Presented By: Dana Mabeus, Audit and Budget Manager August 2009

1. HWTF Contract (including State Travel Guidelines and Travel Requests), Budget, Financials Workbook (MER), and Budget Adjustments Presented By: Dana Mabeus, Audit and Budget Manager August 2009

2. Disclaimer The information contained in this presentation is for informational purposes and general guidance only. It is the intent of HWTF to highlight certain provisions contained in the HWTF contract including attachments and contract-related documents. It is not the intent of HWTF to cover all terms and conditions contained in the HWTF contract, the attachments and contract-related documents, but rather to provide grantees with a better understanding of aforementioned documents that may affect grantees in the performance of their program. In no event is HWTF liable to grantees for any decision made or action taken in reliance on the information in this presentation. As such, information contained herein does not act as a substitute for grantee’s knowledge and understanding of the contract. Grantee bears full responsibility for reading, understanding and adhering to the HWTF contract including attachments and contract-related documents. This presentation will be posted at the TRU listserv and HWTF website. It is incumbent upon HWTF grantees to keep current on information contained herein and regularly check the listserv for revisions and updates to this presentation.

3. IF YOU DIDN’T DOCUMENT “IT”, “IT” DIDN’T HAPPEN!

4. The HWTF Contract

5. Contract Definition • A contract is an agreement between two or more parties which creates obligations to do or not do the specific things that are the subject of that agreement. • The HWTF contract is standard for both government and non-governmental (non profit) entities with the exception that the non-governmental entity contract contains provisions regarding obligations required by the North Carolina Office of State Auditor under N.C.G.S. 143C-6-23. Some of these obligations are: filing an annual Conflict of Interest statement and Certification of No Overdue Taxes, and reporting grant information via the online Grants Information Center (GIC) database. More information can be found at www.ncauditor.net.

6. Grant Award versus Term The grant “award” and grant “term” have different meanings. • The grant award refers to the total amount approved by the HWTF Commission over the period of time of the overall funding of the program. For most HWTF grantees this is $ XXX,XXX.XX over X number of years. • The grant term refers to a period of time up to 12 months for which the HWTF Commission approves the funding. Each year, the contract and budget for the upcoming term undergo certification by the HWTF Commission.

7. Payment Setup Options Prior to the effective date of the contract, a grantee must elect a method of payment – straight reimbursement or initial payment.

8. 1) Straight reimbursement – payment of expenses are reimbursed by the amount on approved monthly expense reports (MERs); OR 2) Initial Payment – grantee receives an initial payment of 25% of the total amount of the initial term budget to assist in start-up costs. Grantee is reimbursed by the amounts on approved MERs until such time as the amount paid is less than the 25% initial payment and approved reported expenses. What does this mean? Example: Grantee is awarded a grant of 300,000 over 3 years (100,000 per term). Grantee receives 25,000 as an initial payment in year 1, and submits MERs on a monthly basis for which it receives payment. At a point in year 3, when grantee has spent ~270,000 of its 300,000 award, grantee will not receive payment for expenses submitted on its MERs until such time as grantee has “repaid” the initial 25,000 that it received from HWTF at the commencement of year 1. Hence, grantee must plan for the gap period when it does not receive payment and will have to rely on funds from other sources to meet internal expenses.

9. Contract Provisions The grant contract between HWTF and grantee sets out the obligations of both parties under the TTUPC program. The contract contains definitions of the terminology used in the contract and sets forth provisions, including but not limited to, the term of the grant funding, grantee’s representations and warranties, obligations, and the HWTF Commission’s obligation. The following are certain provisions found in the HWTF contract worthy of attention herein.

10. Section III D - Use of Funds – Grantee must use all funds awarded exclusively to support the program and spend the funds in accordance with the approved budget.

11. Section III D 2 - “Cost Principles – Grantee shall follow all applicable cost principles, including but not limited to Federally established guidelines: OMB Circular A-87 or OMB Circular A-122 as recommended by the NC State Auditor.” Cost principles are the basic guidelines for cost determination for state and federal pass-through grants that funding agencies and grantees must follow. In July 2005, North Carolina adopted OMB Circular A-87 as the State’s cost principles. A-87 incorporates OMB Circular A-122 relating to nonprofit entities. The purpose of the cost principles is to provide a framework for consistent treatment of costs across grants. The cost principles are basic guidelines; they are not a listing of specific allowable and unallowable costs (with the exception of the prohibition against alcohol and entertainment) More information can be found at www.ncauditor.net . Circulars can be found at www.whitehouse.gov/omb/circulars.

