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Section 12.03 Insurance. Contractor shall maintain insurance or other means of replacing assets <br />purchased with Department funds. <br />Section 12.04 Fidelity Bond. Contractor is required to carry a fidelity bond or insurance coverage <br />equal to the amount of funding provided under this Contract up to $100,000 that covers each <br />employee of Contractor handling funds under this Contract, including person(s) authorizing payment <br />of such funds. The fidelity bond or insurance shall provide for indemnification of losses occasioned <br />by (1) any fraudulent or dishonest act or acts committed by any of Contractor's employees, either <br />individually or in concert with others, and/or (2) failure of Contractor or any of its employees to <br />perform faithfully his/her duties or to account properly for all monies and property received by virtue <br />of his/her position or employment. <br />Section 12.05 Liability Coverage. Contractor shall also maintain liability insurance coverage, <br />refened to in Tex. Gov. Code § 2261.102, as "director and officer liability coverage," where <br />Contractor is a legal entity that is required to have directors and/or officers. This provision applies to <br />entities that are organized as non-profit corporations under the Texas Non-Profit Corporation Act; <br />for-profit corporations organized under the Texas Business Coiporations Act; and any other legal <br />entity that is required under Texas law to have directors and/or officers. Contractor shall maintain <br />liability insurance coverage in an amount not less than the total value of this Contract and that is <br />sufficient to protect the interests of Department in the event an actionable act or omission by a <br />director or officer of Contractor damages Department's interests. <br />Section 12.06 Overtime Compensation. Except as provided in this section, Contractor shall not use <br />any of the funds provided by this Contract to pay the premium portion of overtirne. Contractor shall <br />be responsible for any obligations of premium overtime pay due employees. Premium overtirne pay <br />is defined as any compensation paid to an individual in addition to the employee's normal rate of pay <br />for hours worked in excess of normal working hours. Funds provided under this Contract may be <br />used to pay the premium portion of overtime only under the following conditions: 1) with the prior <br />approval of DSHS; 2) temporarily, in the case of an emergency or an occasional operational <br />bottleneck; 3) when employees are performing indirect functions, such as administration, <br />maintenance, or accounting; 4) in performance of tests, laboratory procedures, or similar operations <br />that aze continuous in nature and cannot reasonably be interrupted or otherwise completed; or 5) <br />when lower overall cost to DSHS will result. <br />Section 12.07 Program Site. All Contractors shall ensure that the location where services are <br />provided is in compliance with all applicable local, state and federal zoning, building, health, fire, <br />and safety standards. <br />Section 12.08 Cost Allocation Plan. Contractor shall submit a Cost Allocation Plan in the format <br />provided in the Department's Contractor's Financial Procedures Manual to the Department's <br />Contract Oversight and Support Section, at Mail Code 1326, P.O. Box 149347, Austin, Texas 78714- <br />9347, except under the circumstance where a Contractor has a current Cost Allocation Plan on file <br />with the Deparcment. Contractor shall implement and follow the applicable Cost Allocation Plan. If <br />Contractor's plan is the same as in the previous year, by signing this Contract, Contractor certifies <br />General Provisions (Core Subrecipient 2009) 6/5/08 Page 20 of 38 <br />