SR-300-002-01 (19)
e
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Exhib~t "D"
CITY OF SANTA MONICA
CONTRACT ACCOL~TING AND ADMINISTRATIVE HANDBOOK
PREFACE
The purpose of thlS handbook 1S to establ~sh accounting, inter~al
control, f~nancial reporting, and contract admin~stration standards
for Subcontractors who contract wlth the City of Santa Monlca.
The acc0unting, lnternal control, and reporting prlnclples presented
are funaamental and are not intended to replace acceptable exist~ng
procedures and f~nanc~al controls or preclude the use of more SOphlS-
ticated flnanc~al accountabil~ty and reportlng methods. Instead, the
fundamental requirements represent mlnimurn procedures and controls
that must be embodled wlthln each Subcontractor's accounting, internal
control, and financial reportlng system. All reference to Subcontractor
shall mean Contractor.
BASIS OF ACCOUNTING ~~D FINN~CIAL REPORTING
(1. Ol)
Basis of Accountln~
Subcontractors may elect to use-either cash basis or accrual
basis method of accounting for recording flnanclal transact~ons.
Quarterly lnVOlces must be prepared on the s~e basis that is
used for recordlng financlal transactions.
(1.011 )
The City recommends the use of the accrual basis
for recording financial transactions.
(1.012)
If a SUDcontractor elects to use the cash bas~s
for recording f~nancial transactions during the
year:
A. Necessary adJustments must be made to record
the accruals at the beginning and the end of
the contract period.
B. All computations, supporting records, and
explanatory notes used in converting from
cash basis to the accrual baS1S must be
reta~ned.
(1.02)
Financ~al Re~orting
Each Subcontractor shall present an invo~ce to the City
each quarter to report the f1nanc1al activity of the
quarter. In addltlon, if advanced fundlng ~s ~nvolved
e
e
an ~n~oice shell De p~esenteci at t~e beginn~ng of the co~trac~
perloci Invo~ces shal~ be prepared i~ the man~er p=esc=i~ed
by L:he Cl.ty
ACCOl~::'I:~:G SYS:'E:'":
(~ 01_,) ~ac~ S"~c~~~rac~o~ s~~~~ ma;~~a;n (u-~ess o~~e-'1~e a~?rov~~:
_ ........................ v....'- L. ~ ...l.C,,";"'_ j, _......"- _~ - .I.L..... 1.......1. ..... ,.._,;:J ~ __~
a ,..Jo"l:,.......~ h:I. --';\....-..:'" ,....n.l. f-~'P""!O ". -e"1"':"" (u.t~"'''' z~-""I:T d....P'h.~ ts --,: c-o'=' ~~....
~ ~~ ~~ 0;:::......_: aC~uun __L.O sy S l.,. ... _1...... -..0 _oJ _ a.h-.. .. - -- ...._,
wit~ a General Jou~al, a Cash Receipts Jou~al, a General
Ledger, and a Cash D~so~rseu.ents Jo~~al. T~e City recoT.Iencs
tha~ a ?ayrol: Ledger also be ~ai~tained. 7~e General Lec6e~
\ and Jo~~a:s should be posted as req~~redr at :east ~c~tt:y
(2 02.1)
General Jou~nal - A General Jour~al shall be ~~n-
. - ... ... .. . .. .
L:al~7c =or re7crc~ng ~dJUS~~~g en~r~e~1 re~e~s~~g
entr~es, clos~~g en~=~eSt anc otber f~nanc~a~
trfu,sactions not nOr.T.ally recorded in the Cash
ReceiPts Journal or Cash Disbursements Jo~r~al.
Entries in the General Journal Dust be adequately
d '.-l d' T 1.. .
~c:.:men~~:- t . an~ entere. J.n cnror.o:-oglca;. o=c.er
wltn Su==~clent ex?lanatory no~at~ons.
Exarr.p 1 e .
DR.
CR
Rene Expense
Rent Payable
100
10C
To record acc~ued yent
to Marc~ 31, 1980
(2.012)
C~s~.R~cei?ts Jour~2.l - A Cas~ ~eceipts J?~~al.
s"'~ I I De ""'~.r:r-.o>-"'er" f="o~ reco""'~'n- aI. c~-~ rec<:>'.....-~
L'd._.. . L..GL_ ...___:... ..... _ J.. .:w.~.o .,.&. ~.::.~... _ '":"-t""""::1
(e g C'~Y wa--~~-~ CO~~~~DUC;O""'- l~~e~~~- '~C~-Q
..., ""'-'wo _.:..c:.L....;..~, 4........._..... .....-=::a" .i..L.... ___'- ....J... ....._._~
e=7'~ The C~sh Receipts J~urnal.shall contai~_.
