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HomeMy WebLinkAboutExhibit 1Ft-0RIDADEPARCtdffNT OF.\:; . Bureau of Child Nutrition Programs Child Care Food Program FY 2009-2010 CONTRACT (Non -Pricing Program) THIS CONTRACT.is entered into. between the State of Florida, Department of Health, hereinafter referred. to as the. "Department," administering the United States Department of. Agriculture (USDA) Child and Adult Care Food Program (CFDA#. 10.558), codified in Florida at Section 383.011 (1)(1), Florida Statutes, and known as the. Child Care Food Program, and the organization identified as the. Contractor. on page 8 of this contract. This contract shall supersede all previous communications,. representations,, or agreements, either verbal or written. between the parties. THE PARTIES AGREE:. THE CONTRACTOR AGREES: - A..-.. To provide services. in. accordance. with. this contract and governing state and federal law, and to comply with any state or federal rules, regulations, instructions, policies, procedures and manuals used. by the Department in. its administration of. the. Child. Care Food Program (CCFP). B. To warrant that it will accept final administrative. and financial responsibility for total Child Care Food Program operations governed by this contract... The Contractor shall complete an application. that shall include, but not be limited to, a list of all locations at which it will operate or sponsor the operation. of the Child Care. Food Program.. C. To familiarize itself with and comply with the following: 1. The terms and conditions of this contract, including Attachments I and. 2 to this contract and all applicable rules, regulations, instructions,. policies, procedures and manuals, 2.. Florida Law. This contract is executed. and entered into. in the State of Florida, and shall be construed,. performed, and enforced. in. all respects. in accordance. with the. laws,, rules, and regulations. of the State. of Florida. 3. Federal Law. a. All federal Child Care Food. Program rules, regulations, instructions, policies, procedures and manuals used by the Department in its administration. of the. Child Care Food. Program, including. but not limited to. applicable provisions of: Title 7 Code of Federal. Regulations Part 226, "Child and Adult Care Food Program"; Office of Management and. Budget Circular A-21, "Cost Principles for Educational Institutions"; Office of Management and Budget Circular A-87, "Cost Principles for State, Local, and Indian Tribal Governments"; Office of Management and Budget Circular. A-122, "Cost Principles for Non -Profit Organizations";. Office of. Management and Budget Circular A- 133, "Audits of States, Local. Governments, and Non -Profit Organizations"; USDA Food. and. Nutrition Service Instruction 796-2,. Revision. 3; Title. 7 Code of Federal Regulations. Part 3015,. "Uniform. Federal Assistance. Regulations"; and Title. 7 Code. of Federal Regulations. Part 3016, "Uniform Administrative Requirements For. Grants And Cooperative Agreements To. State. And Local Governments";. Title 7 Code of Federal Regulations Part 3019,. "Uniform Administrative Requirements for Grants and Agreements. with Institutions of Higher Education,. Hospitals, and Other Non -Profit Organizations%. and Title. 7 Code of Federal. Regulations Part 3052, "Audits of. States, Local —_ Governments,- and--Non--Profit-Organizatioris"-arid the.-following-Department-m-anUals and guides as -applicable: the Procedure. Manual for Sponsors of Unaffiliated Centers; the. Procedure Manual for Sponsors. of Day Care Homes;. the Procedure Manual for Sponsors of Affiliated Centers; the. Procedure Manual for Independent Child Care Centers;. the Procedure. Manual for Afterschool Snack Programs; the. Financial Management Guide; A Guide to Crediting Foods; Feeding Infants in the Child Care Food Program; the Eligibility. Guide for. Child Care Centers;. Catering Contract Guidance; Prospective Contractor Training. for. Child Care Centers; Prospective Contractor Training for the Afterschool Snack Program; Prospective Contractor. Training for the. Homeless Children Nutrition Program;. Sponsor Oversight Responsibilities for. Sponsors of Day Care Homes; Sponsor Oversight Responsibilities for Sponsors of Unaffiliated Child Care Centers; Sponsor Oversight Responsibilities for Sponsors of Afterschool Snack Programs; and Sponsor Oversight Responsibilities for Sponsors of Homeless Children Nutrition Programs., The Contractor expressly acknowledges that the remedies provided herein under federal law are to the exclusion of any potential remedies pursuant to Chapter 120, Florida Statutes.. b. This contract is to effectuate the purposes of the National School Lunch and Child Nutrition Acts, as amended. The Contractor agrees that it will comply with Title VI of the Civil Rights Act of 1964, as amended, Title IX of the Education Amendments of 1972, as amended, Section 504: of the Rehabilitation Act of 1973, as amended, the Age Discrimination Act of 1975, as amended, and all requirements imposed by the regulations of the U.S. Department of Agriculture (Title 7 Code of Federal Regulations Part 15), the U.S. Department of Justice (Title 28 Code of Federal Regulations Parts 42 & 50), and the. USDA Food and Nutrition Service directives or regulations issued pursuant to that Act and the regulations, to the effect that no person in the United States shall, on the grounds of age, sex, disability, color, race, or. national origin, be. excluded from participation. in, or. be. denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the Contractor received federal financial assistance from the Department; and hereby gives assurance that it will immediately take any measures necessary to effectuate this agreement. This assurance is given in consideration of and for the purpose of obtaining any and all federal financial assistance, grants and loans of federal funds, reimbursable expenditures, grant or donation of federal property and interest in property, the detail of federal personnel, the sale and lease of, and the permission to use federal property or interest in such property, or the furnishing of services without consideration or at a nominal consideration, or at a consideration which is reduced for the purpose of assisting the recipient or in recognition of the public interest to be served by such sale, lease, or furnishing of services to the recipient, or any improvements made with federal financial assistance extended to the Contractor by the Department. This includes any federal agreement, arrangement, or other contract which has as one of its purposes the provision of assistance such as food, food stamps, cash assistance for the purchase of food, and any other