SUMMER FOOD SERVICE PROGRAM PERMANENT REIMBURSEMENT AGREEMENT

Transcription

1 STATE OF DELAWARE DEPARTMENT OF EDUCATION THE TOWNSEND BUILDING 401 FEDERAL STREET, SUITE 2 DOVER, DE SUMMER FOOD SERVICE PROGRAM PERMANENT REIMBURSEMENT AGREEMENT SPONSORING ORGANIZATION: Federal Employer Identification Number NAME: ADDRESS: COUNTY: In order to participate in the Summer Food Service Program (SFSP), sponsors must enter into an Agreement with the State Agency. This Agreement should be read carefully before being signed. This Agreement shall be effective, upon receipt of required signatures, with respect to meals served during the Summer Food Service Program. DEFINITIONS For the purpose of this Agreement, the following terms shall mean, respectively: A. Administrative Costs means program costs incurred by the sponsor related to planning, organizing and managing a food service under the program and excluding interest costs and operating costs. B. Adult means, for the purposes of the collection of social security numbers as a condition of eligibility for program meals, any individual 21 years of age or older. C. Advance Payments means financial assistance made available to a sponsor for its operating costs and/or administrative costs prior to the end of the month in which such costs are incurred. D. TANF, means any individual or group of individuals which is currently certified to receive assistance under the Temporary Aide to Needy Families Program in a state where the standard of eligibility for TANF benefits does not exceed the income standards for free meals under the National School Lunch Program (7 CFR 245). E. Areas in which poor economic conditions exist means: (a) The local areas from which a site draws its attendance in which at least 50 percent of the children are eligible for free or reduced price school meals under the National School Lunch Program and the School Breakfast Program, as determined (1) by information provided from departments of welfare, education, zoning commissions, census tracts, and organizations determined by the state agency to be migrant organizations, (2) by the number of free and

2 reduced price lunches or breakfasts served to children attending public and nonprofit private schools located in the areas of program sites, or (3) from other appropriate sources; or (b) An enrollment program in which at least 50 percent of the enrolled children at the site are eligible for free or reduced price school meals as determined by approval of applications in accordance with 7 CFR F. Camps means residential summer camps and nonresidential day camps which offer a regularly scheduled food service as part of an organized program for enrolled children. Nonresidential camp sites shall offer a continuous schedule or organized cultural or recreational programs for enrolled children between meal services. G. Children means persons 18 years of age and under or persons over 18 who are determined by a state educational agency or a local public educational agency to be mentally or physically handicapped and who participate in a public or nonprofit private school program established for the mentally or physically handicapped. H. Cost of obtaining food means costs related to obtaining food for consumption by children. Such costs may include, in addition to the purchase price of agricultural commodities and other food, the cost of processing, distributing, transporting, storing, or handling any food purchased for, or donated to the program. I. Department means the United States Department of Agriculture. J. Documentation means the completion of the following information on a free meal application: (1) Name of all household members; (2) Income received by each household member, identified by source of income (such as earnings, wages, welfare, pensions, support payments, unemployment compensation, social security and other cash income); (3) The signature of an adult household member; and (4) The social security number (last four digits) of the adult household member who signs the application, or an indication that he/she does not possess a social security number; or (b) For a child who is a member of a household receiving food stamp, FDPIR, or TANF benefits, documentation means completion of only the following information on a free meal application: (1) The name(s) and appropriate food stamp, FDPIR, or TANF case number(s) for the child(ren); and (2) the signature of an adult member of the household. K. Family means a group of related or nonrelated individuals, who are not residents of an institution or boarding house, but who are living as one economic unit. L. Fiscal year means the period beginning October 1and ending September 30 Annually. M. Food Service Management Company means a commercial enterprise or a nonprofit organization with which a sponsor may contract for preparing unitized meals, with or without milk, for use in the program, or for managing a sponsor s food service operations in accordance with the limitations set forth in 7 CFR Food service management companies may be: (1) public agencies or entities; (b) private, nonprofit organizations; or (c) private, for-profit companies. N. Food Stamp Household means any individual or group of individuals which is currently certified to receive assistance as a household under the Supplemental Nutrition Assistance Program. O. Household means family, as defined in this Section.