(-'In'~T'- requ''''e'"''en. ...~) -\...e IO'lo~--""O' co1"""'n l-.o-""''''''.''Ts
'-d ... -.I.J...-.....;...:.. ...L...... .:.J.~ .... '-.'::' L...l~ .:. _ w ..L~-u ..... u.l..i.L... ...L_c;;.~..... L_=-
- cia t e
-rece::.pt nU::l'::Jer
-casb de~L~ col~~ns
-inco.-ne. credit: cc:!..t.:rr.ns fa":' the foll,::~,'i:t;
acccun::s
-City paynen~s (cne col~T.n per prosr~m)
-Co~C::-J..butlons
-Other I:tcome (Grants, sales of su??l~es;
services, rental inco~e, ffiLscellaneous
revenue, fees, etc )
(2 013)
')
(2 014)
e
-:;-
e
- des cr:.p ':::...on
(::::1t:::..es
spec::..=y
in th~ dec=i?~icn CO~~~ ~s~
the sc~rce 0= cash reCe~?~3 )
(<::: t 0"
~ee -+. J..J..
for acld~tional c:arificat~cn)
Cash Disbursenents JourT.a: - A Cash Disbu::se~ents
Jc~~al shall be ma~~ta~nei for ::ecord~~s all cast
disburse=ents (e g , rent, u~::..litles, ~a::..n~ena~ceJ
et.c . )
The Cash Disbu::se~ents Jou~al sha:l ccnta~~
requ~re~ents) the follcwi~g colu=~ neaa~ng5.
(-..----.......
i...L.._.i..._......_....L
-date
-c:-:.eck n~-;].be.r
-cash (credit) col~-.n
-expense accou~t na~e
-descrJ..?tion
~o~e (1) Separate expense col'~ns are reco==errcied
for salary ex~~~se ~nc other ::e~~rring
expense classl=::..catlc~s fer eac~ prog::~~.
~c-e (?, En-r'-s ~n ~~e ~eSCPl'~~;Or:' co"'-- -"S-
.\ - <-, . _':::: -: _u -... - ~t-' '--' __.u -'-.....
speclry tne nat~re or che ex?e~se ar.c
the correspond::..ng expense cl&ss~f~cac~o~
if not included ~n the colu~ heac~ns
Kcte (3) Chec~s should not be written to er.plcyees
(other than pay~oll, o~:eage, travel, a~~
petty cash custodian checks)
A Chec~ Rezister 3av be substic~ted for the Cas~
Disbursece~ts Journal, but this ~s not recoCTenced.
If used, the Check Register must co~:aln the sa~e
expe~se classif~cations and descrJ..pt~ons lnfar=~~l0~
requ~~ed when a Cash D~sbu~se~ents Jou~Gl is use2
Disburse~ents wi~~out S~??O~t~~~ docu~e~~a~~on wl~_
bc disal.loveci 0:1 audl.t
General Led~er - A Gener~l Ledger shall be maint~i~e~
wlth ac:ounts for all assets, 1l2Dllitles, fund bal~~c2s,
ex?cnd~tures, and revenues. Separate accounts oust be
na~n:ained for each City ?rogra~'s e~?enses and rever.~es.
-A chart of Accoun~s shall be ~~~n~air.cd
The C~cy reconmcnds chat agents ~sc t~c
expense accou~~ t~tles on the =onchly i~vo~ce
sUDuitteci to the Cicy.
("J ('1 c:: "-
..... IJ":" -')
(2 016)
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-If ~~e SU~~Qn:~ac~~~ ~ses acc~un: :~:les
wh~ch c~f=er fro~ ~~e accoun~ titles on the
. ,
~or:-:';L":"':l ~~'"'..lo:.ce ~
clearly identify
a".....:ot'1(~\ .....,..,5...eo.
"-'-_ :i.... :::::) =''-' :.. .
eac~ accau~= t~tle =~S~
the nature of the t~ahS-
to che acco:.rn:
-Subcontrac~ors rru3t conslstent:y post tra~s-
ac~~or.s that are of a si=llar nat~re to tee
5&,e accou~t For exarrple, all expenses fc~
trave: shall be pos~ec to ~~c accc~~t ~ltl~~
"travel" or "t~avel exper:.se" and not :':It:er-
mixed with ot~er expense acccun:s
Pa'T::,,~::"l Le.ds2~ - T:~e Ci:~l recoc:Je:1~S tha:: a. ?a~-r':-o:'=--
L ~ C:;;J - -;.,. ......." =- - ....... .. .,. ~ .f"'I!"";- po 1 - .. -;: "!o"" -;.... - ~ ., 1 ~ f' ~ .... .... -:. "';
2_0::- _ ~e l;,c:..J...Lo:-a-:::nec. . ..1.11_ .-~Coe.- S~I'-'~ ~ _ _O._l".c:.___
the ro~~o~l~g ~n=CrT.ac~or. ano~: eac~ e~?_~yee
-na.-:J.e
-pos:'...i:icn
-Social Secur~ty n~Lber
-pal~e~t rec9rd i~c~ud~~g
-ac~~aJ.. perl.oG
-gross DaV
~t~m ~e~ D~Y~O'l dpG.~:~ri~~_.s
-.:., ~~"i.:.~ ...:,J T cl ~:_ _ _____
-c:l:2ck n1J::1oer
1= a ?a7~~:: :ec62~ is ~Jt usee, t~e 2=o~e ~nf=~~-
tion nust be recorded in the cast cisb~~se=er.=s
. ~
Jourr.a.L
Pettv Cas~ Dlsb~rse~e~Ls
..
