CFC-811                                                                                                                                             CFC CONTRACT NUMBER: SS 97-98-3030
(Rev.4/97)

M/A NUMBER:      _____________________________

COMMONWEALTH OF KENTUCKY
CABINET FOR FAMILIES AND CHILDREN

PROGRAM ADMINISTRATION CONTRACT

 THIS AGREEMENT, made and entered into as of the 1st day of July, 1997, by and between the Commonwealth of Kentucky, Cabinet for Families and Children,  Department for Social Services  
                                                    (Name of Department or Office)

hereinafter referred to as the Cabinet, and

 

Audubon Area Community Services, Inc.                                                                                                                                23-7364935
                  (Name of Second Party)                                                                                                                                                (IRS ID #)

Post Office Box 20004, Owensboro, KY 42304-0004                                                                            
                                                                                                    (Address of Second Party)

hereinafter referred to as the Second Party,

WITNESSETH, THAT:

 Whereas, the Cabinet, in the exercise of its lawful duties, has determined upon the necessity of the performance of the following function briefly described as:

 I. In relation to the Department for Social Services' Community Services Block Grant Program funded by the U.S. Department of Health and Human Services and administered pursuant to 42 USC 9901-9912, to provide the services described below:

                              1. Housing                                                              3. Emergency Services

                              2. Self Sufficiency                                                  4. Community Participation

 II. In relation to the Department for Social Services' Senior Community Service Employment Program funded by the United States Department of Labor pursuant to the Older Americans Act of 1965, as amended, to implement and conduct a senior citizens employment program;

                ; and

 WHEREAS, the Second Party shares the vision of the Cabinet for Families and Children, which is valued for its leadership and excellence in the delivery of quality human services in the Commonwealth, and recognizes that children are our greatest natural resource, individuals and their families are the most critical component of a strong society and that each must be afforded safe, secure and nurturing environments; and

 WHEREAS, the Cabinet’s service delivery is responsive and sensitive to cultural and community differences, balances prevention and crisis assistance and reflects a shared purpose for accountability; and

 Whereas, the Second Party is available, willing, and qualified to perform this function, and the Cabinet desires that the Second Party perform this function;

 Now, Therefore, it is hereby and herewith mutually agreed by and between the parties hereto as follows:

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1. The Second Party agrees to perform the services as hereinafter described with particularity as follows:

(1) In relation to the Department for Social Services' Community Services Block Grant Program, to perform the functions described in Exhibit I.

(2) In relation to the Department for Social Services’ Title V Program, to perform the functions described in Exhibit II.

(3) The Second Party further agrees:

 (a) To permit the Cabinet and/or auditing firm selected by the Second Party, U.S. Department of Health and Human Services, U.S. General Accounting Office, and other appropriate Federal agencies, to audit the fiscal records of the Second Party in the format established by the Cabinet, and to be responsible for fiscal and program exceptions established by such audit of this contract, and to promptly settle any audit exceptions by methods approved by the Cabinet.

 (b) To be responsible for monitoring, fiscal and/or program exceptions established by evaluation, monitoring and/or audit of this contract, and to promptly settle any monitoring, fiscal and program audit exceptions by making direct payment, or reduction of future reimbursement, or by other methods approved by the Cabinet;

 (c) To charge the maximum administrative costs allowable under federal and state law to all other Second Party funding sources, both at the time of initial application for such funds, and for any additional funds made available during the grant year.

 (d) To maintain records sufficient to identify the results of the service provided each individual and for use in evaluating the effectiveness of the total program;

 (e) To provide information upon request of the Cabinet concerning all aspects of the service, including information for required reports;

 (f) To hold the Cabinet harmless from any and all loss, claims, expenses, actions, causes of action, costs, damages, and obligations, arising from any and all acts of the Second Party, its agents, employees, licensees, or invitees, and the result in injury to persons, damages, or losses relative to any person, corporation, partnership, or any other entity; and to indemnify the First Party from any and all liability, loss, or damage that the First Party may suffer resulting from acts or omissions of the Second Party or claims or judgments resulting therefrom. Provided, however, in the event the Second Party is a state agency or subcontracts for services with a state agency subject to the jurisdiction of the Board of Claims pursuant to KRS 44.070 through KRS 44.160 the state agency's tort liability may be limited to an award from the Board of Claims up to the jurisdictional amount.

 (g) To maintain written personnel policies and procedures including salary, conditions of employment and job descriptions relative to all personnel, including those whose services are contracted for or otherwise secured by process other than direct employment;

 (h) To maintain adequate and competent staff necessary to provide the services described herein, with proper supervision and in conformity with existing standards of the Cabinet for provision of these services;

 (i) To provide and/or secure appropriate orientation and in-service training for staff responsible for the services delivered under this contract.

