 CCR 18029 and 18040) All equipment and equipment replacement purchases that meet either of the following criteria shall be approved in writing in advance by the CDSS . 1. The per-unit acquisition cost equals or exceeds the lesser of the capitalization level established by the contractor for financial statement purposes, or fi ve thousand dollars ($5,000), including tax, shall be approved in writing in advance by the CDSS. 2. The sum of all items included in the purchase equals ten thousand dollars ($10,000) or more, including tax, shall be approved in writing in advance by the CDSS. a. All expenses associated with a purchase that are necessary for the equipment to perform its intended purpose, prior to cost allocation, should be included in determining if prior approval is required (e.g., a playground structure includes multiple components, although each component may be purchased separately. When determining pre-approval requirements, all components purchased for the playground should be considered). b. Subdividing equipment purchases into separate items to avoid the preapproval requirement is prohibited. c. Proposed renovation and repair work for ten thousand dollars ($10,000) or more, including the invoiced cost, plus any applicable sales tax, delivery fees, or installation charges, shall be approved in writing in advance by the CDSS. (2 CFR 200.439(b)(3)) 3. All expenses associated with a purchase that are necessary for the improvement to perform its intended purpose, prior to cost allocation, should be included in determining if prior approval is required. 4. Subdividing renovation and repair work into separate purchases to avoid the preapproval requirement is prohibited. a. Approval requests shall be submitted on the Request for Approval of Equipment form. b. Bids, if applicable, shall be attached to the Request for Approval of Equipment when submitted to the CDSS for approval. 5. One copy of the request shall be retained by the CDSS. 46 6. One copy will be returned to the contractor approved or disapproved within thirty (30) calendar days of receipt. 7. If the request for approval of an equipment purchase is disapproved, the contractor may appeal the decision in accordance with Section II, paragraph P, Resolution of Contract Administration Disputes. 8. Procurement practices must also be in accordance with the following provisions: a. Public Agencies shall comply with the applicable sections of the PCC. b. Lease-purchase agreements are subject to the above requirements. c. If the work is to be performed through a subcontract, the requirements of the Section V, Subcontracts, above apply. d. When private agencies submit proposed subcontracts for renovation and repair for approval, evidence shall be included that the proposed subcontractor has obtained a payment bond in an amount not less than one-half (1/2) the amount of the proposed subcontract. F. Obtaining Bids for Equipment Purchases, Leases, Replacements, and Improvements for Private Agencies (2 CFR 200 and 5CCR 18040) 1. All equipment purchases, replacements, and improvements not performed by the contractor’s staff exceeding five thousand dollars ($5,000), including tax, must have at least three (3) bids or estimates. a. Each bid or estimate must contain prices for equivalent and comparable items and/or services. b. When available, consolidating procurements to obtain a more economical purchase is required. c. Subdividing equipment purchases into separate items to avoid the competitive bidding requirement is prohibited. i. If bids or estimates are required, the contractor shall purchase the goods or services from the lowest responsible bidder or estimator. The contractor shall conform to the materials, terms and conditions of the invitation for bid, and with paragraph E, Preapproval Requirements, above. 47 ii. If bids or estimates are required, and three (3) bids or estimates cannot be obtained, the contractor shall provide adequate documen tation of the reason(s) why three (3) bids or estimates could not be obtained (e.g., an emergency situation, or the item is only available from a single source). iii. Lease-purchase agreements are subject to the above requirements. G. Obtaining Bids for Equipment Purchases for Public Agencies Public Agencies, as defined in Section X, Definitions, shall comply with the applicable sections of the Public Contract Code. H. Asset Management 1. Asset Control System (2 CFR 200.313(d)(3)) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft (any loss, damage or theft must be investigated) and adequate maintenance procedures must be developed to keep the equipment in good condition. 2. Inventory (2 CFR 200.313 (d)(1)) a. An inventory of all equipment and all non-disposable items with an estimated useful life of more than one year, purchased in whole or in part with childcare and development contract funds, shall be maintained. For more guidance refer to California School Accounting Manual Procedure 700. b. Property records must be maintained that include the following: i. Description; ii. Serial number or other identification number; iii. The source of funding; iv. The acquisition date; v. The cost; vi. The location, use and condition; and vii. Any ultimate disposition date including date of disposal and sale price if applicable. c. A physical inventory must be taken at least every two (2) years and reconciled with property records. (2 CFR 200.313(d)(2)) 48 I. Title, Use, Disposition and Retention (5 CCR 18025) 1. Buildings and Improvements a. Title to real property acquired in whole or part with state childcare and development (CCD) funds shall vest in the contractor subject to the condition that the contractor shall use the real property for the a uthorized purpose of the childcare and development program as long as it has a contract with the CDSS and shall not encumber the property without the prior written approval of the CDSS. (2 CFR 200.311(a)) b. When the real property is no longer needed for the purposes of any CDSS program, the Contractor shall request disposition instructions from the CDSS, which shall observe one of the following three disposition instructions: i. The CDSS may permit the contractor to retain title without further obligation to the CDSS after the contractor compensates the CDSS or that percentage of the current fair market value of the property, net of reasonable and necessary selling costs, attributable to the CDSS’s share of the acquisition cost. ii. The contractor may be directed to sell the property under guidelines provided by the CDSS and pay the CDSS for that percentage of the current fair market value of the property, net of reasonable and necessary selling and fix-up costs, attributable to the CDSS’s share of the acquisition cost. iii. The contractor may be directed to transfer title to the property to the CDSS or to an eligible third party, provided that, in such cases, the contractor shall be entitled to compensation for its attributable percentage of the current fair market value of the property. 2. Equipment (5 CCR 18025) a. Title – When equipment is purchased with state funds, title shall vest with the contractor only for such period of time as the contractor has a contract with the CDSS. b. Retention of Equipment – The CDSS may provide written authorization for the contractor to retain the equipment for the contractor’s own use if a fair compensation is paid to the state for the state’s share of the cost of the equipment. Fair compensation shall be determined by the state using the state’s share of original acquisition cost, less depreciation, computed on a straight-line method over the estimated useful life expectancy of the equipment. 49 c. Use – When equipment is purchased in whole or in part with state funds, the contractor shall use the equipment exclusively in the program(s) from which funds were used to purchase the equipment. If the contractor wishes to share the use of the equipment between/among two (2) or more programs, the cost of such equipment shall be prorated between/among the programs. d. Disposition – The contractor may dispose of obsolete equipment and remove the asset at its recorded value. If the sale of equipment originally purchased with state funds occurs, the proceeds from the sale of the equipment must be returned to the program. If the contractor no longer has a contract with the CDSS, the contractor shall dispose of the equipment in accordance with written directions from the CDSS. VIII. FUNDING ELIGIBILITY, CONTINUED FUNDING, CONTRACT STATUS, TERMINATIONS, AND APPEALS A. Eligibility for Funding (5 CCR 18001) 1. A current contractor is eligible to apply for new or additional funds except when one or more of the following conditions apply during the Request for Application (RFA) cycle: a. The contractor is on conditional status because of fiscal or programmatic noncompliance as described in paragraphs D, Administrative Review of Changes in Contract Status; or E, Conditional Contract Status Procedure, below; or b. The CDSS has conducted a compliance review and the contractor has failed to cure items of fiscal and programmatic noncompliance identified in the review within twelve (12) months of the issuance of the compliance review report; or c. The CDSS reduced the contractor’s current year maximum reimbursement amount due to the contractor’s inability to utilize its full contract amount, whether through low enrollment or low expenditures for the same contract type. 2. A current contracting agency may be determined, on a case-by-case basis, to be ineligible to receive expansion funding if: a. The agency was previously awarded expansion funding and has not yet begun to provide services with that funding; or b. The CDSS has evidence that the agency has not been able to successfully fulfill current contract requirements by serving children in a quality program and in a fiscally responsible manner. 50 3. A current contractor that is applying for additional funds may be awarded less than the full amount requested during negotiations of the award, particularly if it has been determined that they are not fully utilizing their current contract maximum reimbursable amount. 4. An applicant that is not a current CDSS contractor is not eligible to apply for funding if one of the following conditions apply: a. The contractor had a previous contract with the CDE or CDSS that was terminated or not continued by the CDE or CDSS for fiscal or programmatic noncompliance as described in paragraphs D, Administrative Review of Changes in Contract Status; or E, Conditional Contract Status Procedure, below within three (3) years immediately preceding the date the RFA was posted; or b. The applicant contractor has an outstanding accounts receivable balance with the CDSS; or c. The applicant contractor has a delinquent audit with the CDE or CDSS pursuant to Section V, paragraph C, Delinquent Audits and One-Time- Only Extensions. B. Review of Contracts for Continued Funding (5 CCR 18010) 1. Contractors have no vested right to a subsequent contract. 2. Contractors that are not on conditional contract status, but which have evidenced fiscal or programmatic noncompliance with the provisions of this contract, laws, or regulations, shall receive an administrative review to determine whether they will receive an offer for continued funding. 3. Contractors currently on conditional status that do not meet the requirements specified in the Conditional Status Addendum may not be offered a subsequent contract and shall be so notified by the CDSS at least ninety (90) calendar days prior to the end of the current contract period. 4. Contractors that intend to accept the offer to continue services in the subsequent contract period shall respond to a continued funding application request from the CDSS in accordance with the instructions and timelines specified in the request. 5. Failure to respond within the timelines specified in the continued funding application request shall constitute notification to the CDSS of the contractor's intent to discontinue services at the end of the current contract period unless the contractor has received a written extension of the original timeline from the CDSS. 51 C. Contract Classifications 1. Clear Contract (WIC 10397) This designation shall be given to a contract that is neither a provisional contractor a conditional contract, as described (2) and (3) below. 2. Provisional Contract (WIC 10397 and 5 CCR 18068) This designation applies to an agency’s first contract for any particular service or to the contract of an existing contracting agency for a new, modified, or different type of service. The timeframe of a provisional contract is at the discretion of the CDSS and is given to ensure that the contracting agency can demonstrate fiscal and programmatic compliance before the contract is designated as a clear contract. Contractors on provisional status shall submit monthly fiscal and attendance reports to CDFS. The contract status shall be reviewed annually. 3. Conditional Contract (WIC 10397) a. This designation applies to a high-risk contract awarded to a contracting agency that evidences fiscal or programmatic noncompliance, or both fiscal and programmatic noncompliance. b. A contracting agency with one or more contracts designated as conditional is deemed to be on conditional status with the CDSS for all childcare and development program purposes and is subject to any restrictions deemed reasonable to secure compliance. D. Administrative Review of Changes in Contract Status (5 CCR 18303) 1. Contract performance shall be reviewed at least annually by CDSS staff who shall determine by April 1 of each year whether to offer continued funding on a clear contract, continued funding on a conditional basis or to make no offer of continued funding. 2. If the staff recommends conditional status or no offer of continued funding, the contractor shall be notified in writing of the reason s for the proposed change in contract status by April 7. The notice of proposed action shall be sufficiently specific to allow the contractor to respond to the factual basis for the proposed action. 3. If the contractor disagrees with the proposed action, the contractor's response shall be received by the CDSS within ten (10) calendar days of receipt of the notice of proposed action. The contractor's response shall include any written materials in support of its position and, if the contractor intends to mak e an oral presentation, the response shall so specify. 52 4. If the action is being appealed, the staff recommendation and the contractor's response shall be reviewed by an administrative review panel convened by the Director of the ELCD within seven (7) calendar days of receipt of the contractor's response. The review panel will consist of representatives of ELCD management, CDFS, CDSS's Legal Division, OAS, Contracts Office, and a representative of a childcare and development service provider familiar with the type(s) of program(s) operated by the contractor. 5. Upon review of the written submissions, the panel will do one of the following: a. Issue a final decision upholding or modifying the proposed change in status if no oral presentation has been requested; b. Schedule a time and place for an oral presentation by the contractor; or c. Issue a final decision to not change the contract status. 6. If an oral presentation has been requested, the contractor will be notified by telephone of the time and place of the presentation. The oral presentation will be scheduled no later than fourteen (14) calendar days from receipt of the contractor's response. 7. At the oral presentation, the contractor or the contractor's representative will have an opportunity to explain any material submitted in its response. While the contractor may present any information or arguments that are relevant to the proposed action, the review panel may set reasonable limits on the scope of the presentation. 