Capital Area Human Services District Contract Preparation Manual www.cahsd.org Revised: May 27, 2005 Version: 05/27/05 CAHSD Contract Manual Page 2 of 91 TABLE OF CONTENTS INTRODUCTION ........................................................................................................................................................4 IMPORTANT INFORMATION .........................................................................................................................................4 TYPES OF CONTRACTS ..........................................................................................................................................5 REQUEST FOR PROPOSALS (RFP) / SOLICITATION OF OFFERS (SOO) ..........................................................6 COMPLETING THE BASIC CONTRACT ..................................................................................................................7 PAGE 1 OF CONTRACT ..............................................................................................................................................7 PAGE 2 OF CONTRACT ..............................................................................................................................................8 PAGE 3 OF CONTRACT ..............................................................................................................................................8 CONTRACT PROCESSING.......................................................................................................................................9 METHODS OF PAYMENT .......................................................................................................................................10 CFDA NUMBERS AND FEDERAL FUNDS ............................................................................................................11 HIPAA COMPLIANCE .............................................................................................................................................12 WHAT IS HIPAA?...................................................................................................................................................12 WHAT DOES ADMINISTRATIVE SIMPLIFICATION MEAN? .............................................................................................12 WHEN DOES HIPAA BECOME EFFECTIVE?...............................................................................................................12 FORMS FOR CORPORATE AND OTHER LEGAL ENTITIES ...............................................................................13 UNIVERSITY APPROVAL .......................................................................................................................................14 TAXPAYER IDENTIFICATION NUMBER................................................................................................................15 DRUG-FREE WORKPLACE POLICY STATEMENT ..............................................................................................16 AUDIT REQUIREMENTS.........................................................................................................................................17 DETERMINING IF THE CONTRACTOR IS A SUBRECIPIENT ............................................................................................17 DETERMINING IF THE CONTRACTOR MUST SUBMIT ANY AUDIT ..................................................................................17 AUDIT DETERMINATION CHECKLIST .........................................................................................................................18 SUBMISSION OF THE COMPLETED AUDIT..................................................................................................................18 CONTRACT ADVANCES ........................................................................................................................................20 STATEMENT OF WORK .........................................................................................................................................21 COST-REIMBURSEMENT BUDGET.......................................................................................................................22 EXPENDITURE CATEGORIES ....................................................................................................................................22 CONTRACT BUDGET SUMMARY ...............................................................................................................................23 FUNDING BY FEDERAL AND STATE/OTHER SOURCES ...............................................................................................24 HOW TO SHOW SALARIES AND WAGES ....................................................................................................................24 OTHER BUDGET CATEGORIES .................................................................................................................................25 BUDGET JUSTIFICATION ..........................................................................................................................................25 PROGRAM REVENUE DETAIL - EXHIBIT C...............................................................................................................25 TRAVEL EXPENSES FOR COST REIMBURSEMENT CONTRACTS...................................................................26 PROPERTY CONTROL REGULATIONS................................................................................................................27 DEFINITIONS...........................................................................................................................................................27 RULES REGARDING PURCHASING MOVEABLE PROPERTY .........................................................................................28 PROCESSING THE REQUEST FOR PURCHASE AUTHORITY .........................................................................................28 MAINTAINING THE PROPERTY CONTROL INVENTORY.................................................................................................29 LOSS REPORTING...................................................................................................................................................29 Version: 05/27/05 CAHSD Contract Manual Page 3 of 91 ANNUAL PROPERTY CERTIFICATION ........................................................................................................................30 SUMMARY OF ACTIONS REQUIRED PRIOR TO PURCHASE OF EQUIPMENT...................................................................30 CONTRACT AMENDMENTS...................................................................................................................................31 BUDGET REVISIONS ..............................................................................................................................................32 CONTRACT TERMINATION OR CANCELLATION................................................................................................33 BILLING PROCEDURES .........................................................................................................................................34 INVOICES.................................................................................................................................................................35 TYPES OF INVOICES ................................................................................................................................................35 INSTRUCTIONS FOR COMPLETING CONTRACT INVOICES ............................................................................................36 CONTRACT MONITORING .....................................................................................................................................38 COMPLAINT PROCEDURES ..................................................................................................................................39 APPENDIX A - FORMS............................................................................................................................................40 APPENDIX B - REFERENCES................................................................................................................................81 TRAVEL POCKET GUIDE ..........................................................................................................................................82 SUBSTANCE ABUSE AND DRUG-FREE WORKPLACE POLICY .....................................................................................84 DETERMINING IF A VENDOR IS IN THE AGPS SYSTEM ...............................................................................................86 ADDING A VENDOR TO THE SYSTEM FOR INDIVIDUALIZED AGREEMENTS ....................................................................87 CONTRACTING WITH CURRENT AND FORMER STATE EMPLOYEES .............................................................................88 Code of Government Ethics ..........................................................................................................................88 LA Revised Statute 39:1498 ..........................................................................................................................88 LA Revised Statute 39:1498.2 .......................................................................................................................88 LA Administrative Code Title 34, Part V124 .................................................................................. 88 LA Revised Statute 42:1121 ..........................................................................................................................89 LASERS Laws and Regulations 416. Employment of retirees...................................................................89 APPENDIX C - INDIVIDUALIZED AGREEMENTS .................................................................................................91 Version: 05/27/05 CAHSD Contract Manual Page 4 of 91 INTRODUCTION This manual has been compiled for both Capital Area Human Services District staff and contractors. It is suggested that PRIOR to writing contracts for the upcoming fiscal year that you review this manual. It will save everyone time in the long run. For your convenience, we have listed below notable changes and important information contained in this revised version of the Contract Preparation Manual. It should be noted that not all sections of this manual apply to Individualized Agreements. Specific instructions for Individualized Agreements are now included in this manual, although they have not been updated. Also listed in this section are persons in the Management and Finance Division who are able to provide technical assistance in the preparation of your contract. Important Information • Contractor name must match the name associated with the Federal Employer Tax ID# or Social Security # in the ISIS vendor file. • All forms have been revised for this fiscal year. Please do not use any previous versions of the forms. Forms are available on disk in Microsoft Word and Excell format. All contracts are to be printed on letter size (8½ x 11) paper. See Appendix A for a listing of all forms available. Please note that a few of the forms are Adobe PDF format. • The contract manual and forms are now availablssssse on our website at www.cahsd.org. • HIPAA (Health Insurance Portability and Accountability Act of 1996) information has been included in this manual. Contractors are responsible for compliance with the HIPAA Privacy Rules which went into effect 4/14/03. • Contractors should be aware that the renewal of a contract does NOT guarantee funding at the same level as previous contracts. The budget is reviewed each year and a determination is made by CAHSD as to the level of funding for all contracts. • Job descriptions and résumé’s are required for all social services contracts in which professional positions are funded by CAHSD. • WARNING!!! It should be noted that services should not be rendered prior to a contract being fully processed. CAHSD is not required to pay contractors for services rendered or expenses incurred before the contract is signed by all parties and processed in the ISIS system. Program Manager 2 Lester Mut (225) 922-1548 Contractor/Grants Reviewer Tamara Brown (225) 925-4389 Version: 05/27/05 CAHSD Contract Manual Page 5 of 91 TYPES OF CONTRACTS There are five types of contracts which may be written by CAHSD. The types of contracts and their definitions are listed below: Professional Services Work rendered by an independent