12. Section III D 4 - “Travel and Subsistence Rates – All travel and subsistence expenses must be reimbursed under the prevailing State rates and policies for State employees. State travel rates may be found in the Budget Manual at www.osbm.state.nc.us. All out-of-state travel, travel involving airfare, and any travel to conferences that have a registration fee of $75.00 or more per individual must be pre-approved in writing by Commission staff. International travel shall not be reimbursed under this Contract.” Costs incurred by a grantee for in-state travel totaling 75.00 or more do not require pre-approval from HWTF UNLESS the travel involves a registration fee (for a meeting, conference, etc.) that is 75.00 or more per person.

13. It is not necessary for grantees to submit travel requests for HWTF-required meetings, workshops, etc. (such as the Annual Action Planning meeting or the Annual State Conference) because such events do not require a registration fee of 75.00 or more. Moreover, the requirement to submit a travel request is waived when a grantee’s attendance at a HWTF event is required even when the hotel room rate exceeds the State allowed per diem rate for lodging. HWTF works to obtain “volume discount packages” for attendees and recognizes that more often than not the “room package discount” exceeds the State per diem rate allowed. However, grantees must make every effort to reserve rooms at the “room package discount” for HWTF required events. Lodging costs that exceed the “room package discount” rates will not be allowable – the allowed reimbursement rate will be that of the rate offered at the “room package discount” rate.

14. Professional Development Professional development/educational events, conferences, meetings, etc. must meet the following 3 prong criteria before costs for such are allowable under the grant: • The event must have a direct and discernable connection/link to the TTUPC program and the execution of the grantee’s contract and AAP; and • The knowledge, skills, etc. acquired from attendance at the event must be utilized and the utilization must be readily evident and demonstrate its correlation to the TTUPC program and the execution of the grantee’s contract and AAP; and • The value and benefit derived must be clearly demonstrated in the TTUPC program and the execution of the grantee’s contract and AAP.

15. State Travel and Subsistence Per Diems Effective July 1, 2009, the State reimbursement rates for subsistence are as follows: In-StateOut-of-State                 Breakfast               $  7.75        $  7.75                 Lunch                    $ 10.10        $ 10.10                 Dinner                   $ 17.30       $ 19.65        Lodging (actual, up to) $ 65.90$ 78.05                               Total    $101.05      $115.55 The payment of sales, lodging, and local taxes and/or service fees applied to the cost of lodging is allowed in addition to the lodging rate and is to be paid as a lodging expense.

16. Subsistence: Eligibility and Allowability Eligibility for per diem subsistence allowances for same day travel, partial and overnight travel are set forth in the State Travel Guidelines as follows: Meals during Daily Travel (Overnight and Partial Day) Employees may be reimbursed for meals for partial days of travel when in overnight travel status and the partial day is the day of departure or the day of return. The following applies: • Breakfast: depart duty station prior to 6:00 a.m. and extend the workday by 2 hours. • Lunch: depart duty station prior to Noon (day of departure) or return to duty station after 2:00 p.m. (day of return). • Dinner: depart duty station prior to 5:00 p.m. (day of departure) or return to duty station after 8:00 p.m. (day of return) and extend the workday by 3 hrs. The travel must involve a travel destination located at least 35 miles from the grantee's regularly assigned duty station (vicinity)or home, whichever is less.

17. Meals during Daily Travel (No partial day or overnight) Allowances cannot be paidto employees for lunches if travel does not involve an overnight stay; however, employees can be eligible for allowances for the breakfast and evening meals when the following applies: • Breakfast: depart duty station prior to 6:00 a.m., and extend the workday by 2 hours. • Dinner: return to duty station after 8:00 p.m., and extend the workday by 3 hours. The travel must involve a travel destination located at least 35 miles from the grantee's regularly assigned duty station (vicinity) or home, whichever is less.

18. Can a grantee charge lunch costs to the grant? Generally, no. Under the grant, a grantee can only claim lunch costs when grantee meets the eligibility requirements and such costs are allowable under the State Travel Guidelines. What if a grantees agency’s internal policy permits the grantee to claim lunch costs under certain conditions or when certain situations exist, such as traveling outside the grantee’s designated county or region? Again, no. Under the grant, a grantee can only claim lunch costs when grantee meets the eligibility requirements and such costs are allowable under the State Travel Guidelines.