3 P. Income accruing to the program means all funds by a sponsor in its food service program including but not limited to, all monies other than program payments, received from federal, state and local governments, from food sales to adults, and from any other source, including cash donation or grants. Income accruing to the program will be deducted from combined operating and administrative costs. Q. Income Standards means the family-size and income standards prescribed annually by the Secretary of Agriculture for determining eligibility for free and reduced price meals under the National School Lunch Program and the School Breakfast Program. R. Meals means food which is served to children at a food service site and which meets the nutritional requirements set out in these regulations. S. Milk means whole milk, low-fat milk, skim milk and buttermilk. All milk must be fluid and pasteurized and must meet state and local standards for the appropriate type of milk. Milk served may be flavored or unflavored. All milk should contain vitamins A and D at levels specified by the Food and Drug Administration and at levels consistent with state and local standards for skim milk. T. Needy children means children from families whose incomes are equal to or below the Secretary of Agriculture s Guidelines for Determining Eligibility for Reduced Price School Meals. U. NYSP means the National Youth Sports Program administered by the National Collegiate Athletic Association. V. NYSP feeding site means a site which qualifies for program participation on the basis of free meal applications taken from enrolled children and at which all of the children receiving program meals are enrolled in the NYSP. W. OIG means the Office of the Inspector General. X. Operating costs means the cost of operating a food service under the program: (a) Including the (1) cost of obtaining food, (2) labor directly involved in the preparation and service of food, (3) cost of nonfood supplies, (4) rental and use allowances for equipment and space, and (5) cost of transporting children in rural areas to feeding sites in rural areas, but (b) Excluding (1) the cost of the purchase of land, acquisition or construction of buildings, (2) alteration of existing buildings, (3) interest costs, (4) the value of in-kind donations, and (5) administrative costs. Y. Private nonprofit means tax exempt under the Internal Revenue Cost of 1968 as amended. Z. Private nonprofit organization means an organization (other than private nonprofit residential camps, school food authorities, or colleges or universities participating in the NYSP) which must have private nonprofit status under section 501(c) of the internal Revenue Code of 1986 and be exempt from taxation under 501(a) of that code and meets the definition of private nonprofit in this section and which: (a) Administers the Program: (1) At a maximum of 200 sites, with average daily attendance not more than 50,000 children. (2) Exceptions to these limits may be approved if the sponsor can demonstrate that it has the capability to manage a larger program. (b) Operates in areas where a school food authority has not indicated that it will operate the Program in the current year;

4 (c) Exercises full control and authority over the operation of the Program at all sites under its sponsorship; (d) Provides ongoing year-round activities for children or families; (e) Demonstrates that it possesses adequate management and the fiscal capacity to operate the Program; and (f) Meets applicable State and local health, safety, and sanitation standards. AA. BB. Program means the Summer Food Service Program for Children authorized by Section 13 of the National School Lunch Act. Program payments means financial assistance in the form of advance payments, or reimbursement paid to sponsors for operating and administrative costs. CC. Regulations means the United States Department of Agriculture Regulations (7 CFR 225). DD. EE. FF. GG. HH. II. JJ. KK. LL. Rural means any county which is not part of a Standard Metropolitan Statistical Area or any pocket within a Standard Metropolitan Statistical Area which, at the option of the state agency and with FNSRO concurrence, is determined to be geographically isolated from urban areas. School Food Authority means the governing body which is responsible for the administration of one or more schools and which has the legal authority to operate a lunch program in those schools. In addition, for the purpose of determining the applicability of food service management company registration and bid procedure requirements, school food authority, also means any college or university which participates in the program. Self-Preparation means the sponsor prepares the meals which will be served at the site(s) and does not contract with a food service management company for unitized meals, with or without milk, or for management services. Session means a specified period of time during which an enrolled group of children attend camp. Site means a physical location at which a sponsor provides a food service for children, and at which children consume meals in a supervised setting. Special account means an account which a state agency may require a vended sponsor to establish with the state agency or with a federally insured bank. Operating costs payable to the sponsor by the state agency are deposited in the account and disbursement of monies from the account must be authorized by both the sponsor and the food service management company. Sponsor means a public or private nonprofit school food authority, a public or private nonprofit residential summer camp, a unit of local, municipal, county or state government, or a public or private, nonprofit college or university currently participating in the National Youth Sports Program, or a private nonprofit organization which develops a special summer or other school vacation program providing food service similar to that made available to children during the school year under the National School Lunch and School Breakfast Programs and which is approved to participate in the Program. Sponsors are referred to in the Act as service institutions. State agency means the School Support Services Work Group in the Branch of Adult Education and School Supports under the Delaware Department of Education. Unit of local, municipal, county or state government means an entity which is so recognized by the state constitution or state laws such as the Delaware Code Annotated, tax laws, or other applicable state laws which delineate authority for government responsibility in the state.