financial assistance extended in reliance on the representations and agreements made in this contract. C. If reimbursements paid to the Contractor exceed $100,000, the Contractor shall comply with all applicable standards, orders, or regulations issued under Section 306 of the Clean Air Act, as amended (42 U.S.C. 1857(h) et seq.), Section 508 of the Clean Water Act, "as amended (33 U.S.C. 1368 etseq.), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR Part 15). The provider shall report any violations of the above to the department. If reimbursements paid to the Contractor exceed $100,000, the Contractor's execution of this contract shall serve as its certification that it will not and has not used Child Care Food Program funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of congress in connection with this contract pursuant to Title 31 United States Code Section 1352. d. The Contractor shall not employ unauthorized aliens. The Department shall consider employment of unauthorized aliens a violation of Section 274A(e) of the Immigration and Naturalization Act. Such violation shall be cause for unilateral cancellation of this contract by the Department. e. The Contractor shall comply with the. Pro -Children. Act of 1994,. Public Law 103-277, which. requires that smoking not be permitted in any portion of any indoor facility used for the provision of federally funded services including health, child care, early childhood development,. education or library services on a routine or regular basis, to children up to age 18. Failure to comply with the provisions of the law may result in the imposition of civil monetary penalty of up to $1,000 for each violation and/or the imposition of an administrative compliance order on the responsible entity. f. By executing this contract, the Contractor agrees to compile data, maintain records and submit reports as required to permit effective enforcement of the Civil Rights laws applicable to Food and Nutrition Service programs and permit authorized USDA personnel during. normal working hours to review such records, books and accounts as needed to ascertain Civil. Rights compliance. If there are any violations of this assurance, the USDA Food and Nutrition Service, shall have. theright to seek judicial enforcement of this contract. D. To Maintain and. Retain Records that are. Subject to. Inspection, Copying. and Audit, and to Provide Audits, if Required. 1. To, establish and maintain books,. records, and documents (including electronic storage media) in accordance with generally accepted accounting procedures. and practices that sufficiently and. properly reflect all, revenues and expenditures of funds provided by the Department under this contract. 2. To retain all program related records, financial. records,. supporting documents, statistical records, and any other documents. (including electronic storage media) pertinent to this. contract for a period of three (3) years. after expiration or termination of the. contract, or if an audit has. been initiated and audit findings. have not been resolved at the. end of three (3) years, the records shall be retained until final resolution of the audit findings or any litigation relating to the audit findings or any action subject to administrative review. Any records retained, regardless. of the time retained, shall be subject to inspection, copying,. audit and review.. 3. Upon expiration or termination of the contract and at the. request of the Department, the Contractor will cooperate with the. Department to. facilitate, the duplication and. transfer of any said' records or documents during the required retention period as specified in Section I.,. Paragraph. D.2. above.. The contractor agrees. to maintain the records for the. requisite period, even if this contract is terminated or if the contractor has ceased operations. 4. To assure. that all records shall be subject to copying, inspection, review, or audit during any hours that the Contractor is open for business, but at minimum between the hours of 8 a.m.. and 5 p.m., upon presentation of photo identification. All Child Care Food Program records shall be maintained at the site at which the 2 Contractor provides program sej aces or at the Contractor's sponsoring organiZ.Lion office, as. appropriate to the type of record maintained. Employees of the Department, the United States Department of Agriculture and the Florida Department of Law Enforcement shall be provided with access to records upon presentation of identification and shall be authorized to take physical possession of any Child Care Food Program records, or equipment containing such records and any other records maintained on equipment used in the Child Care Food Program.. Others requesting access shall provide. identification and a letter of authorization from the Department of Health. 5. Employees of the Department, the. United States Department of Agriculture. and the Florida Department of Law Enforcement and federal auditors pursuant to Title 45 Code of Federal Regulations, Part 92, shall upon presentation of identification. have full access to and the right to examine any of the Contractor's contracts and related records and documents, regardless of the form in which kept, at all reasonable times for as long as records are retained. 6. A not-for-profit organization or non-federal governmental entity that expends Federal awards, including Child Care. Food Program reimbursements, of $500,000 or. more in its fiscal year, shall assure. that a single or program -specific audit is conducted in accordance with the provisions of Office of Management and Budget Circular A-133, as revised. In determining the Federal awards expended in its. fiscal year, the Contractor shall consider all sources of Federal awards.. The determination of amounts of Federal awards expended shall be in accordance with the guidelines established by Office of Management and Budget Circular A-133, as revised. 7. In connection with the audit requirements addressed in Section I, Paragraph D.6, the. Contractor shall fulfill the. requirements relative to. auditee responsibilities as provided in Subpart C. of Office of Management and 'Budgef'Circular A=133`, as revised; and shall make all records relating. to the. audit, including but not limited to. accountant work papers and findings, available to the Department for inspection and copying. 