Agmt11 Ca. Department of Public Health- Project LEAN

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City of Redwood City 11-10264 Exhibit B Budget Detail and Payment Provisions 5. Allowable Line Item Shifts A_ Subject to the prior review and approval of the State, line item shifts of up to fifteen percent (15%) of the annual agreement total, (e.g., Year 1 and 2 at $12,750; Year 3 at $13,500), or a maximum of one hundred thousand ($100,000) annually, whichever is less, are allowed, so long as the annual agreement total neither increases nor decreases. The $100,000 maximum limit shall be assessed annually and automatically adjusted by the State in accordance with cost-of-living indexes. Said adjustments shall not require a formal agreement amendment. The State shall annually inform the Contractor in writing of the adjusted maximum. (Reference: Health and Safety Code 38081.1.(2)) B. Line item shifts meeting this criteria shall not require a formal agreement amendment. C. The Contractor shall adhere to State requirements regarding the process to follow in requesting approval to make line item shifts. D. Line item shifts may be proposed/requested by either the State or the Contractor. 6. Expense Allowability I Fiscal Documentation A. Invoices, received from a Contractor and accepted and/or submitted for payment by the State, shall not be deemed evidence of allowable agreement costs. B. Contractor shall maintain for review and audit and supply to CDPH upon request, adequate documentation of all expenses claimed pursuant to this agreement to permit a determination of expense allowability. C. If the ailowability or appropriateness of an expense cannot be determined by the State because invoice detail, fscal records, or backup documentation is nonexistent or inadequate according to generally accepted accounting principles or practices, ail questionable costs may be disallowed and payment may be withheld by the State. Upon receipt of adequate documentation supporting a disallowed or questionable expense, reimbursement may resume for the amount substantiated and deemed allowable. D. If travel is a reimbursable expense, receipts must be maintained to support the claimed expenditures. For more information on allowable travel and per diem expenses and required documentation, see Exhibit G entitled, "Travel Reimbursement Information". E. Costs and/or expenses deemed unallowable are subject to recovery by CDPH. See provision 7 in this exhibit entitled, "Recovery of Overpayments" for more information. 7. Recovery of Overpayments A. Contractor agrees that claims based upon a contractual agreement or an audit finding and/or an audit fnding that is appealed and upheld, will be recovered by the State and/or Federal Government by one of the following options: 1) Contractor's remittance to the State of the full amount of the audit exception within 30 days following the State's request for repayment; 2) A repayment schedule which is agreeable to both the State and the Contractor. B. The State reserves the right to select which option will be employed and the Contractor will be notified by the State in writing of the claim procedure to be utilized. C. Interest on the unpaid balance of the audit finding or debt will accrue at a rate equal to the monthly average of the rate received on investments in the Pooled Money Investment Fund commencing on the Page 2 of 3