Current through Register Vol. 39, No. 6, September 16, 2024
(a) This Rule
shall apply to all contracts between an area program (hereafter referred to as
"contractor") and contract providers (hereafter referred to as "contractees").
For purposes of this Rule, contractees include:
(1) an individual with whom a contract is
made for professional services, including consultants and guest speakers;
and
(2) an agency, other than
another area program, with whom a contract is made for the provision of
services to one or more clients.
(b) The basis for the relationship between
the contractor and the for-profit or non-profit contractee is the written
contract. All mutual understandings and expectations shall be clearly stated in
the contract. All contracts for provision of services to clients, shall
contain, at a minimum, the following provisions as indicated in this Rule,
except that Subparagraphs (b)(11) and (b) (18) of this Rule shall not apply to
contracts with individuals:
(1) names of the
contracting parties;
(2) beginning
and ending dates of the contract period; however, no contract shall extend
beyond the fiscal years, except as allowed by G.S. 159;
(3) description of the services to be
provided and the expectations of the parties;
(4) amount and method of payment;
(5) address and social security number or IRS
identification number of contractee;
(6) the following statement when a contract
period is greater than 30 days: "This contract may be terminated at any time
upon mutual consent of both parties or after 30 days upon notice of termination
by one of the contracting parties;"
(7) a statement which indicates that the
contract may be terminated immediately with cause upon written notice to the
other party; the cause shall be documented in writing to the other party
detailing the grounds for termination; and if applicable, the contract may
contain a provision indicating method of payment of liquidated damages upon
such termination;
(8) a clause
which indicates that the contractor (area) is held harmless from acts committed
by the contractee;
(9) signature of
each party to the contract;
(10) a
pre-audit statement in accordance with
G.S.
159-28;
(11) a statement specifying the procedure for
budget revisions, if applicable, and provisions for fund balance;
(12) the procedure for resolving disagreement
between the contracting parties;
(13) for equipment purchased with non
unit-cost reimbursement funds, such as start up or special purpose funding,
title to assets purchased under the contract in whole or in part rests with the
contractor so long as that party continues to provide the services which were
supported by the contract; if such services are discontinued, disposition of
the assets shall occur as approved by the Division;
(14) client records of the contractee shall
be accessible for review for the purpose of monitoring services rendered,
financial audits of third party payors, research and evaluation;
(15) upon request, the contractee shall
provide data about individual clients for research and study to the
contractor;
(16) the contractor
requirement to provide to the contractee all pertinent rules, regulations,
standards and other information distributed by the Division necessary for the
performance of the contractor under the terms of the contract;
(17) the contractor requirement to monitor
the contract to assure compliance with rules of the Commission, the Secretary
and G.S. 122C-142;
(18) a copy of the independent audit
referenced in Subparagraph (b)(20) of this Rule, if required, shall be
forwarded to the Office of the State Auditor at 2 S. Salisbury Street, 20601
Mail Service Center, Raleigh, North Carolina 27699-0601.
(19) provisions which outline the
responsibility of the contractee for the adoption, assessment, collection and
disposition of fees in accordance with
G.S.
122C-146;
(20) a requirement that the contractee shall
make available to the contractor its accounting records for the purpose of
audit by State authorities and that the party will, when required by general
statute or in accordance with the annual Memorandum of Agreement, have an
annual audit by an independent certified public accountant.
(c) Agreements with another area
program for provision of services to clients shall be incorporated into the
annual Memorandum of Agreement referenced in Rule .1002 of this
Section.
Authority
G.S.
122C-112;
122C-141;
122C-142;
122C-146;
143-6.1;
159-40;
Eff. February
1, 1976;
Amended Eff. February 1, 1996; October 1, 1992; February
1, 1986; July 1, 1985;
Pursuant to
G.S.
150B-21.3A, rule is necessary without
substantive public interest Eff. June 25,
2016.
