QUALITY FIRST INCENTIVE AGREEMENT.PDF

INCENTIVES MANAGEMENT AGREEMENT
FY21
1
A. INCENTIVE FUNDS 
Incentive funds are a core component of Quality First (QF) supports provided to enrolled participants funded by an FTF 
regional partnership council. QF incentives provide the resources to support and sustain quality improvement efforts. The 
total amount of incentives available to a participant during a fiscal year are determined by the licensed capacity for children 
birth through five years of age as of March 15 
year.  
B. INCENTIVE USAGE 
Participants are encouraged to focus on the continuation of efforts to maintain the quality of their program through 
materials, equipment, facility improvements, transcript payment, professional development, consultation and specialized 
services. 
QF believes in empowering participants to make choices about their purchases using QF incentive funds, in accordance with 
program guidelines. The following standards should guide incentive usage and can be referred to throughout the fiscal year as 
purchases take place: 
 
Incentive funds are provided to support overall program quality for children.  
 
-2 star sites.  
 
Incentive funds are supplementary in nature, and cannot be used to cover overhead costs (rent, utilities, etc.).   
 
Incentive funds may not be used for religious purposes or activities, such as faith-based curriculum, religious 
-based program accreditation, attendance at faith-based conferences, staff salaries for 
program time spent on religious instruction or worship, or bonuses for staff whose predominant or sole purpose is 
religious. Incentive funds may be used for facility improvements to buildings or rooms used for religious purposes 
only if the improvements will not substantially benefit the religious uses of the building or room, as determined by 
Quality First.  Participants who use incentive funds to offset staff salaries or to pay bonuses must consult with their 
coach agency and use approved procedures to ensure those funds are not used for religious purposes or activities. 
Quality First participants will be required to repay any incentive funds determined to have been used for religious 
purposes or activities. 
 
For items purchased through the coach agency, no returns will be allowed except in cases where the item is defective 
or damaged. 
 
For participants ordering through the coach agency, a buffer of up to 10% may be withheld from incentive funds to 
ensure spending will not exceed the allocated amount. This amount is available to address any unexpected costs 
associated with purchases such as taxes, shipping, or substitution costs. Once all vendor invoices are received by the 
coach agency, any remaining funds may be spent before April 30. 
 
All Incentives Order Forms must be submitted by April 15 each fiscal year to accommodate year-end billing 
procedures. 
C. FACILITY IMPROVEMENTS 
Facility improvements are defined as any improvement made to the facility that would not be able to be relocated offsite or 
are affixed to the existing property. 
If a participant uses the incentive funds to cover costs associated with purchasing materials or a facility project, Participant 
agrees that First Things First, Valley of the Sun United Way, and/or the coach agency/coaches will not be held liable in the 
event any materials or facility projects require additional maintenance beyond the amount of the direct payment or if any 
damage occurs to the purchased materials or facility project. Additionally, if the facility project does not pass any health 
and/or safety facility inspections and/or any other type of inspection, First Things First, Valley of the Sun United Way, and/or 
the coach agency/coaches will not be held liable. Participant also agrees that First Things First, VSUW, and/or the coach 
agency/coaches are not liable for any structural maintenance and/or damage that may be caused due to any facility 
improvement. 
Examples of facility improvements projects include, but are not limited to, shelving, cement slab, fencing, painting, and/or 
carpet installation.

INCENTIVES MANAGEMENT AGREEMENT
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Additional requirements with respect to facility improvements are as follows: 
 
responsibility to ensure lease compliance, to ensure proper approval from the landlord is granted for tenant 
insurance/vendor requirements. 
 
Consideration for facility improvements will be based on the following factors: 
o 
Primary function is to improve quality of services provided for children. 
o 
Rationale and impact of the project are identified in the QIP for 1-2 star participants. 
o 
Services shall be completed by licensed or bonded contractors. 
o 
Bids for loose surfacing materials must include a nine-inch depth requirement and installation costs. 
o 
Facility projects are not in conflict with licensing regulations. 
 
