Common use of Operating Account and Expenditures Clause in Contracts

Operating Account and Expenditures. a. By July 1 of each year, the CFO shall establish an operating account for UP in the amount of the Lump Sum Budget as adjusted pursuant to Section 2 of this Agreement (the “UP Operating Account”). Only UP’s Director of Operations or Principal and/or his/her designee(s) shall authorize expenditures from its operating account. b. UP shall establish and maintain a separate bank account under its exclusive control (hereinafter, the “UP Bank Account”). BPS agrees to transfer any funds not allocated or budgeted for salaries or stipends at least two times a year, with the first transfer coming no later than July 15 from the UP Operating Account to the UP Bank Account. The first transfer will be based upon the difference between the total Lump Sum Budget as adjusted pursuant to Section 2 of this Agreement provided by BPS to UP and an estimate of the amount of funds UP anticipates spending on stipends and salaries. The amount of this transfer will be mutually agreed upon by the CFO of BPS and the Director of Operations at UP. If parties do not have the ability to calculate the precise amount on or near the July 15 deadline, then they will default to transferring 85% of the previous year’s total net transfer, excluding any one-time revenue the previous year that the parties agree will not recur. In the event that this first transfer is later determined to be greater than the difference between the Lump Sum Budget and the funds UP anticipates spending on stipends and salaries, then UP shall be liable for the difference at the time of the second transfer. The second transfer will occur by January 31 unless both parties agree that a second transfer is not necessary. The third transfer will occur at the end of the fiscal year, no later than August 31. After the CFO performs a year-end reconciliation at the close of the BPS’s fiscal year, any remaining funds from UP’s Operating Account will be transferred to the UP Bank Account. Expenditures from the UP Bank Account shall be paid in accordance with all applicable laws, ordinances, and regulations. c. UP shall have the option to purchase such goods and services from the BPS as set forth in the non-instructional services section of the Application (including, but not limited to, technology and athletics) at costs reasonably determined by BPS, and for all such non-instructional goods and services purchased, UP may request, and the BPS shall provide in response to such request, an annual report detailing the scope of goods and services provided and the cost of such non-instructional goods and services purchased. In addition, UP shall have the option to purchase additional, non-instructional goods and services that have not been specified in the Application as UP shall from time to time determine. d. UP agrees that it shall be responsible for all costs associated with the operation of UP. UP further agrees it shall indemnify and hold harmless the BPS, its officers, agents or employees from all claims resulting from any costs incurred by UP, its Board, officers, agents or employees in association with the operation of UP.

Operating Account and Expenditures. a. By July 1 of each year, the CFO shall establish an operating account for UP in the amount of the Lump Sum Budget as adjusted pursuant to Section 2 of this Agreement (the “UP Operating Account”). Only UP’s Director of Operations or Principal and/or his/her designee(s) shall authorize expenditures from its operating account. b. UP shall establish and maintain a separate bank account under its exclusive control (hereinafter, the “UP Bank Account”). BPS agrees to transfer any funds not allocated or budgeted for salaries or stipends at least two times a year, with the first transfer coming no later than July 15 September 1 from the UP Operating Account to the UP Bank Account. The first transfer will be based upon a the difference between the total Lump Sum Budget as adjusted pursuant to Section 2 of this Agreement provided by BPS to UP Academy and an estimate of the amount of funds UP Academy anticipates spending on stipends and salaries. The amount of this transfer will be mutually agreed upon by the CFO of BPS and the Director of Operations at UP. If parties do not have the ability to calculate the precise amount on or near the July 15 deadline, then they will default to transferring 85% of the previous year’s total net transfer, excluding any one-time revenue the previous year that the parties agree will not recur. In the event that this first transfer is later determined to be greater than the difference between the Lump Sum Budget and the funds UP anticipates spending on stipends and salaries, then UP shall be liable for the difference at the time of the second transferAcademy. The second transfer will occur by January 31 unless both parties agree that a second and will only be necessary if there is an increase in the difference between the total Lump Sum Budget provided by BPS to UP Academy and the estimated amount of funds UP Academy anticipates spending on stipends and salaries. For example, the transfer is not necessaryin January will be necessary if UP Academy receives more in its BPS Lump Sum Budget after accounting for actual enrollment at UP Academy, per the process described above. The third transfer will occur at after the end of the fiscal year, no later than August 31. After the CFO performs a year-end reconciliation at the close of the BPS’s fiscal year, any remaining funds from UP’s Operating Account will be transferred to the UP Bank Account. Expenditures from the UP Bank Account shall be paid made in accordance with all applicable laws, ordinances, and regulations. c. UP shall have the option to purchase such goods and services from the BPS as set forth in the non-instructional services section of the Application (including, but not limited to, technology and athletics) at costs reasonably determined by BPS, and for all such non-non- instructional goods and services purchased, UP may request, and the BPS shall provide in response to such request, an annual report detailing the scope of goods and services provided and the cost of such non-instructional goods and services purchased. In addition, UP shall have the option to purchase additional, non-instructional goods and services that have not been specified in the Application as UP shall from time to time determine. d. UP agrees that it shall be responsible for all costs associated with the operation of UP. UP further agrees it shall indemnify and hold harmless the BPS, its officers, agents or employees from all claims resulting from any costs incurred by UP, its Board, officers, agents or employees in association with the operation of UP.