A Petty Cas~ =u~d cay be nainta~nec for pa)~er.: c=
small (less then $25.00), irclde~t31 expenses i~-
curred by t~e S~bcontr~c:or (e.g , post~ge ci~e,
snall ptl":-c~ases of office supply items, ec:: )
Petty Cash disb~rse~ents E~3~ be Sup?o~ted ~y
sco;e r:-cel?~s. petty ca~h vo~!che:s '. or ot~,er
auc~ent~catec doc~7en~atlon t~2t ~nG~cate t~e
ite~ purc~Qsed anc the e~ployee oakin3 t~e purc~~s2
UrS~~PQr:e~ pet:y CQsh d~$bu=sc~~~ts w~l: be
d:.sa~.i..or,ied. O~, 2.uc.ic.
The petty cash func sh~ll be ~2lntair-ed O~ the
im?res 1: sys tern, i. e.. a check sho~lc. be dra.~.,"n to
th~ petty c~sh c~s~od~~n to set u? the fu~d a:-d =0
m~~Q pcr~odlC re~mDursc~ent3 ReCQ1pts, voucne=s,
etc., sup~o~tln~ each f~r.d reDlen~s~ert cust be
bound tog~c2er anc f~lcd ct~Q;oloblcally. A $25
Petty Cash Fu~d LS recoxTcnded
('" {") 1 )
- ~-
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ACCOl;~I:~G ?~CC.~DS A1\0 ?ILI~~G
~~~Drr10~ OF ~CcO'U~""~~~ Ro~o~~s
i:'.._'--___ __.1.&, _ .._...__ . ..l-l.-...L..1."-n ...._..... _....
S~?rC~=~ng Doc~zen~acion
(3.011)
...
(3 012)
(3 013)
and F:.ling O~
Record Retention
All accounti:1~ records (jo~rnals. lec5e~s, etc )
and suppor=~ng docucencatio~ (invoices, receipcs,
cr.ecks, vouchers, etc.) mus~ be re~ained fa~ a
m~ni~~ period or five (5) years.
Adeq~ate care s~~~l b~ exerc~s:d t~ safeg~a=~ ~~e
ac ,........,..,.., +-~ .,.,. <J r<=> co..-,.., sana s.U-:-'l7'1............... -..... r- c....... c--.....~r..,... ~ ... - 0"'"
~--~...J.'-_.L.-c _ -J...... ~ _ t"'".r::..........:-~.....6... \.,i ..........._ ...wG:.'-_ .!.....
Any destruct~or. or theIt 0= tne SUDcor.t=ac~or's
acco~~ting reco~ds or supporting documentat:.cn
snaIL be LtiWed~ately reported to the City.
Unsupported expenses will be disallowed upon
audit, resulcing in overpa7oe~t asse5s~en~s
Fili~g a~c Sto~a~e
"" "
All relev&~t su??orting cioc.~enta:ion fer =e?cr~ec
prcgram expenditures and rever.~es snaIl be f~leG in
a syste~atic and consistent manner.
It is recocce~ded that sup?orting dcc~er.ts
as follows:
~; 1 ~.J
_...._~
be
checks
nu:nerically
invoices (sales)
date/vendor name
vouchers
nunerically
receipts
nur.:e~ically
tioecarcs
datefa~phacet~cally
Referencinz
Accounting transact~ons posted to the S~bccn:ra~~c~'s
bOOKS s~all be app~opr~ately cross-reierehcec to
SU?rort~ng docu~en~a~~on.