5 MM. NN. Vended sponsor means a sponsor who contracts to buy some or all of its unitized meals, with or without milk, from a food service management company or purchases management services, subject to the limitations set forth in 7 CFR , from a food service management company. Yogurt means commercially prepared coagulated milk products obtained by the fermentation of specified bacteria that meet milk fat or milk solid requirements and to which flavoring foods or ingredients may be added. These products are covered by the Food and Drug Administration s standard of identity, for yogurt, lowfat yogurt and nonfat yogurt (21 CFR , 21 CFR , 21 CFR respectively). I. The Delaware Department of Education and Sponsor In order to effectuate the purpose of the National School Lunch Act as amended and the regulations thereunder, the Delaware Department of Education and the sponsor whose name and address appear herein, covenant and agree as follows: A. The state agency agrees that, to the extent of funds available, it shall reimburse the sponsor in connection with eligible meals served to children at the approved sites during the period therein stated. B. The state agency agrees that, to the extent administratively possible, it shall make advance payments by June 1, July 15, and August 15 for June, July and August to sponsors which intend to operate at least ten days in the month and which have held training sessions for administrative personnel and site personnel. Advance payments will be subsequently deducted from regular reimbursement payments. (The state agency may withhold advance payments in some instances as specified in regulations). In the event the state agency s advance payments or regular reimbursement payments to the sponsor are late, the state agency will not be liable for payment of penalties or interest on the late payment. C. The state agency agrees to promptly notify the sponsor of any change in the minimum meal requirements or reimbursement rates. The state agency agrees not to make any changes in the minimum meal requirements which would become effective in less than 60 days after publication of notice thereof. D. The sponsor hereby requests that the state agency shall forward to the sponsor advance operating costs and administrative costs payments as per the provisions of 7 CFR 225.9(c). E. The sponsor represents and warrants that it is a public agency or nonprofit agency under the United States Internal Revenue Code of 1986, as amended, and is the governing body responsible for the administration of the approved sites, or an agency to which the approved sites have delegated authority for the operation of their food service. F. The sponsor agrees to accept final administrative and financial responsibility for total program operations at all approved sites. Government sponsors further agree to directly operate this program at all approved sites. G. The sponsor certifies that each approved site serves an area in which poor economic conditions exist or offers a regularly scheduled organized cultural or recreational activity with enrollment and daily attendance register in which at least 1/2 of all children enrolled in each session are eligible for free or reduced price school meals or is a residential camp which, since such residential camps shall be reimbursed only for meals served to eligible children, shall submit

