Cal. Code Regs. tit. 5 § 17806

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 17806 - Nonreimbursable Costs

The following costs shall not be reimbursable under the preschool contract:

(a) Bad debts, including losses arising from uncollectible accounts and any related legal costs. Uncollected parent fees are not considered to be bad debts if sufficient documentation of collection attempts exists;

(b) Contributions;

(c) Costs of amusement or entertainment;

(d) Costs of fines or penalties;

(e) Costs of idle facilities unless those costs are related to a partial year program and the costs of the idle facilities have been approved by the Early Education Division;

(f) Costs incurred after the contract has been terminated;

(g) Fund raising costs except as specified in section 17707 of this chapter;

(h) Consumer interest except:

(1) Interest on borrowed funds when apportionments are withheld because of a delay or error attributable to the state and the amount of interest claimed is approved by the Early Education Division; or

(2) When interest is part of a lease purchase agreement.

(i) Investment management costs;

(j) Costs of organization of a nonprofit corporation such as incorporation fees or consultant fees;

(k) Public relations consultant fees;

(l) Costs of legal, consulting and accounting services incurred in prosecution of claims against the state;

(m) State and federal income taxes;

(n) Costs for the acquisition of sites and buildings except through depreciation;

(o) Bonuses unless part of a collective bargaining agreement;

(p) Compensation to the members of the board of directors except for:

(1) Reimbursement, computed in accordance with section 17805 of this chapter, for travel and/or per diem incurred while the members are conducting business for the organization; and

(2) As provided in the Corporation Code section 5227 et seq.

(q) Costs of subcontracts which increase the contractor's cost or subcontracts which contain a provision for reimbursement for cost-plus a percentage-of-costs.

Cal. Code Regs. Tit. 5, § 17806

1. New section filed 7-1-2022; operative 7-1-2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 26).

Note: Authority cited: Sections 8231 and 8247, Education Code. Reference: Sections 8205 and 8247, Education Code.

1. New section filed 7-1-2022; operative 7/1/2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 26).