8. Within seven (7) calendar days after the oral presentation, the review panel shall issue and mail to the contractor a decision upholding, reversing, or modifying the proposed change in contract status. The decision of the review panel shall be the final action of the CDSS with regard to that contract. E. Conditional Contract Status Procedure 1. Conditional Status Imposed During the Contract Period (5 CCR 18304) a. If the contractor demonstrates fiscal or programmatic noncompliance during the contract period, based on such information as an annual audit report, an FPM/CMR, or a change in licensing status, the CDSS may place the contract on conditional status for the remainder of the contract period. b. The contractor shall receive notice and may request an administrative review of the proposed action as required paragraph D, Administrative Review of Changes in Contract Status, above, in the event such a change in contract status is recommended by staff of the CDSS. 53 c. If the contract is placed on conditional status during the last ninety (90) days of the contract period and the contractor is offered continued funding, the contract for the subsequent contract period will also be on conditional status. 2. Conditional Status Addendum (WIC 103975 CCR 18305) a. If the contractor is placed on conditional status during the contract period, a Conditional Status Addendum will be issued by the CDSS, and the Conditional Status Addendum shall be considered a part of the annual child development contract and binding on the contractor. b. A Conditional Status Addendum shall contain a bill of particulars which detail the items of noncompliance, the standards that must be met to avoid termination of the contract and to qualify the contractor for clear contract status. The Addendum shall include all the following: i. The specific item(s) of noncompliance which the contractor must correct; ii. The specific corrective action(s) which must be taken; iii. The time period within which the contractor must complete the corrections; and iv. Notice that failure to demonstrate substantive progress within six (6 ) months shall constitute a breach of contract and may result in no offer of continued funding, or termination of the contract. 3. Duration of Conditional Contract Status (WIC 10397(a)(3) and 5 CCR 18307) a. A contractor shall remain on conditional contract status until the contractor has corrected deficiencies and/or has met requirements identified in the Conditional Status Addendum. b. Failure to demonstrate substantive progress toward fiscal or program compliance within six (6) months of being on conditional status shall constitute a breach of contract and may subject to no offer of continued funding or termination of the contract, in accordance with paragraph F, Contract Termination Procedure, below. a. A contractor with a repayment plan shall remain on conditional contract status and not receive any apportionments until full repayment is made. c. A contractor on conditional contract status that is not on a repayment plan shall remain in that status until: 54 i. The CDSS issues written notice to the contractor that the conditional status has been cleared; ii. The contractor is issued a clear contract; or iii. The contract terminates according to its terms. d. A contractor may request written verification from the CDSS that some of the deficiencies have been corrected even if the contractor will not be removed from conditional contract status. e. While on conditional status, the contractor shall submit monthly fiscal and attendance reports to CDFS. The first monthly report shall include a current inventory of equipment purchased in whole or in part with contract funds. f. Contractors on conditional status are not eligible to apply for new or additional funds. g. Contractors on Conditional contract status continue to be subject to, Termination, and Non-Renewal in accordance with paragraphs B, Review of Contracts for Continued Funding; and F, Contract Termination Procedure. F. Contract Termination Procedure 1. Contractor's Termination for Convenience (5 CCR 18024) a. A contractor may terminate the contract for any reason during the contract term. b. The contractor shall notify the CDSS of its intent to terminate the contract at least ninety (90) calendar days prior to the date the contractor intends to terminate the contract. c. Within fifteen (15) days from the date the contractor notifies the CDSS of its intent to terminate the contract, the contractor shall submit: i. A current inventory of equipment purchased in whole or in part with contract funds; and ii. The names, addresses and telephone numbers of all families served by the contract and all staff members funded by the contract. iii. CFCC and Alternative Payment program contractors shall also submit the names, addresses and telephone numbers of all providers of subsidized services funded by the childcare and development contract. 55 d. Upon receipt of a notice of intent to terminate, the CDSS will transfer the program to another agency as soon as practicable. 2. Immediate Termination (WIC 10398, 10399, and 10401) a. A contracting agency that evidences any of the following acts or omissions may have its contract immediately terminated if there is documented evidence of the acts and omissions, and upon review and recommendation of the general counsel of the CDSS for any of the following reasons: i. Fraud, or conspiracy to defraud. ii. Misuse or misappropriation of state or federal funds, including a violation of WIC 10399. iii. Embezzlement. iv. Threats of bodily or other harm to a state official. v. Bribery or attempted bribery of a state official. vi. Unsafe or unhealthy physical environment or facility. vii. Substantiated abuse or molestation of children. viii. Failure to report suspected child abuse or molestation . ix. Theft of supplies, equipment, or food. x. Cessation of operations without the permission of the CDSS or acts or omissions evidencing abandonment of the contract or contracts. xi. C2AP, C3AP, CAPP, CMAP, and CFCC contractors that fail to fully reimburse a significant number of approved childcare providers as determined by the CDSS, within fifteen (15) calendar days after the date set in the plan for timely payments to childcare providers, adopted by the contracting agency, pursuant to 5 CCR 18226, unless the failure is attributable to a delay in receiving apportionments from the state. xii. Failure to pay salaries owed to employees, or pay federal payroll tax, for more than fifteen (15) days after the employee salaries, or federal payroll taxes were due, unless the failure is attributable to a delay in receiving apportionments from the state. 56 xiii. Contractors that have in place or who place a person in a position of fiscal responsibility or control who have been convicted of a crime involving misuse or misappropriation of state or federal funds, or a state or federal crime involving moral turpitude, may have its contract terminated if there is documented evidence of the conviction, and upon review and recommendation of the general counsel of the CDSS. xiv.If the agency provides evidence to the CDSS, before the effective date given in the notice of immediate termination, that the convicted person has been removed from the position of fiscal responsibility or control and provides assurance that the person will not be returned to a position of fiscal responsibility or control, the CDSS shall withdraw the termination action. b. A contractor whose contract is immediately terminated retains appeal rights. Contractors that are the subject of an immediate termination shall not continue to operate during the appeal of termination. 3. Non-Immediate Termination (WIC 10398, 10399, and 10400 and 5 CCR 18301) a. In addition to the grounds set forth in (2) above, which also may be the basis for a non-immediate termination, termination of a contract during the contract period may occur when: i. A contractor fails to correct items of fiscal or programmatic noncompliance within six (6) months of receiving a conditional contract which includes a Conditional Status Addendum issued in accordance with (2) of paragraph E, Conditional Contract Status Procedure; or ii. A contractor fails or refuses to make available for examination or copying by an authorized employee of the CDSS any records or documents that the contractor is required to retain, upon a request by that employee to examine or copy such records or documents; or iii. A contractor refuses to permit an authorized employee of the CDSS to enter a facility operated by the contractor during days of operation as indicated in the approved program calendar on file with the CDSS. b. Any action by the CDSS to terminate a contract, other than to terminate a contract on an immediate basis shall be preceded by a ninety (90) day notice of the action, stating the specific reasons for the action, and describing the contractor's appeal rights pursuant to paragraph G, Independent Appeals. Except for cases of immediate termination, contractors that are terminated shall be allowed to continue to operate during the appeal of termination. 57 4. Contractor's Responsibility After Notice of Nonrenewal or Termination (5 CCR 18302 and 18054) a. After receiving notice of the CDSS's decision to terminate the contract or to make no offer of continued funding, the contractor shall submit copies to, or make available for copying by the CDSS, all of the following: i. A current inventory of equipment purchased in whole or in part with contract funds; ii. The names, addresses and telephone numbers of all families served by the contract, all staff members funded by the contract; and iii. Monthly enrollment and attendance reports until the contract is actually terminated or until the final month for which the contractor retains a contract. C2AP, C3AP, CAPP, CMAP, and CFCC contractors shall also submit the names, addresses and telephone numbers of all providers of subsidized services under the contract. b. The CDSS shall only be obligated to compensate the contractor for net reimbursable program costs or earnings, whichever is less, in accordance with this contract through the date of termination . There shall be no other compensation to the contractor. The CDSS shall offset any monies the contractor owes against any monies CDSS owes under this contract. G. Independent Appeals (WIC 10392, 10393) 1. An independent appeal procedure shall be available to any contractor in any of the following circumstances: a. Termination of a contracting agency’s contract b. Denial of more than four (4%) percent or twenty-five thousand dollars ($25,000), whichever is less, of the contact maximum reimbursable amount. c. Demand for remittance of an overpayment of more than more than four (4%) percent or twenty-five thousand dollars ($25,000), whichever is less, of the contact maximum reimbursable amount. 2. Before filing an appeal petition for an action taken pursuant to (b) or (c) of (1) above, the contractor shall have submitted all previously required standard monthly or quarterly reporting forms to the CDSS. 3. Such appeals shall be heard by independent hearing officers in accordance with procedures established by the Office of Administrative Hearings (OAH) as specified in California Code of Regulations, Title 1, Sections 1121 through 1126, 58 H. Procedures For Independent Appeals (5 CCR 18301 and GC 11500) 1. Notice of Defense/Appeal Petition a. The contractor shall be served notice of the action as set forth in WIC 10396 and GC 1500 et seq. The contractor may contest the noticed action as set forth in GC 11506 by filing a notice of defense/appeal petition with the CDSS within fifteen (15) days after service of the action and may request a hearing before the OAH. The notice of defense/appeal petition shall include: i. A clear, concise statement of the action being appealed; and ii. The name, address, and telephone number of the contractor’s authorized representative for the proceeding. b. In addition, the contractor may also, as part of the Notice of defense/appeal petition: i. Object to the action upon the grounds that it does not state acts or omissions upon which the contractor may proceed; ii. Object to the form of the action on the grounds it is so indefinite or uncertain that the respondent cannot identify the transaction or prepare a defense; iii. Admit any of the charges in the action in whole or in part; iv. Object to the action upon the grounds that, under the circumstances, compliance with the requirements of a regulation would result in a material violation of another regulation enacted by another department affecting substantive rights. 2. Failure To Submit a Timely Notice of Defense or Appeal Petition or Proceed with Appeal If a contractor is served a notice of action and fails to properly file a notice of defense/appeal petition, or files a notice of defense/appeal petition, but fails to appear at the appeal hearing, action may be taken by the CDSS (or by the Administrative Law Judge for failure to appear at the hearing) based upon the contractor’s express admissions or other evidence and affidavits without any notice to the contractor. Notwithstanding the default, the CDSS or the OAH may, before a proposed decision is issued, grant an appeal hearing on reasonable notice to the parties. If the CDSS issues a default decision against the contractor, it must serve notice of that decision on the contractor and the contractor has seven (7) days after service to request that the decision be vacated stating the grounds relied on. The CDSS, in its 59 discretion, may vacate the decision and grant a hearing on a showing of good cause. 3. Hearing If the contractor submits a timely request for a hearing, the CDSS shall have ten (10) calendar days to request that the OAH schedule a hearing and transmit the following to the OAH: a. The notice of defense/appeal petition submitted to the CDSS by the contractor; b. The original notice of action sent to the contractor; and c. The name, address, and telephone number of the CDSS authorized representative for the proceeding. d. The OAH shall schedule a hearing on the appeal filed by a contractor to commence no later than thirty (30) calendar days following the receipt of the petition by the CDSS, but at least ten (10) calendar days' written notice will be given of the time and place of the hearing. An OAH hearing officer will hear evidence submitted by the CDSS and the contractor during the hearing. The hearing will be recorded. The hearing officer may continue hearings, if deemed necessary. 4. The Decision The hearing officer shall issue a final decision, in writing, within thirty (30) calendar days after the submission of the case. The decision shall be sent by registered mail or personally served on the representatives of the parties by OAH. The decision shall be the final administrative action afforded the contractor. 5. Settlement between the Parties The CDSS and contractor may, at any time before or after issuance of a notice of action, agree to a settlement of the actions. The settlement terms, as agreed to by both parties, are to be incorpo rated into a stipulation and waiver decision that is approved by the CDSS agency head or his or her designee and issued by the CDSS. The decision shall be the final administrative action afforded the contractor. 6. Request for Additional Written Materials on File at CDSS Contractors may request, in writing, any public documents on which the CDSS intends to rely from the CDSS files at a cost of fifteen cents ($.15) cents per page, payable in advance. The CDSS will mail the material requested not later than ten (10) days from the receipt of the request. 