6 information which documents the number of children enrolled in each session whose family incomes meet the eligibility requirements for free or reduced price school meals. H. The sponsor certifies that all approved sites have been visited and have the capability and the facilities for the meal service planned and the number of children anticipated to be served. I. The Program applicant hereby agrees that it will comply with Title VI of the Civil Rights Act of 1964 (P.L ) and all requirements imposed by the regulations of the Department of Agriculture (7 CFR Part 15), DOJ (28) CFR Parts 42 and 50) and FNS directives or regulations issued pursuant to that Act and the regulations, to the effect that, no person in the United States shall, on the ground of race, color, national origin, sex, age, or disability, be excluded from participation in, be denied the benefits of, or be otherwise subject to discrimination under any program or activity for which the Program applicant received Federal financial assistance from USDA; and hereby gives assurance that it will immediately take any measures necessary to fulfill this agreement. This assurance is given in consideration of and for the purpose of obtaining any and all Federal financial assistance, grants, and loans of Federal funds, reimbursable expenditures, grant, or donation of Federal property and interest in property, the detail of Federal personnel, the sale and lease of, and the permission to use Federal property or interest in such property or the furnishing of services without consideration or at a nominal consideration, or at a consideration that is reduced for the purpose of assisting the recipient, or in recognition of the public interest to be served by such sale, lease, or furnishing of services to the recipient, or any improvements made with Federal financial assistance extended to the Program applicant by USDA. This includes any Federal agreement, arrangement, or other contract that has as one of its purposes the provision of cash assistance for the purchase of food, and cash assistance for purchase or rental of food service equipment or any other financial assistance extended in reliance on the representations and agreements made in this assurance. By accepting this assurance, the Program applicant agrees to compile data, maintain records, and submit reports as required, to permit effective enforcement of nondiscrimination laws and permit authorized USDA personnel during hours of program operation to review such records, books, and accounts as needed to ascertain compliance with the nondiscrimination laws. If there are any violations of this assurance, the Department of Agriculture, FNS, shall have the right to seek judicial enforcement of this assurance. This assurance is binding on the Program applicant, its successors, transferees, and assignees as long as it receives assistance or retains possession of any assistance from USDA. The person or persons whose signatures appear below are authorized to sign this assurance on the behalf of the Program applicant. J. The sponsor agrees that it shall: 1. Operate nonprofit food service using all of the income therein solely for the operation or improvement of such service, except such income shall not be used to purchase land, to acquire or construct buildings; or to make alterations in existing buildings, or to rent one s own buildings, office space or equipment. 2. Provide all children the same meals at no separate charge at approved sites for participation in the program and there shall be no discrimination in the course of the food service. 3. Make no discrimination against any child because of race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or

7 activity conducted or funded by USDA and make a statement to this effect available to the local news media. All approved sponsors must make this release available to the information media serving the areas from which the sponsor draws program participation. 4. Serve meals that comply with minimum meal pattern requirements established by USDA and in accordance with a menu approved by the state agency during the period of time specified by this Agreement. The menu must be one prepared by the sponsor and approved by the state agency. The menu shall not be developed by a food service management company. 5. Conduct food service only at approved sites. 6. Maintain children on site during meal service and serve meals in a planned and organized manner conducive to good eating and dietary habits. 7. Serve meals in accordance with approved meal service times as listed in the Site applications approved by the state agency. 8. Certify that its administrative personnel or designee attended a state sponsored training session. 9. Hold a training session for its administrative personnel and site personnel with regard to program duties and responsibilities. Required training topics must be covered at each training session. Allow no site to operate until its personnel have attended such training. Documentation of all training sessions shall be maintained on file. 10. Provide adequate supervisory and operational personnel for overall monitoring and management of each food service operation, including adequate personnel to visit all food service sites at least once in the first week of operation and to promptly take such actions as are necessary to correct deficiencies found at the time of the initial visit. Documentation of such visits shall be maintained on file. 11. Provide adequate supervisory personnel to review food service operations at every site at least once during the first four weeks of program operation and thereafter to maintain a reasonable level of site monitoring. 12. Utilize the sponsor monitor form provided by the state agency and maintain same on file at the address listed on this Agreement. 13. Maintain a financial management system using state agency approved record keeping forms. This responsibility shall not be delegated to a food service management company. 14. Prepare and submit claims for reimbursement supplied by the state agency by the 10th of the month following month of operation for which the claim is submitted. State agency is prohibited by law from paying any claim submitted later than 60 days following the end of the month for which meals are being claimed. The preparation and submission of reimbursements claims shall not be delegated to a food service management company. 15. Not claim any site as self-preparation or rural for the extra administrative monies unless such sites conform with said definitions listed herein.