8. If. the. Contractor expends less than $500,000 in Federal awards. in its fiscal year, an. audit conducted in accordance with the provisions of Office of Management and. Budget Circular A-133, as revised, is not required. In the event that the Contractor expends less than $500,000 in Federal awards in its fiscal year and elects to have. an audit conducted in accordance. with the provisions of Office of Management and Budget Circular A-133, as. revised, the. cost of the. audit must be paid from non -Federal funds (i.e., the cost of such an audit must be. paid from Contractor funds obtained from other than Federal entities).. All records relating to the audit, including. but not limited to accountant work papers and findings shall be made available to. the Department for. inspection and. copying. 9. Copies. of audit reports. for. audits conducted in accordance with Office of Management and Budget Circular A-133, as revised, and required by Section i, Paragraph D.6, of this agreement shall be submitted within 30, days of receiving. the auditor's report or. nine. months after the end of the audit period, whichever is sooner. Copies of audit reports shall be submitted. by or on behalf of. the Contractor directly to each of the following: a.. Contract Administrative Monitoring Unit Florida Department of Health 4052 Bald Cypress. Way, Bin. B-01. Tallahassee,. FL 32399-1700 b. Federal Audit Clearinghouse. Bureau of the Census 1201 E.. 10th Street Jeffersonville, IN 47132 c. Other.Federal. agencies. and pass-through entities in accordance with Sections .320 (e). and (f),. Office of Management and Budget Circular A-133, as. revised. E. Documents. to. be. Submitted to. the Department 1.--In-addition-to-any-documents-required-to be submitted -to -the Department -in -compliance -with -state and federal law,. the Contractor agrees to submit any receipts, invoices, documentation or other evidence that the Department in its sole discretion deems necessary to evaluate the. validity of any and all claims. for reimbursement submitted. by. the. Contractor. Such. requirement for documentation may also require the Contractor to. submit documentation prior to. payment of any claim; any claim or portion thereof that is not supported by documents requested by the Department in writing shall be disallowed. 2. All contractors shall provide any and all information requested by. the Department which the. Department deems. necessary in its sole discretion to evaluate an application to participate in the Child Care Food Program or an application to renew its participation in the Child Care Food Program. or to. evaluate a contractor's performance in the Child Care Food Program, including but not limited to, documents which the Department determines are necessary to evaluate the applicant's or the. contractor's financial. viability,. administrative capability. and fiscal responsibility. 3 F, Departmental Approvai"-ar Contractor's Operations 1. A Contractor serving as a sponsor of any Child Care Food Program with which the contractor has no affiliation shall obtain prior written approval from the Department for all salaries and benefits funded by CCFP reimbursements. Salaries and benefits must be reasonable, prudent and necessary for the furtherance of the CCFP in addition to being in compliance with federal law. The reasonableness of salaries and benefits shall be determined. by the Department after its review of the Contractor's operations or anticipated operations and shall not exceed those salaries and benefits generally made available to non-profit corporation employees and officers in the same geographical area for similar services. 2. A Contractor serving as a sponsor of any Child. Care Food Program with which the contractor has no affiliation shall not employ staff or officers or directors who are related by blood or marriage without the prior written approval of the Department. Any such approval will be granted only upon written documentation of extraordinary circumstances and shall only be granted for the shortest period of time necessary to address the justifying circumstances. 3. All Contractors shall submit budgets and budget amendments that are reasonable, prudent and necessary for the furtherance of the CCFP. All budgets and budget amendments shall require prior written approval by the Department. No more than four budget amendments may be filed in any federal fiscal year unless the Contractor is able to show good cause, in the sole discretion of the Department, why additional amendments are required due to expenses that could not be reasonably anticipated and handled through the allowed number of amendments. 4. All Contractors shall comply with program meal requirements as specified by the Department. Failure to meet Department specifications, regardless of whether the requirements are more stringent than those provided by the USDA, shall subject the Contractor to disallowance of payment for the non-compliant meals or snacks and shall subject the Contractor to issuance of a notice of serious deficiency, proposed termination, refusal to renew the contract, disqualification,. and/or suspension. G. Monitoring, Compliance and Review Procedures, Administrative and Criminal Penalties 1. In addition to reviews of audits conducted in accordance. with Office of Management and Budget Circular A-133, as revised, monitoring procedures by the Department may include, but not be limited to, on-site visits by Department staff, limited scope audits as defined. by Office of Management and Budget Circular A-133, as revised, and/or other procedures or audits deemed necessary in the sole discretion of the .Department to evaluate program operations. By entering into. this agreement,. the. Contractor agrees to. comply and cooperate with any monitoring procedures/processes deemed appropriate by the Department. In the event the Department determines that an audit or a limited scope. audit of the Contractor is appropriate, the recipient agrees to comply with any additional instructions provided by the Department to the Contractor regarding such audit. The Contractor further agrees to comply and cooperate with any inspections, reviews, investigations, or audits deemed necessary by the Department, or the State of Florida's Comptroller or Auditor General. The Contractor also acknowledges that any monitoring or review, whether performed by the Department, the United States Department of Agriculture, the Florida Department of Law Enforcement or by another entity authorized by the Department may result in the initiation of criminal charges and that the Department will actively cooperate and assist in such criminal prosecution. 