Items or Facility Improvements over $1,000 when purchasing through coach agency 
o 
Funding requests for individual items and/or facility improvements totaling $1,000 or more are subject to a 
procurement and review process as described herein. 
o 
Funding requests that exceed 30% of the total allotted incentives may be subject to a review process. 
o 
Requests for facility improvements expenses of $1,000 or more will require that the QF participant secure a 
minimum of three quotes from licensed, bonded and insured vendors.  
o 
In cases where three vendors are not available to provide a requested service, a participant must submit a sole 
source justification along with the available quotes stating the barrier in obtaining three quotes.  This sole source 
justification may be sent to the coach via email, fax, or in person at a coaching visit. 
o 
If subject to a procurement and review process, the coach will submit the incentive order to the Statewide 
Review Team and a decision will be communicated to the participant within 10 business days from the date the 
Incentives Order Form is submitted to the coach.  
D.
ACCESSING INCENTIVE FUNDS 
Incentives funds may be accessed in one of two ways, depending on your star rating. Participants either can (1) use incentive 
funds to order/make purchases through their coach agency, or (2) elect an incentive direct payment 
option for participants that achieved a 3, 4, or 5 star rating prior to April 1 of the prior fiscal year or participants that 
achieved a projected 3, 4, or 5 star rating prior to April 1 of the prior fiscal year. 
(1) Purchasing through Coach Agency - Purchasing Process 
1. The participant, with the support of QF coaches, identifies what is needed. Items must support action steps within 
the QIP (upon request, the coach can provide a list of vendors offering discounts to participants). 
 
2. The participant completes an Incentives Order Form. The coach can assist in this process, as needed.  For the 
following purchases, additional documentation is require: 
 
Work/Service orders must contain the following information: 
o 
Description of the specific work to be completed including photos or visual representation as needed  
o 
Name, address, phone number and Tax ID # or Social Security number of the individual completing the work 
o 
Contractor and License Bond Number 
o 
Itemized cost of labor, materials, and installation  
o 
Identified QIP goal, for 1-2 star participants 
 
Release time/substitute pay for professional development orders must contain the following information: 
o 
Rationale for release time/substitute pay 
o 
Alignment with QIP goal for 1-2 star participants, and potential impact on assessment scores 
o 
Impact on the quality of care provided for children and sustainability over time 
3. Once completed, the participant submits the Incentives Order Form to the coach via email, fax, or in person at a 
coaching visit. All Incentive Order Forms must contain authorized signatures before being processed.  
 
4. The coach agency will review all requests within 14 days of submission and determine alignment with the 
participant s QIP goals for 1-2 star participants and appropriateness based on best practices for early care and

INCENTIVES MANAGEMENT AGREEMENT
FY21
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education. If items need to be shifted, the coach will work with the participant to update the order. The coach will 
inform the participant upon the order submission. 
 
The vendors ship directly to the participant and bill the coach agency directly. 
 
The purchasing process may take up to two months. Back ordered items will not be processed. 
 
Any missing/damaged items are handled by the coach agency within the first 60 days of receipt of the items. 
After this period, participants are expected to contact the vendor directly for any issues with materials or 
services. 
 
5. It is the responsibility of the participant to document that all items are received and distributed for use across the 
site. All items purchased with QF funds must stay at the site. Receipt documentation must be submitted to the 
coach. 
 Th
 may be used as long as all item(s) are listed individually. If the participant does not 
receive an itemized order confirmation an Incentives Order Form may be used by initialing in the space provided 
indicating receipt of the item(s). Alternatively, participants may confirm their order via email by requesting that 
the coach send them a screen shot of their Incentives Order Form, and then responding to the coach to confirm 
the order/s have been received. 
 The participant must return the signed order confirmation or Incentives Order Form to the coach agency either by fax, 
email or hand delivery to the coach at the next visit. The documentation will be kept on file with the coach agency.  
 