Operating Account and Expenditures. a. By July 1 of each year, the CFO shall establish an operating account for UP DSNCS in the amount of the Lump Sum Budget as adjusted pursuant to Section 2 of this Agreement (the “UP DSNCS Operating Account”). Only UPDSNCS’s Director of Operations or Principal and/or his/her designee(s) shall authorize expenditures from its operating account. b. UP DSNCS shall establish and maintain a separate bank account under its exclusive control (hereinafter, the “UP DSNCS Bank Account”). BPS agrees to transfer any funds not allocated or budgeted for salaries or stipends at least two times a year, with the first transfer coming no later than July 15 September 1 from the UP DSNCS Operating Account to the UP DSNCS Bank Account. The first transfer will be based upon a the difference between the total Lump Sum Budget as adjusted pursuant to Section 2 of this Agreement provided by BPS to UP DSNCS and an estimate of the amount of funds UP DSNCS anticipates spending on stipends and salaries. The amount of this transfer will be mutually agreed upon by the CFO of BPS and the Director of Operations Principal at UP. If parties do not have the ability to calculate the precise amount on or near the July 15 deadline, then they will default to transferring 85% of the previous year’s total net transfer, excluding any one-time revenue the previous year that the parties agree will not recur. In the event that this first transfer is later determined to be greater than the difference between the Lump Sum Budget and the funds UP anticipates spending on stipends and salaries, then UP shall be liable for the difference at the time of the second transferDSNCS. The second transfer will occur by January 31 unless both parties agree that a second and will only be necessary if there is an increase in the difference between the total Lump Sum Budget provided by BPS to DSNCS and the estimated amount of funds DSNCS anticipates spending on stipends and salaries. For example, the transfer is not necessaryin January will be necessary if DSNCS receives more in its BPS Lump Sum Budget after accounting for actual enrollment at DSNCS, per the process described above. The third transfer will may occur at after the end of the fiscal year, no later than August 31. After the CFO performs a year-end reconciliation at the close of the BPS’s fiscal year, any remaining funds from UPDSNCS’s Operating Account will be transferred to the UP DSNCS Bank Account. Expenditures from the UP DSNCS Bank Account shall be paid made in accordance with all applicable laws, ordinances, and regulations. c. UP DSNCS shall have the option to purchase such goods and services from the BPS as set forth in the non-instructional services section of the Application (including, but not limited to, technology and athletics) at costs reasonably determined by BPS, and for all such non-instructional goods and services purchased, UP DSNCS may request, and the BPS shall provide in response to such request, an annual report detailing the scope of goods and services provided and the cost of such non-instructional goods and services purchased. In addition, UP DSNCS shall have the option to purchase additional, non-instructional goods and services that have not been specified in the Application as UP DSNCS shall from time to time determine. d. UP . DSNCS agrees that it shall be responsible for all costs associated with the operation of UPDSNCS, except those services provided by BPS according to the terms of Section 2 above (including, but not limited to: transportation, employee benefits, facilities, safety and other central office services). UP DSNCS further agrees it shall indemnify and hold harmless the BPS, its officers, agents or employees from all claims resulting from any costs incurred by UPDSNCS, its Board, officers, agents or employees in association with the operation of UPDSNCS, other than facilities costs covered in Section 4 below.