For example, expendJ.~ure trrrnsactions on the
SG~contr~ccorrs.books must be cr0ss-refer2~c8d
tc the supporting documentation as follows
~nvoiccs
vendor name and dace
checks
nu.rrber
vouchers
nu.::loer
e
r
-Q-
e
Revenue tr~~saC~lC~S =ust ce
to rcce~p~ n~bers
- .
c~css-:.-e:e=enccc
(3 014)
Su??orti~g Doc~e~Lat~on
Each S~bco~~Yac:or shall ma~nta~n su??ort~~5
doc~~entation fo= all dls~~rse~e~:5 U~su~uo~~ec
dlsbu~se~ents will be d~salla~ec on auc~:
Exa~ples 0= s~pporting doc~~entac~on req~1r;G :cr
various expendl~u~e ca:egorles are as =ol:c~s
Pe=scnnel Servlces - Payro:: reccrds, t~=.e a~c
at:enda.lce recor:::s s:.gned by the et:plo:v~ee
~!d ap?=ovec ~y the seperv~sor, ci=e d:.s==~-
b,,-..; 1'""\- ",oc"'-c's "'-"'I;:'" ...........00..........-.... ("'r"'" -"""11"""-- ~ - '=0""
.....'--_..... __ i..,J... LJJ:-"..L. Q.-C._l c.._'-.....,.........................L..5..1--..L
total work L~ne on a dally bas:.s) for all
er.:ployees
Ecployee Payroll Documentatio~ - payroll records
sr..o..;ir.g aC<:'Jal exper..c:.<:"...!,:,es for O;-SD:, FIC._.
etc. (?ICA a~d FUT~ ex~e~ses a=e ~o~ al~cw-
able expenses fo~ age~c~es exe~p=ec by the
IRS)
Consultant Se~Tlces - ti=e anc atter.car.c2 reco~cs,
t~&ve~ vo~shers d~~aJ.li~? ?urpo~e, tir.~ a~c
locatlc~ O~ trave~J p~=c~ase orcers a~c l~V~~~=S
for su~~lies. .
Travel - travel pollcies of the agency (written),
. -.; 1
travel expense voucne~s show~~g lccat~3n. cate
anc ti~e 0= t~avel, pe~?ose of tr~? anc ra:es
clai3ec, vehlcle ~~leage logs ShO~l~g dates,
des:i~~tion and headc~a~ters, ~ur~ose or ~~~?,
and nilea~e. - . 0
Ope~ati~g Expe~sQs - pu~ch~se cioc~~er.ts such as
purchase cr~ers, invc~ces, requ1sitlons, s~oc~
receivec reports, DLll of ladl~~, ete . le~se
and/or lease agreeGen~s, contracts
II~TE:Z'-~;'..L CC:-:TRC"LS
(!.. C 1.)
Internal Cortrcls
Int~~~l con~rals safeguard ~he Subcon~ractor's aSSQts rrc~
m~sapproprlatiors or mlsstatenen~ Eac~ Su~ccntracto~ s~dll
prep~re necess~ry ~~~tten procedures establish~n; in:~rn2:
e
e
c~htrJls fo~ ltS pe;s?nne: . ~he Subcont~actor shall ~nstruc~
a~l of ~~S personne~ In sale procedures and cont~~~ou51y =onlto=
o?2~a:icns to ensa~e co~pli~~ce therew~ch. The followi~g
i~te~al cont~ols are mada~ory
(/ ('~')
- v_J..
"')
(4 012)
Cash RecelD'::s
.
-Progran reve~ue stall be maintai~ec l4 a se?ara~e
account ~Lless othe~-lse approved by City. If
ot~er f~nds are maintalnec in t~e account, reve~ue
,.. h b 1 "d -., .
rOT eac. prograw ~~st e c_ear~y lentl=laJ~e
-All r-cein....- (i....C' "d':nc che.....ks) -;...a11 "'e -e~Q' ---c:
7 l:' -.::> _L.,..I...... 'J. 0 '. _. ;:)u _..I... '-J :. '-~-t-'-<:::
by uSlng p~e-n~Derec recelpts. Rece~pt ro~s
shall be secured to preclude unauthorize~ use
-Cash recei?ts sha:: be deposited daily a~d lntaCt.
-Du?licate deposit slips shall be retained and filec
c~ronologically. and shall con=ain sufficient ref-
ence info~zticn for co~parison to the ind~vid~a:
pre-nu~bered receipts and the Cash Recei~~s Jour~c:
-~ eD~lovee who does not handle cas~ shell record
cash ~eceipcs (unless a "write-ie-once" Cash
Receipts Journal is usee) .
-~le nontcly bank statecent shall be recei~ec a~~
r~concilec monthly by soneone lndepe~c2~~ 0= t~2
cashier~ng,deposit~ng, 2nc boo~keeFl~g f~~cclons
-The bank reconciliaticns shall be rev~ewe~ by
supervisory ?erso~~el fer approprlater.ess and
ac~~racv.
oJ
-All checks shall be restrictively endorsed
immediately upon receipt
Dl.s~1.1rseT!'.er:.ts
-All dlsbursernen~s, other than ?et~y cash d~sburse-
ments, shall be ~ade by check Bla~k cneck s~ock
shall be sec~~ed a~d accoun:ed for to preclude
~~aut~or~zed use.