 (j) To assure that there will be no discrimination against any applicant or recipient of service on account of race, color, age, sex, handicap, religious creed, ancestry, or national origin in performance of this contract.
                

(If necessary, continue description of Second Party's responsibilities on inserted page(s) 2a, 2b, etc. If additional pages are inserted, indicate the page numbers here: 2a, )

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 (k) To comply with all state and federal licensing requirements and standards for all contract services and advise the Cabinet when such compliance is not met;

 (l) To assure the confidentiality of all information whether written or verbal, provided by or about any client seeking or receiving services under this contract, except as approved and authorized in writing by the client or as otherwise authorized by law, including the Privacy Act of 1974 (P.L. 93-579; 5 USC 552A).

 (m) That the Cabinet retains the right to withhold payments if the Second Party fails to comply with any of the terms of this contract; or if the Second Party fails to comply with paragraph 1., (2), (b). above for any prior year contract in which disallowed costs have been identified through an audit of the records of the Second Party;

 (n) That the Second Party is responsible for fulfillment of the terms of this contract with the Commonwealth whether or not subcontractors are used and that the terms of this contract are binding upon all subcontractors;

 (o) That no employee or representative of the Second Party with procurement authority shall participate either directly or indirectly in any activities that are in conflict with these provisions stated in KRS 45A.455, Conflict of Interest--Gratuities and Kickbacks--Use of Confidential Information;

 (p) To comply with 900 KAR 1:070 on providing equal access to program services to persons who are deaf or hard of hearing; and

 (q) To comply with the Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251 et seq.), where applicable.
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2. In relation to the agreement, the Cabinet agrees to perform the following functions:

(1) Community Services Block Grant Program

 Reimbursement shall be made on a monthly basis upon submittal of the CSBG Budget and Financial Report; and quarterly submittal of the Local Match Certification.

 The Federal share of a project cost is earned only when the cost is accrued and the non-Federal share of the cost has been contributed. Receipt of Federal funds does not constitute earnings of these funds.

 Any funds remaining unencumbered for allowable expenditure upon termination of this portion of the contract shall be refunded to the Cabinet.

 The Cabinet retains the right to withhold payment if the Second Party does not comply with the Cabinet's programmatic and fiscal reporting requirements.

 Funds allocated to this contract for the period July 1, 1997, to June 30, 1998, have been allocated on the premise that the Community Services Block Grant to the Commonwealth of Kentucky will be continued at its present level of funding. IT IS EXPRESSLY UNDERSTOOD BY ALL PARTIES HERETO THAT THIS CONTRACT IS SUBJECT TO THE AVAILABILITY OF FEDERAL FUNDS TO FINANCE THE SAME.

 (2) Senior Community Service Employment Program

 Reimbursement shall be made on a monthly basis upon submittal of the Budget and Financial Report, in accordance with the approved budget of Exhibit II.

 (3) In relation to this agreement, the Cabinet agrees to perform the following additional functions:

 (a) Monitor the activities of the Second Party and its programs performed pursuant to this contract, on a quarterly basis, or more often, if necessary.

 (b) Conduct periodic evaluations of the Second Party to assess the progress towards completion of the goals as deemed necessary by the Cabinet.

 (c) Conduct on-site visits to observe activities funded under this contract.

 (d) Provide information, consultation, technical assistance, and required forms to the Second Party.

 (e) Assure there will be no discrimination against any applicant, or recipient of services on account of race, color, age, sex, religious creed, ancestry, or national origin in performance of this agreement.

 (f) Assure that hearing procedures are available to clients and that clients aggrieved by actions arising from services rendered under this agreement shall have the right to a Cabinet hearing.

 (g) In addition, relative to the CSBG program, the local Social Services Manager or his designee shall review the written and signed local agreement between the two parties for the purpose of updating the information contained herein. The agreement should contain such items, but not exclusive of: roles, services to be provided, a joint referral mechanism; and the assurance that through cooperative efforts, that both parties have been able to identify and address the vital service needs of the Second Party's geographic area. A copy of this updated agreement shall be submitted to the Director, Division for Field Services, and to the Division of Program Management for review and subsequent approval of the Commissioner for DSS by July 31, 1997.

 (h) Notify the Second Party by Certified Mail, Return Receipt Requested, if a request for transfer of all equipment and/or supplies with a value of less than $1,000 is necessary. If the transfer is required for use by the new service provider, the grantee or subgrantee shall be entitled to be paid any reasonable, resulting shipping or storage costs incurred, plus an amount computed by multiplying the market value of the equipment by the non-federal share of the equipment.

