# Nonreimbursable Costs

The following costs shall not be reimbursable under the child development 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 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 Child Development Division;

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

(g) Fund raising costs except as specified in Section 18277 of this Division;

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


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