-A seco~G signature shall be re~ulred on all Ch2C~S
The 7econd par~y. sh~ll be inde?endc~t :rDo che cos~
reCE~?~S anc dls~urse~e~ts process.
-C~ecks shall not be payable to "cas::" Dr si';::1ec. ir..
advance.
-Voided c1:ecks c:1ust: be I:'u::.i..lacec and f~led wlth
caI:celled c~ec~:3
e
e
-Gncla~~ed or lli~del~vereci checks s~all be c~lcel18d
per:..odl.cally
-Supporting doc~e~cs shall be examined ~y ~he
persons sl.g~l.ng or concrolll.ng the signing 0=
checks at t~e ciilie checks are sLgned
-Supporting doct.::ne:1ts shall be carked "pa.:.d"
-Support~ng coc~ents sha:l ~e refere~ced ~o C~8C~
nUDoers.
-Payroll checks shall be ~:'5~=~buLed by ?erscns ~c~
i~volved in ti~ekeepi~g, preparlng of pay~~l:,~=
reconciling of ban~ acco~ts
- ~ ... d
-~~?Lcyee rrLrlng an
shall be apnroved bv
functions. .
-e--~~a~1~- or p-~' r--~ c~-~-'~-
'- ..........._..;.... ....~.L......o '".. '" 4;.... c=.::'i; ...,L,G._J.?:--"6 Jo
persons ~nc.epen~er.t O~ ?ay=o~~
-All disburse~en~s. excluding petty cash purchases.
s~al~ ~e a??~o:ed ?y persons incepence:1t of check
pre?arL~g ~iC ooo~~ee?l.ng.
-Fixed asset n~=chases shall be ap?roved by the
agency's Boa~d of Dlrec~o=s or thelr authorized
representacive.
A c...--en.... 1'; ....~.:.,....g 0- ":;-erT -5-"'t5 -1-.0to....:,....:""r' -=,,-'\c-...."'"""!-
- '--- ~,'- -~'" l".~L~ ;: .1.:---" '7 ...::>": ~..L __LQ _....~. _..~
source s~al~ be ma~ntal~ea, ar.d a r~xed asse~
inventory shall be conducted at least an~~a~ly.
(4,013)
Boncing - All officers, eT?loyees, &~d agen~s ~~o
hanele cas~ or have access to the Subconcrac:or's
funes shall be bo~ded.
ovr:RP A "'t; rr:-:::" s
(5 01)
p r~ ~ ~ ~ ~ r ~~~~na 0 ~ ~~~p - ~ ~ ~ ~~
.e_..OCl J.o~ 1Je~e_~._..lL.:;> ve_?~)__nL rts__ess".?.~S
1= upon audLt, or at any other tiffie du=i~b t~e contr2ct year.
it is deLer~ined that expend~turcs or revenues repo~:cd :0
t~e City and used tc compu~e t~G S~bcontrac:ar's cas~ flc~
nee~s were incorrectly ~eported, ttc Cic, shall ad~usL th~
subseque~t ~onthrs invoice pay~cct, or take ocher ap?rop=l~te
actlon.
The to~a1 over?a~ent(sl shall be dctc~i~ed as rol:ows
e
~
-"j -
e
Tocal Allo~ab:e P=ogra~ Expend~~~res
S YJ:':l..'::
Less
C'nallm.;a'jl-e ~::?e!1d::. cures per
Auch t
x~~:(X
A11o~able Ex?enGi~u~es to be
ReloDurs ec S XY':::':
Less
AdvancedPa}!r.eLts
of
C.: -,.
~l..i
f'lliiC.S
Y'''.- .
"~'\..:'~.
Overpajrment Due City
S X:G:Z
LI~1::_~TIO~S O~~ E:{?:r::::;:~t:F3S
(6.01)
p.......-..:::J-~-. ~.""' ~-=c.:, .;:2...... ..J 0 O"'""""n~ .; "!"") Ip -...- ,....
do: _____;:, ......... ......__...l_'-el..:. r ;c..__zac_ohs I. e_s _:15
Subconcractors shall not make payments to affiliated organi-
zations/persons for progran expenses (services, rent, equi?~ent.
food, etc.) that exceed the reaso~able cost for suc~ expe~ses
L~e City sha:l be solely respo~sib~e fo= tne dece~~~a=~c~ 0=
reascn~b:e prog~an costs A reasonable cose sha~: ~e tha~
price ~h~c~ would be paid by one pa~ey to another WhE~ t~e
parties are dealing at a~s length.