contractor who has a professed knowledge of some department of learning or science used in its practical application to the affairs of others or in the practice of an art founded on it, which independent contractor shall include but not be limited to lawyers, physicians, dentists, psychologists, social workers, veterinarians, architects, engineers, accountants. A profession is a vocation founded upon prolonged and specialized intellectual training which enables a particular service to be rendered. The word “professionpal” implies professed attainments in special knowledge as distinguished from skill. Social Services Work rendered by any person, firm, corporation, governmental body or governmental entity in furtherance of the general welfare of citizens, including but not limited to rehabilitation and health support, habilitation and socialization, protection for adults and children, improvement of living conditions and health, and evaluation and testing. Personal Services Work rendered by an independent contractor which requires the use of creative or artistic skills, such as, but not limited to graphic artists, sculptors, musicians, photographers, and writers; or which require the use of highly technical or unique individual skills or talents, such as, but not limited to paramedics, handwriting analysts, and expert witnesses for adjudications or other court proceedings. Consulting Services Work other than professional, personal, or social services, rendered by either individuals or firms who possess specialized knowledge, experience and expertise to investigate assigned problems or projects and to provide counsel, review, design, development, analysis, or advice in formulating and implementing programs or services, or improvements in programs and services, including but not limited to such areas as management, personnel, finance, accounting, planning and feasibility studies, data processing, public relations, and advertising. Consulting service contracts may include the procurement of supplies and services by a contractor without the necessity of complying with provisions of public bid law when such supplies and services are merely ancillary to the provision of consulting services, which assist the contractor in fulfilling the objective of the contract, and when the cost of the supplies and services is less than the cost of providing the consulting services. Interagency Contract Any contract in which each of the parties thereto is a governmental body or public entity. Version: 05/27/05 CAHSD Contract Manual Page 6 of 91 REQUEST FOR PROPOSALS (RFP) / SOLICITATION OF OFFERS (SOO) Prior to entering into an agreement with a contractor certain procedures must be followed according to Louisiana Law. These procedures are detailed in Section III of CAHSD Policy # 201- 97 - Contract Regulations. The table below is a brief summary of what is required for each type of contract. Refer to CAHSD Policy #201-97 for specific procedures required for competitive selection. Type Amount Competitive Selection Approval Needed None SOO RFP Prog Mgr 2 Deputy Director Executive Director Board of Directors <75,000 X X X X 75,000 -100,000 X X X X Professional Services Contracts -Clinical/Medical >100,000 X X X X X <25,00 X X X X Professional Services Contracts - Other $25,000 X 1 1 X X X X <25,000 X X X X 25,000 - 149,000 X X X X New Social Services Contracts $150,000 X X X X X 25,000 - 149,000 2 X X X Continuing Social Services Contracts $150,000 3 X X X <25,000 X X X X 25,000 - 49,999 X X X X X 50,000 - 149,999 X X X X X Personal Services Contracts $150,000 X X X X X <25,000 X X X X 25,000 - 49,999 X X X X X 50,000 - 149,999 X X X X X Consulting Services Contracts $150,000 X X X X X Interagency Contracts X X X X X 1. Competitive selection may be required at the discretion of the Board of Directors 2. Competitive selection not required for renewal of same services provided the contract amount does not exceed the prior year contract amount by greater than 10%. 3. Shall be selected/re-selected by competitive selection every three (3) years. Version: 05/27/05 CAHSD Contract Manual Page 7 of 91 COMPLETING THE BASIC CONTRACT Contracts must be completed using either the Microsoft Word format or Microsoft Excel for spreadsheets. All data entered into the contracts should be in the Times New Roman font. The page size should be 8½ x 11. Page 1 of Contract Contract Heading Type in Provider/Contractor Name Mark type of contract Lines 1 - 5 Complete Name, Mailing address, Telephone number, and Fax number as indicated. Be sure to compare all addresses against the ISIS vendor file, and that the vendor file is active. Contractor name must match the name associated with the Federal Employer Tax ID# or Social Security # in the ISIS vendor file. Line 6 Federal Employer Tax ID# or Social Security # - Both should have eleven (11) digits. The first nine (9) digits represents the Tax ID# or SS#. The following two (2) digits are used because the vendor may have multiple addresses on file, representing different programs he/she operates, and the last 2 digits are unique to each individual address. Check the ISIS screen to select the correct 2 digits to use. The ISIS screen to use is VENC, and the following steps should be taken: (1) function - i, (2) type in Tax ID or SSN and press enter or control, whichever pertains to your PC. To roll to the next screen for additional addresses for the same vendor, press enter or control again until the address on the contract matches the address in the vendor file. Use the last 2 digits associated with that address. If the vendor is not on file, follow the instructions for adding a vendor to the system on page 16. NOTE: No contract can be input into the contract management system, and assigned a contract number until a matching vendor file is in the ISIS system. The same thing applies to address changes. Line 7 License or Certification # - If license is required for the individual to practice independently, or for an agency to do business, attach a copy of the current license and label as ATTACHMENT 1. Be sure to list at the bottom of the page under item 16) if it is not already listed.. NO professional services contract will be entered into with a medical professional whose license is expired. IF a social services contract agency has an appropriate license which has expired, AND the agency has filed for a license renewal but Health Standards has not yet made a visit, include the renewal request in the Attachment or Exhibit, along with proof of payment. (The specific contract monitor is responsible for assuring that the agency obtains a properly renewed license.) Curriculum vitae should also be included for a professional services contract, and labeled as Attachment 2. Line 8 Contractor Status: Subrecipient: Use Audit Determination Checklist to determine if vendor is a subrecipient Corporation: Mark if contractor is a corporation. For Profit: Mark if the organization is a for profit organization. If contractor is a corporation, and is for profit, a Disclosure of Ownership form filed with the Secretary of State=s Office, as verified by a stamp of receipt, must be attached to the contract. If the contracting party is an individual, mark this square, but no additional form is required. Label and show Disclosure of Ownership in section 16). Non-Profit: Mark if the organization is a non-profit organization. No Disclosure of Ownership is necessary for a non-profit organization. Publicly Traded: Check whether the organization is or is not publicly traded. NOTE: If the organization is for profit, but is publicly traded, a Disclosure of Ownership form is not necessary. If the corporation is an out-of-state concern, a copy of the Certificate of Authority to Do Business in the State of Louisiana, a form issued by the Secretary of State=s Office, must also be attached to the contract, and labeled as an attachment in section 16) Line 9 CFDA Number - Provide the CFDA (Catalog of Federal Domestic Assistance ) number if the contract is a social services contract funded through federal grant funds. Refer to list of CFDA numbers on page 12. Line 10 Description of Services - Show services to be provided, hours to be worked, performance measures, etc. If a Statement of Work is attached, provide only a brief summary of services to be provided in this section before noting, ASee Exhibit (#): Statement of Work@. Line 11 Effective Date - Starting date of contract. The contract date should be a date in the future, after the contract is signed by all parties. No services should be provided until after the contract is signed and processed. Any requests for exceptions must be accompanied by a letter of explanation, and are subject to approval. Line 12 Termination Date - Last day of contract. (Do not show a contract date that exceeds a 12-month period without Version: 05/27/05 CAHSD Contract Manual Page 8 of 91 first discussing the need for such with the CAHSD Division of Management and Finance.) Line 13 30 day clause for termination by either party - no entry required here. Line 14 Maximum Contract Amount - Total amount of contract dollars to be provided by the Agency. If a Professional Services Contract includes travel costs, break out service amount from travel amount. Example: $10,500 ($9,800 Services; $700 Travel). Line 15 Terms of Payment - Indicate the payment method, such as Cost-Reimbursement, Fee-for-Service, or Per Diem. Include hourly or specified rate, or if detailed information on payment methodology is included in an attachment, state Aas per specifications included in Attachment or Exhibit (#)@. Also state whether certain agency forms must be used in billing. Some examples are: $ Payment will be made on a cost-reimbursement basis, as per specifications included in Exhibit B: Contract Budget Summary, upon submission of CAHSD=s standard invoice form. $ Payment will be made at the rate of $35.00 per occupied bed day, upon submission of substantiating documents required by Agency. $ Contractor will be paid at the rate of $65 per hour, upon submission of standardized time and attendance sheets. Payment will be made only upon approval of - Name and title of person who will authorize payment upon review of invoice/documentation. NOTE: DHH Payment Management will only pay an invoice when this person=s name is signed on the invoice. It is permissible to use an Aor@ statement to ensure that the invoice can be signed on a timely basis if one of the approvers is absent. EXAMPLE: Name: Ken LeBlanc or Lester Mut; Title: Facility Manager / Administrative Director. If, during the contract term, there is a name change on who may approve invoices for payment, notify the CAHSD Management and Finance Division so that the proper information can be entered into the Payment Management and Contract Management systems. Line 16 List all attachments and/or exhibits here, by number and by name. All attachments and exhibits are integral parts of the contract. For social service contracts, the following attachment numbers are reserved: Attachment 1: Special Provision for Social Service Contracts with Provider Agencies Attachment 2: Audit Requirements Attachment 3: Drug-Free Workplace Policy Statement Attachment 4: Board Resolution For cost-reimbursement social service contracts, the following Exhibit designations are reserved: Exhibit A: Description of Services Exhibit B: Contract Budget Summary For Professional Service contracts with an individual, the following attachment numbers are reserved: Attachment 1: License Attachment 2: Curriculum Vita Attachment 3: Acknowledgment of Drug-Free Workplace Requirements Any additional Attachments or Exhibits may be added to a contract as necessary to adequately describe terms and conditions. However, these Attachments or Exhibits must be named, labeled, and added to Item 16) on Page 1. Page 2 of Contract Terms and Conditions MUST be included with all contracts. Do not copy on to back side of Page 1. Page 3 of Contract Signatures CONTRACTOR: Name: Name of person signing contract. If the contract is with a corporation, the person signing the contract must be the same person named in the Board Resolution. The Board Resolution must be included as an attachment. Title: Title of person signing contract. Other signatures are self-evident. Version: 05/27/05 CAHSD Contract Manual Page 9 of 91 CONTRACT PROCESSING The following guidelines are provided to assist you in submitting your contracts for processing. Adhering to these guidelines will ensure that your contracts are processed as quickly as possible. < Vendor numbers (line 6, page 1 of the contract) are to be verified/added/made active, etc. prior