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3. PAYMENTS

 For the Second Party's performance of the function described hereinbefore, the Cabinet agrees that payment shall be made as follows:

 Reimbursement monthly of actual, reasonable, allowable, and necessary expenditures up to a maximum not to exceed $177,559  for the period July 1, 1997, to June 30, 1998, in accordance with the approved budget.

 3.1 Payment by the Cabinet to the Second Party shall be made only after receipt of appropriate, acceptable, and timely bills submitted to the Cabinet by the Second Party. Payment by the Cabinet to the Second Party, as well as the Second Party's continued performance, shall be subject to the availability and allocation of local agency or governmental funds, or state or federal funds necessary to finance the performance of the services described in this agreement.

 4. TOTAL AMOUNT AND CONTRACT PERIOD

 The Second Party's fees and expenses relative to the performance of the services described herein shall not exceed a total of $177,559 *, and the period within the current fiscal year in which the subject services are to be performed is from July 1, 1997, through June 30, 1998, it being understood that this agreement is not effective and binding until approved by the Secretary of the Finance and Administration Cabinet.

 5. SUBCONTRACTING

 The Second Party agrees that all requirements of this contract shall also be applicable to subcontractors and that subcontractors shall be required to report to the Second Party in a manner which will meet the Second Party's reporting requirements to the Cabinet. Upon written request of the Second Party and for good cause shown, one or more requirements of this contract may be waived by the Cabinet in writing as not being applicable to subcontractors.

6. FINANCIAL MANAGEMENT SYSTEM (APPLICABLE ONLY TO CONTRACTS WHERE REIMBURSEMENT IS BASED UPON ACTUAL, ALLOWABLE COSTS)

The Second Party agrees to establish and/or maintain a financial management system which shall provide for:

a) Accurate, current, and complete disclosure of the financial results of the functions/services performed under this contract in accordance with reporting requirements set forth in Paragraphs 1, 2 and 3 on pages 2, 2a, 3 and 4, and in OMB Circular A-133 as amended.    
 (insert reference to page, paragraph, attachment, etc., of contract)

b) Records that identify the source and application of funds for activities/functions/services performed pursuant to this contract. These records shall contain information pertaining to federal and/or state funds received, obligations, unobligated balances (if applicable), assets, liabilities, expenditures, and income;

c) Effective control over and accountability for all funds, property, and other assets. The Second Party shall safeguard all such assets and shall assure that they are used solely for authorized purposes in the provision of functions/services under this contract;

d) Procedures for determining reasonableness, and allowability of costs in accordance with provisions of:

(1) For Community Services Block Grant Programs - 45 CFR 74 and OMB Circular A-122 and A-110 for nonprofit organizations, except for paragraph A.4.b. of Attachment A:
*A. CSBG: $ 122,556 federal; (See Exhibit I, Paragraph 8, for local match requirement.

B. Title V: $ 55,003 federal; (See Exhibit II, page EII-3 for local match requirement.)

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  "Any cost allocable to a particular award or other cost objective under these principles may not be shifted to other Federal awards to overcome funding deficiencies, or to avoid restrictions imposed by law or by the terms of the award.";

  and OMB Circular A-87 and A-102 for governmental agencies, except for paragraph C.2.b. of Part X:

  "Any cost allocable to a particular grant or cost objective under the principles provided for in this circular may not be shifted to other federal grant programs to overcome fund deficiencies, avoid restrictions imposed by law or grant agreements, or for other reasons."

 (2) For Title V, Senior Community Service Employment Program - 29 CFR Part 97, and all applicable Federal and State regulations;
 and,

e) Accounting records that are supported by source documentation.

 7. AUDIT REQUIREMENTS (applicable to agencies subject to OMB Circular A-133 as amended)

 7.1. If the Second Party is a governmental entity, an institution of higher education or other nonprofit institution, the Second Party shall procure an audit in accordance with the United States’ Office of Management and Budget (OMB) Circular A-133 (as amended).

 7.2 The Second Party's engagement letter with their independent auditor shall include the detailed audit requirements set forth in the Cabinet's "Contract to Audit", (Apr 95 Revision). In addition, the engagement letter shall also contain the following supplemental requirements:

                 N/A                                                                

 7.3 A copy of the Second Party's engagement letter with their independent auditor shall be submitted to the Cabinet for Families and Children, Department for Social Services, Division of Program Management, Fiscal Management Branch, 275 E. Main Street, 6W, Frankfort, KY 40621, on or before March 31, 1998.

 7.4 A copy of the Second Party’s audit report(s)* shall be submitted to the Cabinet for Families and Children, Department for Social Services, Division of Program Management, Fiscal Management Branch, 275 E. Main Street, 6W, Frankfort, KY 40621, on or before March 31, 1998.