(6 Ol!.)
Affil~ated Org~ni=a:icns/?ersor.s
Organizations/persons related to t~c S~~c~~:~ac~~=
,..",? 1-..' 00""; ~....,.._.... ""''''''e 0.... -~-o"._j..., ~ ....._--"': or~~-::..=a~:''':::
u.. L.,I..J.. . ....,. .a...l.i:~-I.......-c:.6' ....... L..:.I.: '-5.... -t::6C.-... ~...
('~cO.~O---lO- D-rr-o-s~'''''' as-n"'a-.o~ ec-)~'"
.L..L.. -hot"' ...C'l.- .L.L...Co. _.."'_..... ,...._~. .::........_...... L..... ......~ .... .11.._-
be consicered affil~ateci for pu=?oses of ~h~s co~~~act.
The City shall be solely respon5~ble for =~e de~e==~-
nation of afflliacion.
(6.0112)
Unallowable Ex?enses
Expenses by the Subconcracto~ to a=f~l~a:ec or~~~~-
zations/pe=sons WhLC~ exceed re~scn~~12 C2S~S for
such expenses will be d~sallowed or. aud::.:, If
these expenses were rei~bursed by the Cic:, over-
paynent asscssrr.ents aga~nst t~e S~~contra2tor m~y
res:ll:
co~!'r?,J\C'I' ...~D~!I!~ISTRi\:'IO :~:
The City anc its fund~n6 sources place greac stress on the achieve~c~=
of a high level of per:o~ance in the ~anage~cnt of progr~~ fu~ds.
Tl-.e Subcon::ractor' s ~anage7len t is responsib le ror ensur~:1.; t;..ae ~:1
addition to the preceding accoun~~ng, incernal co~:rol. anG repor~~ns
requlre~ents, the follc~~~b con:r~ct ac=;ih~str3t~on requ~re~e~:3 are
adopted and enforced.
(7.01)
(i.02)
Audits
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The Subcontractor will make ava~lable fer ~nspect~on and
aud~t to C~ty representat~ves, upon request, durlng regular
worklng hours, durLng the duration of the contract and for
a perLod of five years thereafter, all of its books and
records relating to the operatLon by It of each proJect or
buslness actLvLty whlch LS funded In whole or Ln part with
governwental monLes, whether or not such monies are ~eceLved
through the City_ All such books and records shall be
ma~ntaLned at a locat1on w1thLn Los Angeles County.
(7.021)
LLmLtations on ExpendLt~res of Program Funds
ExpendLtures Outs~de of Contract Period
(7.022)
(7.023)
(7.024)
Expenses charged agaL~5t program funds may not
be lncurred prLor to July 1, 1980, or subsequent
to the contract termLnatLon date.
Appropriate and Necessary Expenditures
Only those expenditures as needed to carry cut
the purposes and act~vities of the approved
program are allowable.
AllocatLon of Cost Pools
For Subcontractors who operate many programs, or
have more than cne fund~ng source, the Subcontractors
shall allocate expend1tures to the varLOUS programs or
fundlng sources.
The costs should be allocated on the bas~s most
appropr~ate and feasible In the clrcurnstances.
Examples: NQ~ber of hours spent
Number of employees
Number of res~dents
Square footage
Relat~ve revenue volume
RelatLve expense volume
The Subcontractor shall ~aintain proper docurnentat~on
related to the allocat~on of expenses (e.g., t~necarcs,
t1me summaries, square footage ~easurernents, etc.).
Budget L~rnitatlon
Expenses may not exceed the maXLmum li~lts shown ~n
the contract budget.
(~ ~.)
..;).. !....i~
(9.Ol)
(i 0')::\
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Unspent rr..::1CS
The C~cy wlll dete~lne the d~spcsi:~on of unspen~
progr~ funes upon te~~nation 0= the co~~~act
(8. (11)
L~T.~~ac~ons o~ Posi:io~s and Sa12~~es
(8.012)
(8 02.3)
(8.014)
( Q f'\15"'
'-'.,,~ )
(5.016)
rr,e Subcontractor s~all
poslt~ons lis~ed in the
thereto.
e~?loy persens fer thOSE
. ,
contract or t~e attac~en:s
The Subcont~actQr shall pay no salaries ~~gner :ha~
those au~hor~zed in the contrac~ or t~e at=ac~~en~3
thereto
For purposes of tn~s contract, unless a??~cvec by
t~e City in ~~~tl~g in advance, no eT.?loyee sha~l
hoLd more than one posit~on in tne Saffie prograw
For pur~ose~ of thlS con~ract, w~e~ an e~ployee
se~v~s -n tne s~~o or du.~~ c~-ac~"'-e~ "~~e~ ~o~~
.J.. _ ~.L....... c;;:..+......_ ~.L cL.tJ ..&...l...L. _ 1",6_..~ _ -_ __
~~~....... ....... c!'-+-,.........~ 1, / i.-,,~ ......'l ..... 1 ""'~Q "!"'"'"o-- t'--.