2. The Contractor agrees to permit persons authorized by. the. Department to inspect any records, papers, documents, facilities, and/or goods and services of the. Contractor which are. relevant to this contract, and/or to interview any clients and employees of the Contractor. Any such inspections or monitoring visits may be announced or unannounced and shall be made to assure. the Department of the satisfactory. performance of the terms and conditions of this contract. Following. such evaluation,. the. Department will deliver to the Contractor a written report of its findings with regard to the Contractor's performance of the terms, and conditions of this contract. The Contractor will correct all noted deficiencies identified by the Department within the specified period of time set forth in the Contractor's corrective action plan as agreed upon by the Department. The Contractor's failure to submit a corrective. action. plan acceptable to the Department within required timeframes, or failure to correct noted deficiencies, may at the sole and exclusive discretion of the Department, result in: (1) the. Contractor being deemed. in breach. or default of this contract; (2) suspension of program participation;. (3). withholding of payment to the Contractor by the Department; and (4) termination of this contract for cause. The. Department shall notify the Contractor if it determines that a deficiency warrants. termination or suspension of the contract and disqualification of the. Contractor and/or its responsible principals or individuals and will afford the Contractor and/or its responsible principals or individuals. the. review procedures authorized under. Title 7 Code of Federal Regulations, Part 226, which shall be the exclusive means to chalienge the Department's determination. 3. Any Contractor sponsoring the Child Care Food Program shall monitor each. program. and ensure its compliance with the requirements of state and federal rules, regulations, policies, instructions, procedures and manuals. Contractor personnel responsible for monitoring must carry photo identification demonstrating their relationship to. the sponsoring. organization and present it upon request. 4 H. Indemnification, NCTE: This paragraph is not applicable to contracts executed between the. Department and state agencies or subdivisions, as defined in Section 768.28, Florida Statutes, or between the Department and federal agencies or sovereign American Indian nations. - 1. The Contractor shall be liable for and shall indemnify, defend, and hold harmless the Department and all of its officers, agents, and employees from all claims, suits, judgments, or damages, consequential or otherwise and including attorneys' fees and costs, arising out of any act, actions, neglect, or omission by the Contractor, its agents, or employees during the performance or operation of this contract or any subsequent modifications thereof, whether direct or indirect, and whether to any. person or tangible or intangible. property. 2. The Contractor's inability to evaluate liability or its evaluation of liability shall not excuse the. Contractor's duty to defend and indemnify within seven (7) days. after such notice by the Department is given by certified mail, equivalent delivery service, e-mail or facsimile transmission. Only adjudication or judgment after highest appeal is exhausted specifically finding the Contractor not liable shall excuse performance of this provision. The Contractor shall pay all costs and fees related to this obligation and its enforcement by the Department. The Department's failure to notify the Contractor of a claim shall not release. the Contractor of the. above duty to defend. Assignments and Subcontracts 1. The Contractor shall not assign the responsibility of this contract to another party. Any. such assignment, transfer, or sublicense shall be null and void. The Department shall not approve any subcontract for a "day- care 'home sponsor or a sponsor of unaffiliated child care centers for Child Care Food Program management - functions,. including but not limited to,. program. financial management, eligibility. review and approval, preparation and maintenance of enrollment rosters, tiering determinations, and submission of claims for reimbursement and monitoring. 2. The. Contractor shall not subcontract for any of the work contemplated under this contract without prior written approval of the Department. Any subcontract otherwise occurring shall be null and void. 3. The Contractor shall be responsible for all work performed and all expenses incurred for implementing the Child Care Food Program on behalf of the Department. If the Department permits the Contractor to subcontract all or part of the work contemplated under this contract, including entering. into. subcontracts with vendors. for services. and commodities,. the Contractor agrees that the Department shall not be liable to the subcontractor for any expenses. or liabilities incurred. under the subcontract and the Contractor shall be solely liable. to. the subcontractor for all expenses and liabilities incurred. under the subcontract. The Contractor, at its expense, will defend the Department against such claims. 4. The State of Florida shall at all times. be. entitled to assign. or transfer its. rights, duties,. or obligations under this contract to. another governmental agency in the State of Florida, upon giving prior written notice to the Contractor. In the event the State of Florida approves transfer of the Contractor's. obligations, the Contractor remains. responsible for ail work performed and all expenses. incurred. in. connection with the contract.. In. addition,. this contract shall. bind the successors and legal representatives of the Contractor and of any legal entity that succeeds to the obligations of the State of Florida. J. Contractor as a Corporation 1. The Department recognizes that corporations may participate. in the Child Care Food. Program and. that such. entities are. recognized under. Florida law as. natural persons. The Department also. understands that the funds for the Child Care Food Program are funds paid by the taxpayers of the United States and therefore subject to greater oversight than if the funds were private. in nature.. The Department, in performing its function, is akin to a fiduciary on behalf of the taxpayers. In consideration of the foregoing, the provisions of this section shall apply to all contractors organized as corporations in which stock is not publicly. traded. 2. During the term of this. agreement the Contractor agrees to notify the Department of any proposed sale, transfer, other conveyance or pledge of assets. The Contractor's. notice shall state. the name. or names of the intended purchasers, transferees or creditors and be provided to the Department in writing no less than 30 days prior to the. date of such proposed change. Failure of the Contractor to provide such notice may result in the Department issuing a Notice of Serious Deficiency. and Notice. of Proposed Termination and disqualification of Responsible Principals and Responsible Individuals and immediate termination of this agreement. The Department shall either agree to or decline the. proposed change and provide. the Contractor written notification. of its decision. if the Contractor chooses to pursue the proposed change after. the. Department declines, this contract shall. terminate. 