60 IX. BUILDING A BETTER EARLY CARE AND EDUCATION SYSTEM (BBECES) (WIC 10420-10429.5; CIVIL CODE 1798.17; 42 US 9858C(2)(D) AND (U); 45 CFR 98.16(AA), 98.33 AND 98.42) (Applies to all contract types that provide care through family childcare homes and/or through individual licensed-exempt providers) A. Submission and Disclosure of Childcare Provider Information 1. Contractors are required to collect and submit to the CDSS, or its designee, as required by law, the following information for all licensed family childcare home providers and individual licensed-exempt childcare providers providing subsidized childcare services and in accordance with Section IV, Paragraph J, Subsidized Provider Report: a. Mailing address b. Home address c. County d. Home, cell, and work telephone number, if known e. Email address, if known f. Whether provider is licensed or license-exempt, include state facility license number for licensed providers. g. Primary language used, if known* h. Contractor, subcontractor, agency, or political subdivision administering the program in which the provider participates. i. Unique provider identification number, when available* j. Contract type k. The amounts of all subsidies paid to each provider in the report month, Note: Provider work telephones number, email address, primary language used, and unique provider identification number are not optional; if it is known to the contractor, it must be included. 2. Contractors that are not able to provide amounts of all subsidies, as specified in (k) of (1) above, shall have an implementation plan on file with CCPU . 3. The information collected from family childcare providers, as defined, may be re-disclosed by the CDSS to provider organizations as defined in law as well 61 as other state agencies as permitted by law for purposes of organizing, representing, and assisting family childcare providers, as well as for purposes of emergency response planning and monitoring health and safety requirements to comply with Childcare and Development Block Grant requirements. 4. Contractors shall not delay or obstruct the collection of the provider information. 5. Contractors must notify family childcare providers in writing of the collection and use of the information in order to comply with applicable laws, includ ing the Information Practices Act. 6. Upon learning that a family childcare provider will no longer receive a subsidized childcare payment, contractors shall, as required by law and in conformance with the format, timeline and manner prescribed by the CDSS, inform the CDSS of the date the provider ended subsidized care. B. Notices and Communications Contractors are required to distribute to providers and/or post on their website all notices and communications as may be required by the BBECES or any applicable Memorandum of Understanding. C. Reimbursement 1. Contractors are required to deduct from reimbursement any dues as requested by a certified provider organization. The deductions may include membership dues, initiation fees, general assessments, and payment of any other membership benefit program sponsored by the certified provider organization. 2. If the deductions from a provider’s subsidy payments required action by more than one contractor, the certified provider organization shall establish reasonable procedures to ensure that the total amount deducted does not exceed the total dues and other voluntary deductions owned by that provider . 3. A contractor must rely on a certification from the certified provider organization requesting a deduction that it has and will maintain an authorization, signed by the individual provider from whose subsidy the deduction is to be made. A certified provider organization that certifies that it has and will maintain authorization shall not be required to provide a copy of an individual authorization to the entity unless a dispute arises about the existence or terms of the authorizations. 62 D. Memorandum of Understanding Must adhere to any requirements that bind contractors in any applicable memorandum of understanding. E. Interference Contractors are prohibited from interfering with the right of providers to collectively bargain and further prohibited from deterring or discouraging providers to join the union. F. Training Partnership Contractors must notify the certified provider organization of preservice meetings, and orientations, either in-person or online, and allow representatives from the certified provider organization to present at the preservice meetings, and orientations as permitted under the BBECES or as provided for in any applicable memorandum of understanding. (WIC 10428.7) X. DEFINITIONS As applicable to each specific program type. Actual and allowable net costs means the costs which may be reimbursed under a particular child development contract after disallowed costs and restricted income have been subtracted from total expenditures. (5 CCR 18013(a)) Additional funds means award of new contracts or expanded contracts that increase the contractor's level of administrative responsibility. Additional funds do not include cost of living adjustments, rate increases and one-time-only supplemental funds or Alternative Payment program contingency funds. (5 CCR 18000(a)) Adjusted child days of enrollment means child days of enrollment after adjustment factors specified in WIC 10281.5 have been applied. (5 CCR 18013) Adjusted monthly income means total countable income as defined below, minus verified child support payments paid by the parent whose child is receiving child development services, excluding the non-countable income listed below: (5 CCR 18078(a)) a. Earnings of a child under age eighteen (18) years; b. Loans; c. Grants or scholarships to students for educational purposes; 63 d. Federal Supplemental Assistance Program (CalFRESH/SNAP), Women, Infants and Children benefits, or other food assistance; e. Earned Income Tax Credit or tax refund; f. GI Bill entitlements, hardship duty pay, hazardous du ty pay, hostile fire pay, or imminent danger pay; g. Adoption assistance payments received pursuant to WIC Section 16115 et seq.; h. Non-cash assistance or gifts; i. All income of any individual counted in the family size who is collecting federal Supplemental Security Income (SSI) or State Supplemental Program (SSP) benefits; j. Insurance or court settlements for pain and suffering; k. Reimbursements for work-required expenses such as uniforms, mileage, or per diem expenses for food and lodging; l. Business expenses for self-employed family members; m. When there is no cash value to the employee, the portion of medical and/or dental insurance documented as paid by the employer and included in gross pay; and n. Disaster relief grants or payments, except any portion for rental assis tance or unemployment. o. AmeriCorps Volunteers in Service to America (VISTA) and Federal Emergency Management Agency (FEMA) stipends, room and board, and grants p. Guaranteed income payments as defined below. Administrative costs means costs incurred for administrative activities where neither the family, the child nor the service providers for voucher-based programs and family childcare homes directly benefit from the activity. These costs shall be inclusive of indirect costs if applicable. (5 CCR 18013(c)) Adult means a person who is at least eighteen (18) years of age. (5 CCR 110152(a)(2)) Agency Self-Evaluation Annual Report is a form issued by the CDSS for use by contractors to submit a summary of their program self-evaluation findings. (5 CCR 18270.5(a) and 18279(c)) 64 Alternative payments includes payments that are made by one childcare agency to another agency or childcare provider for the provision of childcare and development services, and payments that are made by an agency to a parent for the parent’s purchase of childcare and development services. (WIC 10213.5(a)) Alternative payment program also known as voucher-based programs, means a local government agency or nonprofit organization that has contracted with the CDSS pursuant to WIC 10225.5 or a migrant alternative payment program pursuant to WIC 10225, to provide alternative payments and to provide support services to parents and providers. Types of voucher-based programs include C2AP, C3AP, CAPP, and CMAP. (WIC 10213.5(b)) Applicant or contracting agency means a school district, community college district, college or university, county superintendent of schools, county, city, public agency, private, non-tax-exempt agency, private tax-exempt agency, or other entity that is authorized to establish, maintain, or operate services. Private agencies and parent cooperatives, duly licensed by law, shall receive the same consideration as any other authorized entity with no loss of parental decision - making prerogatives as consistent with the provisions of this chapter. (WIC 10213.5(c)) Approved work activity (also known as welfare to work activity) is an activity contained in the parent’s welfare-to-work plan as described and further defined in WIC 11322.6 et seq. and may include: a. Unsubsidized employment; b. Subsidized private sector employment; c. Subsidized public sector employment; d. Work experience; e. On-the-job training; f. Grant-based on-the-job training; g. Supported work or transitional employment; h. Work-study; i. Self-employment; j. Community or vocational education and training; k. Job search and job readiness assistance; l. Education directly related to employment; 65 m. Satisfactory progress in secondary school or in a course of study leading to a General Education Development (GED) certification; n. Mental health, substance abuse and domestic violence services; or o. Other activities necessary to assist an individual in obtaining unsubsidized employment. Assistance Unit means a group of related persons living in the same home who have been determined eligible for CalWORKs cash assistance by the county. (California-DSS-Manual-EAS Eligibility and Assistance Standards, Chapter 82- 800 Assistance Unit) Attendance means the number of children present at a childcare and development facility. Attendance, for purposes of reimbursement, includes excused absences by children because of illness, quarantine, illness or quarantine of their parent, family emergency, or to spend time with a parent or other relative as required by a court of law or that is clearly in the best interest of the child. (WIC 10213.5(e)) Audit Guide refers to the most recent CDSS Audit Guide, which is a resource for audit requirements and guidance applicable to certain state and federal programs operated by private and public organizations under agreements with the CDSS . The Audit Guide should be used by independent auditors in conducting audits of state and federal childcare and development programs. Authorized representative means, depending upon the specific regulation, either: a. A person who has been delegated the responsibility to sign a child in and out of a childcare program in the absence of the parent; 5 CCR 18013(f). b. A person designated by the contractor to certify eligibility for subsidized services and/or issue a notice of action, application for services or notice of action, recipient of services; (5 CCR 18082(b), 18083(i)) c. A person designated by the parent that would be allowed to review the child's data file; or (5 CCR 18117(b)) d. A person designated by the parent to represent the parent at a local hearing upon filing an appeal after receipt of a notice of action. (5 CCR 18120(e)) Benefit to the State means that the activity will improve knowledge or expertise in areas directly related to subsidized childcare and development services. (5 CCR 18013(g)) 66 California School Accounting Manual provides accounting policies and procedures, as well as guidance in implementing those policies and procedures. CalWORKs Cash Aid Recipient means an adult or minor teen parent who receives cash aid from the county welfare department for the CalWORKs or Cal - Learn program. (WIC 10370-10376.5) Capital Outlay means the amount paid for the renovation and repair of child care and development and preschool facilities to comply with state and local health and safety standards, and the amount paid for the state purchase of relocatab le child care and development and preschool facilities for lease to qualifying contracting agencies. (WIC 10213.5) Ceases Operation means the contractor does not provide subsidized services in accordance with the contractor's program operating calendar submitted to and approved by the Child Care and Development Division for the applicable contract period. (5 CCR 18013(h)) Center-based Programs means all programs providing services directly to children at a licensed center or family childcare home and not through the use of an alternative payment voucher. Types of center-based programs include CCTR, CHAN, CMIG and CFCC. Certified Schedule means the number of hours per day and/or week that a family is approved to receive subsidized childcare and development services . (5 CCR 18078) Childcare Certificate means a certificate that may be a check, or other disbursement issued by a grantee directly to a parent who may use such certificate only as payment for childcare services or as a deposit for childcare services if a deposit is required by the provider. Nothing in this part shall preclude the use of such certificate for sectarian childcare services if freely chosen by the parent. For the purposes of this part, a childcare certificate is assistance to the parent, not assistance to the provider. (45 CFR Section 98.2) Childcare and Development Programs means those programs which offer a full range of services for children from infancy to (13) thirteen years of age, or children with exceptional needs up to 21; for any part of the day, by a public or private agency, in centers and family childcare homes. (WIC 10213.5(i)) These programs include voucher-based programs, center-based programs and resource and referral programs and specifically include the following: a. General childcare and development. b. Migrant childcare and development. c. Resource and referral. 67 d. Childcare and development services for children with exceptional needs. e. Family childcare home education network. f. Voucher-based program. Childcare and Development Services means those services designed to meet a wide variety of needs of children and their families, while their parents or guardians are working, in training, seeking employment, incapacitated, or in need of respite. These services may include direct care and supervision, instructional activities, resource and referral programs, and alternative payment arrangements. (WIC 10213.5) Childcare Provider means an adult or agency that provides childcare services pursuant to the WIC 10270-10490 Childcare and Development Services Act. (5 CCR 18400(b)) Child Days of Enrollment for fiscal reporting purposes, means the total number of days every child is certified to attend a center-based program, excluding CFCC, regardless of attendance. Child Development Fund means the restricted fund used by the contractor to account for contract funds and related net reimbursable program costs. (WIC 10336; 5 CCR 18064) Child Protective Services (CPS) means children receiving protective services through the local county welfare department as well as children identified by a legal, medical, social service agency or emergency shelter as abused, neglected, or exploited or at risk of abuse, neglect, or exploitation. (5 CCR 18078(c)) Children at risk of abuse, neglect, or exploitation refers to children who are so identified in a written referral from a legal, medical, social services agency, or emergency shelter. (WIC 10213.5(k)) Children with Exceptional Needs means, as set forth in WIC 10213.5 either of the following: a. Children under three years of age who have been determined to be eligible for early intervention services pursuant to the California Early Intervention Services Act (Title 14 (commencing with Section 95000) of the Government Code) and its implementing regulations. These children include an infant or toddler with a developmental delay or established risk condition, or who is at high risk of having a substantial developmental disability, as defined in subdivision (a) of Section 95014 of the Government Code. These children shall have active individualized family service plans and shall be receiving early intervention services. 