.....C>..L OL. e _ '-'~_ __ a,- ~, ..e S ..<= fie] no Lena.:.. c _ '....'.d. e :1<:.__
100% of his/her time to the concrac=s take~ as a
whale For exewple, an eT.ployee may not c~arge
their time to one contract 50%. another 30%, ar.ci
another 30~~.
Fo~ purposes or this contrac:1 eCDlovees ~~o ~o=k
40 ho~=s per week shall be conslciered f~ll-cime
e~~lovees En~lo7ees who work less t~ar. 40 no~rs
pe~ week shall-be" co~sidered pert-tine ecplcyees,
and they shall be pald on a pro-rated bas~s, unless
otheTIlise approved in _vriting by the C~=y.
The at:tercv wi::l ma.ke no re-:rcactive: salary
C ...- J, .. , :;;
for a~y empLoyee Wl~nout wr~tten arprcvaL
Cl. ty .
aCJt..:$i:::-er::
- .
=ro~ tile
Travel Ey.~ense Reisbwrse~enc
(9 all)
(9 012)
Allowability
Travel ex?e~ses to
ir. the contrac t .
be allo~ec ~us~ be p=~v~cec
r-,..., ....
.................
L~wltQtions on Expenses
TrFtvel rei~~ursencnt for tr~nSDortatlCh, F-2dls, ahd
lodging shall no~ exceed travel allo~ances ,~~lch
are allowed by the Cicy.
.I 1"-" ra" '.
',.l..J _ '~' L)
Ir..su:r-~r:ce
( 1 ,'"'I ,'"'I 'l.~ "\
v. V _)
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Subcon:raccors are =espo~sible fo~ ~ec~r~~6 rec~ired
ins~rance cove~age and ~ainta~~~ng ~t ~n :~rce c~~~~g
the entire ca~~~act per~od.
(10 012) S' rI , - ~ - C'
u~c~nt~a7:ors DuSt. l:r:rr.e~~~:~_y no.t~:::? t~e . -:'. -.....:1e.:1
~ec'tl'.....g,., ~ns".....an,...e ' - -eHo.'ec. T"' t-....---aT.,.., 0..... 0-..,0.....-
_ + .. ....__~ .J... ~_ _ It-- ......,::, _ v:"" J w_'-..........- 'Nl.L. _ L...L_~
w~se made ~nef=ec~~ve.
(10.0::"3)
.~
(... ~ ,.....,....
-_.,,;:...)
Insurance shall include an encorse~ent na=~~g t~e
City of Santa Mon1ca as addit10nally insured.
/11 ("I~~)
\_ v_~
Pro?ert:~ 1-fa:1age:7'e:1t
(11. 012)
(11 0:3)
(11 OlL)
(ll 015)
('~ 0''')
__ _0
(" 01"\
":".i".. . I J
The S~bcon~~ac~=~ shs~: assw~e reS?C~Sl~~~~:Y 2~G
ac~ou--~'D~ 1 - t,. fo- -1-.e -a',......ona,...ce 0<= -"' ""on
.... ~~....:" ~_.J... J .... L.l~ to'. ~u_-:.. _ <1.':"'':'" 0" - .
ex?enGa~le prope~ty p~=chasec, leased, o~ ren:e~
with program funds.
Non-expenda~le property is defined as a~y ta~g~~le
Pe~soT'l;:: pro'"'''''''''''''' c~<:-';~'" $'(':"v or T"I",-..-.. "'e- ......,~,..
... ..+-- .t""-'- '-.l v_ __"'~::::;:.'-'oJ .....&-._- - r' _ -..-'---
an a- n.::>"T';....,~ ~ "se"".1 1 ~~.. 0';: oo'-e -~a"'" on- ,-""--
.. .1......._, -~-L6 Ci...... -:......__ _..: - . . _.. '-...L ...... ....lO:-:. _~... .-
reaL Dro~erty anc aTI7 l~teres~ lTI suc~ rea~
... ...: ~ ~.
prope!ty,sucn_as a oort;age, tru~t deec, ~~ ctne~ .
encumbrance o~ real prope~~y, anc the f~~cs rece~vea
.c-'-OM t"he s-' e 0- a""~' ot1..."'r ,..;. -710-l" -;0'" 0; ---, ""'0"""-
..L-.... .;...... ....L\,... a.J.. .J.,. L_j ......_. u._.:::tr .:::J-i .........;,.~ .L. c:.......) .LL. .....
eX?encao~e property or lnLeres: t~ereo~
A,.; ':t.; -.;: - .d~:' ........... ,...-. .-.:>,-.- :..<,~
cqu._s_ _0.: 0_ ,non e::pe:i ,,"D~e ?____?e_ ,-y ll".~.~;:' :"__
were not l~s~eG ~n t~e app~oved contract re~~~res
an executed moc~ficatlon to thlS co~tract ~o
provlde the necessary funes_
Unless approved by the Ci~y ~n wr~:ing, no~-
expencable prcper=y st211 not be or~cred or
purchased bv the Subco~tractor during the last
three oonth~ of the con:~act perloc.
