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HomeMy WebLinkAboutExhibit 5ARTICLE V AUDIT 5.1 As a necessary part of this Agreement, the Project Sponsor shall adhere to the following audit requirements: 5.1.1 If the Project Sponsor expends $500,000.00 or more in the fiscal year it shall have a single audit or program specific audit conducted for that year. The audit shall be conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS) and OMB Circular A-133. The audit shall determine whether the financial statements are presented fairly in all material respects in conformity with generally accepted accounting principles. In addition to the above requirements, the auditor shall perform procedures to obtain an understanding of internal controls and perform sufficient testing to ensure compliance with the procedures. Further the auditor shall determine whether the Project Sponsor has complied with laws, regulations and the provisions of this Agreement. A reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s) or nine (9) months after the end of the audit period. The reporting package will include the certified financial statements and schedule of expenditures of Federal Awards; a summary schedule of prior audit findings; the auditor's report and the corrective action plan. The auditor's report shall include: (a) an opinion (or disclaimer of opinion) as to whether the financial statements are presented fairly in all material respects in conformity with generally accepted principles and an opinion (or disclaimer of opinion) as to whether the schedule of expenditures of Federal Awards is presented fairly in all material respects in relation to the financial statements taken as a whole. (b) a report on internal controls related to the financial statements and major programs. This report shall describe the scope of testing of internal controls and the results of the test, and, where applicable, refer to the separate schedule of findings and questioned costs. (c) a report on compliance with laws, regulations, and the provisions of contracts and/or this Agreement, noncompliance with which could have a material effect on the financial statements. This report shall also include an opinion (or disclaimer of opinion) as to whether the Project Sponsor complied with the laws, regulations, and the provisions of contracts and this Agreement which could have a direct and material effect on the program and, where applicable, refer to the separate schedule of findings and questioned costs. (d) a schedule of findings and questioned cost which shall include the requirements of OMB Circular A-133. 5.1.2 If the Project Sponsor expends less than $500,000 in the fiscal year it is exempted from Federal audit requirements for that year and consequently the audit cost is not a reimbursable expense. The City, however, may request the Project Sponsor to have a limited scope audit for monitoring purposes. These limited scope audits will be paid for and arranged by the City and address only one or more of the following types of compliance requirements: activities allowed or unallowed; allowable costs/cost principles; eligibility; matching, level of effort, earmarking; and, reporting. All reports presented to the City shall, where applicable, include sufficient information to provide a proper perspective for judging the prevalence and consequences of the findings, such as whether an audit finding represents an isolated instance or a systemic problem. Where appropriate, instances identified shall be related to the universe and the number of cases examined and quantified in terms of dollar value. ARTICLE VI RECORDS AND REPORTS 6.1 The Project Sponsor shall establish and maintain sufficient records to enable the City to determine whether the Project Sponsor has met the requirements of the HOPWA Program. At a minimum, the following records shall be maintained by the Project Sponsor: 6.1.1 Records providing a full description of each activity assisted (or being assisted) with HOPWA funds, including its location (if the activity has a geographical locus), the amount of HOPWA funds budgeted, obligated and expended for the activity, and the specific provision in the HOPWA Program regulations under which the activity is eligible. 6.1.2 Records demonstrating that client meet eligibility criteria set forth in the HOPWA Policies and Procedures Manuals and that such information is provided in the form required in such Manual. 6.1.3 Equal Opportunity Records containing: {i) Data on the extent to which each racial and ethnic group and single -headed households (by gender of household head) have applied for, participated in, or benefited from, any program or activity funded in whole or in part with HOPWA funds. Such information shall be used only as a basis for further investigation relating to compliance with any requirement to attain or maintain any particular statistical measure by race, ethnicity, or gender in covered programs. (ii) Documentation of actions undertaken to meet the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701U) relative to the hiring and training of low and moderate income persons and the use of local businesses. 6.1.4 Financial records, in accordance with the applicable requirements of 24 CFR 574. 6.1.5 Records required to be maintained in accordance with other applicable laws and regulations set forth in 24 CFR 574. 6.2 RETENTION AND ACCESSIBILITY OF RECORDS. 