 8. INDIRECT ADMINISTRATIVE COSTS

Section 1. Definitions. As used in this Provision, the following definitions shall apply unless the specific context dictates otherwise.

a) "Direct Costs" means those costs that can be identified specifically with and charged in whole or in part to a particular project, service, program or activity of an organization.

b) "Indirect Costs" means those costs of an organization which are not specifically identifiable with a particular project, service, program, or activity but nevertheless are necessary to the general operation of the organization and the conduct of the activities it performs.

c) "Administrative Activities" means those activities performed by an organization in the development and implementation of policy and the management of the organization necessary to fulfill the functions and obligations of the organization. These activities generally include, but are not limited to, agency and personnel management, accounting, auditing, and legal services.

d) "Service Activities" means those activities carried out by an organization which are integral and necessary to the production and/or delivery of specific products and/or services.

*for FY ‘97

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e) "Indirect Administrative Costs" means those costs for administrative activities of an organization which are not specifically identifiable with a particular project, service, program or activity.

f) "Cost Allocation Plan" means the written description of processes for identification, accumulation, and distribution of costs together with the allocation methods used.

Section 2. Indirect Administrative Cost Limitation in Contracts.

a) The Cabinet for Families and Children will limit payment to contractors for indirect administrative cost to no more than fifteen percent (15%) of the contract total. For the purpose of this Provision, contract total means total actual, allowable expenses reimbursed by the Cabinet.

b) The provision is applicable to all personal service contracts and program administration contracts which are of a cost reimbursement type. The provision does not apply to competitively bid contracts or negotiated fixed priced contracts.

c) When offering a contract for bid or negotiation, the Cabinet shall clearly indicate that the State will limit its reimbursement of indirect administrative cost to no more than fifteen percent (15%) of the total actual allowable expenses reimbursed by the Cabinet. If total indirect administrative cost exceeds such limit, the additional expense shall be the responsibility of the contractor and not the Commonwealth.

d) In cases where payment to a contractor is made on a fixed price/fixed fee basis and the fixed price/fixed fee is established based upon a consideration of a prior year actual allowable cost (e.g., regional mental health/mental retardation boards), such contracts shall be subject to the indirect administrative cost limitations set forth herein.

e) There shall be no restrictions to limitations on indirect administrative costs paid for with contractor local funds and used to satisfy in-kind or matching requirements.

f) In the event more restrictive contract provisions or federal and/or state laws and/or regulations apply to a particular contract, such laws, regulations, or contract provisions shall prevail with respect to limitations of indirect administrative cost.

g) In the event an audit results in a finding that the indirect administrative cost limitations set forth herein has been exceeded for the period of performance under the contract, payment made by the Cabinet to the contractor in consideration of such cost shall be subject to recovery from the contractor by the Cabinet.

Section 3. Allocation Plan Required.

a) A contractor shall maintain a written plan for allocation of direct and/or indirect costs in instances where the contractor organization operates more than one (1) project, services, program or activity. The general requirement for any cost allocation plan is that it shall provide for an equitable distribution of allocable direct costs and indirect costs to each project, service, program or activity that benefits from such costs. The cost allocation plan must be consistently and uniformly applied except where it is determined to be in the best interest of the Cabinet and contract provisions specifically exempt a particular fund source. Only those costs that are not specifically identifiable to a single project, service, program or other direct activity shall be allocated.

b) In the event a contractor has a cost allocation plan in operation which has been accepted and approved by the contractor's cognizant federal agency, the Cabinet will recognize such cost allocation plan as applicable for purposes of recording and reporting reimbursable costs to the extent that such costs are allowable. Acceptance of such plan by the Cabinet is contingent on compliance by the contractor with all federal and/or state laws, regulations, and rules applicable to the various programs/activities funded by the Cabinet and, further, that an audit will be completed

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and reported to the Cabinet which will include a statement as to the contractor's compliance with the indirect administrative cost limitations set forth in this provision.

Section 4. Documentation Requirements for Costs.

a) All direct or allowable direct charges shall be documented by appropriate source documents to support the direct charging of the expense.

b) The contractor shall document the method used to allocate direct and/or indirect costs.

c) The contractor shall indicate the allowable indirect administrative cost amount and the percentage such amount represents in each contract budget and/or the final expenditure report as an indication of compliance. If the contractor is operating under a cost allocation plan as described in Section 3.B., then the amount and percentage of indirect administrative cost will be reported in the required audit.

d) Reports of audits performed to meet federal and/or state requirements and which are conducted by independent public auditors, Cabinet auditors, and/or the State Auditor, shall contain a statement as to the compliance of the contractor with the cost limitations set forth herein.