The Subccntrac=or shall ~~~nta~~ an ~p-to-date
J.nven~ory list of all no~-ex?e~ca81e pro?er~y
i~e~s for wh~ch he ~s respons~b1e 7he so~rce
of fur.d~ng fo~ each asset shall be noted
The Su~ccntract:or s~all report ?rorrptly. in ~7~:~hS,
to :~e Clty, all cases of bur;lary, loss, d~~ag2. 0=
destr~ction of non-expendable p~cperty. The rB?Or:
sh~ll co~:aln, ae a ml~lne~ ~te~ iden:iflcat:~a~,
recorced va:ue, facts relacinz to loss, and a co~y
of the law enforceme~t agency repo~t
A properev
. . ~
i:wentorv
17llS t be.
once
a vear.
~
~........~
io.......J.......c...:
(~l 013)
::.
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A~ no tl~e wL~l non-ex?endable property ~e_dispo~eG
0:, t~anterrec to ano~he= agency, or usee ~or oc~er
than progra~ ~~r~cse5 w~:~ouc exnress ~~L=~en
pe~lssi;n of':he Cl~Y .
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SAM_ - Report i ng forms are in the
proces5 of being revised in order to
have standardized reporting for all
CDBG and GRS grants.
HONT~LY STATuS REPORT
~!onth Ending
Report Prepared By
CDBG FVNDING:
BU9ge_~
Expenditures
This Honth
Expenditures
YeaT-to-Date
Une~penc.ed
(Attach a listing of all budget line items with a break-
down of all expenditures reported here.)
T. Summary of Planr.ed Project Activities
II. Pr~gr~ss on. Pla~ned Activities
A. Overall Status of Program
B. ~onthly Statlstics
C. Administrative ActIvities
D. Neetings
E. Special Projects/Events
F. PublicIty/Outreach
III. Problems Fncountered OT Anticinated
... .
IV. Couies of WrItten Materials
(Attach copy of any materials prepared for dissemination to publIC.)
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Spe~~al provisions
"
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1. Method of Payment. The City agrees to pay
...
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Seventeen Thousa~d, Five Hundred Dollars ($17,500)
.,
as soon as practicable follcw~ng Hun approval of the City's 1981-82_
;;:
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CDBG appl~cation and subsequent Release of Funds, and thereafter,
begi~ning October 1981, on a qcarterly cost reirr~ursement basis. These
quarterly payments will be based on reonthly itemized reports of
expenditures made by line ite~ and CUIDulatlve totals in accordance
'.
t:
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w~th the B~dget (Ex~ibit "B").
"-
The City may advance money at a~y
.....
,-Lrpe
durlng the term of this
Agreement, provided such a reqtest ~s naGe in writing by
sho.....ing
adequate need for such. ExpenG~t~~2S a~ a~y ~dvance shall be accounted
for as any other ex?end~ture. It is expressly unde~stood and agreed
that in no event will the total co~pen5atio~ to be paid
hereunder
exceed the max~wurn ~~ount or Seve~ty T~ousand Vollars ($70,000).
All compensation for this Agree~ent shall be paid by the City out
of CDBG funds received from the federal government, and shall not be a
charge upon the General Fund of the City in any manner.
2. Audit. The Contractor agrees to an aud~t conducted by an independent
auditing firm to dete~mine, at a minimlli~, the fiscal integrity of
financial transactions and reports, and the compliance with laws,
regulations and adroi~ist=at~ve requ~rements. Such aua~ts shall be
scheduled with reaso~able frequency, usually annually, but not less
frequently than once every two years.
The Contractor further agrees to establish a sY5tema~ic Method
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to assure timely and appropriate resol~tlon of audit findlngs and
reco~~endation5.
3. Evaluation. Contractor hereby agrees to participate fully, with
guidance and assistance of the City, in the implementation and
maintenance of an evaluation system to continuously monitor the program.
The services described herein shall be reviewed by the Department of
Community and Enviro~ental SerVlces before this Agreement has been in
operation for six (6) nonths. The content of the Department's finclngs
shall be dlscussed wlth the Contrac~or prier to its submission to the
City Council.
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