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<br />PERFORMING AGENCY shall utilize one of the following methods for applying program income: <br /> <br />J <br /> <br />A. Additive method - add the program income to the funds already committed to the project by both <br />parties. <br />B. Deductive method - deduct the program income from the total allowable costs to determine the net <br />allowable costs. <br /> <br />PERFORMING AGENCY shall expend program income during the Attachment term in which it is earned, and may <br />not carry forward to the succeeding term. Program income not expended in the term in which it is earned shall be <br />refunded to RECEIVING AGENCY. <br /> <br />RECEIVING AGENCY may base future funding levels, in part, upon PERFORMING AGENCY'S proficiency in <br />identifYing, billing, collecting, and reporting program income, and in utilizing it for the purposes and conditions of <br />the applicable Attachment(s). <br /> <br />ARTICLE 20. Overtime Compensation <br /> <br />PERFORMING AGENCY shall not use any of the funds provided by the Attachment(s) hereto to pay the premium <br />portion of overtime. PERFORM~G AGENCY shall be responsible for any obligations of premium overtime pay <br />due employees. Premium overtime pay is defined as any compensation paid to an individual in addition to the. <br />normal rate of pay for hours worked in excess of normal working hours. <br /> <br />ARTICLE 21. Equipment and Supplies <br /> <br />In accordance with Health and Safety Code, ~12.053, title to all equipment and supplies purchased from funds <br />from this contract shall be in the name of PERFORMING AGENCY throughout the Attachment(s) term(s) or until <br />the Attachment is terminated. <br /> <br />Equipment is defmed as tangible nonexpendable personal property with an acquisition cost of more than $1,000 <br />and a useful life of more than one year, with the following exceptions: fax machines, stereo systems, cameras, . <br />video recorder/players, microcomputers, software, printers, microscopes, oscilloscopes, centrifuges, balances, <br />and incubators. If the unit cost of these exception items is more than $500, they are considered equipment, shall <br />be approved for purchase by RECEMNG AGENCY, and are considered capital assets for inventory purposes. <br />The acquisition cost is the net invoice unit price of an item of equipment, including the cost of any necessary <br />modifications, attachments, accessories or auxiliary apparatus necessary to make the property usable for the <br />purpose for which it was acquired. Supplies are defmed as consumable items necessary to carry out the contract <br />including medical supplies, drugs, janitorial supplies, office supplies, patient educational supplies, software, and <br />any items of tangible personal property other than those defmed as equipment above. <br /> <br />All items of equipment purchased with Attachment funds shall be itemized in the contract budget. Any changes to <br />the equipment list contained in the budget shall be approved in writing by RECEMNG AGENCY. <br />PERFORMING AGENCY will submit a written description including complete product specifications and need <br />justification prior to purchasing any item of unapproved equipment. If approved, RECEIVING AGENCY will <br />notify PERFORMING AGENCY by means of a written budget modification. <br /> <br />PERFORMING AGENCY shall maintain a nonexpendable personal property (equipment) inventory and submit an <br />annual cumulative report (TDH Form GC-ll) to RECEIVING AGENCY no later than October 15th of each year. <br /> <br />(LGS) <br /> <br />GENERAL PROVISIONS Page 14 <br /> <br />11/2001 <br />