a) Grantees shall only use Preventive Health and Health Services Block Grant funds for the direct cost of administering, operating and maintaining a project. The following direct costs are examples of those that may be incurred when specified in the grant agreement:

1. 1) personal services costs, including gross salaries and employer paid fringe benefits for full-time and part-time employees of the project;
2. 2) contractual services costs, including but not limited to fees for consultants and specialists, exclusive of consultant services for patient care; conference registration fees; repair and maintenance of furniture and equipment; postage and postal services; subscriptions; training and education costs; software; and telecommunications costs;
3. 3) travel of personnel, consultants and specialists in carrying out authorized activities. Travel costs are the expenses for transportation, lodging and subsistence for personnel who are on travel status on official business for the project. Out of State travel requires prior written approval of the Department;
4. 4) supplies/commodities as required in the operation of the project which are directly related to its operation. Supplies include, but are not limited to, office, medical and educational supplies; equipment items costing less than $100 each; printing; and paper; and
5. 5) equipment directly related to the operation of the project. Equipment is defined as items costing over $100 each, with a useful life of more than one year (Section 20 of the State Finance Act (Ill. Rev. Stat. 1991, ch. 127, par. 156) [30 ILCS 105/20]). Equipment costs shall include all freight and installation costs. Purchase of equipment items, other than those included in the approved budget, require prior written approval from the Department.

c) In those instances in which an applicant does not have sufficient operating funds to conduct the project, a cash advance may be requested. The request must be in writing and be signed by the applicant agency's executive officer.

1. 1) The Director or designee shall determine whether a cash advance will be issued.
2. 2) The methodology for repayment or documentation of the use of advanced funds shall be included in the grant agreement.

d) Payments to the grantee shall be made on a reimbursement basis.

1. 1) The grantee shall use the Department's Reimbursement Certification Form or a reasonable facsimile to request reimbursement.

2. 2) The grantee shall document actual expenditures incurred for the purchase of goods and services necessary for conducting program activities.

   1. A) Expenditures shall be itemized on the Reimbursement Certification Form in such a manner as to establish an audit trail for future verification of appropriate use of grant funds.

   2. B) Each item claimed on the Reimbursement Certification Form shall be based on an expenditure traceable through the grantee's internal accounting system and shall include:

      1. i) the check number or internal ledger transfer code;
      2. ii) date of payment;
      3. iii) dates goods or services were received or the period covered;
      4. iv) a description of the goods or services for gross amount of the check or transfer; and
      5. v) the amount claimed for reimbursement from the Department.
3. 3) The grantee shall submit requests for reimbursement either monthly or quarterly throughout the period of the grant agreement. The final request for reimbursement shall be submitted within forty-five (45) calendar days after the end of the grant agreement period.