to submitting the contract to CAHSD Management and Finance Division for review. < Submit a minimum of 1 original set and 1 copy of the contract. Management and Finance will keep the original and send a processed copy back to you. You may, however, send as many copies as you need. They will be processed and returned to you. < DO NOT staple the original or any copies of the contract. Paperclip the original and each copy separately, and bundle them together with a binder clip or rubber band. < Attach the Cost Allocation Form and the Audit Determination Checklist to the front of the contract bundle. The Cost Allocation Form must be on colored paper. Only send the original of these forms. DO NOT send one for each copy of the contract. < The CAHSD Division or Facility submitting the contract is responsible for sending a copy of the fully processed contract back to Contractor. Contractors should submit contracts to the Contract Monitor listed in item 15) of the contract at the appropriate address listed below: Administration Developmental Disabilities Capital Area Human Services District Capital Area Human Services District 4615 Government St., Bldg 2, 2nd Floor 4615 Government St., Bldg 2, 2nd Floor Baton Rouge, LA 70806 Baton Rouge, LA 70806 Capital Area Recovery Program Center for Addictive Disorders 2455 Wooddale Boulevard 4615 Government, Bldg 1 Baton Rouge, LA 70805 Baton Rouge, LA 70806 Substance Abuse Prevention Adult Mental Health Services Capital Area Human Services District Capital Area Human Services District 4615 Government St., Bldg 2, 2nd Floor 4615 Government St., Bldg 2, 2nd Floor Baton Rouge, LA 70806 Baton Rouge, LA 70806 Children’s Behavioral Health Services Outpatient Substance Abuse Prevention Capital Area Human Services District Capital Area Human Services District 4615 Government St., Bldg 2, 2nd Floor 4615 Government St., Bldg 2, 2nd Floor Baton Rouge, LA 70806 Baton Rouge, LA 70806 Baton Rouge Mental Health Center Margaret Dumas Mental Health Center 4615 Government St., Bldg 2, 2nd Floor 3843 Harding Blvd Baton Rouge, LA 70806 Baton Rouge, LA 70870 Gonzales Mental Health Center PO Box 1725 Gonzales, LA 70707-1725 < Unless special provisions are made, any contract submitted by a contractor directly to the Management and Finance Division will be returned to the appropriate CAHSD Division or Facility for approval. This will cause a delay in processing. Contract Monitors should submit completed contracts to the following address: Management and Finance Division Capital Area Human Services District 4615 Government St., Bldg 2, 2nd Floor Baton Rouge, LA 70806 Version: 05/27/05 CAHSD Contract Manual Page 10 of 91 METHODS OF PAYMENT Contracts submitted must show the total amount of funds included or needed in the contract and make clear how these totals were derived. The format for providing this information may vary with the method to be used to pay the contractor for the service or product provided. METHOD REQUIREMENTS Contractor is paid at a fixed rate for a specified unit of service such as an hour of work, a specific physician service, a product with a unit price, etc. Examples: Hours provided by a professional; specific service performed such as a physical examination, urine screen, etc. Unit Cost The contract cost information should describe the unit, specify the number of units to be purchased over the period of the contract, and generally give information on the conditions under which the service is performed The contractor furnishes a specified product or service for an agreed upon cost. This method is most often used in consulting services and procurement of supplies/equipment Payment from the Agency may be set upon product delivery schedule or evidence of completion of certain tasks as outlined in the contract, or payment may be made upon billing for the completion of the total product or service. The terms and conditions of payment must be included in the contract Fixed Rate The cost information should show the itemized method of arriving at the total contract amount. Payment on a per diem basis differs from unit cost in that the amount the Agency will pay per unit is usually based upon a rate set by a rate determination agency, or by the Agency upon review of prior year cost reports. Per Diem Billing invoices under this type of reimbursement must use a method of specific individual client identification, and the actual number of services provided during the billing period. The contractor is reimbursed for actual allowable costs incurred in performance of the contract, to the extent prescribed by budget category in the contract. Allowable costs are governed by State and Federal regulations appropriate to the funding source. The level of effort expected in relation to service provision should be clearly described in the contract, such as type and number of services to be provided to an estimated number of clients. The Contractor must have actually incurred and paid for the cost prior to billing and receiving reimbursement from CAHSD. Documentation of actual expenses must be kept on file by the contractor for Agency review. Any exceptions to the prior payment provision must be approved in advance by the Deputy Director, upon written request and justification of need by the Contractor. Cost Reimbursement The Contractor=s bill must be itemized by budgeted line item categories and the amount reimbursed may not exceed the amount budgeted for any particular category without prior approval through budget revision or contract modification. Version: 05/27/05 CAHSD Contract Manual Page 11 of 91 CFDA NUMBERS AND FEDERAL FUNDS The Catalog of Federal Domestic Assistance (CFDA) describes all (approximately 1400) federal domestic assistance programs administered by the departments and establishments of the Federal government. The Catalog is updated twice a year, and numbers are Aretired@ if the program ceases to exist. Each program in the Catalog is preceded by a five-digit program identification number. IT IS THIS FIVE-DIGIT NUMBER THAT SHOULD BE SHOWN IN 9) OF PAGE 1 OF THE CONTRACT. The first two digits identify the Federal department or agency that administers the program, and the last three digits are assigned in numerical sequence. The current federal assistance programs funding some CAHSD contracts are: 14.235 HUD Supportive Housing Program Grant 16.540 Juvenile Justice and Delinquency Prevention: State Allocations 93.558 Temporary Assistance for Needy Families (TANF) 93.958 Block Grant for Community Mental Health Services 93.959 Block Grant for Prevention and Treatment of Substance Abuse 93.150 PATH Grant 93.939 HIV Prevention These federal funds cannot be used for the following purposes: • For contract with any entity other than a public or non-profit entity • For provision of inpatient hospital services • To make cash payments to intended recipients • To purchase or improve land, to purchase, construct or improve (other than minor remodeling) any building or facility, or to purchase major medical equipment • To satisfy any requirements for the expenditure of non-federal funds as a condition for the receipt of federal funds • To pay the salary of an individual at a rate in excess of $120,000 per year • To carry out any program of distributing sterile needles or bleach for the purpose of cleaning needles for injection of any illegal drug • To pay independent audit costs unless the sum of all federal funds received by the contractor, from any source, total $300,000 or more. Version: 05/27/05 CAHSD Contract Manual Page 12 of 91 HIPAA COMPLIANCE What is HIPAA? The Health Insurance Portability and Accountability Act of 1996 is the single most significant Federal legislation affecting the health care industry since the creation of the Medicare and Medicaid programs in 1965. This legislation is intended to help all parties better manage limited healthcare resources through improving overall business practices and make health care more consumer focused. Title I of the Act improves the portability and continuity of health insurance coverage for millions of American workers and their families. Title II provides for administrative simplification that requires the development of standards for the electronic exchange of health care information. Administrative simplification also requires rules to protect the privacy of personal health information and the establishment of security requirements to protect that information and the development of standard identifiers. What does Administrative Simplification Mean? The main focus of administrative simplification is a reduction of health care costs through the development of standards for the electronic exchange of health care information. This means that health care organizations, including CAHSD, will need to secure the data processing systems necessary to make these changes possible. With the shift towards these e-business practices, the health care industry then must be ready to focus on protecting the privacy and security of individual’s health care information. Specific provisions include: $ Transactions and Code Sets Rule - HIPAA calls for the development and use of standardized transactions to be used in the electronic exchange of data. In addition, the rule requires the use of standardized national code sets to identify medical conditions, treatments, procedures, durable medical equipment, etc. $ Privacy Rule - This provides for the protection of individually identifiable health information that is transmitted or maintained in any form or medium. $ Security Rule - The provision that specifies that an entity must implement and document security measures to protect personal health information from inadvertent destruction or illegal disclosure. When does HIPAA become effective? While the law passed in August 1996, the compliance dates vary depending upon when the individual rule was released. The compliance dates are as follows: $ Transaction and Code Sets Rule - October 16, 2003 $ Privacy Rule - April 14, 2003 $ Security Rule - 26 months after the final rule is adopted CAHSD is in the process of finalizing its HIPAA Privacy Policy. As documents are completed they will be made available on our web site at www.cahsd.org. CAHSD has included language in all contracts that any applicable HIPAA regulations must be complied with. It is the contractor’s responsibility to determine which HIPAA regulations apply to their organization. The AHIPAA Business Associate Addendum@ must be included in all FY2004 contracts. Version: 05/27/05 CAHSD Contract Manual Page 13 of 91 FORMS FOR CORPORATE AND OTHER LEGAL ENTITIES Board Resolution When contracting with a corporate entity, a government agency, or other organized group, a dated document supporting the contract action, and designation of the person to negotiate and sign the contract is required (except for entities which have single individual ownership). Normally this approval is given via a resolution of a board of directors or equivalent governing body. The resolution is to be attached to the contract and listed as an attachment. Unless the resolution specifies a specific contract term, board resolutions are considered active for up to three (3) years from the signature date on the resolution, and therefore may be copied for contract renewals occurring within that time frame. A board resolution which is written “broadly”, (i.e., gives authorization to enter into contract(s) with the CAHSD, but does not specify a particular contract, such as substance abuse prevention) can be copied to be used on multiple, different, contracts with the agency/entity. A sample board resolution form can be found in Appendix A. For Profit Corporation A contract with a for-profit corporation also requires a copy of the Disclosure of Ownership document, stamped as received by the Office of the Secretary of State. The document is to be attached to the contract and listed as an Attachment. A Disclosure of Ownership document is not required for a for-profit corporation which is publicly- traded. If this is the case, mark the “Publicly Traded” box on Line 8 on page 1 of the contract. The contractor may obtain a Disclosure of Ownership (Form 320) from the Louisiana Secretary of State’s Office (phone: 225-925-4704) or use the sample form in Appendix A. When completed and notarized, it should be returned, along with a $20.00 filing fee payable to the Secretary of State, to Corporations Division, P. O. Box 94125, Baton Rouge, LA 70804-9125. Out-of-State Contractor If an out-of-state agency is to do business in Louisiana for a period in excess of thirty (30) days, the agency is required to obtain an authorization to do business