8 16. Accept payment(s) in the form of multiple party checks wherever the state agency deems such checks to be necessary. 17. Record interest earned on advance payments as program income. 18. The sponsor agrees to comply with the audit guidance in 2 CFR 200, Subpart F, Audit Requirements. Sponsors receiving $750,000 or more annually in federal reimbursement must have a single or program-specific audit conducted in accordance with the provisions of 2 CFR 200, Subpart F, Audit Requirements. 19. Make available to the state agency any and all records requested by said state agency for the purpose of conducting an audit of said sponsor pursuant to Section 7 CFR (a) of the Summer Food Service Program regulations. 20. Upon request, make all accounts and records pertaining to the program available to the state agency or FNS for audit or administrative review. Such records shall be retained for a period of three years after the end of the fiscal year. A sponsor s records must be kept at the address specified in this document. 21. Adhere to the administrative and operating cost budgets as approved in the Sponsor Budget. 22. Have a procurement system which fully conforms to the provisions of 2 CFR 200, 7 CFR and 7 CFR of the regulations and all state and local procurement guidelines. 23. Use the contract form required and provided by the state agency when contracting with a food service management company. Additions, deletions, or changes may be made only with the prior written consent of the state agency. 24. Submit a signed copy of the Summer Food Service Program food service management company contract to the state agency postmarked at least seven days prior to the first day of program operations specified in this document. The Summer Food Service Program food service management company contract shall become an attachment to this Agreement. 25. When contracting with a school for the entire meal, the School Agreement provided by the state agency will be utilized. A signed copy of the School Agreement shall be submitted to the state agency as an attachment to the Agreement. 26. If applicable, make payments to vendors in the total amount due for the preceding month for items covered in the contract. Such payments shall be made within ten days of receipt of federal reimbursement payments from the state agency. Public entities are excluded from the requirement that the payments must be made within 10 days, but they must make the payments at the first opportunity pursuant to their established financial procedures. 27. Have access to facilities necessary for storing, preparing, serving and refrigerating food, where applicable. 28. Maintain proper sanitation and standards in conformance with all applicable state and local health laws and regulations in the storage, preparation, and handling of food. Self-preparation sites must have a current and satisfactory health certificate.

9 29. Refrain from transferring meals without adequate refrigeration and the written permission of the state agency. 30. Plan to serve and claim reimbursement for only one meal per eligible child. The sponsor further agrees that it has no regulatory right to such reimbursement for second meals served to children if the state agency determines that the sponsor has failed to plan and prepare or order meals with the objective of providing only one meal per child at each meal service. 31. Shall notify the state agency in writing of any changes in the following: person authorized to sign contracts, director, record keeper, person responsible for the food program, dates of operation, address and telephone number and/or site facility, within ten days of the change. 32. If applicable, for the purpose of determining eligibility for free meals, camps and other programs not eligible under 7 CFR 225.2, of areas in which poor economic conditions exist assure the state agency and the department that they shall distribute applications for meals to parents or guardians of children enrolled in the program. An adult household member must sign the form and include the last four digits of his or her Social Security Number, or mark the box if he or she doesn t have one. The application shall also contain the complete statement from Section 7 CFR (f) -- free meal policy of the Summer Food Service Program regulations. The application and any other descriptive materials distributed to such persons, shall contain only the family size and income levels for reduced price eligibility with an explanation that households with incomes less than or equal to these values would be eligible for free meals. Such forms and descriptive materials may not contain the income standards for free meals. 33. Sponsor must collect and maintain data on actual participation by ethnic and racial categories. Sponsor must also count the number of children in each category at every site during at least one visit to that site. Sponsors must retain records of this information on file for at least three years plus the current year. K. The state agency will disallow meals for reimbursement, reduce maximum number of meals approved for a site or close sites for any one or more of the following violations: 1. Unauthorized adults consuming meals. 2. Offsite consumption of meals. 3. Meals claimed for reimbursement in excess of the number consumed by children. 4. Any other violations of USDA regulations. L. This Agreement may be terminated upon ten days written notice sent by certified mail on the part of either party. The state agency may terminate this Agreement for any one or more of the following documented reasons but shall not be limited to these reasons (appeal rights can be found on the Delaware Department of Education Nutrition Programs website): 1. Violations of state or USDA bidding procedures. 2. Violations of the collusion clause of the bidding specifications.