6.2.1 The Department shall have the authority to review the Project Sponsor's records, including project and programmatic records and books of account, for a period of three (3) years from the expiration/termination of this Agreement (the "Retention Period"). All books of account and supporting documentation shall be kept by the Project Sponsor at least until the expiration of the Retention Period, The Project Sponsor shall maintain records sufficient to meet the requirements of 24 CFR 574. All records and reports required herein shall be retained and made accessible as provided thereunder, The Project Sponsor further agrees to abide by Chapter 119, Florida Statutes, as the same may be amended from time to time, pertaining to public records, as may be limited by 24 CFR 574.440 pertaining the confidentiality of program participants, The Project Sponsor shall ensure that the Agreement Records shall be at all times subject to and available for full access and review, inspection and audit by the City, federal personnel and any other personnel duly authorized by the CITY. 6.2.2 The Project Sponsor shall include in all the Department approved subcontracts used to engage subcontractors to carry out any eligible substantive project or programmatic activities, as such activities are described in this Agreement and defined by the Department, each of the record -keeping and audit requirements detailed in this Agreement. The Department shall in its sole discretion determine when services are eligible substantive project and/or programmatic activities and subject to the audit and record -keeping requirements described in this Agreement 6.2.3 If the CITY or the Project Sponsor has received or given notice of any kind indicating any threatened or pending litigation, claim or audit arising out of the activities pursuant to the project, the activities and/or the Work Program or under the terms of this Agreement, the Retention Period shall be extended until such time as the threatened or pending Iitigation, claim or audit is, in the sole and absolute discretion of the Department fully, completely and finally resolved. 6.2.4 The Project Sponsor shall notify the Department in writing both during the pendency of this Agreement and after its expiration/termination as part of the final closeout procedure, of the address where all Agreement Records will be retained. 6.2.5 The Project Sponsor shall obtain the prior written consent of the Department to the disposal of any Agreement Records within one year after the expiration of the Retention Period. 6.3 PROVISION OF RECORDS. 6.3.1 At any time upon request by the Department, the Project Sponsor shall provide all Agreement Records to the Department. The requested Agreement Records shall become the property of the Department without restriction, reservation, or limitation on their use. The Department shall have unlimited rights to all books, articles, or other copyrightable materials developed in the performance of this Agreement. These rights include the right of royalty -free, nonexclusive, and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use, the Work Program for public purposes. 6.3.2 If the Project Sponsor receives funds from, or is under regulatory g atory control of, other governmental agencies, and those agencies issue monitoring reports, regulatory examinations, or other similar reports, p , the Project Sponsor shall provide a copy of each such report and any follow-up communications and reports to the Department i immediately upon such issuance, unless such disclosure would be prohibited by any such issuing agency. 6.4 MONITORING. The Project Sponsor shall permit the Department and other persons authorized by the Department to inspect all Agreement Records,duly facilities, goods, and activities of the Project Sponsor which are in any way connected to the undertaken pursuant to the terms of this Agreement, and/or interview activities any clients, employees, subcontractors or assignees of the Project Sponsor. Following inspection or interviews, the Department will deliver to the Project such Endings. The Project Sponsor will rectifyall Sponsor a report of its deficiencies cited by the Department within the specified period of time set forth in the report or provide the Department reasonable justification for not correcting the same. The Department with a sale and absolutenot the Project discretion whether or will determine in its Sponsor's justification is acceptable. At the request of the City, the Project Sponsor shall transmit to the City statements of the Project Sponsor's official policies on specified issues relating written ng to the Project Sponsor's activities. The City will carry out monitoring and evaluation activities, including visits and observations by City staff; the Project Sponsor shall ensure the cooperation of its employees and its Board Members in such efforts. Any inconsistent, incomplete, or inadequate information either received by the City or obtained through monitoring and evaluation by the City, shall constitute cause for the City to terminate this Agreement. 6.5 RELATED PARTIES. The Project Sponsor shall report to the Department the name, purpose for and any and all other relevant information in connection with any related -party transaction. The term "related -party transaction" includes, but is not limited to, a for -profit or nonprofit subsidiary or affiliate organization, an organization with an overlapping Board of Directors and an organization for which the Project Sponsor is responsible for appointing memberships. The Project Sponsor shall report this information to the Department upon forming the relationship, or if already formed, shall report such relationship prior to or simultaneously with the execution of this Agreement. Any supplemental information shall be promptly reported to the Department. ARTICLE VII OTHER PROGRAM REQUIREMENTS 7.1 The Project Sponsor shall maintain current documentation that its activities are HOPWA eligible in accordance with 24 CFR Part 574. 7.2 The PROJECT SPONSOR shall ensure and maintain documentation that conclusively demonstrates that each activity assisted in whole or in part with HOPWA funds is an activity which provides benefit to low income persons living with HIV/AIDS. 7.3 The PROJECT SPONSOR shall comply with all applicable provisions of 24 CFR Part 574 and shall carry out each activity in compliance with all applicable federal Iaws and regulations described therein. 7.4 The Project Sponsor shall cooperate with the Department in attending meetings at the request of the Department of Community Development and to provide information as requested or required to the Department. 