Section 5. Subcontracts.

a) In the event the primary contractor subcontracts with any non-state government agency or organization or individual pursuant to or relating to its contract with the Cabinet, the indirect administrative cost of the primary contractor shall not exceed fifteen percent (15%) of the total actual allowable expenses reimbursed by the Cabinet excluding such subcontracted costs. The indirect administrative cost of the subcontractor shall not exceed fifteen percent (15%) of the total actual allowable expenses reimbursed by the primary contractor or the subcontractor. Exceptions to such division of indirect administrative cost between the primary contractor and the subcontractor shall be subject to case-by-case negotiation between the Cabinet and the prime contractor. In such cases, where an exception to the limits is deemed reasonable and justifiable, the negotiated limits together with the reasons for the exception shall be expressed in the terms and conditions of the resulting contract. In no event shall combined indirect administrative costs of the prime contractor and subcontractor(s) in the aggregate exceed fifteen percent (15%) of the total actual allowable expenses reimbursed by the Cabinet.

 9. SOCIAL SECURITY

 The parties to this agreement are cognizant that the Cabinet is not liable for Social Security contributions pursuant to 42 U.S. Code, Section 418, relative to the compensation of the Second Party during the period of this agreement.

 10. EXTENSION/AMENDMENTS

 The terms and conditions of this agreement may be extended or amended at any time by mutual agreement of the parties in writing, subject to the approval of the Secretary of the Finance and Administration Cabinet (if required).

 11. TERMINATION

 Either party shall have the right to terminate this agreement for convenience at any time upon 30 days written notice served upon the other party by certified or registered mail with return receipt requested. In addition, either party may terminate this agreement immediately for cause upon written notice served upon the other party by registered or certified mail with return receipt requested.

 12. DISCRIMINATION PROHIBITED (BECAUSE OF RACE, RELIGION, COLOR, NATIONAL ORIGIN, SEX OR AGE)

 During the performance of this contract, the Second Party (the contractor) agrees as follows:

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 12.1 The Contractor will not discriminate against any employee or applicant for employment because of race, religion, color, national origin, sex or age. The contractor will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, religion, color, national origin, sex or age. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

 12.2 The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, religion, color, national origin, sex or age.

 12.3 The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union or workers' representative of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance.

 12.4 The contractor will comply with all provisions of Executive Order No. 11246 of September 24, 1965, as amended, and of the rules, regulations and relevant orders of the Secretary of Labor.

 12.5 The contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, as amended, and by the rules, regulations and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders.

 12.6 In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations or orders, this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or Federally-assisted construction contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, as amended, and such other sanctions may be imposed and remedies invoked as provided in said Executive Order or by rule, regulation or order of the Secretary of Labor, or as otherwise provided by law.

 12.7 The contractor will include the provisions of paragraphs (1) through (7) of Section 202 of Executive Order No. 11246 in every subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor, issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, as amended, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions including sanctions for noncompliance; provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States.

 12.8 The contractor agrees to comply with all applicable federal and state laws and regulations pertaining to the recognition and protection of the civil rights of persons to whom services are rendered and to applicants for such services during the performance of this contract.

 13. DISCRIMINATION PROHIBITED (BECAUSE OF DISABILITY)

 13.1 The contractor agrees to comply with the provisions of Section 504 of the Rehabilitation Act of 1973, P.L. 93-112, and applicable federal regulations relating thereto prohibiting discrimination against otherwise qualified disabled individuals under any program or activity receiving federal financial assistance.

 13.2 To comply with the provisions of the Americans with Disabilities Act of 1990, PL-101-336.

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14. JOB LISTING AND EMPLOYMENT PRIORITY

 14.1 The Second Party agrees to list all jobs/positions created as a result of this agreement and to cause all subcontractors to this agreement to list all job employment openings with the local employment office of the Department for Employment Services.

 14.2 The Second Party agrees to give and to cause all subcontractors to this agreement to give first priority for employment for positions created as a result of this agreement to public assistance recipients of the Department for Social Insurance unless such priority violates federal or state law.

 15. ACCESS TO AND MAINTENANCE OF RECORDS

 15.1 The Second Party agrees that the Cabinet and/or the federal grantor agency, the Comptroller General of the United States and/or the Kentucky Auditor of Public Accounts, and/or any of their duly authorized representatives or agents including independent auditors, shall have access to any books, documents, papers, and records of the Second Party which are directly pertinent to this contract for the purpose of making audit, examination, excerpts, and transcriptions.

 15.2 The Second Party agrees to maintain all records pertaining to this contract for a period of not less than three (3) years after all matters pertaining to this contract (i.e., audit, settlement of audit exceptions, disputes) are resolved in accordance with applicable federal and/or state laws, regulations, and policies (except as may otherwise be specified in this contract).