10 3. Submission of a claim for reimbursement with insufficient documentation to support said claim. 4. Unauthorized changes in the required state Summer Food Service Program food service management company contract. 5. Submission of inaccurate or incomplete information on the Sponsor Application. 6. Submission of inaccurate or incomplete information on the Site Information Sheets. No termination of the Agreement shall effect the obligation of the sponsor to maintain and retain records and to make such records available for audit for a period of three years after the end of the agreement year to which they pertain, except in the event of an unresolved audit, in which case, records shall be maintained until audit is resolved. M. The terms of this Agreement shall not be modified or changed in any way other than by consent in writing of both parties hereto. N. The sponsor agrees that, in the hiring of persons for the performance of this Agreement or any subcontract hereunder, neither the sponsor nor any person acting on behalf of said sponsor shall, by reason of race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA discriminate against any person who is qualified and available to perform the work to which the employment relates. O. The sponsor agrees that neither the sponsor nor any person on his behalf shall discriminate against or intimidate any employee engaged in the performance of work under this Agreement or any subcontract hereunder, on account of race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA. P. This Agreement may be cancelled or terminated by the state agency for any violation of this section of the Agreement occurring after notice to the contract from the contracting public agency of any prior violation of this section of the Agreement. Q. The sponsor agrees to the general terms and conditions of Sections II through XVII below.

11 II. Compliance with Existing Laws The sponsor, in order to induce the Delaware Department of Education (DDOE), hereinafter referred to as the DDOE to award this contract, agrees in the performance of this contract to comply with all federal, state and municipal laws, rules and regulations generally applicable to the activities by whomsoever performed in which sponsor is engaged in the performance of this contract. Failure to comply with such laws, rules or regulations shall be grounds for termination of this agreement. III. Indemnification The sponsor shall be solely responsible for and shall keep, save, and hold the State of Delaware harmless from all claims, loss, liability, expense, or damage resulting from all mental or physical injuries or disabilities, including death, to employees or recipients of the sponsor s services or to any other persons, or from any damage to any property sustained in connection with the delivery of the sponsor s services which results from any acts or omissions, including negligence or malpractice, of any of its officers, directors, employees, agents, servants or independent contractors, or from the sponsor s failure to provide for the safety and protection of its employees, whether or not due to negligence, fault, or default of the sponsor. The sponsor s liability under this agreement shall continue after the termination of this agreement with respect to any liability, loss, expense or damage resulting from acts occurring prior to termination. IV. Assignability The sponsor shall not subcontract any of the work or services covered by this contract, nor shall any interest be assigned or transferred except as may be provided for in this contract or with the express written approval of the DDOE. V. Availability of Funds The parties hereto recognize and agree that continuation of funding under this contract is expressly dependent upon the availability to the DDOE of funds appropriated by the Federal government or such other funding sources as may be applicable. The DDOE shall not be held liable for any breach of this agreement because of the absence of available funding appropriations. VI. Procurement Standards Procurement of supplies, equipment and other services with funds provided by this contract shall be accomplished in a manner generally consistent with 2 CFR 200, 7 CFR , and 7 CFR Adherence to the standards contained in those applicable federal and state laws and regulations does not relieve the sponsor of the contractual responsibilities arising under its procurement. The sponsor is the responsible authority, without recourse to the DDOE regarding the settlement and satisfaction of all contractual and administrative issues arising out of procurements entered into, in support of a contract. VII. Property Management Standards Institutions and administering agencies shall follow the policies and procedures governing title, use, and disposition of equipment obtained by purchase, whose cost was acquired in whole or part with food service equipment assistance funds in accordance with 2 CFR 200, as applicable. VIII. Method of Payment

12 A. At the DDOE s discretion, initial payment may be made to the sponsor upon receipt by the DDOE of a properly executed copy of this contract, signed by an appropriate officer of the sponsor organization. B. Payment will, at the discretion of the DDOE, be made based on the number of meals served times the corresponding reimbursement rate. IX. Financial Management System A. The financial officer, designated by the sponsor of this contract, shall be responsible for maintaining an adequate financial management system. The financial officer will notify the DDOE when the sponsor cannot comply with the requirements established in FNS B. Sponsor s financial management system shall provide for: 1. Accurate, current and complete disclosure of the financial results of each program or contract. 2. Records that adequately identify the source and application of funds for DDOE supported activities. These records shall contain information pertaining to contract awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays and income. 3. Effective internal and accounting controls over all funds, property and other assets. The sponsor shall adequately safeguard all such assets and shall assure that they are used solely for authorized purposes. 5. Accounting records that are supported by source documentation. 6. Procedures for determining reasonableness, allowability, and allocability of costs generally consistent with the provisions of FNS Instruction C. If the DDOE determines that the sponsor s accounting system does not meet the standards described in paragraph B above, additional information to monitor the contract may be required by the DDOE upon written notice to the sponsor until such time as the system meets with DDOE approval. X. Financial and Performance Reporting A. The contract budget as used in this section means the approved financial plan to carry out the purpose of the contract. This plan is the financial expression of the project or program as approved during the contract application and award process. The approved budget should be related to performance for program evaluation purposes whenever appropriate and required by the DDOE. B. Sponsor shall submit monthly reimbursement claims that are used by the DDOE to determine levels of payments for operating months. C. Sponsor must have all documentation required to support numbers submitted on reimbursement claims at the time of submission.