19. Inter-Grantees Meeting Costs Grantees often host trainings and meetings in furtherance of grant performance, and must adhere to the terms of the contract in doing so. Meetings conducted among grantees and HWTF technical assistance providers are held to a higher standard of inspection; any expense associated with such meetings will be examined and analyzed as to the appearance of impropriety or the misuse of State funds. In determining such, HWTF considers: 1. whether costs incurred during the meeting were justified weighed against the intent, purpose, necessity, and productivity produced by grantees/attendees at the meeting; 2. whether any prior or present concerns exist regarding grantees’ spending patterns; and 3. whether grantees adhered to contractual provisions addressing expenditures arising under similar instances. In general, subsistence costs are most associated with meetings. For example, lunch costs incurred during the meeting and the conditions noted in 1-3 above will be weighed against the State’s Travel Guidelines and its rates/restrictions on eligible and allowable meal reimbursements. Best advise, if a grantee is first eligible to claim a lunch per diem, then each grantee should pay for his/her own lunch. Hosting grantee should not “cater” “inter-grantee/TA provider” meetings.

20. When charging travel and subsistence costs, a grantee must provide and document at the very least the following information on grantee agency’s internal reimbursement claim form or report: • Locations – “From” and “To”; • Date and Times – “In” and “Out” (must be provided when grantee is claiming a subsistence cost – this may be inserted manually by grantee on form); • Purpose or Reason for Travel (provide sufficient detail showing connection between the travel and the grant); • Mileage and Rate; • Meals and amounts for each meal WITH ALL RECEIPTS; and • Any miscellaneous costs allowable under the State Travel Guidelines WITH RECEIPTS.

21. ALL SUBSISTENCE AND LODGING COSTS MUST BE SUPPORTED BY RECEIPTS AND DOCUMENTATION TO INDICATE THAT THE EVENT FOR WHICH THE GRANTEE TRAVELED ACTUALLY OCCURRED. Proof of event occurring may include, but not be limited to, sign-in sheets, agenda’s , minutes, media about the event.

22. When a grantee’s per diem rates for subsistence and lodging is higher than the State’s per diem rates, the grantee cannot charge the excess costs to the grant. Example: ABC Health Department’s rate for dinner is 24.00 but the State’s rate is 17.30. The grantee can only charge 17.30 to the grant for dinner (supported by a receipt). When a grantee’s per diem rate for subsistence and lodging is lower than the State’s per diem rates, the grantee is eligible to claim the State rate. Example: ABC Health Department’s rate for dinner is 15.00 but the State’s rate is 17.30. The grantee is eligible to charge up to 17.30 to the grant for dinner (supported by a receipt). However, such “non-actual costs” can cause auditing nightmares for financial folks, so grantees should follow grantee internal policies and procedures before claiming and charging costs in this manner.

23. Subsistence rates for each meal, breakfast, lunch and dinner, are set by the State. A grantee must adhere to each separate rate for each meal when charging these costs to the grant. In other words, if a grantee is eligible to claim 3 meals, the cumulative total of the 3 meals will not be used to determine whether the costs exceeded or remained within the rates allowable. The rate for each individual meal controls. For example: Grantee’s agency charges actual costs to the grant based upon receipts – the agency does not claim the actual per diem rates allowable because of internal grantee policy. Grantee spends 4.00 for breakfast, 6.00 for lunch, and 20.00 for dinner (and has receipts for all meals). In determining whether the costs are allowable, the 4.00 spent by grantee for breakfast will be compared to the allowable State per diem rate for breakfast, 7.75. The same comparison will be made for lunch and dinner. Here, grantee did not exceed the State rate allowable for breakfast and lunch, but did exceed the State rate allowable for dinner. The cumulative total for the 3 meals is 30.00 (4.00+6.00+20.00 = 30.00 - which is 5.15 less than the 35.15 per day allowed by the State). However, based upon grantee’s agency’s internal policy regarding charging for actual receipt-based meals, the most the grantee can claim and charge to the grant is 27.30 (4.00+6.00+17.30). In other words, a grantee cannot balance the costs of meals to obtain a daily cumulative total.