in the State of Louisiana. This Certificate, which is issued by the Louisiana Secretary of State, must also be attached to the contract and listed as an Attachment. This form is not applicable to individuals. Version: 05/27/05 CAHSD Contract Manual Page 14 of 91 UNIVERSITY APPROVAL University approval must be obtained for a contract with a faculty member of higher education, or with a corporation using a faculty member as one of the key personnel. The approval must be in writing by the President of the college or university employing the faculty member, or by the President’s designee. The approval should be included with the contract, and listed in item 16), Page 1 of the contract as an Attachment. Version: 05/27/05 CAHSD Contract Manual Page 15 of 91 TAXPAYER IDENTIFICATION NUMBER After a contract is signed by all parties, it must be entered into the automated Contract Financial Management System (CFMS) for the assignment of an identifying number, and for entry of data that will regulate the manner in which payments will be made to the contractor. One of the items of information required by CFMS, is the contractor’s vendor number. If the contractor does not have a vendor number in the State’s AGPS system, the contractor must complete a Form W-9 (see Appendix A), which will show the agency name and address to which the contractor wishes the reimbursement check to be issued, and submit it to CAHSD Management and Finance Division for processing. The vendor number assigned will consist of the contractor’s 9-digit Employer Identification Number, plus two additional numbers (usually 00). This will be the number under which payments will be recorded for tax purposes. Reimbursement checks will only be sent to the agency name and the agency address last recorded in the AGPS Vendor File. It is very important therefore, that you complete a new W-9 and a Vendor Change form (see Appendix A) for any change in agency name or address to which you want the check issued. An agency may choose to have more than one vendor number on file in the AGPS system. The Employer Identification Number would remain the same, but the last two digits would be different for each vendor number established (usually in numerical order). This option is generally selected by an agency that has several contracts with the State, and wishes to have the payments on the various contracts identified with the specific program involved, and/or to have the reimbursement checks for various programs mailed to different locations. It is strictly the agency’s option to have multiple vendor numbers. Version: 05/27/05 CAHSD Contract Manual Page 16 of 91 DRUG-FREE WORKPLACE POLICY STATEMENT Professional Service Providers All individual professionals contracted with shall be given a copy of the CAHSD Substance Abuse and Drug-Free Workplace Policy, and shall be held accountable under its provisions. A signed Acknowledgment of Drug-Free Workplace Requirements shall be included with the contract as Attachment 3. Copies of the acknowledgment form and the CAHSD Drug-Free Workplace Policy are contained in Appendix A. Social Service Provider Agencies or Professional Corporations All social service providers or professional corporations contracted with are to comply with the Drug-Free Workplace Act of 1988, Section 4804 of the Anti-Drug Abuse Act of 1988. A copy of the agency/corporation’s Drug-Free Workplace Policy Statement shall be made a part of the contract as Attachment 3. If the agency does not have a policy, it may pattern its own policy after CAHSD’s. However, the CAHSD policy itself is not to be included in the contract. Version: 05/27/05 CAHSD Contract Manual Page 17 of 91 AUDIT REQUIREMENTS All social service contracts entered into by the Capital Area Human Services District shall be evaluated to determine whether an independent financial audit of the contractor is required, and if so, the type of audit required. Determination of these issues shall be governed, at a minimum, by Public Law 98-502 (Single Audit Act of 1984) and the Louisiana Revised Statutes 24:513. Professional services contracts do not require audits. The type of audit required by CAHSD shall be determined by whether or not the contractor meet conditions to be considered as a subrecipient of federal funds, the dollar total of all contracts entered into between CAHSD and the contractor, and, in some cases the type of contract reimbursement method. Determining if the Contractor is a Subrecipient To be considered a subrecipient, the contractor must meet all four of the following conditions: 1. Contractor receives $25,000 or more in federal funds via one or more contracts, and 2. Client eligibility determination, or admission to the program, is a function of the Contractor, and 3. The contractual agreement requires the Contractor to comply with laws and regulations which are part of any federal grant requirements, and 4. The Contractor is either a corporation (non-profit or for-profit), a state or local government agency, or a Native American Tribe. If the answer to all four (4) questions is yes, the contractor is a subrecipient, and must comply with the audit requirements of OMB Circular A-133. If the answer to any one of the four questions is no, the contractor is not considered a subrecipient. It must then be determined if the contractor is required to have an audit performed under Government Auditing Standards (also referred to as GAS, GAGAS, or Yellow Book). Determining if the Contractor Must Submit any Audit To determine if the contractor is required to submit an audit performed according to Government Auditing Standards, all of the following conditions must be met: 1. Contractor receives $100,000 or more via one or more contracts OR this is a cost-reimbursement contract of any amount, and Version: 05/27/05 CAHSD Contract Manual Page 18 of 91 2. The contract is a social services contract, and 3. The contractor is a corporation (for-profit or non-profit), a state or local government, or a Native American Tribe. If the answer to all three questions is yes, then a Yellow Book audit is required. If the answer to any question is no, then no audit is required. The exception is that ALL cost-reimbursement contracts, regardless of contract amount, require that an audit be completed. However, in certain circumstances, where the contract amount is minimum (generally under $10,000), the Deputy Director may authorize all source documents to be submitted with invoices, in lieu of an audit being conducted. Audit Determination Checklist It is the responsibility of CAHSD to determine the type of audit that is required, based on accurate information received from the contractor. This shall be the responsibility of each individual contract manager, and the determination will be made by the staff person completing an Audit Determination Checklist (Included in Appendix A). The resulting determination shall be used to complete Attachment 2: Audit Requirements of the contract. Submission of the Completed Audit All audits must be conducted by an independent certified public accountant, and must be submitted within six (6) months of the end of the contractor’s business year. Two (2) copies of the audit should go to DHH and two (2) copies to CAHSD. By law, seven (7) copies (six bound and one unbound) of the audit must also be submitted to the Legislative Auditor’s Office. Addresses for submission of audit reports are: Office of the Legislative Auditor (Physical address) (Mailing Address) 1600 N. Third Street PO Box 94397 Baton Rouge, LA 70802 Baton Rouge, LA 70804 Department of Health and Hospitals Division of Fiscal Management PO Box 91117 Baton Rouge, LA 70821-3797 Capital Area Human Services District Administrative Director 4615 Government St, Bldg 2 Baton Rouge, LA 70806 The CAHSD Administrative Director shall review the audit to determine whether audit findings are Version: 05/27/05 CAHSD Contract Manual Page 19 of 91 present. The second copy of the audit report will be forwarded to the appropriate Contract Monitor to review and approve on CAHSD’s behalf the contractor=s corrective plan of action, and to determine whether findings are actually resolved. CAHSD will not re-enter into a contract with a provider unless corrective action plans in response to findings have been received and approved. NOTE: The expense associated with a required audit is not reimbursable if the contract is drawn from federal funds and the contract amount is less than $300,000. For further details on Audit Requirements refer to CAHSD Policy 203-98. Version: 05/27/05 CAHSD Contract Manual Page 20 of 91 CONTRACT ADVANCES Advances on a contract should not be considered a routine practice and are considered in cases of new programs which require substantial startup costs. Advances will only be made upon adequate justification of need and as authorized by the CAHSD Deputy Director or designee. Advances must be requested and processed PRIOR to the effective date of the contract (usually at least a month prior). When authorized, advances will not exceed 10% of the total contract amount. Letters of justification requesting an advance must be signed by the person authorized by the Board Resolution to sign the contract. Additionally, advance requests on contracts involving federal funds received by CAHSD through its Memorandum of Understanding with the Department of Health and Hospitals must be accompanied by a letter from the Administrator of the DHH Financial Management Section, stating that the federal grant allows for the advance of federal funds. For federal grants in which CAHSD is the direct recipient, the Administrative Director of CAHSD shall research and verify in writing that such an advance is permissible. The Advance request shall include two parts: The letter of request signed by the authorized representative of the contractor, and the Advance Authorization Form signed by the contract representative, the applicable CAHSD Division Director and the Deputy Director. Terms of repayment must be clearly spelled out in the form, and length of time for recoupment of the advance shall not exceed six (6) months on contracts of nine (9) to twelve (12) months duration. On any contract term of less than nine months (9) duration, the maximum period for recoupment shall be determined on an individual contract basis by the Deputy Director, who shall take into consideration such circumstances as prior experience with the contractor, financial condition of the contracting agency, size of the agency, amount of the contract, etc. Both the Advance Authorization Form and the letter of request from the contractor must be attached to the contract as an EXHIBIT, and the exhibit shall be referenced under Line 16 of page 1 of the contract. (See Appendix A) Version: 05/27/05 CAHSD Contract Manual Page 21 of 91 STATEMENT OF WORK All social, consulting and most professional services contract must include a State of Work. The exception for professional services contracts are contracts with physicians to provide psychiatric or medical services. Typically, a Statement of Work or Description of Services will describe the deliverables to be completed or rendered in order to receive payment. The deliverables must be measurable. While the specific format of the Statement of Work can vary, it should include the following sections at a minimum: • Purpose/Overview • Methodology/Services • Deliverables • Terms of Payment • Monitoring/Evaluation Process Version: 05/27/05 CAHSD Contract Manual Page 22 of 91 COST-REIMBURSEMENT BUDGET Guidelines for Completing Exhibit B A budget, using the CAHSD budget format (Exhibit B), is required to be completed on cost-reimbursement contracts. (Note: If contractors are instructed to prepare budgets in per diem, unit cost, or fee-for-service contracts, the budget is for information purposes only, and should not be included in or made a part of the contract). Contract budgets are divided into expenditure Categories, with the types of common expenses included in the Category called line items. As long as changes do not exceed the amount budgeted for the Category total, the amount actually spent in line items comprising the Category can vary from what is included in the contract budget, without a Budget Revision being necessary. However, contractors may not exceed the amount budgeted for any particular Category without prior approval through budget revision, or contract modification if necessary. REIMBURSABLE COSTS: Only those items that can be considered reasonable and necessary for the operation of a contracted program are reimbursable. In addition, an expense must be incurred and paid PRIOR to being submitted