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 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 Child Development Division;
6. (f) Costs incurred after the contract has been terminated;
7. (g) Fund raising costs except as specified in Section 18277 of this Division;

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 Child Development 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 18034 of this Division, for travel and/or per diem incurred while the members are conducting business for the organization; and
    2. (2) as provided in the California 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 child development contract:

Note: Authority cited: Sections 8261 and 8269, Education Code. Reference: Sections 8208(o) and 8269, Education Code.

History

1. New section filed 11-21-88; operative 1-1-89 (Register 88, No. 50).