24. However, if grantee’s agency charges the allowed per diem rates to the grant notwithstanding the actual cost for each meal (supported by receipts) and not exceeding the allowed per diem per meal, using the amounts provided in the example above, the cumulative total for the 3 meals is 35.15 (7.75+10.10+17.30). Based upon grantee’s agency decision to claim reimbursement based upon eligibility rather than actual costs, grantee may charge 35.15 to the grant. In this instance, for breakfast grantee spent 4.00 but is eligible to claim 7.75, for lunch grantee spent 6.00 but is eligible to claim 10.10, and for dinner grantee spent 20.00 but is only eligible to claim 17.30. Grantee must keep receipts for the meals although grantee is claiming more than what grantee actually spent for breakfast and lunch, and exceeded the allowed amount for dinner.

25. Excess In-State Lodging Costs In instances when a grantee finds that in-state travel for a non-required HWTF event will include lodging costs that exceed the State allowed per diem rate for lodging, the grantee must submit a travel request to HWTF applying for approval for the excess lodging costs. Without this approval, the grantee will be held to the State per diem rate. Lodging costs must also be supported with receipts.

26. State Travel and Mileage Actual mileage is reimbursable; costs for motor fuel and repair/maintenance for vehicles are prohibited. The business standard mileage rate set by the Internal Revenue Service (55.0 cents per mile effective January 1, 2009) will be paid. Parking fees, tolls, and storage fees are reimbursable when the required receipts are obtained.

27. Additional Contract Provisions Under Section IV. B.: “Grantees that fail to submit required reports by dates specified and in the formats, required by HWTF Commission staff, are subject to the withholding of payments until the reports are received in an acceptable format and approved by HWTF Commission staff.” If a grantee is not current in its reporting such as MERs, WIPTS, etc. HWTF may withhold reimbursement payments. In addition, until such time as grantee becomes current, HWTF will not entertain and/or review requests from grantee for travel, media, etc.

28. Under Section IV.C.: Record Retention: “Five (5) Years Following Date of Contract Cessation Letter – For a period of five (5) years following the date of the Contract Cessation Letter received from the Commission after Termination Date, Grantee shall maintain full, accurate and verifiable financial records, supporting documentation, and all other pertinent data for this Grant and this Project. These records must be maintained so as to identify and document clearly the expenditure of Commission funds provided under this Agreement separate from accounts for other awards, monetary contributions or other revenues sources for this Project. In the event such records are audited, all Project records shall be retained beyond such five (5) year period until all audit findings have been resolved.” For clarification purposes, the 5 years begins to toll as of the date of the contract cessation letter – this tolling date is NOT the same date of the end of the grant award. The termination date is the date on which the last term ends, or the date grantee’s funding terminates pursuant to other terms within the contract.

29. Under Section IV.D.: Subcontracting.Paraphrasing: 1. Notice –Grantee shall notify the Commission in writing at least five (5) business days in advance of Grantee disbursing Commission funds to any subcontractors, partners and subgrantees during the term of this Grant. In other words, grantees must notify HWTF prior to making payment to a subcontractor, partner or subgrantee. 2. Bound by Terms – All subcontractors, partners and subgrantees shall be subject to all terms and conditions of this Agreement through a subcontract with the grantee. In other words, grantee shall have a contract with any subcontractors, partners and subgrantees that binds them to the HWTF contract.

30. 3. Grantee Responsibility – Grantee is responsible for the performance of any subcontractor, partner, or subgrantee and continues to be responsible for all services provided under this Agreement regardless of who may be providing them. Grantee is responsible for the notification and the monitoring of all subcontractors, partners, or subgrantees in regards to all applicable reporting requirements as specified by this contract, including but not limited to N.C. General Statute § 143C-6-23. 4. Payment of Subcontractors, Partners and Subgrantees – Grantee is responsible for paying all subcontractors, partners and subgrantees for services and ensuring that all funds are spent in accordance with the purposes for which they were granted.

31. Grantees are responsible for the contractual, regulatory, programmatic and fiscal actions or non actions of their subcontractors, partners and subgrantees. Mini-grants are a form of subcontract and are subject to the same contractual provisions that regard grantee subcontracting. How this comes into play: Grantee contracts with a subgrantee or awards a mini-grant to a local high school. The subgrantee/mini-grant recipient uses the funds to purchase items from a health education catalog that do not contain a required HWTF logo which is a violation of the HWTF Guidelines for Media and Promotional Items. HWTF will require the grantee, NOT the subgrantee or mini-grant recipient, to reimburse the grant for the funds used in violation of the Guidelines.