to CAHSD for reimbursement. For example: an item purchased with a credit card cannot be submitted for reimbursement until the related amount on the credit card bill has been paid. The interest associated with such credit card transactions is not reimbursable. Expenditure Categories The budget Categories used by CAHSD, with a description of the types of costs (i.e., line items) included in each are: • Personal Services (11) Personal Services are expenses for regular salaries and wages paid to all full-time or part-time employees hired on a continuing basis. It also includes any overtime or termination pay paid to employees. Funds expended through the contract for salaries should not exceed rates in excess of 5% above the amount paid for comparable State Civil Services positions. NOTE: CAHSD requires the position title and the name of the person filling each position. Job descriptions and resumes are required for each professional position funded by CAHSD. • Related Benefits (41) This category includes all employer costs for employee fringe benefits, i.e., FICA, FUTA, SUTA, insurance costs, etc. (Include Workman’s Compensation premiums in the Operating Services Category rather than in Related Benefits). Related benefit costs in excess of 20% of salary costs must be justified and negotiated with CAHSD prior to inclusion in the budget. See Appendix B for SS-8: Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding for assistance as needed in determining whether certain related benefits must be paid on behalf of an employee. . • Travel (12) Travel expenditures are disbursements made to pay for travel expenses as defined by the General Travel Regulations, State Policy and Procedure Memorandum No. 49. (See Appendix B for a summary of key travel regulations). Some allowable expenses included in travel are lodging, meals, common carrier fares and personal auto mileage. Field Travel is travel incurred by employees in the routine performance of their job duties. In-State Conference Travel is incurred by employees attending conferences, conventions, schools, seminars, training, etc. Out-of-State travel should not be included in the contract budget. If CAHSD determines that Out-of-State travel is necessary for the provision of contract services, prior approval will be given. (See page 27) The amounts reimbursable for travel expenses cannot exceed those amounts currently in effect for State Civil Service employees at the time the contract is negotiated. Version: 05/27/05 CAHSD Contract Manual Page 23 of 91 • Operating Services (13) Operating Services expenses are those incurred for outside services, other than personal or professional, required by the contract program in the administration of its assigned or legally obligatory functions. Line items for this Category of expense include such things as insurance, printing, advertising, maintenance of property and equipment, rentals, dues and subscriptions, postage, telephone, utilities, laboratory fees, etc. Expenditures for operating expenses should fall within general community market values. Budgets which include rental expense must include an explanation in the Budget Justification which specifies to whom the rent is being paid, how many square feet of rental space is used for the contract program, and include a floor plan. • Supplies (14) Supplies are articles and commodities which are consumed, to be consumed, or otherwise materially altered in agency operations. Line items falling under this category include office supplies, medical supplies, food, automotive supplies, repair and maintenance supplies, janitorial supplies, etc. • Professional Services (15) Professional services are services provided in specialized or highly technical fields by sources outside of contractor operations. Professional services may include, accounting and bookkeeping, medical services, legal services, or similar services requiring professional skills. All Professional Services costs must be itemized (show calculations) in the budget and explained on the Budget Justification page. • Equipment (16) Expenditures in this category result in acquisition of, additions to, or replacement of, fixed or moveable property, exclusive of service contracts (Service contracts are covered under Operating Services). Examples include acquisitions such as office equipment, medical equipment, recreational equipment, household equipment, etc. In cost reimbursement contracts, such acquisitions become the property of CAHSD and are to be returned to CAHSD upon termination or non-renewal of a contract. Note: See Property Control Regulations for Cost-Reimbursement Contractors for equipment authorization, purchase, and record retention requirements. The exception to this requirement is for items bought specifically for a client to meet his/her special needs, set up a household, etc. These items remain the property of the consumer. When funds are included for this purpose in a cost-reimbursement contract, the following statement shall be added to section 16) of Page 1 of the contract: ADDITIONAL PROVISION: Notwithstanding the provisions of Attachment 1, Paragraph 19.a, any equipment supplies, or other tangible assets purchased under this Agreement for the special needs of the consumer, or for initial costs of setting up a household, become and remain the property of the consumer for whom the items were purchased. • Indirect Costs These are costs not specific to a program’s operation. It is generally charged by parent organizations with multiple programs, and is usually charged on a percentage basis (not to exceed 12%). Indirect Costs are not necessarily overhead costs. Items such as office space for a program which is provided by its governing organization is NOT an indirect cost. Space for operation is a normal and necessary cost for program operation. It may be provided “gratis”, i.e., not charged to CAHSD funding, but its value should be shown in the “Applicant and Other” column, in the Rental-Buildings line item, in the Operating Services Category. The basis for indirect costs charged to the contract must be explained in the Budget Justification. Contract Budget Summary (Page 1 of Exhibit B) The total amount required for operation of the program is to be shown, by cost category, on Page 1 of the contract. Version: 05/27/05 CAHSD Contract Manual Page 24 of 91 The total amount required should be a combination of funds requested from CAHSD and cash and/or in-kind to be provided by Applicant and others. The sources of funds included in the Applicant and Other column are to be detailed in Exhibit C: Program Revenue Detail. Funding by Federal and State/Other Sources When a contract is to be funded by both federal and state funds, check the appropriate expenditure mechanism for utilizing the funds. If federal funds cannot be used for all of the types of planned expenses, the breakdown must be completed, and invoices sent in by the Contractor will need to specify the different funding sources by category. How to Show Salaries and Wages (Page 2 of Exhibit B) Since programs seem to have the most difficulty understanding how to complete the Salaries and Wages section of the budget, more explicit detail and examples are provided here: Position Title & Name - Self-explanatory. Do not show multiple positions with the same title in one line followed by a numeric. List each position separately. A job description for position and a resume’ for each person filling that position must be included. Annual Salary Rate (Column 1) - This is the full-time, annual salary for the position, regardless of whether the position will be used on a part-time basis in the program. This full-time, annualized figure is needed to check accuracy of computations across other columns. # Months Budgeted (Column 2) - The number of months during the term of the contract that this position will actually be working in the program. Percent Time (Column 3) - The percentage of time, based on a 40-hour work week that this position will devote to the program. Example: A 32 hour work schedule would be shown as 80%; a 10 hour work schedule would be shown as 25%; a 40 hour work schedule would be shown as 100%. Source of Funds (Column 4) - Enter into the appropriate column(s) the source of funds which will pay the individual for the amount of time he/she is working in the program. The total of the 2 sub-columns should equal the actual pay the individual is getting for this contracted program ONLY. Examples completed for all columns are as follows: Source of Funds Position Title & Name Annual Salary Rate # Months Budgeted Percent Time Applicant & Other Requested from CAHSD Program Director - Mary Smith $45,000 12 80% $36,000 Counselor - John Doe $20,000 12 100% $2,000 $18,000 Counselor - Ellen Brown $20,000 9 100% $2,000 $13,000 Secretary - Jane White 16,000 12 50% $4,000 $4,000 In the above examples, the Program Director is working for the full 12 months of the contract at 32 hours per week. Additionally the salary is fully charged to the contract. His/her salary is calculated as follows: $45,000 x .80 = $36,000. One counselor is working full time for the entire period of the contract. Her annual salary of $20,000 is correct, but only $18,000 of it will be charged to the contract. The remaining $2,000 will be put up by the agency as a match. Version: 05/27/05 CAHSD Contract Manual Page 25 of 91 The other counselor will not start the program until October. The total amount of his salary associated with this program is calculated as follows: $20,000 ) 12 months = $ $1,666.67 per month. $1,666.67 x 9 months = $15,000, with the agency again providing $2,000 in match. The Secretary will be working 20 hours per week and half of her salary will be billed to the contract. Her salary related to the program is calculated as: $16,000 x .50 = $8,000 ($4,000 provided by Contractor, and $4,000 charged to the contract). Other Budget Categories (Pages 3-4) Fill in costs by line item and by category subtotal. Budget Justification (Page 5) Be as specific as necessary by line item to explain the basis for the cost computation, particularly for items that are not self-evident, or which are unusual in type or amount. All Professional Services must be justified and the cost calculation explained. Any line item labeled “other” or “miscellaneous” must be detailed in the Budget Justification. A résumé is also required for each professional service position. (Example: Physician @ $60/hour x 4 hours/week. Physician services are needed to .......) The basis of determination for Indirect Costs must be included in the Budget Justification. Program Revenue Detail - EXHIBIT C The purpose of this form is to show any funding sources for the contracted program OTHER THAN CAHSD. Other sources of funding might possibly be the contractor (applicant), Department of Education, TANF Funds, or other types of grants. List only those funds used for this program. In the column labeled AProjected Amount@ list all anticipated cash sources of funding. In the column labeled “Estimated Value” list all anticipated “In-Kind” sources of funding. An example of “In-kind” funding would be when the contractor is allowing the program to use facility space without paying rent or being reimbursed for lease or mortgage expenses. The total of the “Projected Amount” and “Estimate Value” columns should equal the total of the “Applicant & Other” column on page 1 of EXHIBIT B. Version: 05/27/05 CAHSD Contract Manual Page 26 of 91 TRAVEL EXPENSES FOR COST REIMBURSEMENT CONTRACTS Cost reimbursement contractors may only be reimbursed at the rates and terms specified in the current State Travel Regulations. An excerpt of the regulations is included in Appendix A, but a full copy of the State Travel Regulations may be accessed through the Internet with the following link: http://www.doa.louisiana.gov/osp/travel/TravelGuide/docs/TravelGuide.pdf When expenses for Travel are included on an invoice for reimbursement, and those expenses relate only to routine mileage reimbursement or to conference registration expense, it is not necessary to attach additional information to the invoice for reimbursement. However, due to the fact that determining allowable reimbursement under State Travel Regulations can be complex, expenses other than routine car travel or conference registration expenses must be shown on PMF110, Travel Expense Account Form (Appendix A), which is to accompany the invoice submitted for reimbursement. NOTE: Out-of-state travel will not be approved as part of a contract budget. Should CAHSD determine that Out-of-State travel is necessary for the provision of contract services it will be approved on a