 15.3 The Second Party agrees to permit staff of the Cabinet, persons acting for the Cabinet, and/or staff designated by appropriate federal agencies, to monitor and evaluate services being performed. The Second Party also agrees to submit all records and documentation’s of service provisions in regard to contracted and subcontracted services when requested for monitoring purposes.

 16. PURCHASING AND SPECIFICATIONS

 The Second Party certifies by his signature hereinafter that he will not attempt in any manner to influence any specifications to be restrictive in any way or respect, nor will he attempt in any way to influence any purchasing of services or commodities by the Commonwealth of Kentucky. For the purpose of this agreement, "he" is construed to mean "they" if more than one person is involved and if a firm, partnership, corporation, or other organization is involved, then "he" is construed to mean any person with an interest therein.

 17. CONFLICT-OF-INTEREST LAWS AND PRINCIPLES

 The Second Party hereby certifies by his signature hereinafter that he is legally entitled to enter into the subject contract with the Commonwealth of Kentucky and certifies that he is not and will not be violating either directly or indirectly any conflict of interest statute (KRS 45A.330-45A.340, 45A.990, 164.390, 210.110, 210.990(1), 11A.040, or any other applicable statute) or principle by the performance of this contract.

 18. CHOICE OF LAW AND FORUM PROVISION

 All questions as to the execution, validity, interpretation and performance of this agreement shall be governed by the laws of the Commonwealth of Kentucky. Furthermore, the parties hereto agree that any legal action which is brought on the basis of this Agreement shall be filed in the Franklin County Circuit Court of the Commonwealth of Kentucky.

 19. CERTIFICATION ON LOBBYING

 19.1 No State funds appropriated to the Second Party pursuant to this contract shall be used to influence, either directly or indirectly, the introduction or modification of any Federal or State legislation, or the outcomes of any Federal, State, or local election, referendum, or initiative.

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 19.2 In addition, for any payment involving federal funds, the Second Party certifies, to the best of his or her knowledge and belief, that for the preceding contract period, if any, and for this current contract period:

  a) No Federal appropriated funds have been paid or will be paid, by or on behalf of the second party, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, and officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

  b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, and officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the second party shall complete and submit Standard Form-LLL "Disclosure Form to Report Lobbying," in accordance with its instructions.

  c) The second party shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontractors, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

  19.3 This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed under section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for such failure.

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CFC ID # SS 97-98-3030
MA #                                   

20. CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION, LOWER TIER COVERED TRANSACTIONS

 The Second Party hereby certifies the following by signing of this agreement:

 20.1 That neither it nor its principals and/or subcontractors are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency.

 20.2 Where the prospective recipient of Federal assistance funds is unable to certify to any of the statements in this certification, such prospective participant shall submit an explanation to the Cabinet.

 

 

 

FINANCE AND ADMINISTRATION CABINET            CABINET FOR FAMILIES AND CHILDREN

Approved:                                                                                    By:

                                                                                                                                                                                                 
Secretary, Finance and Administration                              Secretary for Families and Children

Recommended for Approval:                                                 Recommended:

                                                                                                                                                                                                  
Commissioner, Dept. for Administration                          Commissioner, Dept. for Social Services

Examined as to Form and Legality:                                                                                    

                                                                                                                                                                                                 
Attorney, Finance and Administration                              Additional Signatures (if applicable)

SECOND PARTY

Typed Name:                                                                              Examined as to Form and Legality:
By:

                                                                                                                                                                                                 
Authorized Official (signature)                                            Attorney, Cabinet for Families and Children
Typed Name:                                                  
Title:

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EXHIBIT I
Community Services Block Grant Proposal
July 1, 1997

In relation to the Department for Social Services (DSS) Community Services Block Grant (CSBG) program:

       1. Perform the functions described with particularity in the Second Party's Approved Plan and Budget on file with the Division of Program Management of DSS within actual federal budgetary limitations for the period July 1, 1997, to June 30, 1998, which is hereby made a part of this contract as if fully incorporated herein. The portion of the Plan and Budget which corresponds with the Department's CSBG Financial Report form and in-kind certification form dated July 1, 1997, shall remain in effect until all funds under that budget have been expended.

2. Complete the goals as set forth in the approved Plan and Budget within the specifically allotted time frames.

3. Adhere to the approved budget as set forth in Attachment A, except that Second Party shall request written approval for any variation which will exceed ten percent in cost category totals as reflected in Attachments A. The Cabinet at its option will either: (1) prepare a contract amendment if the change is substantial, or (2) give a written letter of approval if the change is minor. No budget revisions may be requested by the Second Party during the last 30 days of the contract.