13 XI. Monitoring of Program Performance A. The sponsor shall constantly monitor the performance under grant-support activities to assure that time schedules are being met, projected work units by time periods are being accomplished, and other performance goals are being achieved as applicable and as defined. B. The sponsor shall inform the DDOE of the following types of conditions which affect program objectives and performance as soon as they become known: 1. Problems, delays or adverse conditions which will materially affect the ability to attain program objectives, prevent the meeting of time schedules and goals, or preclude the attainment of project work units by established time periods. This disclosure shall be accompanied by a statement of the action taken, or contemplated, and any DDOE assistance needed to resolve the situation. 2. Favorable developments or events which enable meeting time schedules and goals sooner than anticipated or producing more work units than originally projected. C. The DDOE may, at its discretion, make site visits to: 1. Review program accomplishments and management control systems. 2. Provide such technical assistance as may be required. XII. Audit Requirements A. Audits of operations under this contract shall be conducted in the method specified. B. Examinations in the form of audits or internal audits shall be conducted by qualified individuals who are sufficiently independent of those who authorize the expenditure of contract funds, to produce unbiased opinions, conclusions, or judgments. These audit examinations are intended to ascertain the effectiveness of the financial management system and internal procedures that have been established to meet the terms and conditions of the contract and that accounts and financial statements present fairly the results of the sponsor operations. C. Audit examinations will be made in accordance with generally accepted auditing standards including the standards published by the General Accounting Office, Standards for Audit of Governmental Organizations, Programs, Activities and Functions. D. Audit examinations should be conducted on an organization-wide basis to test the fiscal integrity of financial transactions, as well as compliance with the terms and conditions of the contract. Such audits will be conducted on the basis of the sponsor s fiscal year. In accepting this contract, the sponsor agrees to and will allow such audits to be performed on an organization-wide basis. In the event of a subcontract agreement, the sponsor agrees to provide for and permit the DDOE to audit such records. E. The scope of the audit will be financial and compliance as described in the General Accounting Office, Standards for Audit of Governmental Organizations, Programs, Activities, and Functions. In the performance of the audit, the auditor(s) will include appropriate sampling of all contracts. The DDOE may change the scope of the audit and will so notify the sponsor when the sponsor is responsible for providing for the audit.

14 In performing the compliance audit, the auditor(s) will determine the sponsor s compliance with applicable laws and regulations including rules and regulations issued by the federal agency responsible for providing contract funds. F. Audits by the state agency will be conducted in accordance with 7 CFR and 7 CFR The state agency reserves the right to conduct reviews more frequently at their discretion. G. The sponsor agrees to cooperate, and wherever feasible and possible, to assure timely and appropriate resolution of audit findings and recommendations. XIII. Contract Closeout Procedures A. The following definitions shall apply for the purpose of this section: 1. Agreement Closeout -- The closeout of an agreement is the process by which the DDOE determines that all applicable administrative actions and all required work of the agreement have been completed by the sponsor. B. The sponsor shall make all records available to the DDOE in a timely manner all records that are requested for review. The DDOE may permit extensions when requested in writing by the sponsor. C. The sponsor will, together with the submission of the final report, refund to the DDOE any unexpended funds or unobligated (unencumbered) cash advanced except such sums that have been otherwise authorized, in writing, by the DDOE to be retained. D. Within the limits of the contract amount, the DDOE may make a settlement for any upward or downward adjustments of allowable funds after the review process is completed. E. In the event a final audit has not been performed prior to the closeout of the agreement, the DDOE retains the right to recover any appropriate amount after fully considering the recommendations. F. The agreement shall account for any property acquired with contract funds or received from the DDOE in accordance with the provisions of the Property Management Standards as referenced in Section VII of this Attachment. XIV. Termination and Suspension A. The following definitions shall apply for the purposes of this section: 1. Termination -- The termination of an agreement means the cancellation of assistance, in whole or in part, under an agreement at any time prior to the date of completion. 2. Suspension -- The suspension of an agreement is an action by the DDOE which temporarily suspends the agreement pending corrective action by the sponsor or pending a decision to terminate the agreement by the DDOE. All valid claims submitted prior to the suspension will be paid.