For newly enrolled participants, while the first QIP is being developed, requests may be submitted to access up to 25% of the 
total incentives amount. These funds may only be used to address emergency health and safety issues within the site and will 
be documented on the QIP form, once completed.   
(2) Incentive Direct Payment Option 
 
i. 
Guidelines 
The incentive direct payment is an option available to participants that achieved a 3, 4, or 5 star rating prior to April 1 of the 
prior fiscal year or participants that achieved a projected 3, 4, or 5 star rating prior to April 1 of the prior fiscal year.  
Participants can opt to receive incentive funds via direct payment (e.g., ACH or check), or order through the coach agency as 
stated above. 
The incentive direct payment offers flexibility for participants that have demonstrated their ability to achieve a quality 
rating to decide which areas of improvement financial incentives support.   
For Multi-Site Owners/Corporations/School Districts, the incentive direct payment must  support the participant that is 
enrolled in QF and has received a Star Rating of 3, 4 or 5 stars. 
ii. 
Incentives Payout Expenditure Report 
 
Participant opting to receive an incentive direct payment are encouraged to submit the Incentives Payout Expenditure Report 
as soon as 
 incentive funds have been fully expended. All incentive funds must be fully expended by May 31, 
2021, and all forms must be submitted to the coach agency by June 30, 2021. The Incentives Payout Expenditure Report must 
identify what the incentive direct payment was used for and certify that the direct payment was not used for religious 
purposes or activities.  The report must clearly detail each item or service purchased using incentives funds. 
Participant must keep documentation on hand, such as receipts and invoices, that supports the expenditures for review by 
First Things First, Valley of the Sun United Way, and/or the coach agency/coach upon request. 
A participant will not receive an incentive direct payment until the Incentives Payout Expenditure Report for the previous 
fiscal year has been submitted, reviewed, and approved.   
E. Program Closures 
QF participants who permanently close are requested to facilitate the redistribution of all materials purchased with incentive

INCENTIVES MANAGEMENT AGREEMENT
FY21
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funds to other providers in their region. The coach agency will coordinate with the participant to assist in the redistribution, 
as needed. 
F.
Disenrollments  
In situations where QF participants disenroll and continue to serve children birth to five, redistribution of materials purchased 
with Quality First incentives is not necessary. Upon disenrollment the Incentives Payout Expenditure Report is due 
immediately. 
G.
OPTION A SHOULD ONLY BE COMPLETED IF YOU ARE A PARTICIPANT THAT ACHIEVED A 3, 4, OR 5 STAR RATING PRIOR 
TO APRIL 1 OF THE PRIOR FISCAL YEAR OR A PARTICIPANT THAT ACHIEVED A PROJECTED 3, 4, OR 5 STAR RATING 
PRIOR TO APRIL 1 OF THE PRIOR FISCAL YEAR. 
OPTION A: 
 
Incentive Direct Payment    
 
 
         I elect to receive my entire allotment via direct payment $________             
         I elect to receive $_______ via direct payment 
Please initial the following: 
_____ I agree that First Things First, Valley of the Sun United Way, and/or the coach agency/coaches are not liable for misuse 
of funding OR any additional cost associated with purchases, professional development, or facility projects beyond the 
amount of the incentive direct payment.    
_____ I understand that the coach agency has a maximum of 30 calendar days from the date the Incentive Management 
Agreement is signed by all parties to issue and deliver the incentive direct payment to me.  
_____ I understand that First Things First, Valley of the Sun United Way, and/or the coach agency/coaches are not 
responsible or liable for any tax reporting or financial liability to the Internal Revenue Service or any other entity. It is 
recommended that QF participants contact their accountant, auditor, and/or financial advisors for guidance on any tax or 
fiscal reporting.   
OPTION B: 
Purchases made through coach agency  
Participants that select Option B agree to the following:  
 Incentives Order Forms, initialing the 
Incentives Order Forms when items are received, etc.  The coach agency may use discretion regarding purchase 
requests.  
By signing below, I certify that I am authorized to sign this document on behalf of my organization  
 
 
 
 
  
FTF ID #  
 
Site Name 
Coach Agency 
 
 
Authorized Name 
Authorized Signature 
Date 
2991
5,025
Maricopa County Human Services - Guadalupe Head Start
SWHD