4. Maintain fiscal records to document the total operation of the Second Party pursuant to this contract and submit monthly expenditure reports by the 20th of every month on the forms prescribed by the Cabinet. The Cabinet shall have the right to deny payment for any fiscal report not submitted in accordance with this provision. Agencies requiring expedited invoice processing shall submit invoices according to procedures and time frame stipulated in Attachment B.

5. Maintain program records required by the Cabinet and to submit the Monthly Service/Evaluation Report by the 20th of the month following the end of the month on forms furnished by the Cabinet. The final monthly service report shall accompany the final request for payment.

6. Maintain program and financial records to document income and expenses, statistical records, and all other records and reports pertinent to the total operation of this agency. Said records are to be made available for audit by the General Accounting Office, Department of Health and Human Services, Kentucky Cabinet for Families and Children or an independent public accounting firm designated by appropriate state or federal agencies in the format established by the Cabinet. These records shall be maintained until audited and audit exceptions resolved or until the end of three (3) years following receipt of last payment under the contract, whichever is later.

7. Submit a final year-end report on the Department's Financial Report form and in-kind certification form no later than thirty-five (35) days after the ending date of this contract.

8. Provide local match in the form of local cash or in-kind contributions in the amount of $ 30,639 and certify that the in-kind contributions have been spent for services approved and incorporated within this contract utilizing the approved Cabinet format set forth in the Department's in-kind certification form.

9. Expend the Program Income or donations received in the service area for which they were intended during the same budget period in which the income is earned or in the next budget period.

10. Submit the Second Party's annual cost utilization plan which is to be utilized in determining the allowable cost to be reimbursed under this contract. Said cost allocation plan must be submitted to CFC concurrent to when the Second Party submits their plan to the cognizant federal agency for approval.

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11. Subcontract for provision of services only under the following conditions:

 (a) Funds obligated under this agreement will be available for the provision of services by an agency, organization, or individual other than the Second Party only after the Second Party has executed a written subcontract in accordance with the provisions of this contract;

 (b) Except for subcontracts which are specifically identified in the approved plan, Second Party shall not subcontract any responsibilities described herein without the prior written approval of the Commissioner of the Department for Social Services, subject to such additional conditions and provisions as the Cabinet may deem necessary; and,

 (c) The Second Party agrees to cite the Cabinet's contract number in all subcontracts.

 12. Comply with all applicable Federal and State Laws and Regulations for services provided under this contract, including but not limited to 42 USC 9901-9912, the Community Services Block Grant; KRS 273.405-273.468; 905 KAR 3:030; 45 CFR Part 74; including Subpart O, except as delineated in paragraph (14) below, and OMB Circulars A-122 and A-110 and A-87 and 45 CFR Part 92 in their entirety where appropriate.

13. Transfer all items of equipment and/or supplies with a value of less than $1,000 to a new provider, if a new provider is selected as a result of competition, or if the contractor is terminated by the provider, or the Cabinet, and a new provider is secured. Such equipment and/or supplies shall be transferred to the Department if no new provider has been secured. In the event of termination of the contract or the selection of a new provider, the transfer shall be made within 30 days from the date of receipt of notice from the Department such notice to be by Certified Mail, Return Receipt Requested.

14. Review with the local Social Services Manager the written and signed local agreement between the two parties for the purpose of updating the information contained therein. The agreement should contain such items, but not exclusive of: roles, services to be provided, a joint referral mechanism; and the assurance that through cooperative efforts, that both parties have been able to identify and address the vital service needs of the Second Party's geographic area. A copy of this updated agreement shall be submitted to the Director, Division of Family Services, and to the contract specialist for review and subsequent approval of the Commissioner for DSS by July 31, 1997.

15. Assure that all notices, information pamphlets, research reports, and similar public notices prepared and released by the Second Party, pursuant to this contract, shall include the statement, "This project is funded, in part, under a contract with the Cabinet with funds from the Community Services Block Grant Act of the U.S. Department of Health and Human Services".

16. Assure that clients aggrieved by actions arising from service rendered under this contract shall have the right to a hearing. Such assurance shall include an opportunity for an aggrieved client to request a hearing and to be heard, and shall include the right of appeal to the Cabinet's Department for Social Services if the grievance is not resolved to the client's satisfaction by the Second Party. The Second Party shall follow the hearing procedures established by DSS.

17. Submit to DSS, Division of Program Management, all reports and requests for payment related to CSBG. Quarterly reports on CSBG Goals and Objectives, as set forth in Attachment C, are to be simultaneously submitted to the Division of Program Management and to the Kentucky Association for Community Action.

18. Respond to a Statement of Deficiencies submitted by the Department for Social Services by submission of and compliance with a Corrective Action Plan based on monitoring results.

