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2 California Library Literacy Services: Allowable and Unallowable Expenses | November 2022 California Library Literacy Services Law The California Library Literacy Services Program is subject to Chapter 4.6. California Library Literacy and English Acquisition Service Program (California Education Code Title 1, Division 1, Part 11, Chapter 4.6, Section 18880-18883). Section 18883 states: “A local library shall ensure that funds received pursuant to this chapter are exclusively used for expenses resulting from providing English language and literacy services and shall ensure that at least 90 percent of the funds received for the program are expended on direct services and related materials.” Allowable Expense Categories and Associated Expenses CLLS award funds and local match funds used to support the CLLS program may only be used for expenses that enable the CLLS program to provide direct literacy services to learners and their families (if a program is funded for CLLS Family Literacy Services). As stated above in the “California Library Literacy Services Law” section, “at least 90 percent of the funds received for the program are expended on direct services and related materials.” Up to 10% of both CLLS award funds and local matching funds may be allocated to indirect costs (more information about indirect costs can be found below in the “Indirect Costs” list item). • Salaries and Benefits include the salaries and benefits for all literacy services staff and other staff for their proportional time spent directly supporting the CLLS literacy programs who are employed directly by the library, city, county, or district. • Contract Staff include limited-term literacy staff employed under personal service contracts to directly support CLLS literacy programs. • Operations includes expenditures incurred in operating the literacy services. This category can include the following: o Travel: Expenditures for travel expenses incurred by personnel performing services for the program. (CLLS policy does not allow using CLLS funds for out-of- state travel. See the “Unallowable Expenses” section below for more information.) o Office supplies: Paper, pencils, staples, etc. o Printing: Duplicating, photocopying, and printing costs. o Communications: Telephone, FAX, postage, and other communication expenses. o Internal Program Supplies: Professional development materials for literacy staff and volunteers, staff training costs and conference attendance, session or class non-consumable learning materials, program informational materials (brochures, flyers, business cards…etc.), and other internal program supplies expenses.