3, If more than fifty percent (b0%) of the stock of the Contractor's corporation is sold,. transferred, otherwise conveyed or pledged, this contract shall terminate immediately. Prior to such termination, the Contractor and/or the prospective majority stockholders may apply to the Department for pan,cjpation in the program. The Department shall receive and process such application pursuant to its established policies and procedures. 4. This agreement and the privilege of participating in the Child Care Food Program are not subject to sale, assignment, transfer, or any other form of conveyance. K. Return of Funds To return to the Department any overpayments due to unearned funds pursuant to the terms of this contract or applicable state or federal law, rules, regulations, instructions, policies, procedures or manuals, that are used by the Department in its administration of the Child Care Food Program. In the event that the Contractor or its independent auditor discovers that an overpayment has been made, the Contractor shall notify the Department by certified mail within five (5) days of such discovery. In the event that the Department first discovers an overpayment has been made, the Department will notify the Contractor by letter of such a finding. Repayment shall be made pursuant to the Department's instructions to the Contractor and shall include interest as required by federal law; such instructions may include but are not limited to a sponsor's payment to centers and a contractor's payment to the Department. L. Disallowance of Payment for Program Meals In the event the Department discovers, prior to payment, the Contractor's failure to comply with recordksepirig-requirements pertaining to records directly -supporting claims for -reimbursement, the Department shalt disallow payment for any meals not supported by such records. Records that support claims for reimbursement include, but are not limited to, free and reduced price meal applications, daily meal counts, menu records, enrollment records, and attendance records. M. Independent Capacity of. the Contractor 1. In performance of this contract, it is agreed between the parties that the Contractor is an independent Contractor and that the Contractor is solely liable for the performance of all tasks contemplated by this contract, which are. not the. exclusive responsibility of the Department. 2. The Contractor, its officers, agents, employees, or subcontractors in performance of this contract, shall act in the capacity of an independent Contractor and not as an officer, employee, or agent of the State of Florida.. The Contractor shall not represent to others that it has the authority to bind the Department unless specifically authorized in writing to do so. 3. The Contractor, its officers, agents, employees, and its subcontractors. are not entitled to state retirement benefits, state leave benefits, or to any other compensation of state employment as a result of performing the duties and obligations of this contract. 4. The Contractor agrees to take such actions as may be necessary. to ensure that each subcontractor of the Contractor will be deemed to be an independent Contractor and will not be considered or permitted to be an agent, servant, joint venturer, or partner of the State. of Florida. Training and Security 1. The Contractor agrees. to attend all meetings and training. sessions. required by the Department. 2. Child Care. Food Program records contain information that is confidential under both. Florida and. federal law. The contractor agrees to maintain any and all. records,. documents, forms, reports, and. information, in whatever form, in a secure. location with access that is sufficiently limited to protect the records. 0. Non -Pricing Policy. The. Contractor agrees that all children in attendance. at site(s) listed on. the Site Information Form(s) and/or. Provider. Information Form(s), are offered the same meal at no separate charge regardless of race, color, sex,, age, national origin, or disability, and there is no discrimination against any child in the course of the. meal service based on race,. color, sex,. age, national origin, or disability... The. Contractor agrees to keep confidential from family day care home providers the identity of Tier I or Tier Ii. eligible recipients. and income information pertaining to individual households.. The. Contractor agrees to limit access. to eligibility information to persons. directly. connected with the administration and enforcement of the Child Care Food Program. A THE DEPARTMENT AC -EES: A. To reimburse the Contractor for meals and other allowable costs as further provided in applicable rules,- regulations,. ules,regulations,. instructions, policies, procedures or manuals. Claims for reimbursement not filed with the Department - within 60 days after the close of the. month in which the claim was incurred shall be disallowed except where a claim for reimbursement has been filed late because of audit adjustments. The Department may, at its sole discretion and with any necessary approval from USDA, grant an exception to this requirement. B. Should the Contractor violate any. terms of this agreement, or any Child Care Food Program policies, instructions, procedures, or manuals, or the rules, regulations and laws governing the program,. and as a result, the Department acts to withhold funds or to restrict or terminate the Contractor's participation in the program, the Contractor shall be accorded a review procedure only if required by federal law pursuant to. Title 7. Code of Federal. Regulations Part 226. THE DEPARTMENT AND THE CONTRACTOR MUTUALLY AGREE: A. Effective and Ending Dates This contract shall begin on October 1, 2009, or on the date on which the contract has been signed by both parties,. whichever is later or at the discretion of the Department, pursuant to. Title 7 Code of Federal Regulations Part 226.11. The contract shall expire on September 30, 2010, and may be renewed pursuant to procedures and requirements established by the Department.