19. Assure that a Fidelity Bond has been properly executed to ensure that employee(s) who is (are) authorized to receive or deposit funds, issue financial documents, checks or other instruments of payment for program costs shall be bonded against loss of sufficient amount of funds; the bond should be sufficient to cover maximum sums handled quarterly under this contract; and a copy must be provided to DSS no later than 60 days from the effective date of the contract.

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20. Assure that any audit of CSBG funds performed by an independent public accounting firm designated by the Second Party will be performed in compliance with the CSBG Audit Specifications which are hereby made a part of this contract, as if fully incorporated herein. The draft audit report (FY '97) shall be submitted to the Cabinet by March 1, 1998.

21. To assure that non-expendable property purchased under this contract, or any property having a unit acquisition value of five hundred (500) dollars or more, with a useful life of more than one (1) year, will remain the property of the Cabinet. All property is subject to inventory, and agencies buying such property under this contract will be responsible to the Cabinet for its control and usage.

22. Before making such a purchase, the Second Party must obtain at least three bids on items with a unit acquisition value of one thousand ($1,000) dollars or more. The Division of Program Management, Contracts Management Branch must approve all purchases of five hundred ($500) dollars or more, prior to obligation of funds by the Second Party. The inclusion of said, purchase in the budget does not constitute approval, as each purchase requires more detail than is provided in funding proposals.

23. Comply with the provision of Section 504 of the Rehabilitation Act of 1973 (P.L. 93- 112) and applicable federal regulations relating thereto prohibiting discrimination against otherwise qualified handicapped individuals under any program or activity receiving federal financial assistance. The Second Party shall: 1) conduct a self- evaluation for compliance with Section 504; and 2) if the Second Party has fifteen or more employees, it shall appoint an employee to coordinate efforts to comply with Section 504 and adopt procedures that provide for the resolution of complaints related to Section 504.

24. Public Law 103-227, Part C. Environmental Tobacco Smoke, also known as the Pro-Children Act of 1994 (ACT), requires that smoking not be permitted in any portion of any indoor facility owned or leased or contracted for by an entity and used routinely or regularly for the provision of health, day care, education, or library services to children under the age of 18 if the services are funded by Federal programs either directly or through States or local governmental by Federal grant, contract, loan or loan guarantee.

 By signing and submitting these assurances, the grantee certifies that it will comply with the requirements of the Act. The grantee further agrees that it will require the language of this certification be included in any subawards which contain provisions for children's services and that all subgrantees shall certify accordingly.

25. Adhere to the Department for Social Services' travel policy established by the First Party.

26. To comply with the Open Records Law (KRS 61.870 to 61.884).

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Exhibit I

Attachment                                 A                     
Contract #                          SS 97-98-3030          
Date:                                          7/1/97             
 Budget Period               7/1/97-6/30/98      

Contract Budget

Personnel (including fringe) $ 73,533  
Travel 6,900  
Other 33,401  
Agency Indirect Administrative Cost 8,722  
TOTAL BUDGET $122,556  
 
Includes: CFDA#
 
4th Quarter FFY ‘97 CSBG Allocation $ 90,025 93.569
FFY ‘96 CSBG Scholarship Program $ 4,885 93.569
FY ‘96 CSBG Carryover $ 27,646 93.569
TOTAL $122,556
 

 

 

EXHIBIT I
ATTACHMENT B

AGREEMENT FOR ON-GOING RECONCILIATION REIMBURSEMENT

Now, therefore, it is mutually agreed by and between the parties that the Second Party agrees to comply with the following:

1. Maintain financial records to document income and actual expenses pertinent to the total operation of the agency. Said records are to be made available for audit review and informational purposes by the Department or its designee. These records shall be maintained for at least three years from the date of the last payment received for the contract period, or until audited and audit exceptions are resolved, whichever is later.

2. Submit to the First Party the Budget and Financial Report which represents an estimated monthly expenditure plus an actual reconciliation of all prior months expenditures. The First Party retains the right to alter the Second Party's monthly reimbursement request submitted on the Budget and Financial Report if the request is determined to be excessive or unreasonable by the Director of the Division of Program Management.

 The Budget and Financial Report shall be received by the First Party by the 10th calendar day of each month. Reimbursement by the First Party will be issued about the 28th calendar day of each month. Any Budget and Financial Report received by the First Party after the 10th calendar day of the month shall be approved and processed according to the standard payment procedures established by the Division of Fiscal Services.

3. All interest income accrued by the Second Party on CSBG funds received but not earned by June 30, 1998, shall be returned to the First Party. The FY '98 audit shall contain a statement of any amount of interest earned from CSBG funds as an overpayment of revenue. The Second Party agrees to return this overpayment and agrees to pay interest on these funds from local funds (not federal or state funds) which shall be reimbursable to the First Party. Interest shall accrue until the FY '98 audit has been finalized and all funds have been paid to the First Party.