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as paying on the actual paystub, for example some fringe benefits are calculated after pre-tax deductions are taken out. The Grantee must submit documentation that supports actual expenditures including invoices and proof of payment for all insurances; worker’s compensation documentation with employee classification codes; unemployment statements that include current employer rate; invoices with all documentation supporting employer paid contributions to retirement and 401k programs. A copy of the organization’s policies and procedures (employee handbook etc.) with regard to fringe benefits must also be provided to the Michigan Public Service Commission. 7.1.2.1 OPTING OUT OF INSURANCE COVERAGE If the Grantee offers a program that compensates employees for opting out of insurance coverage, Grantee must provide details regarding the opt-out program, and a breakdown of costs for each individual working on the grant that has chosen to participate. Payments made to employees who participate in the opt-out program will be included in fringe benefit calculations. 7.2 SUPPLIES, MATERIALS, AND EQUIPMENT Grantee will only be reimbursed for supplies, materials, and equipment included in the budget and/or detailed in the budget narrative. Documentation supporting the expenditures must be submitted with the FSR, including invoice and/or receipt, and proof of payment. Grantee must also submit a summary page that details the items charged to this category during the reporting period that includes the budget line number the item is being charge to, the portion being charged to the grant, and the total being charged to the grant (which must match the expenditures reported on the FSR under this budget category). See Example below: Supplies, Materials, and Equipment Expenditure Summary Item(s) Purchased Budget Line No. Amount Charged to Grant Postage 94 $150 Outreach Brochures 96 $1,250
Total $1,400 The cost of each individual equipment purchase must be preapproved by MPSC Staff or will result in the disallowance of that individual expenditure. 7.3 CONTRACTUAL SERVICES All contracts must be competitively bid. In the event a competitive bid is not feasible or practical, the Grantee must obtain the written approval of the MPSC Grant Administrator before making a sole source selection. Grantee must provide a copy of contracts, memoranda of understanding, or agreements signed by Grantee and all contractors listed under Contractual Services.