case-by-case basis. All Out-of-State travel requests should be submitted to CAHSD on the travel authorization form (see form trvlauth02 in Appendix A.) Version: 05/27/05 CAHSD Contract Manual Page 27 of 91 PROPERTY CONTROL REGULATIONS FOR COST-REIMBURSEMENT CONTRACTORS Any purchase of movable property under a cost-reimbursement contract must conform to CAHSD bid and inventory requirements for contractors. Further, in the event the Contractor is unable to continue with the provision of services as agreed upon in the contract, ownership of the property reverts to CAHSD and the Contractor is responsible for delivering the property to the nearest CAHSD subunit at no expense to the CAHSD, and if applicable, for transferring of title to same. CAHSD will subsequently decide whether to keep the property, loan it to another contractor, or surplus the property. (Return of property does not apply to items purchased for consumer/client ownership). If a contractor’s own property control regulations are more stringent than those stated in this policy, the contractor may substitute the more stringent requirements. Purchasing or Inventory forms used by the contractor may differ from those suggested by CAHSD for contractors, but must contain at least all of the items required on the CAHSD forms and in a readily identifiable format. A. Definitions Acquisition Costs - All costs of the unit plus cost of necessary accessories, taxes, delivery charges, and installation. Bid - A formal competitive price submission for goods in response to advertised specifications. Inventory - A list of property, containing specific identifying information of each unit, and specific information relative to acquisition cost. Manufacturer - The name of the company which manufactures the goods. Except in the case of large chain stores, this is generally not the same as the seller of the item. The name of the manufacturer usually appears on the item=s label. Model Number - The number assigned by a manufacturer to a product line which identifies it as being different from other products in similar lines. (Not the same as the serial number). Moveable Property - Items typically referred to as equipment or furnishings. The term “moveable” distinguishes this type of equipment from equipment attached as a permanent part of a building or structure. The term “property” distinguishes this type of equipment from “supplies”, with supplies being consumable through normal use in no more than a year’s time. Property Control Manager - The contractor’s employee designated as responsible for tagging, recording, and location of all moveable property purchased through a cost-reimbursement contract with the CAHSD. Quotation - An informal competitive bid or price, generally given verbally. Serial Number - The number assigned by a manufacturer which identifies one item from another item of the same make and model. Serial numbers are not commonly found on desks and chairs, but are routinely found on other manufactured hard goods such as machinery, projectors, recorders, etc. Specification, General - A description of the physical, functional, or performance characteristics, or of the nature of desired goods. Specification, Brand Name or Equal - A specification that cites brand names, model number, or other identifications as representing the quality and performance called for, and inviting bids on comparable items or products of any manufacturer. Version: 05/27/05 CAHSD Contract Manual Page 28 of 91 Specification, Proprietary - A specification that cites brand name, model number, or some other designation that identifies a specific product exclusive of others. Unit (Item) Cost - Price prior to application of associated costs, such as taxes, delivery charges, installation charges, etc. B. Rules Regarding Purchasing Moveable Property Note: Prior approval is considered automatic in contracts for which the contractor receives an authorization to purchase initiated by the CAHSD. 1. Prior approval must be obtained from the appropriate contract manager in the applicable Program office for purchase of any item (unit) of equipment equal to or more than $500.00, regardless of whether the item was specified in the Capital Assets category of the contract budget. Failure to obtain prior approval may result in non-reimbursement of the item. 2. Items costing up to $500 may be purchased at Contractor discretion, if the item is specified in Budget Exhibit of the approved contract between CAHSD and Contractor. If the item is not specifically identified, only unit items costing $250.00 or less may be purchased at Contractor discretion. (Non-specified items between $250.01 and $499.99 also require prior approval as stated in B.1.) Purchase of any item which exceeds the budgeted funds in the Category, and for which the Contractor has not obtained an approved Budget Revision in advance, may result in non-reimbursement for the item. 3. No bidding is required on items with a unit value of $500.00 or less. 4. Three (3) telephone bids are required on items with a unit value of $500.01- $2,500.00. The telephone bids received must be recorded with the following information: vendor name, contact person, phone number, price quoted, terms of delivery, and conditions of purchase. (See telephone bid form in Appendix A). 5. Three (3) written bids are required for items with a unit value of $ 2,500.01 through $5,000.00. These should be sealed bids obtained by submitting a request for pricing, with specifications, to potential vendors. 6. Purchases over $5,000.00 must be advertised for at least three (3) days (consecutive or non-consecutive). The advertisement shall include information on obtaining bid specifications, and the date and time through which bids will be received. A minimum period of ten (10) calendar days from the first day of publication shall be allowed for bid submission. 7. All solicitations or bids are to be awarded to the lowest responsible and responsive bidder who meet specification requirements. 8. Any item in excess of $500.00 that must be obtained from a sole source provider (manufacturer or single supplier for the product), must be approved for purchase in advance by the CAHSD. The request submitted must include documentation that the vendor is a sole source provider. C. Processing the Request For Purchase Authority 1. Any item requiring prior approval shall be submitted to the appropriate CAHSD contract officer on the Contractor Moveable Property Purchase Request Form included in Appendix A. The contractor shall place an “expected not to exceed” price on the Request form. The contractor must re-establish approval with the contract officer prior to purchase if the actual item cost exceeds the expectation when actual quotations or bids Version: 05/27/05 CAHSD Contract Manual Page 29 of 91 are received. 2. When an approved Purchase Request form is returned to the Contractor, the item(s) may be purchased in conformance with the bid requirements specified in Section B. Any specifications, recording of verbal quotations, or written bid offers, must be retained by the Contractor for auditing purposes. 3. When an item is purchased and received, the serial number, model number, manufacturer, and any other pertinent descriptive information is to be recorded on the invoice. (The item must also be entered on the Master Property Control Inventory Form which must be maintained by the contractor for all items of moveable property purchased under the contract. See Section D.) 4. To be reimbursed for the equipment purchase through your monthly reimbursement voucher, a copy of the approved Purchase Request Form and a copy of the invoice with descriptive information must be included with the routine cost-reimbursement voucher. It is the responsibility of the contract manager reviewing the voucher for payment to transmit the form and item invoice to the proper CAHSD property custodian. This information will be used by our office to verify your physical inventory at the end of the fiscal year. D. Maintaining the Property Control Inventory 1. A Master Property Control Inventory Form must be maintained by the contractor for all items of moveable property purchased under the cost-reimbursement contract. (Suggested form included in Appendix A) 2. The Inventory Form shall include the following information: E Item (what it is) E Quantity of items (how many) E Manufacturer (who made it, or whose brand is on it) E Model Number E Serial Number, if applicable E Type/Size/Capacity (when various sizes are available; Ex: 5 HP, 30 Gallon) E Date Acquired (date received by contractor) E Acquisition Cost (total invoice cost, including item cost, tax, shipping and/or handling costs) E Room/Location Assigned (where it is) While a item tagging system is not required, agencies with multiple sources of financing should consider adoption of such. The tag number should then be included with the Room/Location information. E. Loss Reporting It is the responsibility of the contractor to assure that all equipment purchased under a cost-reimbursement contract with CAHSD is properly maintained and secured. Should any items be stolen or misplaced or removed from the assigned location, the Contractor must contact the appropriate CAHSD Property Control Manager. If the item is believed to be stolen, the contractor must obtain a police report. 1. Submit written identifying property information, with a record of actions taken in response to the lost, and a police report, if applicable, to the appropriate CAHSD Property Control Manager. 2. Upon review of the information submitted, CAHSD shall provide the Contractor with written authorization to remove the item(s) from the Master Property Control Inventory Form. 3. Should the missing property be located at a later time, the CAHSD must be notified in writing, and the item re- entered on the Inventory Form by the Contractor. Version: 05/27/05 CAHSD Contract Manual Page 30 of 91 F. Annual Property Certification Within 45 days of the end of each contract year, the Contractor shall check all items against inventory and record the date checked on a copy of the Inventory Form. * The original shall be retained by the Contractor. A copy of the date- checked form will be submitted to the appropriate CAHSD Property Control Manager, along with a typed statement on official letterhead from the Contract Program Director certifying to the accuracy of the Master Property Control Form, and documentation of all discrepancies. A copy of the statement and Inventory Form shall be maintained on file by CAHSD for verification of items at any time that the contract with the social service agency is terminated, with no renewal anticipated. Without a required advance notification of the Contractor, a CAHSD staff person may conduct a site visit at the Contractor’s location for purposes of physically verifying the inventory. *The Master Inventory is a continuous log which is maintained across contract years. It is important that the original form not be used to show date checked, because a new copy will need to be made each year, with a new date entered to show when all items on the inventory have again been physically located. Summary of Actions Required Prior to Purchase of Equipment Amount Detailed in Exhibit D? Prior Authorization Required ? Telephone Bids (3) Written Bids (3) Advertise ment < or = to $250.00 N/A No No No No $250.01 - $500.00 Yes No No No No $250.01 - $500.00 NO Yes No No No $500.01 - $2,500.00 N/A Yes Yes No No $2,500.01-$5,000.00 N/A Yes No Yes No > $5,000.00 N/A Yes No No Yes Version: 05/27/05 CAHSD Contract Manual Page 31 of 91 CONTRACT AMENDMENTS When any condition or term of the contract is changed, a contract amendment is to be entered into and agreed upon by both parties. Contract amendments usually occur for the following, non- inclusive, reasons: Change in contract dates; change in contract amount; change in Description of Services; or additional contract provisions. Contract amendments are NOT necessary in the following circumstances: • Change between budget categories in a cost-reimbursement contract, which does not change the total amount of the contract. A Budget Revision Form is to be used to accomplish this change. (See Appendix A for form) • Change of Vendor Address. This is accomplished by the contractor notifying, in writing, the CAHSD Management & Finance Division who initiates the ISIS Vendor Update process. A reimbursement check cannot be mailed to a different address until this action has been accomplished. • Canceling of a Contract. A written notice of cancellation initiated by the canceling party, and a Notice of Contract Cancellation Form, completed by