` B. Conditional Contract If this contract is being entered into during a period in which the Department has notified the Contractor that it intends to terminate the Contractor's Child Care Food Program contract from a previous federal fiscal year, then the statements. in this paragraph apply.. The. intent to terminate action also includes the Department's intent to disqualify the contractor from future participation in the Child Care Food. Program. The. parties are entering into this contract to assure that the Contractor is not prejudiced in its participation in the Child Care Food Program while the proposed termination and/or disqualification is. being challenged. The parties intend this contract to be conditioned, upon the Contractor remaining eligible to. participate. in the Child Care Food Program. Upon rendition of a final order upholding the Contractor's proposed termination or proposed disqualification, or both, the. Contractor is ineligible under the terms of this. contract,. this contract will. terminate without further action or. notification by the Child Care Food Program and claims. for goods. or services provided after the rendition of the. final order shall. not be payable. The parties further agree that termination of the contract based. upon rendition of a final order will not be stayed pending any appeal of or challenge. to the. final order in any forum. C. Termination 1. Termination at Will.. This contract may be terminated by either party. without cause. upon no less than thirty (30) calendar days notice in writing to. the other party unless a lesser time. is mutually agreed upon in. writing by both parties. Said notice. shall be delivered by facsimile transmission, email, certified mail return receipt requested, or in person with proof of delivery. 2. Termination Because of. Lack of Funds. In the event funds to. finance this contract become unavailable, the. Department may terminate. the. contract upon no less than twenty-four (24) hours notice in writing to the Contractor.. Said notice shall be delivered by facsimile transmission,. email,. certified mail — return. receipt requested, or in person with proof of. delivery. The Department shall be the. final authority as to the availability and adequacy of funds.. _ 3. In the event of termination of this _contract _for _reasons. III.. C. 1 or 2 above, the Contractor will be compensated for program costs lawfully. incurred prior to notification of termination. 4. Termination for Cause. The Department may terminate this contract for cause for the Contractor's noncompliance with any provision of this contract or for any of the serious deficiencies identified, but not limited to, those in Attachment 1. D. Enforcement If any term or provision of the contract or of any Child Care Food Program rules, regulations, policies, procedures, instructions, or manuals is found to be illegal or unenforceable, the remainder of the. contract shall remain in full force and effect and such term or provision shall be stricken. E. Venue Venue for any action arising from the terms of this contract or the application of state or federal law to any dispute between the parties, including any appeal of a final order to a Florida District Court of Appeal, shall be in Leon County, Florida. I have read the above contract and understand each section and paragraph, IN WITNESS THEREOF, the parties hereto have caused this 8 page contract and its subject attachments, Attachment 1 and Attachment 2 to be executed by their undersigned official as duly authorized. CONTRACTOR: (Authorization Number) (Legal Name of Organization) (D/B/A Name) (Address) SIGNATURE of Chairman of the Board, President, Owner or Delegated Authority PRINTED NAME: TITLE: DATE: STATE OF FLORIDA DEPARTMENT OF HEALTH: Philip E. Reeves, Chief, Bureau of Child Nutrition Programs DATE: SEE NEXT PAGE FOR ATTACHED SIGNATURES I-035-09 ATTEST: Priscilla. A. 'Thompson, City Clerk Department of Parks & Recreation Ernest Burkeen, Jr., Director CITY OF MIAMI, a Florida s unicipat corporation By: Pedro O. Hernandez, City Manager APPROVED AS TO FORM AND APPROVED AS TO INSURANCE CORRECTNESS: REQUIREMENTS: Julie 0. Bzu City Attorney T,eeAnn Brehm Risk Management Director di Document signature page 1 FLORIDA UEPARTM IOR IE L.T. Bureau of Child Nutrition Programs Child Care Food Program CONTRACT 2009-2010 ATTACHMENT1 This attachment incorporates those serious deficiencies found in Title 7 Code of Federal Regulations Part 226 and provides examples of non-compliance with program requirements. Contractors who commit or. engage in any serious deficiencies, including but not limited to those incorporated herein, shall be subject to. termination and disqualification from the Child Care. Food Program (CCFP). 1. Submission of false information to the Department • Failure to disclose ineligible officers, directors, key employees • Listing fictitious employees/officers/board members on an application •. Claiming tax-exempt status when denied, rescinded, etc. • Submitting the IRS tax-exempt determination letter of a different or defunct organization • Concealing a conviction for any activity occurring during the previous seven years that indicates a lack of business integrity • Falsification of documentation 2. Permitting. an individual on the National. Disqualified List to. serve in a principal capacity with the Contractor or at a site sponsored by the Contractor. 3. Failure to operate the. CCFP. in conformance. with. performance standards established. in Title. 7. Code of Federal Regulations Part 226.6(b)(2)(vii), regarding financial viability and financial management, administrative capability, and program accountability • Failure to ensure provision of adequate financial resources for daily program operations. • Failure to maintain adequate funds to withstand temporary interruptions in program payments and/or fiscal claims against the Contractor • Failure to maintain an adequate number and type of qualified staff to ensure proper CCFP operations • Failure to establish and implement internal controls and other systems to ensure fiscal accountability • Failure of the Board of Directors to provide adequate program oversight 4. Failure to maintain adequate records • Failure to maintain appropriate records to document compliance with CCFP requirements including budgets, approved budget amendments, and when applicable, management plans and records pertaining to facility operations • Consistently missing/incomplete records during different reviews, complaint investigations, agreed -upon - procedures reviews, or audits • Missing/incomplete/incorrect invoices, receipts, canceled checks, inventories resulting in false%nflated/unsubstantiated claimed costs • Cost records not maintained according to generally accepted accounting principles resulting in false/inflated/unsubstantiated claimed costs 5—Failure.