32. TRAVEL REQUESTS

33. Tips for Completing Travel Request Form • The travel request form is available on HWTF’s website (www.healthwellnc.com). • Form must be submitted at least one month prior to date of travel. • The form should be completed in its entirety (all sections completed). • The budget portion should be estimated as close as possible, and ample funds must be available in grantee’s travel budget category prior to requesting approval to travel.

34. Description and Purpose/Justification of Travel The Travel Request Form asks the following questions: 1.Why is it beneficial for grantee to attend this training/conference/trip? 2.How does this align with the grantee’s program annual action plan – goals and objectives? Grantees must provide a thorough, concise answer for each of these questions.

35. BAD EXAMPLE This training was included in my annual action plan, and I have sufficient funds to attend. Training will help me increase my knowledge and skills. GOOD EXAMPLE I request to attend the CDC training on SHS to gain a better understanding of secondhand smoke research and how I can integrate this information into my May presentation to the local Chambers of Commerce and local business owners advocating for teen-frequented restaurants to adopt 100% smoke free policies. This training is in my Annual Action Plan, and sufficient funds have been budgeted to cover lodging, meals, and travel reimbursement. Attending this training will help me to include the most up-to-date SHS research into my presentation and will help me to create a more compelling case that will help me achieve my overall goal of promoting the adoption of a 100% smoke free policies in local eating establishments to protect teen employees and customers from exposure to SHS.

36. Travel Request Approval Process Grantee will: • Obtain a copy of the travel request form on HWTF’s website and complete it in its entirety. • Submit the completed form to their respective Grants Manager at least one month prior to date of travel. Grants Manager will: • Provide an initial review for programmatic accuracy and review sufficiency of funds; • Communicate with the grantee to obtain revisions if necessary; and • Notify the grantee of final approval (within five business days of submission of final request). Once approval is obtained, the grantee is free to register for the training/conference and pay for any necessary charges associated with attending.

37. BUDGET“Budget Bootcamp 101”

38. Grant Funds Guiding Principals • Funds awarded under a State grant, are State Funds and not the funds of HWTF Commission or the grantee. • Grantees should never consider HWTF money as “use it or lose it”. • State agencies, including HWTF, use performance/results based budgeting which means the expenditure of every state dollar is compared to established goals and objectives through the evaluation of service statements compared to performance measures

39. When budgeting State funds, a grantee must accurately and sufficiently budget funds to the appropriate budget categories based upon its approved AAP.

40. The approved budget establishes monies in each budget category which grantee and HWTF have negotiated and agreed upon as sufficient and appropriate for grantee to effectively operate and execute its program under the contract. In other words, the funds in each category are the “monetary contribution” that the grant will support. For example: Funds budgeted to the “salary/wages/benefits” budget category are the grant’s “contribution” or “allocation” to this line item. In other words, HWTF has approved the allocation of funds for the position(s) set forth by grantee in the approved budget. Hence, funds are approved in this category for the position that grantee has set forth in this budget category and not the individual filling the position. Information regarding the credentials, qualifications or educational experience and background of the individual filling the position are not necessary or relevant for the purpose of allocating funds to this budget category.

41. A grantee’s budget is what it says it is - no more or less!

42. Budgeting Compensation Expenses Budget adjustments are allowed under certain circumstances. However, budget adjustments for personnel/contracted services (P/CS) are not generally allowed. When budgeting costs for personnel/contracted services for each term, a grantee must specifically state who (individuals/entities) will be compensated, what the compensation amount will be per individual/entity, and what duties/tasks each individual/entity will be performing under the grant. Particular attention must be given to inclusion of any “variables”; if variables are not included, then grantee cannot bring them forward for consideration at a later date. In terms of the approved budget, a “variable” refers to language included in a P/CS budget category that may allow a grantee to slightly change the use or amount of funds in the budget category should certain conditions arise that were not present at the time the funds were originally allocated in the budget category.

43. Variable Not Included in Budget: Example, under salary/wages/ benefits in grantee’s approved budget for term 1 grantee states: “Salary and fringe for 2 full-time health educators. Annual salary for 1 FTE is 29, 583 plus approx 31% fringe benefits at $9,192 for a total of $38,775. Annual salary for 2nd FTE is 32,664 plus approx 29% fringe benefits at 9,600 for a total of $42,264. The combined total is 81,039.” [Grantee has budgeted 81,039 for this category.] Grantee states and acknowledges that it will utilize no more than 81,039 to support this budget category, and grantee acknowledges that the grant is contributing no more than 89,039 in this budget category. In this case, grantee has not included any variables and will not be able to request any changes in this budget category during term 1.