the contract manager is used to register the cancellation of a contract prior to its termination date. This is necessary in order to unencumber funds not yet used, making the funds available for re- obligation. Amendments must be submitted to CAHSD prior to April 1st of each contract year. It is advisable to send certified mail/return receipt requested or hand deliver to CAHSD. Version: 05/27/05 CAHSD Contract Manual Page 32 of 91 BUDGET REVISIONS Budget revisions are used to obtain CAHSD approval for increasing/decreasing the amount budgeted in certain Categories in Exhibit D of cost reimbursement categories. Because changes in one Category are offset by changes in another, the total amount of the contract does not change, and a contract amendment is not required. The specific changes must be shown, and the reason for them explained in detail, on the Budget Revision Form. Any proposed change which would put funds in a Category which has no money in it in the current Contract, will likely require a contract Amendment, because it is usually indicative of a change in program scope or requirements included in the Description of Services. Budget revisions should be submitted and approved prior to incurring costs in excess of the current budgeted amount in a Category. Since the requested revision may not be approved, the agency runs the risk of incurring costs that will not be reimbursed when the Category amount is exceeded. A copy of a Budget Revision Form can be found in Appendix A. Budget revisions must be submitted to CAHSD prior to April 1st of each contract year. It is advisable to send certified mail/return receipt requested or hand deliver to CAHSD. Version: 05/27/05 CAHSD Contract Manual Page 33 of 91 CONTRACT TERMINATION OR CANCELLATION Termination or cancellation of a contract may occur for the following, non-inclusive, reasons: • The need for the service no longer exists. • Funding is not available for continued purchase of the service. • Service costs require competitive bidding to award contract for the service. • Non-performance of contract terms. • Deficiencies in provision of services required by the contract. • Provider does not wish to continue the contract. Contract termination, for reasons other than those specified in advance in the contract document, must generally be preceded by either party giving a thirty (30) day notice to the other. Loss of licensure, however, is cause for immediate termination of the contract, without advance notice. Additionally, both the Contractor and the Agency can mutually agree to terminate the contract prior to the thirty (30) day notice period. When a contract is canceled or terminated, no termination costs are allowed. Only costs incurred for successful work to the date of cancellation will be paid. Disposition of records, and equipment may need to be coordinated with CAHSD. While professional business practices would dictate otherwise, it is not legally necessary to give advance notice or cause to a contractor for non-renewal of his/her contract. The termination date, as specified in the contract, severs the relationship between the two parties unless definitive action is taken to renew the contract. In order to terminate a contract, documentation in the form of a letter or memo, is needed to accompany the Change in Contract Amount/Contract Cancellation form which can be found in Appendix A. The documentation must be from the person initiating the termination and contain the reason(s) for termination. Version: 05/27/05 CAHSD Contract Manual Page 34 of 91 BILLING PROCEDURES Invoices are to be submitted on the agency prescribed billing forms. Billing is usually done on a monthly basis, but more (or less) frequent billing may be negotiated with the Division, and concurred with by the CAHSD Management and Finance Division. Unless specified otherwise, invoices should be submitted to the person identified (contract monitor) in Line 15, Page 1 of the contract. If the person who will be signing the invoice statement is someone other than the person who was authorized to sign the contract, a letter from the authorized person must be sent to the appropriate Division Director stating who will be allowed to sign invoices submitted. A copy of the letter should be sent to the CAHSD Management and Finance Division for filing in the official contract file. The invoice or bill must always contain the CFMS contract number. This number is essential for proper identification of the specific contract since it is not unusual for CAHSD to have several contracts with one provider. Every invoice submitted must have a unique twelve-digit invoice number. The uniqueness is accomplished through digits 7 through 12 of the invoice number. The following numbering scheme is to be used in establishing invoice numbers. ٱٱٱٱٱٱ ٱٱٱٱ ٱٱ CFMS No. (6) Mo/Yr (4) Bill No. (2) The numbers in parentheses indicate the number of digits needed in each section of the 12-digit number. The first 6 digits MUST be the CFMS number; the next 4 numbers designate the month and year in which services being billed were delivered. The last two digits (Bill No.) represent the invoice number for the month, i.e., usually “01” since most billing is once monthly. If more than one invoice is submitted for the same billing period, each last two digits MUST be different on each invoice. Once reviewed and approved by the Contract Monitor, invoices should be routed to Tamara Brown, Contract/Grants Reviewer within three (3) working days to ensure timely submission to DHH Payment Management for processing. Invoices for contracts executed by Developmental Disabilities will be submitted to DHH Payment Management by Developmental Disabilities and not routed through Tamara. Monthly invoices must be received no later than the fifteenth day of the succeeding month. All final invoices must be submitted to CAHSD for payment within fifteen (15) days of the termination of the contract. Version: 05/27/05 CAHSD Contract Manual Page 35 of 91 INVOICES Types of Invoices Listed below are the invoice forms are to be used for presenting claims for reimbursement. These forms are to be used unless permission is granted from CAHSD to make changes or substitutions. Professional Services This is the standard form for use with professional services and consulting contracts. This form serves as their time sheet and billing form. (See form invoice ps in Appendix A.) Cost Reimbursement This is the standard form for use with cost-reimbursement contracts. The amounts submitted on this form represent expenses incurred and paid by the contractor. Detailed supporting documentation for all expenses submitted should be kept by the contractor and will be reviewed by the contract monitor during site visits. (See invoice in Appendix A.) Per Diem This is the standard form for use with social service contracts which utilize as per diem payment method, such as inpatient or residential treatment beds. This invoice requires backup documentation listing the details of what is being billed. (See the form invoice cover on and invoice pd in Appendix A.) Fee For Service This is the standard form to be used for contracts specifying unit of cost, per diem, etc. payment mechanisms. This form is usually accompanied by one or more required, related documents compiled by the Contractor. (See invoice fee in Appendix A.) Version: 05/27/05 CAHSD Contract Manual Page 36 of 91 Instructions for Completing Contract Invoices Provider Name and Address Taken from Lines 1) and 2-3) of Page 1 of the contract Billing Period Month and year of service delivery for which payment is being sought. If invoice is for partial month, include specific dates being billed. If more than one invoice is being submitted for the same period, be sure to number the invoice differently from the first, and note as a supplemental billing. CFMS Contract No. Six digit CFMS number assigned to the contract. Invoice Number Twelve (12) digit identifier. The first six digits are to be the CFMS contract number; digits 7 through 10 are to be the month and year for which services are being billed (e.g., July 2001 would be 0701). The last two digits are the contractor’s choice. Each invoice must have a unique identifier, so if you are submitting more than one (1) invoice for the month, be sure that the last two digits are different on each invoice. Period Billed Dates which the invoice covers. Usually is a month of the year. For Cost Reimbursement Contracts: Expenditure Recap Show latest approved budget in Column (1). Show cost for period being billed in Column (2). Show total amount billed during the year through the previous invoice submitted in Column (3). Note: this is the amount shown in column 4 on previous invoice. Add columns (2) and (3) to obtain column (4). Subtract Column (4) from column (1) to obtain column (5). NOTE: On invoice form inv.cr2, follow same instructions, and also place figures in State or Federal row, as appropriate. For Fee for Service, Unit Cost, or similar Contracts: Date(s) of Service May be for a full month, or may be for specific intervals when various services were delivered. If the identification is too detailed for the invoice form itself, and there is backup documentation showing the specific intervals and what services were delivered in each, “Per Attached” may be written here. Description Generalized name or phrase for services rendered. (Ex: Detox services; Wrap-Around Services, etc.). Amount Self-explanatory. Version: 05/27/05 CAHSD Contract Manual Page 37 of 91 All Contracts: Amount Billed Amount being billed to CAHSD prior to adjustments. Adjustments Increase/decreases associated with items such as error in prior billings. Note: Show decreases from amount billed in parentheses ( ). Do not show repayment of advances as an adjustment. Total to be Paid Total due to vendor after adjustments, if applicable. (If an advance was received, this is the amount due to vendor prior to reduction by Payment Management for advance repayments). Explanation of Adjustments Explain nature of adjustment. Vendor Signature Authorized vendor signature. If different from person authorized to sign the contract, vendor must file a letter with CAHSD stating name(s) of other individual(s) authorized to make vendor certifications Payment Authorization For CAHSD completion only. Data from contract cost allocation form. Version: 05/27/05 CAHSD Contract Manual Page 38 of 91 CONTRACT MONITORING All contracts will be monitored by designated CAHSD employees. The level and degree of monitoring will be determined by the type of contract and the services being provided. The plan for monitoring should be included in the Statement of Work and documentation must be generated to show that the appropriate monitoring has been completed. Documentation of monitoring, findings, corrective action plans (if there are findings), and the resolution of findings must be maintained by the contract monitor and be available for review by auditors. Version: 05/27/05 CAHSD Contract Manual Page 39 of 91 COMPLAINT PROCEDURES It is the policy of CAHSD to resolve complaints at the lowest possible level. Contractors should first try to resolve problem issues with the appropriate contract monitor. If the contractor and the contract monitor are unable to resolve the issue, the matter should be brought to the Program Manager 2 in the Management and Finance Division. Unresolved complaints continue up the chain of command until resolved. Version: 05/27/05 CAHSD Contract Manual Page 40 of 91 APPENDIX A - FORMS Forms are organized alphabetically by document file name to correspond to the diskette included with this manual. All documents are in Microsoft Word and budget forms are in Microsoft Excel formats. Files are in ARead Only@ format so that you will not accidentally loose a master form by not saving it as a new document. PDF format files can be printed from Adobe Acrobat Reader only. File Name Document Description Page 320 Disclosure of Ownership (in PDF format) 41 Advreq Terms of Advance, Approval of Advance and Contractor Request 42 Allocat Contract Cost Allocation or Change in Contract Amount or 43 Amend Amendment to Agreement 44 Attach 1 Special Provisions for Social Service Contracts (2 pages) 45 Attach 2 Audit Requirements 47 Attach 3 Acknowledgment of Drug-Free Workplace Requirements 48 Attach 4 Board Resolution 49 Auditchk Audit Determination Checklist 50 Bidsum Summary of Quotations 51 Budgrev Contract Budget Revision Form 52 Drugfree Drug-Free Workplace Policy (2 pages) 53 Exhib B Contract Budget Summary 55 Exhib C Program Revenue Detail 60 HIPAA HIPPA Addendum 61 Invoice Cover Cover for Contractor Generated Invoices 