-to. adjust meal orders -to, conform to. variations in the number—of—participants, •. inflated meal counts, such as meals claimed regularly equal the number of meals ordered/planned or the number of participants on the center roster 6. Non-compliance with applicable bid procedures and contract requirements of federal child nutrition programs. • Failure to competitively procure goods and services • Anti-competitive practices, such as collusion, kickbacks, conflicts of interest • inclusion of non-competitive provisions in a bid, e.g„ "successful bidder for a contract to provide meals must establish a scholarship fund" FY 2009-2010 Child Care Food Program Cor, Attachment 1, Page 2 7. Claiming reimbursement for meals not served to participants • Claiming meals delivered or planned for as meals served to participants • Claiming meals for participants not present on a given day or for a particular meal • Claiming meals served to non-existent children • Claiming meals served to non -enrolled children or to staff • Inflating facility meal counts • Claiming non-existent and non -participating facilities • Claiming meals for ineligible facilities • Claiming dual participating facilities • Claiming the same participant for the same meal at more than one facility 8. Claiming reimbursement for meals that do not meet CCFP requirements 9, Use of a food service management company that is in violation of health codes 10. Failure of a sponsoring organization to disburse payments to its facilities in accordance with its management plan and/or CCFP requirements • Checks to facilities prepared more than 5 days after receipt of reimbursement • Payments sent without endorsements or otherwise incomplete • Payments made for other than the full amount the facility is entitled to • Payments made to a facility other than the facility that earned the payment • Payments made to an entity/person other than the facility without express written permission of the facility • Checks not mailed within 5 day timeframe or first business day thereafter • Failure to transfer full amount of facility payments to facility bank account within 5 day time frame • Failure to maintain full amount of facility payments in commingled bank account until checks clear • Using provider reimbursement funds to pay provider advances • Using day care home funds to pay sponsored centers or center funds to pay day care homes • Retaining sponsored center funds in excess of the amount approved in the management plan 11. History of administrative or financial mismanagement in any USDA child nutrition program • Sponsor left Summer Food Service Program because of a serious documented problem in its operation • Failure to maintain required corrective actions • Sponsor terminated for serious deficiency in one part of the CCFP (child care center for example) applies to administer a different part (day care homes for example) 12. Claiming reimbursement for meals served by a proprietary child care center during a calendar month in which the center does not meet Title XX eligibility requirements or Free and Reduced eligibility requirements, as. applicable 13. Failure by a sponsoring organization to properly classify individuals or homes in the correct reimbursement category 14. Failure of a sponsoring organization to properly exercise its oversight responsibilities •—Failurelradequately-marntor— — • Failure to require full, permanent, and systemic corrective actions • Failure to impose sanctions on centers, sites, or day care home providers when serious deficiencies are identified • Failure to follow suspension, termination, disqualification and appeal procedures 15. The. fact that the Contractor or any of its. principals have been declared ineligible. to participate in a publicly funded program due to violating that program's. requirements. 16. Conviction of the Contractor or any of its principals. for any activity that occurred during the past seven years and that indicates a lack of business integrity II 1111.0111841201 Child Care Food Program Conti Attachment 1, Page 3 17. The foil -owing acts or omissions are also serious deficiencies • Failure to make records associated with the CCFP available upon request at a reasonable time and place • Failure to maintain current licensure requirements • Misuse of CCFP funds • Serious mismanagement (e.g. failura to monitor properly) • Failure to obtain a required.audit • Failure to notify the Department of change in IRS status • Violations of IRS regulations • Failure to remit periodic payments (required by statute or regulation) to regulatory agencies (e.g. employee withholding for income taxes, social security, unemployment compensation) • Failure to implement corrective action(s)within required timeframes • Failure to follow-up/require and maintain corrective action for facility review findings • Creating fictitious records • Failure to make required repayment of program funds to the Department • Failure to comply with state incorporation requirements • Paying employees salaries based on the number of homes/centers recruited; paying recruitment bounties or bonuses • Failure to attend training required by the Department • Failure to make payment(s) to subcontractor(s) for program services rendered 18. Failure to. comply with any other financial and/or administrative requirements of. Title 7 Code of. Federal Regulations, Part 226 and/or failure to comply with applicable federal or Department of Health CCFP rules, regulations, policies, instructions, procedures and/or manuals FY 2009-2010 ��'ORIDA�DSPAMEF HE LTLP.- Bureau of Child Nutrition Programs Child Care Food Program CONTRACT 2009-2010 ATTACHMENT SERIOUS DEFICIENCIES, CORRECTIVE ACTION PLANS, PROPOSED ACTIONS SUBJECT TO ADMINISTRATIVE REVIEW AND THE NATIONAL DISQUALIFIED LIST All contractors are required to abide by the requirements set forth in Title 7 Code of Federal Regulations Part 226. All notices of serious deficiency, notices of proposed termination and notices of proposed suspension shall be provided by the Department to the Contractor and its executive director, owner, and/or chairman of the board of directors and responsible principals or responsible individuals, as applicable, by facsimile transmission, e-mail, certified mail or equivalent delivery service, If the Department determines that a contractor has failed to comply with a requirement of Title 7 Code of Federal Regulations Parts 226, 3015, 3016, 3019, and/or 3052, which constitute a serious deficiency, the Department shall issue a Notice of Serious Deficiency that specifies the serious deficiency or deficiencies and provides a date certain by which the Contractor shall file a corrective action pian with the Department. If the corrective action plan is timely filed and is acceptable to the Department, the Department will conduct an unannounced follow-up review of the Contractor. If the follow-up review establishes that the