44. Variable Included in Budget: Example: under salary/wages/ benefits in grantee’s approved budget for term 1 grantee states: “One FTE salary will be 34,654 with fringe of 34.53% at 11,960 for a total of 46,614. This amount does not include a cost of living increase which may be approximately 2.5%, or 1,165, based on a county pay plan/salary study. We estimate that in January 2010 in term 1, we may submit a budget adjustment to request the increase and understand that the request is subject to the availability of funds in our budget.” [Grantee has budgeted 46,614 for this category.] Grantee states and acknowledges that it will utilize no more than 46,614 to support this budget category AND grantee has also reserved a privilege to exercise a request to increase this amount by 2.5% or 1,165. In this case, grantee has included the variable of a potential increase and has reserved the privilege to request the increase in this budget category during term 1. Grantee has also included a projected timeframe for requesting the increase.

45. Variable Included in Budget: Example: under salary/wages/ benefits in grantee’s approved budget for term 1 grantee states: “One FTE salary will be 36,050 with fringe of 20% at 7,210 for a total of 43,260. This amount assumes a 3% cost of living increase based on a county pay plan. The initial salary at the commencement of term 1 is 35,000 and fringe at 20% or 7,000 for a total of 42,000. The 3% increase brings the total amount for salary and fringe to 43,260. We estimate that the increase may occur in December 2009. [Grantee has budgeted 43,260 for this category.] Grantee states and acknowledges that it will utilize no more than 43,260 to support this budget category AND grantee has also included the variable of the 3% COLA increase, as well as the anticipated date of the increase. Note that grantee must state the initial salary and fringe amounts before the 3% increase. In this scenario, grantee has factored in the future increase of 43,260 but at the beginning of term 1 is paying 42,000.

46. When a grantee states a variable based upon a percentage increase, grantee will be held to that percentage and cannot exceed the percentage amount. Example: At the beginning of the term, grantee’s approved budget for salary/wages/benefits includes a variable to increase the salary/fringe amount (40,000) by 5% (2,000) totaling 42,000 in Dec 2009. The increase does not actually take place until Feb 2010, and the increase to the grantee agency is actually 8% and not 5%. The line item can only be increased by 5% and grantee is not eligible to “claim” monies for the two month delay even though the increase became effective in Feb 10 and not Dec 09 as grantee estimated.

47. Budget categories that must include a variable to reserve a privilege to exercise a “monetary change” during a grant term are: • Personnel/Contracted Services: • Salary/Wages/Benefits • Contracted Staff • Other (regarding payment of stipends, speaking fees, etc) • Other Than Personnel Services: • Contracted Services

48. Budget categories that do not need to include a variable to reserve a privilege to exercise a “monetary change” during a grant term are: • Other Than Personnel Support: • Supplies/Materials • Communication Costs • Occupancy Costs • Paid Media Production and Placement • Capital Outlay • Other • Travel Expenses: • Travel • Meeting • Other

49. Communication Costs: When requesting communication costs, a grantee must specifically describe what items will be covered and provide a monetary breakout of costs. Example: Funds will be used for telephone services; local and long distance. A single phone line is approximately $28 per month or $336 per year, equipped with voice mail capability and the YTPC has a personalized message with specific service area noted including the QuitlineNC number, @$7/month or $84/yr. Based on estimated usage from the two previous grant years, the long distance cost that supports the work of YTPC has been $10 per month on the average or $120/year. The cell phone that has been provided for the YTPC averages $26/month or $312/yr. This is requested because a substantial amount of time is spent after 5pm and on weekends out of the ABC Grantee homebase with youth at trainings and events when contact by phone is necessitated. Postage at $223 with shipping, handling and freight at $100 for program mailings to community partners and prospective partners that will include (churches, restaurants, parents, school personnel, businesses, private providers including physicians, dentists, and other medical professionals) to inform/educate them about the goals and objectives of the program and various activities and events.

50. Cost Allocations Generally, certain costs cannot be allocated to the grant. North Carolina General Statute 143C-6-23 requires cash basis reporting – often stated as “receipt-based” reporting. Example: ABC Health Department Grantee has 4 state grants and purchases 3 cases of paper each month. Each month grantee “takes turns” charging the costs for the cases of paper to one of the 4 different grants (Jan posted to State Grant 1; Feb posted to State Grant 2; and so on). By definition, this is not cost allocation - this practice of rotating the costs for the cases of paper across the 4 grants is not allowable.