62 Invoice CR Invoice for Cost Reimbursement Contracts 63 Invoice Fee Invoice for Fee for Service Contracts 64 Invoice PD Invoice Documentation for Per Diem Contracts 65 Invoice PS Invoice for Professional Services Contracts 66 Page 1 Master Blank Page 1 67 Page 1 PS Page 1 for Professional Services Contracts 68 Page 1 SS CR Page 1 for Cost Reimbursement Contracts 69 Page 1 SS NCR Page 1 for Social Service Contracts (Non-Cost Reimbursement) 70 Page 2 Page 2 for all contracts 71 Page 3 Page 3 for all contracts 72 Proplog Master Property Control Inventory Log 73 Propreq Moveable Property Purchase Request Form 74 ss8 SS-8: Determination of Employee Work Status (in PDF format) 75 TA Form Travel Authorization Form (in PDF format) 80 TE Form Travel Expense Account Form (in PDF format) 81 Vendchg Payee Vendor Update 83 w9 W-9: Request for Taxpayer Identification Number (in PDF format) 84 Version: 05/27/05 CAHSD Contract Manual Page 41 of 91 Version: 05/27/05 CAHSD Contract Manual Page 42 of 91 CAPITAL AREA HUMAN SERVICES DISTRICT Adreq.doc Revised: 04/05 TERMS OF ADVANCE, APPROVAL OF ADVANCE AND CONTRACTOR REQUEST AND JUSTIFICATION The Capital Area Human Services District (CAHSD) has agreed to provide a lump sum advance payment not to exceed 10% of the total contract amount upon the written request and justification of the Contractor, and approval of the Deputy Director. The advance amount being requested is: $ , which represents % of the total contract amount of $ , to be repaid in the manner specified below: TERMS OF RECOUPMENT (1) Repaid over a period of months. (Maximum of 6 months) (2) Beginning with invoice submitted for month of . (3) $ per month for months, and if applicable, $ for final month. If the contract is canceled prior to the termination date stated in the agreement, or if full recoupment of the advance rate does not occur in the manner stipulated, the balance due on the advance amount will be repaid by the Contractor to CAHSD within thirty (30) days of the contract termination date. Contractor has appended to this document, a written request and justification of need for the advance in order to be able to efficiently provide contracted services according to contract terms. ________________________________ Contractor Agency Contractor Authorized Signature APPROVAL OF ADVANCE REQUEST Based upon a review of information provided by the contractor, I hereby approve this advance request as it is the most cost effective manner in which to provide services. ______________________________ _______________________________ Division Director Signature Deputy Director Signature Version: 05/27/05 CAHSD Contract Manual Page 43 of 91 CAPITAL AREA HUMAN SERVICES DISTRICT Allocate.doc Revised: 04/05 CONTRACT COST ALLOCATION OR CHANGE IN CONTRACT AMOUNT / CONTRACT CANCELLATION Type of Contract:  Professional Services  Social Services  Consulting Services Contractor Name: Amount: Term:_____________________ Developmental Disabilities  2101 Cash Subsidy  2108 Respite Care  State $ _______________  2104 Family Support  2109 Integrated HLT Services  IAT $ _______________  2106 Vocational Habilitation  2200 Community Services  Other $_______________  2107 Infant Habilitation Mental Health  2521 BRMHC  2532 Residential Contracts  State $ _______________  2522 MDMHC  2533 Community Support  Block Grt $ _______________  2523 GMHC  2534 Family Support  PATH $ _______________  2525 Children’s Service  IAT $ _______________  2531 Crisis Contracts  Other $ _______________ Addictive Disorders  3512 CACAD  3522 Residential Contracts  State $ _______________  3513 CARP  3523 Crisis Contracts  BG-Prev $ _______________  3514 Gambling  3524 Prevention Contracts  BG-Treat $ _______________  3521 Outpatient Contracts  3526 Drug Court  Other $ _______________ Administration  1210 Administration  5001 Escrow Accounts  State $ _______________  Federal $ _______________  Other $ _______________ Non-Appropriated Program: Fund Source $ _______________ FOR CHANGE IN CONTRACT AMOUNT or CONTRACT CANCELLATION CFMS Contract Number: Contractor Name: GFS Org: Increase (Decrease) If Cancellation ISIS Obj: + Original Amount Amount Expended Amt. of Cancellation GFS Rpt: (-) $ $ $ Version: 05/27/05 CAHSD Contract Manual Page 44 of 91 CAPITAL AREA HUMAN SERVICES DISTRICT amend.doc Revised: 05/05 AMENDMENT TO AGREEMENT between Amendment #: CAPITAL AREA HUMAN SERVICES DISTRICT and CAHSD #: CFMS #: AMENDMENT PROVISIONS Amendments must be submitted to CAHSD prior to April 1st of each contract year. It is advisable to send certified mail/return receipt requested or hand deliver to CAHSD. This Amendment Becomes Effective: This amendment contains or has attached hereto all revised terms and conditions agreed upon by contracting parties. IN WITNESS THEREOF, this amendment is signed and entered into on the date indicated below. CONTRACTOR CAPITAL AREA HUMAN SERVICES DISTRICT CONTRACTOR NAME DIVISION/FACILITY DIRECTOR NAME CONTRACTOR SIGNATURE DATE SIGNATURE DATE CONTRACTOR TITLE DEPUTY DIRECTOR NAME Carol Nacoste SIGNATURE DATE EXECUTIVE DIRECTOR NAME Jan Kasofsky, Ph.D. SIGNATURE DATE Change Contract From: Change Contract To: Version: 05/27/05 CAHSD Contract Manual Page 45 of 91 CAPITAL AREA HUMAN SERVICES DISTRICT Attach 1.doc Revised: 04/05 Page 1 of 2 SPECIAL PROVISIONS FOR SOCIAL SERVICE CONTRACTS WITH PROVIDER AGENCIES 1. Contractor agrees to permit CAHSD, or its official designee, open access to all information and data concerning the program, the program fiscal operations, and the program participants. Contractor shall provide CAHSD such information and data as CAHSD may from time to time require or request, such information to be provided in the forma and manner as may be prescribed the CAHSD. Provider agrees to provide data to any Management Information System as required by CAHSD, and to provide monthly statistical forms and other required reports. CAHSD agrees that all client identifying information shall be maintained with the security requirements in §§ 2.16 of the federal regulations (or more stringent requirements). CAHSD shall comply with the limitations on disclosure and use set forth in paragraph (d) of 42 CFR 2.53 2. Contractor shall establish and maintain an accounting system which contains complete and accurate records that will justify and document all expenditures, reflect all accruals, and provide a clear audit trail to the point of origin. Contractor further agrees that in the event that more than one program is operated by the Contractor, the funds provided in this agreement will be expended only to provide the services described herein to eligible participants. Under no circumstances are monies to be transferred from one program budget to another without contract amendment. 3 Contractor agrees to maintain an annual detailed written accounting of all in-kind and cash contributions and all income generated by activities supported through funding from this contract, including payments received from clients and third parties, and to maintain records of the receipt and disposition of such income in the same manner as required for funding pursuant to this contract agreement. Documentation of and proper accounting for such contributions and income shall be included in audit services performed. 4. Contractor agrees to develop policies and procedures through which individuals receiving services funded under this agreement may present grievances. Such policies and procedures shall be subject to approval by the appropriate Division of the CAHSD. Contractor shall advise service recipients/their families of such policies and procedures at time of admission and at any time that a complaint is lodged. Conditions which may be grieved include, but are not limited to, failure of the Contractor to recognize a recipient’s choice of a service, denial of a service, and involuntary discharge. If the recipients or their families are not satisfied with the resolution of the grievance by the Contractor, the decision of the Contractor may be subject to review by the appropriate CAHSD Division Director. 5. Contractor agrees to establish and abide by internal policies and procedures that adhere to federal and state statutory requirements and to applicable licensing standards for reporting and investigating allegations of abuse, neglect and exploitation, and where applicable, taking appropriate preventative and corrective action. 6. Contractor shall maintain personnel policies and procedures, including job descriptions and job qualifications, to assure qualified staff are employed, and further, to provide staff with such in-service training as is needed and/or required. Contractor further agrees to pay employees covered under the provisions of this contract according to such rules and regulations as may be established by the State of Louisiana, Civil Service Commission, and the U.S. Government, including the Fair Labor Standards Act. 7. It is understood and agreed that CAHSD assumes no liability for costs incurred by the Provider in excess of agreed upon amount as stipulated herein, or for costs specifically disallowed by prior agreement or under State or federal regulations. 8. It is understood and agreed that the Contractor, in rendering the services listed herein, acts on its own and the CAHSD, and the State, Shall not be held liable for acts of the Provider which may result in damages. 9. Contractor agrees to comply with the Drug free Workplace Act of 1988, Section 4804 of Anti-Drug Abuse Act of 1988. 10. Agency agrees that Contractor may, upon written request with documentation of need, be eligible for an advance which will not exceed 10% of the total amount of the Contract. Further Agency will initiate safeguards to ensure that any payment advanced in accordance with the terms of the contract, is recouped in the same fiscal year in which it is issued, at a uniform rate to begin with the first month of the contract, unless other otherwise specified, so that the amount of the advance is recovered in full prior to the end of the fiscal year or period of contract obligation. 11. Contractor agrees to secure and maintain current applicable licenses. Contractors who fail to meet such standards by securing and/or maintaining not less than a conditional license, are subject to immediate contract termination. 12. Contractor agrees that funds expended for Salaries through this contract shall not exceed rates in excess of 5% of those paid for comparable Civil Service positions. Contractor also agrees to provide, as part of the contract document, job descriptions and names for all positions funded by CAHSD. 13. For mental health and ATOD treatment providers: Contractor agrees to establish a sliding fee scale policy, subject to agency approval, and implement such policy for the collection of client fees and third party payments. Contractor further assures that no person will be refused services due to inability to pay, or be required to make an advance deposit for any service applied for, provided or rendered for which full or partial payment is received under this contract. 14. Contractor agrees that fees paid by clients or received by Contractor on behalf of a specific client(s) from third parties must be applied to the costs for which the Contractor can be reimbursed for services to the paying client, unless otherwise agreed upon by Contractor and Agency through contract provision. Agency agrees that monies from other funding sources, which are paid to Contractor for services similar to the services required by this contract, will not, for the term of the contract, cause a reduction of the contract amount. 15. All work performed by Contractor under this agreement shall be under the technical guidance of CAHSD. CAHSD is responsible for the technical direction of the contract which includes receiving and accepting all reports relative to services, financial documentation and verification, and other reports as requested. Other responsibilities of CAHSD shall include technical assistance, monitoring and evaluation. CAHSD shall be responsible for site-visiting Provider as necessary. The Contractor is authorized to return higher standards of treatment and care under the statements of work, but may not relax these standards without approval of CAHSD. 16. Contractor shall agree to attend and participate in Provider meetings as required by the CAHSD. 17. Contractor shall clearly state Capital Area Services District fund participation in any statements, press releases and other documents funded in part or in whole with funds from this contract. Such credit shall be given to the same degree of prominence as any other sponsor, supporter, or funding agency