68 b. Children 3 to 21 years of age, inclusive, who have been determined to be eligible for special education and related services by an individualized education program team according to the special education requirements contained in Part 30 (commencing with Section 56000) of Division 4 of Title 2, and who meet eligibility criteria described in Section 56026 and, Article 2.5 (commencing with Section 56333) of Chapter 4 of Part 30 of Division 4 of Title 2, and Sections 3030 and 3031 of Title 5 of the California Code of Regulations. These children shall have an active individualized education program and shall be receiving early intervention services or appropriate special education. Children with severe disabilities or Severely disabled children are children with exceptional needs from birth to twenty-one (21) years of age, inclusive, who require intensive instruction and training in program s serving pupils with the following profound disabilities: autism, blindness, deafness, severe orthopedic impairments, serious emotional disturbance, or severe developmental disability. This also includes those individuals who would have been eligible for enrollment in a developmental center for handicapped pupils under Chapter 7 (commencing with Section 56900) of Part 30 of Division 4 of Title 2 of the Education Code. (WIC 10213.5(y)) Co-located Programs are those that share the same facility but cannot be commingled because they are different types of programs with different program requirements. Commingled Childcare Services means the provision of services to both subsidized and nonsubsidized children in the same classroom at the same time . (5 CCR 18013(i)) Compliance review or Contract Monitoring Review means that a team of the CDSS staff reviews a contractor's program at the program site to determine compliance with applicable laws, regulations, or contractual provisions . (5 CCR 18023(a)(1)) Contract Period means the time span the contract is in effect as specified in the child development contract. (5 CCR 18013(i)) Co-payment means any usual and customary provider charges that exceed the maximum subsidy amount. The family shall be responsible for paying the provider the difference between the provider's rate and the maximum subsidy amount. This shall be considered the family’s co-payment. The contractor shall not be responsible for collecting the family's co -payment. (5 CCR 18220.6(b)) CSPP Four-year-old children means children who will have their fourth birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program, or a child whose fifth birthday occurs after September 1 of the fiscal year in which they are enrolled in a California state 69 preschool and whose parent or guardian has opted to retain or enroll them in a California state preschool program. CSPP Three-year-old children means children who will have their third birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program. Children who have their third birthday on or after December 2 of the fiscal year, may be enrolled in a California state preschool program on or after their third birthday. Any child under four years of age shall be served in a California state preschool program facility, licensed in accordance with Title 22 of the California Code of Regulations. Days of Operation means a day in which the contractor provides service, as indicated on the approved program calendar, to one or more certified children enrolled in a Center-Based program, excluding CFCCs. For Alternative Payment and CFCC programs, a day of operation means a day the administrative office is open for business, as indicated on the approved program calendar. Declaration means a written statement signed by a parent under penalty of perjury attesting that the contents of the statement are true and correct to the best of that parent’s knowledge. (5 CCR 18078(d)) Depreciation means a cost in the current fiscal year that is based on acquisition costs, less any estimated residual value, computed on a straight -line method (based on the normal, estimated useful life expectancy of the asset). (5 CCR 18013(k)) Desired Results Developmental Profile is a document used to record the information in the developmental profile defined in 5 CCR Section 18270.5(b) that is incorporated by reference. (5 CCR 18270.5(c)) Desired Results Parent Survey is a document used to solicit information from parents regarding the childcare program or services that the child and family receive. (5 CCR 18270.5(d)) Developmental profile means a record of a child's physical, cognitive, social, and emotional development that is used to inform teachers and parents about a child's developmental progress in meeting desired results. In center-based programs, teacher and parent observations shall be included as part of the information used to complete the child's developmental profile. In family childcare home education networks, the observations of agency staff, in consultation with providers, and parents shall be included as part of the information used to complete the child's developmental profile. (5 CCR 18270.5(b)) Disallowed costs means costs that have been incurred but are not reimbursable because they are not reasonable and/or necessary for the performance of the contract or are otherwise non-reimbursable. (5 CCR 18013) 70 Displace families means to disenroll families in order to reduce service levels due to insufficient funding or inability of a contractor to operate one or more sites because of reasons stated in WIC 10272.5; 5 CCR 18078(e). Diversion services means one-time assistance services provided by the county welfare department, either in cash or in non-cash services, to an otherwise CalWORKs eligible family, when the county welfare department determines that such assistance will help the family avoid becoming a CalWORKs cash aid recipient. (5 CCR 18400(d)) Early learning and care program is defined as “Childcare and development program” as set forth in WIC 10213.5. Early childhood mental health consultation services means a service benefitting an infant or toddler who is 0 to 36 months of age, inclusive, and is served in a general childcare and development program, or a child who is 0 to 5 years of age, inclusive, and is served in a family childcare home education network setting funded by a general childcare and development program . (WIC 10281(a)(1)) Education program for purposes of program quality means the environment, activities, and services provided to the children. (5 CCR 18270.5) Educational programs for purposes of determining need for childcare and development services means either of the following: (5 CCR 18078) a. Classes or courses for English language learner (ELL) or English as a Second Language (ESL); or b. Classes or courses to attain a high school diploma, a General Education Development (GED), or a High School Equivalency (HSE) certificate, as specified in Education Code Section 8263(a)(1)(B). Employment agreement is a formal agreement that specifies the conditions of the relationship between an individual employee and an employer including compensation and expectations. Also referred to as an employment contract. Environment rating scale means an instrument that measures program quality by rating the education program (5 CCR 18273, the staff development program (5 CCR 18274), and parent involvement and education (5 CCR 18275.) Environment rating scales include the CDSS most recently used versions of the following (5 CCR 18270.5(f) : a. ECERS means the document entitled, Early Childhood Environment Rating Scale; 71 b. ITERS means the document entitled, Infant-Toddler Environment Rating Scale; c. FDCCERS means the document entitled, Family Childcare Environment Rating Scale; d. SACERS means the document entitled, School-Age Care Environment Rating Scale; Expulsion means the permanent dismissal of a child from a program in response to a child’s behavior. (WIC 10491) Family experiencing homelessness is defined as set forth in Section 11434(a)(2) of title 42 of the United States Code, known as the McKinney-Vento Homeless Assistance Act. Family means the parents and the children for whom the parents are responsible who comprise the household in which the child receiving services is living. For purposes of income eligibility and family fee determination, when a child and his or her siblings are living in a family that does not include their biological or adoptive parent, family shall be considered the child and related siblings. (5 CCR 18078(i)) Family childcare home education network means an entity organized under law that contracts with the CDSS pursuant to WIC 10250 to make payments to licensed family childcare home providers and to provide education and support services to those providers and to children and families eligible for state- subsidized childcare and development services. A family childcare home education network may also be referred to as a family childcare home system . (WIC 10213.5(p)) Family childcare homes refers to licensed childcare provided in a private home. (22 CCR 102352(f)) Family childcare provider or provider for purposes of implementation of Building a Better Early Care and Education System (BBECES) means a childcare provider who participates in a state-funded childcare and development program and is either of the following: a. An individual who operates a family daycare home, as defined in HSC Section 1596.78, and who is licensed pursuant to the requirement in HSC Section 1596.80. b. An individual who provides childcare and development services in their own home or in the home of the child receiving care and is exempt from licensing requirements pursuant to HSC, Section 1596.792. (WIC 10421(b)(1)(B)) 72 Family fee means the families share of cost as determined from the fee schedule. (WIC 10290; 5 CCR 18078(k)) Fee schedule means the Family Fee Schedule issued by the CDSS pursuant to WIC 10290 and 10436. (5 CCR 18078(k)) Family size for all programs means the number of people constituting a “family” as determined by documentation supporting the number of children and parents in the family. (5 CCR 18083.1) Former CalWORKs cash aid recipient means an adult individual or minor teen parent who has previously received and is no longer receiving cash aid under the CalWORKs or Cal-Learn programs because of, but not limited to, earnings, other income, or a sanction of the adult imposed by county welfare department. (5 CCR 18400(f)) Full signature means the legal signature of the individual (e.g., signature normally used on checks and other documents). If the individual is not literate in written English, the individual may sign with an X which must be initialed by the contractor's authorized representative (5 CCR 18065). Pursuant to WIC 10232.5 and 10269(b)(1) and (2), the use of a digital signature shall have the same force and effect as the use of a manual signature if it meets established program and technology requirements. Health Services include, but are not limited to all of the following: (WIC 10213.5(q)) a. Referral, whenever possible, to appropriate health care providers able to provide continuity of medical care. b. Health screening and health treatment, including a full range of immunization recorded on the appropriate state immunization form to the extent provided by the Medi-Cal Act (chapter 7 (commencing with Section 14000) of Part 3) and the Child Health and Disability Prevention Program (Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code, but only to the extent that ongoing care cannot be obtained utilizing community resources. c. Health education and training for children, parents, staff, and providers. d. Follow-up treatment through referral to appropriate health care agencies or individual health care professionals. Guaranteed income payments means unconditional, recurring, regular, cash payments, whether publicly or privately funded, that are intended to support the basic needs of eligible recipients, including, but not limited to, payments provided through pilot programs and projects receiving funding from the California Guaranteed Income Pilot Program (WIC 18997 - 18997.4). (WIC 10271.5(f)) 73 Income eligible or Ongoing income eligible means that a family’s adjusted monthly income is at or below 85 percent of the state median income, adjusted for family size. Income fluctuation means income that varies due to: (5 CCR 18078(n)) a. Migrant, agricultural, or seasonal work; b. Inconsistent and/or unstable employment or self-employment resulting in an inconsistent pattern of income; or c. Intermittent, occasional, sporadic, or infrequent earnings or income, including but not limited to bonuses, commissions, lottery winnings, inheritance, back child support payment, overtime, or net proceeds from the sale of real property or stock. Indirect costs are general and administrative costs that benefit the operations of the entire organization but cannot be identified to specific programs or activities . Examples of indirect costs are described in the federal cost principles codified under the Uniform Guidance (UG), 2 CFR, 200.414. (5 CCR 18013(m)) Indirect cost allocation plan means a written approved justification and rationale for assigning the relative share of indirect costs across more than one program or contract. School districts and county offices of education shall use the CDE approved rate if it is less than ten percent (10%). A Nonprofit’s Board of Directors will approve the indirect cost allocation plan. (5 CCR 18013(n) and 2 CFR 200.414) Initial certification means the formal processes the contractor goes through to collect information and documentation to determine that the family and/or child meets the criteria for receipt of subsidized child care and development services as specified in WIC Section 10271(a)(1)(A) and (a)(1)(B), respectively. The dated signature of the contractor's authorized representative on an application for services certifies that the criteria have been met and begins the period of eligibility. (5 CCR 18078(j)) Legally qualified professional means a person licensed under applicable laws and regulations of the State of California to perform legal, medical, health or social services for the general public. (5 CCR 18078(p)) Licensed-exempt provider means an individual or organization that is not required to be licensed, as specified in HSC 1596.792, or any other federal law or regulation. Licensed family childcare provider means a childcare provider who participates in a state-funded early care and education program, as defined in Section 10421, and is an individual who operates a family daycare home as 74 defined in H&WC, Section 1596.78 and is license pursuant to the requirements in HSC Section 1596.80. (WIC 10491) Licensed provider means an individual or organization that has obtained a childcare license, as specified in 22 CCR 101152; HSC 1596.90, et seq. Maximum reimbursable amount means the total dollar amount of a contract. Reimbursement from the State shall not exceed the maximum reimbursable amount. The initial maximum reimbursable amount shall be the approved original version of the annual contract based on the Budget Act as signed by the Governor. (5 CCR 18013(o)) Maximum subsidy amount means the regional market rate ceiling plus any applicable adjustments for: (5 CCR 18074.1(b)) a. Evenings and/or Weekends for Licensed Providers pursuant to 5 CCR, Section 18075.1; or b. Children with Exceptional Needs pursuant to 5 CCR, Section 18075.2. Member of the household means a member of the family as defined above. Migrant agricultural worker family for Migrant Childcare and Development (CMIG) and Migrant Alternative Payment (CMAP) programs, means a family that has earned at least fifty percent (50%) of its total gross income from employment in fishing, agriculture, or agriculturally related work during the twelve (12) month period immediately preceding the date of application services. (WIC 10236) Monthly attendance record or invoice means documentation that includes, at a minimum, the name of the child receiving services, the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day, that is signed under penalty of perjury by both the parent or guardian and the childcare provider, attesting that the information provided is accurate. (WIC 10227.5) Net reimbursable program costs means the portion of the actual and allowable net costs that are incurred in the provision of childcare and development services for subsidized children. (5 CCR 18013(p)) New contract means either: a. A contract award to applicants who do not currently contract with the CDSS for childcare and development services; or b. A contract award to current contractor that is for a program type as specified in WIC 10213.5 that is different than the child development contract(s) currently administered by the applicant. (5 CCR 18000(d)) 75 Notice of Action, Application for Services means a written statement of specific information issued by the contractor that informs the family of the contractor’s decision to approve or deny childcare and development services. Notice of Action, Recipient of Services means a written statement of specific information issued by the contractor informing the family changes to services in accordance with 5 CCR 18082.2, 18082.3, 18114, or 18066.5. Parent means a biological parent, adoptive parent, stepparent, foster parent, caretaker, relative, legal guardian, or domestic partner of the parent as defined in Family Code Section 297, or any other adult living with a child who has responsibility for the care and welfare of the child. (WIC 10213.5(u)) Parental Incapacity means the temporary or permanent inability of the child’s parent(s) to provide care and supervision of the child(ren) for part of the day due to a physical or mental health condition. (5 CCR 18078(r)) Parent involvement and education means those activities specifically designed to include parents in the education of their children, help parents participate in the program, and enhance their understanding of child development. (5 CCR 18270.5) Parent survey means a questionnaire completed by the parent to assess the childcare program or services that the child and family receive. The parent survey asks for information about how the program helps parents support their child’s learning and development and meets the family’s needs. (5 CCR 18270.5) Position of fiscal responsibility or control for purposes of Immediate termination, includes any authority to direct or control expenditure of, or any access to, state or federal childcare and development funds received pursuant to this section whether that authority or access is conferred based on the person’s status as an employee, director, manager, board member, or volunteer, or based on any other status. (WIC 10399) Persistent and serious behaviors means either repeated patterns of behavior that significantly interfere with the learning of other children, or interactions with peers and adults that are not responsive to the use of developmentally appropriate guidance. This includes, but is not limit to physical aggression, property destruction, and self-injury. (WIC 10491) Private agency or Private contractor means an entity other than a public agency that is tax exempt or non-tax exempt and under contract with the CDSS for the provision of childcare and development services. (5 CCR 18013(q)) Program means a general childcare and development program, as describe in Chapter 7 (commencing with Section 10240), a childcare and development service for children with severe disabilities, as described in Chapter 9 76 (commencing with Section 10270), or a migrant childcare and development program, with the exception of migrant alternative payment programs, as described in Chapter 6 (commencing with Section 10235), that serves children from zero to five years of age, inclusive. (WIC 10491) Program Director means a person who is qualified to serve as a program director, pursuant WIC Sections 10242 and 10380.5. Program self-evaluation process means those activities and procedures used by the contractor to evaluate its program quality and compliance with applicable laws, regulations, and contractual provisions. (5 CCR 18270.5(i)) Provider a. For purposes of abandonment of care, means any person or entity that is contracted or reimbursed to provide subsidized childcare and development services. This may include, but is not limited to, voucher- based program providers, family childcare home provider, eligible license- exempt provider, or contractor that provides subsidized childcare and development services directly to children. b. For purposes of implementation of Section IX, Building a Better Early Care and Education System, see definition for family childcare provider above. Public agency or Public contractor means a school district, community college district, county superintendent of schools, campus of the California State University or the University of California system, county, city, or other public entity under contract with the CDSS for the provision of childcare and development services. (5 CCR 18013(r)) Rate Sheet means a listing the rates charged by the child care provider, including discount or scholarship policies, if any, along with a statement signed by the provider confirming that the rates charged for a subsidized child are equal to or less than the rates charged for a nonsubsidized child. (WIC 10228(c)) Reasonable and necessary costs are those costs that do not exceed what an ordinarily prudent person would incur in the conduct of a competitive business under the circumstances prevailing at the time of the decision to incur the cost, and whether the cost is of a type recognized as ordinary and necessary for the operation of the entity or the proper and efficient performance of the award. (45 CFR 75.404; 5 CCR 18013) Recertification means the formal processes the contractor goes through to collect information and documentation to determine that the family and/or child continues to meet the criteria for receipt of subsidized child care and development services as specified in WIC 10271(a)(1)(A) and (a)(1)(B), respectively. The dated signature of the contractor's authorized representative 77 on an application for services certifies that the criteria have been met and begins the period of eligibility. (5 CCR 18078(t)) Recipients of service means families and/or children enrolled in a childcare and development program subsidized by the CDSS. (5 CCR 18078(u)) Regional market rate ceilings means the maximum amount calculated by the CDSS that providers in different regions of the state may be reimbursed for the same type of childcare for the same age child in accordance with statutory ceilings currently in effect. (5 CCR 18074.1(c)) Restricted income means income which the donor designates may only be expended for specific limited purposes that would be reimbursable according to the contract. (5 CCR 18013) Sectarian organization or sectarian childcare provider means any organization or provider that engages in religious conduct or activity or that seeks to maintain a religious identity in some or all of its functions. (45 CFR Part 98.2) Self-Certification of Income means a declaration signed by the parent under penalty of perjury identifying: (5 CCR 18078(v)) a. To the extent known, the employer, address, and date of hire and stating the rate and frequency of pay, total amount of income received for the preceding month(s), the type of work performed, and the hours and days worked; or b. Families who are recipients of a means-tested program, pursuant to WIC 10271, the income declared on the application for the means-tested government program, and a statement indicating the parent does not have access to the application. c. That the parent does not have income from employment and any source of income used to support the family including non-wage income. Service agreement is a legal instrument by which the agency purchases services needed to carry out the childcare and development programs. Legal instruments that include services which are clearly incidental to the agreement are not considered service agreements. Service delivery area means the community, geographic area, or political subdivision in which the childcare and development services are to be provided as specified in the Request for Applications. (5 CCR 18000(f)) Site supervisor means a person, who, regardless of his or her title, has operational program responsibility for a childcare and development program at a single site. A site supervisor shall hold a permit issued by the Commission on Teacher Credentialing that authorizes supervision of a childcare and 78 development program operating in a single site. The CDSS may waive the requirements of this subdivision if the CDSS determines that the existence of compelling need is appropriately documented. (WIC 10213.5(aa)) Social service agency means an agency that, in the course of day-to-day business, provides personal counseling, personal or group therapy provided by personnel properly certified or licensed under California law. Examples of such agencies include county welfare departments and county mental health departments. Staff development program means those activities that address the needs, interests, and skills of program staff or service providers to improve program quality. (5 CCR 18270.5(j)) Stage 1 means the first stage of CalWORKs childcare services. Stage 1 childcare services are administered by the CDSS through county welfare departments pursuant to WIC 10371. Stage 1 childcare begins when authorized by the county welfare department. (5 CCR 18400(n)). Stage 2 means the second stage of CalWORKs childcare services. Stage 2 childcare services are administered by the CDSS through contracts with Alternative Payment program providers pursuant to WIC 10372. Stage 2 childcare begins when the county welfare department determines that a CalWORKs family is stable and transfers the family to a Stage 2 childcare contractor for childcare services, or a family applies and is found eligible for Stage 2 services. (5 CCR 18400(o)) Stage 3 means the third stage of CalWORKs childcare services. Stage 3 childcare services are administered by the CDSS through contracts with Alternative Payment program providers pursuant to WIC 10372.5. Stage 3 childcare begins when a CalWORKs family receiving Stage 1 or Stage 2 childcare services has fully utilized the family’s twenty-four (24) months of eligibility to Stage 1 and Stage 2 childcare services following the date the adult stopped receiving cash assistance. (5 CCR 18400(p)) Standard reimbursement rate means that rate established by the CDSS pursuant to WIC 10280 and 10213.5(ab). Start-up costs also known as “service level exemption” means those expenses an agency incurs in the process of opening a new or additional facility before the full enrollment of children. State median income means the most recent median income for California families as determined by the State Department of Finance (DOF). (WIC 10271.5(c)) Subcontract means a written agreement between the contractor and any entity to perform a service on behalf of the contractor. 79 Subcontract for childcare and development services means a specific type of subcontract where the contractor enters into a written agreement with another entity to carry out all or part of the childcare and development services. Subsidized families means eligible families who are receiving childcare and development services and on whose behalf the CDSS is providing a reimbursement, in whole or in part. (5 CCR 18074.1(d)) Support services means those services which, when combined with childcare and development services, help promote the healthy physical, mental, social, and emotional growth of children and families. Support services include, but are not limited to: protective services, parent training, provider and staff training, transportation, parent and child counseling, child development resource and referral services, and child placement counseling. (WIC 10213.5(ae)) Suspension means any removal of a child from all or part of the program day, or the prevention of a child from attending the program for one or more days, in response to the child’s behavior. (WIC 10491) Time Out means that a family receiving CalWORKs Stage 1 or Stage 2 childcare services becomes ineligible for Stage 1 or Stage 2 because the adult has been off cash aid for twenty-four (24) months. (5 CCR 18400(r)) Total contract amount for the purposes of determining the limit of allowable administrative and program support services for Alternative Payment type programs means either the initial maximum reimbursable amount or the total of direct payments to providers, which includes family fees for certified children and interest earned on advanced contract funds, plus reimbursable administrative and support services costs, whichever is greater. (5 CCR 18013(u)) Total countable income means all income of the individuals counted in the family size (5 CCR 18078(w)) including, but not limited to, the following: a. Gross wages or salary, advances, commissions, overtime, tips, bonuses, gambling, or lottery winnings; b. Wages for migrant, agricultural, or seasonal work; c. CalWORKs cash aid; d. Gross income from self-employment less business expenses with the exception of wage draws; e. Disability or unemployment compensation; f. Workers’ compensation; 80 g. Spousal support, child support received from the former spouse or absent parent, or financial assistance for housing costs or car payments paid as part of or in addition to spousal or child support; h. Survivor and retirement benefits; i. Dividends, interest on bonds, income from estates or trusts, net rental income or royalties; j. Rent for room within the family’s residence; k. Foster care grants, payments or clothing allowance for children placed through child welfare services; l. Financial assistance received for the care of a child living with an adult who is not the child’s biological or adoptive parent; m. Veterans’ pensions; n. Pensions or annuities; o. Inheritance; p. Allowances for housing or automobiles provided as part of compensation; q. Insurance or court settlements for lost wages or punitive damages; r. Net proceeds from the sale of real property, stocks, or inherited property; or s. Other enterprise for gain. Total expenditures means all costs for the provision of subsidized services under the contract and any nonsubsidized services which are provided in commingled classrooms. (5 CCR 18013(v)) Variable schedule as provided in WIC 10227.5, means a schedule in which the total number of hours worked each week is inconsistent and/or unstable from week to week. (5 CCR 18078) Vocational training means an educational or job training/apprenticeship/internship program courses and/or classes leading to a recognized trade, paraprofession or profession. (5 CCR 18078) Unnecessarily increase the value means an improvement of a site beyond what is required to meet California Code of Regulations, title 22, Community Care Licensing Standards 5 CCR 18013 81 Unrestricted income means income that has no restrictions regarding use by the donor, and income restricted by the donor for purposes that are not reimbursable according to the contract, including income for services to children not subsidized by the contract. (5 CCR 18013) Unsubsidized or nonsubsidized means children or families that are not subsidized as defined above. (5 CCR 18074.1(e)) Use allowance means an alternate method for claiming the use of the contractor's assets as a cost when depreciation methods are not used . (5 CCR 18013(y)) Voucher-based programs see “Alternative payment program” definition. Welfare-to-work activity means a county welfare department approved work activity, as defined above. (5 CCR 18400(s)) California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 1 of 32 EXHIBIT 3 FISCAL YEAR 2022–23 GENERAL CHILD CARE AND DEVELOPMENT PROGRAM EXPANSION FUNDS REQUEST FOR APPLICATIONS Instructions Contractors must read the accompanying instructions when completing this Request for Applications (RFA). The General Child Care and Development Program (CCTR) Expansion RFA Program Overview and Instructions may be accessed on the CCTR RFA web page. Support with this Application Should you have any questions, please contact the Child Care and Development Division, CCTR RFA Team by email at CCTRRFA@dss.ca.gov or by phone at 916-639-7944. Section I – Contracted Program Type This applicant serves, or will serve, the following contracted program type (check all that apply): Center-Based Program A Child Care Center (or Day Care Center) is usually located in a commercial building, where supervision is provided for infant to school-age children in a group setting for periods of less than 24 hours. Family Child Care Home Education Network (FCCHEN) Program The contracting agency operates a “network” of licensed and pre-selected family child care homes who provide quality early learning and care programs for children. The agency provides family child care home providers with coaching, technical assistance, and support provider relationships with families. Independent Licensed Family Child Care Home (FCCH) Provider* [NOT ELIGIBLE] Independent providers care for small groups of children in a residential building such as a house, apartment, or condo unit. *PLEASE NOTE: Independent Family Child Care Home Providers are not eligible for direct CCTR and will automatically be disqualified. Please contact your local Resource and Referral Agency (R&R) if you are interested in joining a FCCHEN. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 2 of 32 Section II – Contractor Information Please submit only one application per agency/applicant. Agency Headquarter Information Legal Name of Contractor: City of Santa Ana Parks & Recreation (PRCSA) Headquartered County: 30 Orange Vendor Number: TBD Agency Legal Business Address: 20 Civic Center Plaza, M-23 City: Santa Ana Zip Code: 92701 Please provide the following information on the best contact person who is authorized to receive notifications regarding this funding opportunity: Contact Person Name and Title: Cindi Sangenito, Management Analyst Contact Person Telephone Number: (714) 647-5374 Contact Person Email Address: csangenito@santa-ana.org Executive Director Executive Director Name: Hawk Scott Executive Director Telephone Number: (714) 571-4204 Executive Director Email Address: hscott@santa-ana.org Executive Director Prior Affiliations: Program Director Program Director Name: Timothy Pagano Program Director Telephone Number: (714) 571-4219 Program Director Email Address: tpagano@santa-ana.org Program Director Prior Affiliations: City of Brea, City of Walnut, City of Chino, City of Riverside, City of San Dimas California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 3 of 32 Section III – Legal Status of Contractor Select the contractor’s legal status. Check one box below: City or City Agency County or County Agency State or Federal Agency State College or University, Community College, County Office of Education, School District Tribal Council/Military Installation Private for-profit/Private nonprofit Charter School (direct funded) Are you a current child care contractor with the State of California? Yes No For current contractors only, are you currently on provisional status, as defined in W&IC Section 10397(a)(2)? Yes No N/A For current contractors only, select a box for each program type you currently operate. Select all that apply: General Child Care and Development (CCTR) Migrant Child Care and Development (CMIG) Handicapped Child Care and Development (CHAN) CalWORKs Stage 2 (C2AP) CalWORKs Stage 3 (C3AP) California Resource and Referral (CRRP) California Migrant Alternative Payment (CMAP) California State Preschool Program (CSPP) Head Start Program California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 4 of 32 Section IV – County or Counties of Service Name of county or counties the contractor will serve with this funding and specify the percentage of funding being requested for each county to reflect services to be provided in these areas: The City of Santa Ana Parks, Recreation and Community Service Agency (PRCSA) is located in the County of Orange and this will be the only location that our programs will serve. All funds received will be used here. PRCSA will be providing recreation based after school care for children aged 5 -12 years, as well as full day summer camp programming. These programs will focus on serving low-income, at-risk youth in the following zip codes: 92701, 92703, 92704, 92706 & 92707, which are all priority 1 locations, per the Local Planning Council Report from FY 21/22 California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 5 of 32 Please indicate the number of children your agency is newly proposing to serve in Full-Day/Full- Year programs in the following age groups: How many new FCCHEN home provider sites are you proposing to add with this RFA? How many new Center Based sites are you proposing to add with this RFA? 7 Section V – Slots Requested Age Group Proposed Number of New Slots Infants (up to 18 months) Toddlers (18 months to 36 months) Three and Four-Year-Old School Age (Ages 5+) 515 California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 6 of 32 Section VI - Program Operation Plans Are you currently operating a licensed child care center? Yes No N/A — No plans to operate a child care center Are you currently operating a licensed FCCHEN? Yes No N/A — No plans to operate a FCCHEN If the answer to either or both above questions is “No”, please provide a date and explanation that details when the home provider and/or sites are expected to be open for services. Expected Date(s) first operation: Fall 2023 Please provide details regarding program operation plans: The City of Santa Ana is a local municipal agency that will run recreation-based programs at each of the designated centers. PRCSA intends to start these programs by Fall 2023. The exact start dates for each location will vary based on staffing, funding and facility readiness. PRCSA will operate after-school care for children in K-6th grade as well as summer camp program opportunities. Every location will serve the community in Priority 1 designated areas. PRCSA will use a 1:10 staffing to participant ratio and will bring on staff, as needed, depending upon the amount of registrants we have for each location. A monthly schedule will be created for each center showing various activities, games, dance, music, sports and arts programming during the after school program. Similarly, a weekly schedule will be created detailing activities that will take place during summer camp program. A Program Coordinator will be assigned to oversee all centers to administer all required auditing procedures, registration and participant intake as required by the contract funding parameters. In addition, each location will have Recreation Leaders that will lead daily programming for the after-school care program and the summer camps. Programs will be open from approximately 3 pm until 6 pm during the school year and from 7:30 am until 5:30 pm for full-day summer camp programming. Summer camp programs will have certified Water Safety Instructors teaching each participant how to swim. Weekly excursions will take place during the summer camps that will take the participants on various excursions, each of which will pertain to the camp theme of the week. These programs will assist residents with little or no-cost after school and day camp programming options who face barriers in being able to provide quality care for their children while at work. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 7 of 32 Section VII – Intent to Subcontract Services Does this applicant intend to subcontract any portion of the contract to another agency? No — Not intending to subcontract Yes — If yes, please provide the following information included with your application: • Form CCD 30B Subcontract Certification (attach additional sheets as necessary) • Sample Subcontractor Memorandum of Understanding that includes the required elements and California Code of Regulations, Title 5 (5 CCR) Section 18031. If “Yes” to above, has the intended agency been a subcontractor during the last three calendar years? Yes — By checking “Yes”, your agency intends to establish a subcontract relationship with another entity to implement the CCTR services described in this application. No — By checking “No”, the subcontractor has not subcontracted within the last three calendar years. Please note: All applicant agencies must follow the subcontract requirements detailed in the 5 CCR, Sections 18026–18032, and the Funding Terms and Conditions for subcontracting services. Management and/or Direct Services subcontracts must be audited in accordance with the California Department of Social Services Audit Guide developed by the CCDD Audits and Investigations Division. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 8 of 32 Section VIII – Contractor Certification I, the official named below, certify under penalty of perjury that I have read the full contents of this application and that, to the best of my knowledge and belief, the information in this application and any attachments hereto are true and correct. I further certify the applicant agency will fulfill all of the agreements, certifications, and conditions described in this RFA, appendices to the RFA, and this application as well as abide by all applicable federal and state laws. I declare: • I have supervisory authority over the child development program, have actual, personal knowledge of the information provided in this Application and certify that it is true and correct in all material respects. • I am familiar with and will ensure that the Contractor complies with all applicable program statues and regulations, including: • Subcontracting requirements, including competitive bidding, CDSS approval, and audit requirements in 5 CCR, Section 18026. • Prohibitions on conflicts of interests, including (i) the assurances required to establish that transactions with officers, directors and other related party transactions are conducted at arm’s length, and (ii) employment limitations stated in Welfare and Institutions Code, Section 10399. • Cost reimbursement requirements, including reimbursable and non- reimbursable costs, documentation requirements, the provisions for determining the reimbursable amount and other provisions in 5 CCR, Section 18033. • Accounting and reporting requirements in 5 CCR, Section 18063. • Operational and programmatic requirements, and all fiscal and program attachments in Sections IX and X. The Authorized Representative must provide the following information: Printed Name: Timothy Pagano Title: Recreation Manager Telephone Number: (714) 571-4219 Email-Address: tpagano@santa-ana.org Signature: Date of Signature: California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 9 of 32 Section IX – Certifications and Fiscal Information Fiscal Information Required for All Applicants 1. Self-Certification for Franchise Tax Board and Department of Tax and Fee Administration By checking this checkbox, the applicant certifies that they are not a delinquent tax payor on the list located on the Franchise Tax Board web page. By checking this checkbox, the applicant certifies that they are not a delinquent tax payor on the list located on the Department of Tax and Fee Administration web page. By checking this checkbox, the applicant certifies that they are not on the list of sanctioned entities located on the Office of Foreign Assets Control web page. 2. Registration in the System for Award Management* Please enter your agency’s Unique Entity Identifier Number: KZE9G2M4GRX9 *SAM registration is required for any entity to bid on and get paid for federal contracts or to receive federal funds (Federal Acquisition Regulations (FAR) Part 52.204-7). To find your agency’s Unique Entity Identifier Number, visit the System for Award Management web page. 3. Board of Directors Approval Does the applying agency have a Board of Directors? No Sole proprietorship Other; Please explain Yes If the applying agency has a Board of Directors, the applicant must self-certify that it has received Board of Directors approval to receive CCTR Expansion Funding. Yes, the Board of Directors has approved the applicant’s receipt of CCTR Expansion funding should an award be extended. No, the Board of Directors has not approved the applicant’s receipt of CCTR Expansion funding should an award be extended. Please note: Public agencies without Board approval are not eligible for CCTR Expansion funding. N/A, Please provide reason; i.e. the Board did not have a scheduled meeting during the application process If N/A, please provide the date that Board approval is expected. Date California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 10 of 32 Section X – Fiscal Attachments Please consult the “Requirement” information to determine if each form is required for your agency. Program Staffing Plan • Requirement: For all applicants • Instructions: Include this completed form with your RFA submission. Payee Data Record (STD. 204) • Requirement: Agencies who are not a current child care contractor with the State of California • Instructions: Complete sections 2 through 6; information on sections 2, 4, and 6 must be consistent with the information identified on the application cover sheet. Proof of “Current” Charity Status with the California Department of Justice • Requirement: For Charitable Corporations, Unincorporated associations, and Trustees only If the organization is classified as a California nonprofit public benefit corporation or has received federal tax exemption under United States Code (USC) Section 501(c)(3), it is considered a charity. (California Corporations Code (CCC), Section 5110 et seq.) Registration with the Attorney General’s Registry of Charitable Trusts is required for all California public benefit corporations and other types of organizations that hold assets for a charitable purpose. (Government Code (GC) § 12580 et seq.) • Instructions: Visit the California Department of Justice Registry Verification Search web page. Enter your organization’s name in the ‘Organization Name’ field and select the link with your organization’s name that corresponds with the ‘charity registration’ record type. Save a screenshot of the subsequent page showing the registrant details and mailing address. Proof of 501(c)(3) or 501(c)(5) Status • Requirement: For Charities and Non-Profits only If the organization is classified as a California nonprofit public benefit corporation or has received federal tax exemption under USC Section 501(c)(3), it is considered a charity. ((CCC), Section 5110 et seq.) Organizations that do not file for 3 consecutive years automatically lose their tax -exempt status. An automatic revocation is effective on the original filing due date of the 3rd annual return or notice. (USC Section 6033(j)) • Instructions: Visit the Internal Revenue Service Tax Exempt Organization Search web page. You may search by your organization’s name or Employer Identification Number (EIN). Click on your organization’s name. Save a screenshot of the subsequent page showing the search results. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 11 of 32 Section XI – Program Attachments All applicants must complete and submit a program calendar for FY 2022–23 (April through June 2023) and FY 2023–24. Click on the links below to access each fiscal year Program Calendar. • FY 2022–23 Program Calendar (Form CCD 23) • FY 2023–24 Fiscal Year 2023–24 Program Calendar (Form CCD 33) Section XII – Program Narrative All applicants must compose and submit a program narrative. Instructions for the Program Narrative are available in the FY 2022–23 CCTR Expansion RFA instructions on the CCTR RFA web page. Instructions for Completing the Program Narrative Written responses must be completed in accordance with the Scoring Rubric and information described in this section of the application. As agencies complete the written program narrative, the following requirements must be noted: 1. Information in the application must be relevant and unique to the program administered by the applicant. 2. Applicants will be required to describe the program that the agency will implement. Any application containing false or misleading information is cause for disqualification. 3. An application that is plagiarized in any part or form from another application will automatically be rejected. Agencies cannot submit an application where the text has been copied from another agency’s previous or current application, whether another agency voluntarily or involuntarily provided the information. 4. Each individual question must be completed following the format requirement provided. 5. Please note answers must not exceed the space provided (two pages maximum, per section). 6. Additional pages will not be accepted or read. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 12 of 32 Section 1: Agency Philosophy and Introduction (10 points) Provide a general overview of the agency’s child care and development services for children and families. The agency may also use this section to explain its unique features and philosophies, which are important and promote understanding of the program. The City of Santa Ana is a local municipality offering recreation-based after-school care and summer day camp programs for the community. We are the second largest city in Orange County and recognized as the county seat. The City's mission is to deliver efficient public services in partnership with our community which ensures public safety, prosperous economic environment, opportunities for our youth, and a high quality for residents. The Santa Ana Unified School District (SAUSD) operates Engage 360, an expanded learning program, at a majority of the surrounding elementary schools. These programs are impacted and have an extensive wait list at multiple sites and PRCSA is positioned to provide after school care for those participants in K-6 grade that find themselves wait listed. Santa Ana's socio-economic status places all PRCSA proposed sites in a Priority 1 as identified by the most recent report provided by the Local Planning Council (FY 2021/2022). PRCSA is proposing to provide school-age programming services to assist local youth by providing them an opportunity to participate in an after school program close to their home & school and to engage in activities that will improve overall health, wellness and interpersonal skills. During Summer Camp, PRCSA will work with the City of Santa Ana's Aquatics Section to offer free swim lessons to all participants each week, as well as, incorporate a local excursion to various locations throughout Southern California. Through these school-age programs, PRCSA will be able to establish a strong foundation for families and the community by providing child care and resources that are useful to the community and beneficial to the individual participants after school time. If provided the funding associated with this contract, PRCSA would be afforded an opportunity to enhance proposed locations for after-school care and summer camps for Santa Ana residents. Funding would also foster stronger relationships with PRCSA's community based partners and enable PRCSA to increase collaborative efforts with more local service groups. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 13 of 32 Section 1: Agency Philosophy and Introduction (additional page, if needed) California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 14 of 32 Section 2: Needs Assessment/Service Delivery Area (10 points) Describe the gaps in the service delivery area(s) and how your program plans to address these needs. Include steps that will be taken to address these gaps, which must include days and hours of operations when services will be provided, in order to meet the commun ity’s need for subsidized child care and development services to children and families that meet the eligibility requirements. You must include resources used including LPC priority(ies) and zip code(s) where services will be provided. The Santa Ana Unified School District offers after school programming through the district operated Engage 360 Program in Zip Codes 92701, 92704, 92706 & 92707. These Zip Codes have been identified as Priority 1 locations according to the most recent assessment from the Local Panning Council (FY 21/22). Multiple Engage 360 programs currently maintain a wait list and there are several opportunities for PRCSA to provide after school care for school-age children that will give them a safe space to go where they can participate in various recreation activities, complete their homework and socialize in-lieu of not having an after school program to attend. PRCSA collaborates with the Santa Ana Library, Santa Ana Police Department and TRF to provide after school care through various programs for Santa Ana youth who are identified at risk for drug abuse, gang involvement and crime. Making these programs available gives Santa Ana youth an opportunity to be associated with a safe place and enhances the probability of keeping them o ff of the streets and out of trouble. The Santa Ana After School Program will operate from the end of the school day, between 2 and 3:30 pm and go up until 6 pm. During the summer, camp programs will be Monday to Friday from 7:30 am to 5:30 pm. This will provide an alternative solution for child care time frames needed the most by working parents. PRCSA will be promoting the programs at the local schools and, if possible, reaching out to families on the waiting list for Engage 360. In addition, PRCSA will utilize it's own marketing strategies and avenues as well as that of the City to engage parents and participants for enrollment in the program. PRCSA staff will assist parents by checking each enrollee's eligibility to ensure PRCSA is qualifying interested families who meet the criteria as set forth by the parameters for this funding. During PRCSA's Summer Camp programming, the City of Santa Ana's Aquatics Section will be offering swim lessons for each participant signed up for the 10 week program. This will be an added value benefit to residents and will help decrease the likelihood of preventable drowning incidents. PRCSA established a Community Engagement Section in our Recreation Division that will use various social media platforms to help market both the after school program and day camp program opportunities to Santa Ana residents. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 15 of 32 Section 2: Needs Assessment/Service Delivery Area (additional page, if needed) California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 16 of 32 Section 3: Children to Be Served (10 points) Using your needs assessment, describe the specific age group(s) you are proposing to serve and how will you use these contract funds to expand services to meet the needs of the community. PRCSA will offer the after school care program to be designed for ch ildren from ages 5 through 12 years old, taking care of kindergarten through sixth grade. We will be able to take the burden off of parents who were unable to enroll their children in the free after school program SAUSD is providing, due to the overwhelming number of families needing this service, causing unprecedented wait lists. PRCSA will continue with our summer camp full day care, focusing on the same ages of 5 through 12. We will be including swim lessons with our summer camp. This will benefit the kids of the SAUSD and all priority 1 level zip codes with FREE swim lessons, something they may not be able to do on their own. Drowning is 100% preventable and we plan on teaching all participants of our summer camps how to swim. This is a new service that expands our standards to the community by including these "Splash Camps" to our residents. In 2020, Santa Ana’s population was 333,000 with a median age of 32 and a median household income of $64,427. The largest ethnic groups in Santa Ana are Hispanic at 75%. In 2020, 2/3 of residents were US Citizens vs. the CA average of 90%. As of 2020, 42% of Santa Ana residents were born outside of the US, which is higher than the nat ional average of 13.5%. The economy in Santa Ana has its largest focus in Manufacturing, followed by Retail Trades and then Food Services. Males in the City earn at a rate of 1.25 times that of female residents. Only 64% of residents over 18 hold a High School Diploma and 17% of adult residents 25 years or older hold a Bachelor’s Degree. Based on the latest LPC Community Assessment Report, 47% of children who enter Kindergarten are not academically or socially assessed at current developmental age. More than 46% of children do not meet the CA Standards for 3rd grade English-Language Arts, furthermore, 42% of students do not meet 3rd grade Math Standards. In 2021, more than 1 in 10 students were considered chronically absent, have far below average attendance. Subsequently, nearly 50% of High School graduates in Santa Ana do not meet basic college entrance academic requirements. Our City has a significant growing homeless and unhoused population, more than 30,000 students meet the criteria for being considered homeless and live highly unstable and often unsafe housing situations. Many children live in cars, motels or communal areas of relatives homes, utilizing gas stations and other spaces for cleaning themselves. The overcrowding was very evident during the 4 Pandemic Waves as COVID affected the City of Santa Ana disproportionately due to highly dense living arrangements. PRCSA, in collaboration with the Santa Ana PAAL Program and TRF will be responding to the unmet needs in the community, limiting gang initiations and exposure to gangs, while engaging children in meaningful opportunities during out of school times. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 17 of 32 Section 3: Children to Be Served (additional page, if needed) California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 18 of 32 Section 4: Administration and Staffing (10 points) For All Applicants: • Describe the roles and responsibilities of the core administrative staff responsible for the audit, fiscal and programmatic components of the contract. • Does your program have existing staff who can meet the qualifications for the services proposed? Explain. (See Teacher Qualification Section of the General Staffing Qualifications web page) • If your program does not have sufficient staff to meet qualifications for proposed services, please explain the plan to acquire sufficient qualified staff. • Describe how you will utilize contract funds to support and enhance program staffing and staff development. For FCCHEN Applicants ONLY: • You must include how you will address program quality, training and support, ongoing monitoring of family day care home providers, recruitment/enrollment of families, and staff qualifications. The City of Santa Ana has a highly seasoned senior and executive leadership team, including several members that specialize in compliance and regulations, overseeing more than $700 Million in funds annually. The Executive Director of Parks and Recreation has over 20 years experience administrating Community Services. Our Fiscal and Program Management team has an extensive background that includes a wealth of experience in City Management and Government Contracts. Direct Staffing will include Recreation Program Coordinator position who will be responsible for the daily attendance, time keeping and any reconciliation. We currently have Supervisors for each location that will assist and oversee the audits and fiscal issues for the Recreation Program Coordinator assigned to the contract programs. The Recreation Program Coordinator will also verify eligibility of the residents of the community who apply for the after school care and summer camps. PRCSA will use our Program Leader & Program Coordinators positions to handle the programmatic components of the contract and will update the programs based on the age and grade of the children in attendance. They will set up monthly plans for activities that will be recreation based and have arts, science, technical and leisure components. PRCSA will bring on a CCTC Permitted Senior Management Analyst to oversee all compliance of the programs for all of the centers in operation with enrollees. There will be Community Center Aides, Administrative Aides, and a Management Analyst to assist with all administrative tasks, audits, training verifications, compliance matters, etc. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 19 of 32 Section 4: Administration and Staffing (additional page, if needed) California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 20 of 32 Section 5: Previous Experience (10 points) • Please describe your program’s experience with operating licensed direct service/center-based programs or with administering FCCHEN programs. • Describe your program’s experience with delivering federal and/or state contracts. PRCSA has had an ongoing after-school program, as well as a summer camp program for several years. Our programs are recreation based and designed to fit the needs of those attending. Based on the location and the ages of the children who participate, we wi ll have arts, science, sports or open play. We have offered tutoring when partnering with the City's Library staff and also have designated areas for teens to study, relax and socialize in a comfortable and safe environment. We have hosted elementary school-age kids, as well middle school and high schoolers for various programs, including our Teen Excursion Program, Wilderness Club and now our Aquatics Program. In recent years with the pandemic, we have not had much opportunity to use federal and/or state contracts. We have had a recent change to our Administration Staff and although they have not used state or federal contracts for recreation purposes, they are familiar with grant funding from a Public Works perspective and understand the details that come with applying these funds for use. Staff is familiar with audit reporting and filing for grant continuation and understands the caveats that come with approval of specialized state and federal funding. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 21 of 32 Section 5: Previous Experience (additional page, if needed) California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 22 of 32 Section 6: Education Program and Assessment (10 points) • Describe how the program ensures developmentally, linguistically, and culturally appropriate program approach; is inclusive of children with special needs; encourages respect for the feelings and rights of children; supports children’s social and emotional de velopment; provides for the development of cognitive and language skills; promotes each child’s physical development by providing sufficient time, indoor and outdoor space, equipment, materials, and guidelines for active play and movement; and promotes and maintains practices that are healthy and safe. Include curriculum(s) and assessment(s) tools used or propose to use. • What, if any, assessment system do you currently use or what assessment system are you proposing to use? This response must align with all age group(s) indicated in your response to Section 3 above. Our Programs will ensure that Children’s feelings and rights are respected at all times. In regard for parents’ rights and children’s personal rights is an integral part of PRCSA services. Each of these required elements are included in the program’s Standards of Conduct, are reviewed annu ally with all program staff and during the orientation process for new personnel. Positive discipline techniques are employed when working with all children and intervention strategies are utilized with children that may be displaying atypical or disruptive behaviors. Staff Development Based on a review of operations, parent feedback, assessment outcomes, School -Age Environmental Reviews (SACRS), Performance Reviews and health/safety evaluations; PRCSA will focus our Professional Development efforts on expanding core competencies. We will select “Deeper Dives” to ensure all staff able to successfully deploy all key components of our programs and curricula. PRCSA believes that training, continued professional development and access to the latest/most innovative practices creates well-rounded and enthusiastic team members. Therefore, we heavily invest in Professional Growth and Development from our General Maintenance Staff to our highest managerial team members. Administrative Training Tracts/Opportunities and Mandates includes General Managerial training for Site Coordinators, Administrative Directors, Coordinators and a minimum of 32-hours of leadership trainings and 40 hours of internal and external recreation staff minimum training requirements. PRCSA’s Staff Development Program focuses on improving quality throughout the organization and overall increasing the number of highly skilled and experienced leaders we develop within our division to provide best-practice services to children and the community. PRCSA staff will attend a myriad of conferences each year to ensure the programs have the latest field information and our adhere to the highest standards. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 23 of 32 Section 6: Education Program and Assessment (additional page, if needed) Each team member is evaluated annually based on specific performance criteria and in comparison to job expectations. Performance improvement plans are developed for significantly under performing staff with improvement plans for a specified period of time. The plan is developed between the employee and supervisor who meet frequently to review progress and determine next steps. PRCSA conducts an annual Pre-Service during July. At Pre-Service, all staff participate in 8 full days of training and education. Topics include reviews of prior year outcomes, policy and procedures updates, health/safety, child abuse prevention, First Aid/CPR and HR refreshers and updates. Staff also receive new quality measures and mental health training for engagement in activities focused on children’s individualized learning experiences. The Desired Results Developmental Profile (DRDP) assessment instrument that is designed for teachers to observe, document, reflect on the learning, development and track the progress of children, birth through 12 years of age, enrolled in ECE and After-School programs will be utilized by PRCSA. Our Program Coordinator will set-up initial and ongoing trainings via Webinar’s, DRDP Online Training Portals and collaborate with our partner TRF as they have DRDP Cert ified Train-the-Trainers on staff. The DRDP will be used three times each year to gauge the developmental progress of each child and determine progress towards achieving program-wide school readiness goals. These targets are initially established based on the analysis of data from the previous program year and revisited using the baseline data of the first assessment cycle. This second layer of data analysis will allow TRF to both learn from the lessons/data of the previous year while being cognizant of th e need to individualize based on the group of children currently enrolled. Classroom level data will be utilized to inform weekly lesson planning for the entire class and for individualization. Program data will be analyzed by age, special needs and English Language Development. Staff will input ratings into the DRDP Online data system, which allows reports to be generated for each assessment. In conjunction with parent input, individual data will be used to design the instructional plan for each child. This assessment report will be reviewed with parents within 30 days of completion. This data is also used with developmental screening data to determine the need for additional service referrals, interventions or evaluations. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 24 of 32 Section 7: Facilities and Physical Environment (10 points) • What is your plan to ensure that infants and toddlers will be served in a licensed facility? • Describe how you intend on meeting health and safety requirements. PRCSA is a local municipality and will not be providing care to infants or toddlers at this time. We will be meeting any of the necessary requirements for health and safety for our school -age children for the after school program as well as our summer camp program by following all required trainings, documentation and certifications as needed per the State. Our facilities have been certified safe for occupation by the Building and Planning Division for the City of Santa Ana and the County of Orange. PRCSA recognizes the development of children is impacted by many factors and in addition to curriculum and assessment for children, assessment of staff and the classroom environment is also taken into consideration. The School-Age Environment Rating System-Revised (SACERS) is used to enhance the interactions and environments children are immersed in each day. SACERS is utilized twice during the program year to ensure effective program planning and instruction that supports children’s individual growth and development. This data is also used to improve program practices and as part of Continuous Quality Improvement. Indoor and outdoor environments have been designed to emphasize the use of ethno -centric, authentic and natural materials based best practice mo dels. Our Parks and Playgrounds provide nature as a part of many modalities, instilling a sense calmness in children, which helps self-esteem to thrive. Our environments will be designed to encourage motor development, promote exploration and build children’s independence. Materials will be organized in specific learning areas, culturally responsive and inclusive of children with special needs. Each classroom will have age-appropriate materials that support and respect differences of gender, culture, language, ethnicity, and family composition. Interest areas will provide opportunities for children to be more intentional about their play, which becomes more elaborate and complex as they develop. SACERS is used twice a year to ensure the program is providing spaces that are safe for children, conducive to building positive relationships and fosters learning. Taking classes outside and bringing nature indoors will prove an excellent benefit and strengthen the concepts of interdisciplinary learning. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 25 of 32 Section 7: Facilities and Physical Environment (additional page, if needed) California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 26 of 32 Section 8: Family Engagement (10 points) Family engagement is an interactive process through which staff, parents, families, and their children build positive and goal-oriented relationships. It is a shared responsibility of families and professionals that requires mutual respect for the roles and strengths each has to offer. Family engagement means doing with—not doing to or for—families. • How does your program build relationships between families and staff? • Describe the types of parent education information and/or activities your agency provides. • Describe how your program connects families with services and supports. Please provide examples. PRCSA will hold "Lights on After School" for parents and participants, similar to an open house to present information on the programming we would be providing. Parents and children would have the opportunity to meet and engage with staff. There would be the opportunity to ask any questions or address any concerns. There would also be time to assist with signing up for the new after school care and summer camps. We plan on holding family events at our various centers in collaboration with various community partners to present resources, entertainment and bring the community together. We want our parents to feel comfortable leaving their children in our care and will do everything we can to build strong relationships with staff and families. PRCSA are present at local Back to School nights, Open House and other Santa Ana Unified School District events. We are in the process of building and strengthening our relationships following an almost two year absence due to the pandemic. Parent Surveys are used as an integral part of The City of Santa Ana operations. Santa Ana community residents, parents and key stakeholders participate on a number of committees, advisory groups and are encouraged to volunteer in various ways. Based on aggregate survey data, PRCSA is able to decipher the need for additional strategies to reach a larger pool of children and families. Survey data is utilized to empower parents and inspire self-sufficiency for many who are often in jeopardy of slipping into lower socio-economic levels when they cannot access comprehensive supports. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 27 of 32 Section 8: Family Engagement (additional page, if needed) California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 28 of 32 Section 9: Program Quality and Integrity (10 points) • Describe systems used to meet the expected program quality standards in 5 CCR regulations (5 CCR, Sections 18270.5–18281). • Describe how you will ensure there is a continuous monitoring system to assess program integrity and improvement. Being a local municipality, we have collective bargaining units in place with contract agre ements regarding performance evaluations for our staff members. Due to these bargaining units, we have specialized job descriptions and annual evaluations for our staff. New employees have an orientation set up by our Human Resources Department and staff are given their job duties as reference when they begin. Staff are provided opportunities to join various group memberships and attend trainings and conferences as needed or requested to keep them up-to-date on any new laws, ideas, current trends or rules & regulations. We will be working with TRF to provide any mandated training needed to maintain our program compliance with the State. PRCSA will be requesting program surveys from participants as well as parents so we can address what needs are and are not being met by our programming. This contract funding will assist with additional trainings and certification needs for staff handling these centers. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 29 of 32 Section 9: Program Quality and Integrity (additional page, if needed) California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 30 of 32 Section 10: Fiscal Accountability (10 points) Describe the fiscal resources available to operate your program for at least three months. Please include a proposed budget that supports your ability to operate your program for at least three months. PRCSA currently has programming at our sites with staff already budgeted. The budget information below shows enough funding to cover three months and beyond to continue with staffing & programming. Currently, the City of Santa Ana operates on an approved budget of over $700 million. PRCSA has just over 3% of this total budget allocated for staffing and program operations costs. We have $13.6 million of general funds, $300K in grant funding and $6.1 million in special funding. We currently have staff available and in place to fulfill the needs of this program. We have budgeted and funded our current summer day camp at 3 sites for June through August and have after-school care available at 4 sites that has been budgeted through December 2023. We manage Recreation Classes, Youth Sports, Special Events, The Santa Ana Zoo, Community Engagement, Senior Services, Health & Wellness, Aquatics and Teens & Older Youth. We have three summer day camp programs already budgeted, as well as various events and programming for the Community. The contract funding will enhance our ability to provide additional cost-free care or supplemented care for school-age children after school and free or low-cost summer day camp as well for those who would not be able to attend these types of programs without some sort of financial assistance. California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 31 of 32 Section 10: Fiscal Accountability (additional page, if needed) California Health & Human Services Agency California Department of Social Services CCD 34 (2/23) Page 32 of 32 Application Checklist A completed and signed application package is required. It is the sole responsibility of the contractor to ensure that the application package is submitted to CDSS on or before 11:59 p.m. on Friday, December 23, 2022. Section Description Page Number Check Box Section I – Contracted Program Type 1 Section II – Contractor Information 2 Section III – Legal Status of Contractor 3 Section IV – County or Counties of Service 4 Section V – Slots Requested 5 Section VI – Program Operation Plans 6 Section VII – Intent to Subcontract Services (for applicants with subcontracted services only) 7 Section VIII – Contractor Certification 8 Section IX – Fiscal Information 9 Section X – Fiscal Attachments (see “Requirements” column on page 9 for instructions on which forms to include) Program Staffing Plan 10 Payee Data Record 10 Proof of Charity Status 10 Proof of 501(c) (3) Status 10 Section XI – Program Attachments 2022–23 Program Calendar 11 2023–24 Program Calendar 11 Section XII – Program Narrative Program Narrative 11 SANTA ANA CITY COUNCIL Valerie Amezcua Mayor vamezcua@santa-ana.org Thai Viet Phan Ward 1 tphan@santa-ana.org Benjamin Vazquez Mayor Pro Tem, Ward 2 bvazquez@santa-ana.org Jessie Lopez Ward 3 jessielopez@santa-ana.org Phil Bacerra Ward 4 pbacerra@santa-ana.org Johnathan Ryan Hernandez Ward 5 jryanhernandez@santa-ana.org David Penaloza Ward 6 dpenaloza@santa-ana.org MAYOR Valerie Amezcua MAYOR PRO TEM Benjamin Vazquez COUNCILMEMBERS Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Thai Phan CITY OF SANTA ANA PARKS, RECREATION, AND COMMUNITY SERVICES 20 Civic Center Plaza ● P.O. Box 1988 Santa Ana, California 92702 www.santa-ana.org CITY MANAGER Alvaro Nuñez CITY ATTORNEY Sonia R. Carvalho CITY CLERK Jennifer L. Hall May 2, 2025 Brennah Solley Associate Governmental Program Analyst 744 P Street Sacramento, CA 95814 Subject: Relinquishment of CCTR Contract Funds Dear Brennah, Subject: Formal Relinquishment of CCTR Contract Funding On behalf of the City of Santa Ana’s Parks, Recreation and Community Services Agency (PRCSA), this letter formally relinquishes the funding allocated under the General Child Care and Development (CCTR) contract from the California Department of Social Services (CDSS). After review, the City will not proceed with the implementation of services under the CCTR contract. Please advise if any additional documentation or steps are required to complete the relinquishment process. Thank you for your attention to this matter. Sincerely, Hawk Scott Executive Director Parks, Recreation and Community Services Agency CC: Leslie Mitchell, Child Development Consultant, CDSS Kathryn Downs, Deputy City Manager, City of Santa Ana EXHIBIT 4