15 3. Disallowed Costs -- Disallowed costs are those charges to the agreement which the DDOE or its representatives determine to be beyond the scope of the purpose of this agreement, excessive, or otherwise unallowable. B. When the sponsor has failed to comply with contract award stipulations, standards or conditions, the DDOE may upon thirty days notice to the sponsor, suspend the agreement and prohibit the sponsor from incurring additional obligations of funds pending corrective action by the sponsor; or decide to terminate the agreement in accordance with paragraph C below. C. The DDOE may terminate the agreement, in whole or in part, upon 30 days notice, whenever it is determined that the sponsor has failed to comply with the conditions of the agreement. The DDOE shall promptly notify the sponsor, in writing, of the determination and the reasons for the termination together with the effective date. Payments made to the sponsor recoveries by the DDOE under the agreement terminated for cause shall be in accord with the legal right and liability of the parties. D. The DDOE and the sponsor may terminate the agreement in whole, or in part, when both parties agree that the continuation of the agreement would not produce beneficial results commensurate with the further expenditure of funds. The two parties shall agree upon the termination conditions including the effective date and in case of partial terminations, the portion to be terminated. The sponsor shall not incur new obligations for the terminated portion after the effective date, and shall cancel as many outstanding obligations as possible. XV. Access to Records and Record Retention A. Financial records, supporting documents, statistical records, and all other records pertinent to the agreement shall be retained for a period of three years plus the current year, with the following qualifications: 1. If any litigation, claim or audit is started before the expiration of the three year period, the records shall be retained until all litigations, claims or audit findings involving the records have been resolved. 2. Records for nonexpendable property acquired with DDOE funds shall be retained for three years plus the current year after its final disposition. B. The retention period starts from the date of the end of the approved contract period. C. The DDOE may request transfer of certain records to its custody from the sponsor when it determines that the records possess long-term retention value and will make arrangements with the sponsor to retain any records that are continuously needed for joint use. XVI. Subcontracts No sponsor may subcontract any portion of services under this agreement without DDOE approval. No subcontract may be executed unless the format is developed and/or approved by the DDOE. Any subcontract let under this agreement shall be subject to the Section XIV, Audit Requirements. XVII. Prior Expenditures Expenditures may be reimbursed if made during the agreement period and in conformance with the program s specifications even if the agreement is fully executed and dated after the date of commencement of the agreement period. In order to reimburse such expenditures, an approved

16 program application or equivalent documented dated and executed by the appropriate authorities prior to any expenditures of funds on the agreement and which sets forth the program s starting and ending dates must be attached to the fully executed agreement. USDA NONDISCRIMINATION STATEMENT In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA. Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) Additionally, program information may be made available in languages other than English. To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C ; (2) fax: (202) ; or (3) program.intake@usda.gov. This institution is an equal opportunity provider.

17 Please check the box to acknowledge you have read and understand the statement below: Certification Statement: I certify that all information on this form is true and correct to the best of my knowledge. I understand this information is being given in connection with the receipt of federal funds and that deliberate misrepresentation may subject me to prosecution under applicable state and federal criminal statutes. The free meals must be made available to all children regardless of race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA. Signature on behalf of the Sponsor Person Authorized to Sign Contractual Agreements: Signatures on behalf of the Department of Education Signature Kim Wheatley, Director of Finance Name (Please Type or Print) Date Title of Authorized Person Amelia E. Hodges, Ed.D., Associate Secretary Adult Education & School Supports Branch Date Date Initial Work Group Director Please retain a signed copy of this Agreement with your permanent records.