1. (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;
2. (b) Contributions;
3. (c) Costs of amusement or entertainment;
4. (d) Costs of fines or penalties;
5. (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;
6. (f) Costs incurred after the contract has been terminated;
7. (g) Fund raising costs except as specified in section 17707 of this chapter;

8. (h) Consumer interest except:

   1. (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. (2) When interest is part of a lease purchase agreement.
9. (i) Investment management costs;
10. (j) Costs of organization of a nonprofit corporation such as incorporation fees or consultant fees;
11. (k) Public relations consultant fees;
12. (l) Costs of legal, consulting and accounting services incurred in prosecution of claims against the state;
13. (m) State and federal income taxes;
14. (n) Costs for the acquisition of sites and buildings except through depreciation;
15. (o) Bonuses unless part of a collective bargaining agreement;

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

    1. (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. (2) As provided in the Corporation Code section 5227 et seq.
17. (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.

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

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

History

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