serious deficiencies noted in the Notice of Serious Deficiency appear to have been fully and permanently corrected, the Department will so notify the Contractor. If the follow-up review does not establish that the serious deficiencies have been fully and permanently corrected the Department may issue a Notice of Proposed Termination and Disqualification of Responsible Principals and Responsible Individuals or the Department may choose to permit additional time to file or amend a corrective action plan. If the corrective action plan is not timely filed, the Department may take one of two actions.. The Department may grant additional time to file or amend a corrective action plan. The Department may, alternatively, at its election issue a Notice of Proposed Termination and Disqualification of Responsible Principals and Responsible Individuals. If the corrective action plan is not acceptable to the Department it may take one of two actions. The Department may issue a Notice of Proposed Termination and Disqualification of Responsible Principals and Responsible Individuals. The Department may also elect to conduct an unannounced follow-up review of the Contractor. During that review the Department shall determine if it shall grant the Contractor additional time to file or amend a corrective action plan. Alternatively, the Department may choose to proceed to issue a Notice or' Proposed Termination and Disqualification of Responsible Principals and Responsible Individuals. If a Notice of Serious Deficiency for the same or substantially the same serious deficiencies is issued within two calendar years of a withdrawn Notice of Serious Deficiency, the Department shall issue a Notice of Proposed Termination and Disqualification of Responsible Principals and Responsible Individuals since the second Notice of Serious Deficiency establishes that the previous serious deficiency was not fully and permanently corrected. If the Department determines that a contractor has filed a false or fraudulent claim, or if the Department determines that there is an imminent threat to the health or safety of program participants, or that the contractor poses a threat to public health or. safety, it may issue a Notice of Proposed Suspension and shall provide notice of the procedures for suspension review. In any such event, the Department shall propose termination and disqualification and provide notice of procedures for administrative review. Administrative Review Rights The Contractor is not entitled to administrative review of a Notice of Serious Deficiency. The Contractor is entitled to administrative review of other Department actions, as provided by Title 7 Code of. Federal Regulations Part 226, which affect the Contractor's participation or reimbursements in the Child Care Food Program, including but not limited to proposed termination and disqualification. To obtain an administrative review, the Contractor and/or responsible principals or responsible individuals must request it in writing within 15 days of receipt of the Department's notice. The written request must be received by the Department of Health Agency Clerk, Sam Power, 4052 Bald Cypress Way, Bin No. A-02, Tallahassee, Florida 32399-1703; telephone number 850-245-4005, facsimile number. 850-410-1448, within the time permitted. If no written request is submitted or if the written request is not received within 15 days of the Department's notice, then the Department's proposed action against the Contractor, responsible principals and responsible individuals shall no longer be subject to administrative review and the proposed action will become effective. The Agency Clerk will acknowledge receipt of the request for FY 2009-2010 Child Care Food Program Contra„ c Attachment 2, Page 2 administrative review within 10 days and, if the request was timely filed, will appoint an administrative review official. If the request for administrative review was not timely filed, the Department shall notify, the Contractor, responsible principals and responsible individuals that review is no longer authorized and that the Department's proposed action has now taken effect. If a timely written request is submitted, the Contractor, responsible principals and responsible individuals. must submit documentation in opposition to the proposed Department action no later than 30 days after receipt of the Department's notice to the administrative review official. The Department may submit documentation in support of its action within 15 days of the Contractor's request for administrative review. The administrative review official will. consider the Department's proposed actions based upon written submissions by the Department and the Contractor. A hearing will be held in addition to, or in lieu of,. a review of written information only if the. Contractor or a responsible principal or individual requests such. a hearing in the initial written. request for administrative review. The administrative review official may consider any evidence that he or she determines is credible,. trustworthy and would reasonably be relied upon by a prudent person in the conduct of his or her normal daily activities. Either party may be represented by counsel. If a hearing is requested, the parties may call witnesses to testify and may cross examine witnesses.. Witnesses may testify by telephone and may be sworn over the telephone and may be permitted to testify in narrative form. The administrative review official will issue a decision within 60 days of the Department'srecetpt off -a timely filed written request for administrative review which is an administrative requirement for the Department and may not be used. as a basis for overturning the Department's action if a decision is not made within that specified timeframe. The administrative. review official's determination is the final. administrative determination to be afforded to the institution and responsible principals and individuals.. National Disqualified List If a contractor, responsible principals and responsible individuals do not timely request administrative review or if administrative review upholds the Department's proposed action for disqualification from the Child. Care Food Program, the Contractor and/or responsible. principals and responsible. individuals will be placed on the National Disqualified List with the United States Department of Agriculture and will be. prohibited from participating. in the Child. Care. Food Program for a period not to exceed seven years.. However, if a contractor, responsible principal or individual. has. failed to. repay debts. owed under the Child Care Food. Program, they will remain on the list until the. debt has been repaid. FY 2009-2010