7.5 The Project Sponsor shall, to the greatest possible, give low -and -moderate - income residents of the service areas opportunities for training and employment. 7.6 NON-DISCRIMINATION. The Project Sponsor shall not discriminate on the basis of race, color, national origin, sex, religion, age, marital or family status or handicap in connection with the activities and/or the Work Program or its performance under this Agreement. Furthermore, the Project Sponsor agrees that no otherwise qualified individual shall, solely by reason of his/her race, sex, color, creed, national origin, age, marital status, sexual orientation or handicap, be excluded from the participation in, be denied benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. 7.7 The Project Sponsor shall carry out its Work Program in compliance with all federal laws and regulations. 7.8 The Project Sponsor shall abide by the Federal Labor Standards provisions of HUD Form 4010 incorporated herein as part of this Agreement. 7.9 UNIFORM ADMINISTRATIVE RE UIREMENTS. The Project Sponsor shall comply with the requirements and standards of OMB Circular No, A-122, "Cost Principles for Non -Profit Organizations" and with the applicable requirements of 24 CFR Part 84 (the revised OMB Circular No. A-110 . 7.10 RELIGIOUS ORGANIZATIONS/CONSTITUTIONAL) PROHIBITION. If the Project Sponsor is or was created by a religious organization, the Project be subject agrees that all HOPWA funds disbursed under this Agreement shallJ to the conditions, restrictions, and limitations of 24 CFR Part 574. In accordance with the First Amendment of the United States Constitution particularly regarding the relationship between church and State, as a general rule, e, HOPWA assistance may not be used for religious activities or provided to ri p manly religious entities for any activities, including secular activities. The Project Sponsor J shall comply with those requirements and prohibitions when entering into subcontracts. 7.11 REVERSION OF ASSETS. Upon expiration/termination of this Agreement, the Project Sponsor must transfer to the City any HOPWA funds on hand at the time of expiration/termination and accounts receivable attributable to the use of HOPWA funds. any Notwithstanding any other provision of this Agreement, if the Project Sponsor materially fails to comply P p y with any term of this Agreement, the Project Sponsor, at the sole discretion of the City, shall pay to the City an amount equal to the current market value of any real property, under the Project Sponsor's control, acquired or im ro whole or in P ved in Part with CDBG Funds (including CDBG Funds provided to the Project Sponsor in the form of a loan and/or grant), less any portion of the value attributa ble to expenditures ofnon_C The payment is DpG funds for the 12 ENFORCEMENT program inc°me to theacquisition of or improvement 7. A RCEMENT of T� City, to, the r Any violation o property. Project f this S AGREEMENT t Sponsors r 'Agreement that remains uncured Violation may, atreceipt of notice equitable the option f'°m the City (by certified thirty (3p) clays relief or or Y after the rem any other of the City, be addressed registered remedies of the City seter remedy provided essecl by � action mail) of such With the terms °f this forth herein, if theat law or in equity. for damages or accordance With s Agreement, the C' Project Sponsor materially r In addition to the 24Cp City a natellyfails grtoe Agreement l2 fart $$ 43, as Y may suspend °r ter comply 7.1 3 set forth more ate t Agreement p Y terminate his SUBCCNTCTS e fully below in Art g eernent in A Article X 713.1 The Project AND ASSIGNMENTS.of this 1 ct Sponsor shall en (a) Identify f sure that all sub (b) Describe thefull, correct, and legal contracts and assignments:; activities to Co) present be per f name of all parties. mp0nents, a complete and ace °rmed ' (d) Incorporate orate breakdown of it fit not limited provision sprite Iirpor proviser ion requiring with any Con the Citsrequirements compliance necessary. conditions Minor' f this Agreement, with all a subcontracts The requirements approvals i y Procurement including out cts and assignments that meat Ordinance, uding but dune Y eligible gmnents •s f this paragraph City d its soled by the ndsubstantive Which parties apply may deem discretion re programmatic n City, set forth i programmatic rogrammati s are engaged only to requirements �c servaesermine When sseAgreementervice, a e carry (e) Incorporate described 1 thiand s A subject to the and e eligible City shall be to the language of Se greement, and; and record-keeping e Section 7.15 hereof 7.13,2 The Project Sponsor shall incorporate in all consultant subcontracts the following provision: "The Project Sponsor is not responsible for any insurance or other fringe benefits for the Consultant or employees of the Consultant, e.g., social security, income tax withholding, retirement or leave benefits normally available to direct employees of the Project Sponsor. The Consultant assumes full responsibility for the provision of all insurance and fringe benefits for himself or herself and employees retained by the Consultant in carrying out the scope of services provided in this subcontract." 7.13.3 The Project Sponsor shall be responsible for monitoring the contractual performance of all subcontracts. 7.13.4 The Project Sponsor shall submit to the City for its review and confirmation any subcontract engaging any party to carry out any substantive programmatic activities, to ensure its compliance with the requirements of this Agreement, The City's review and confirmation shall be obtained prior to the release of any funds for the Project Sponsor's Subcontractor(s). 7.13.5 The Project Sponsor shall receive written approval from the City prior to either assigning or transferring any obligations or responsibility set forth in this Agreement or the right to receive benefits or payments resulting from this Agreement. Approval by the City of any subcontract or assignment shall not under any circumstances be deemed to require for the City to incur any obligation in excess of the total dollar amount agreed upon in this Agreement. 7.13.6 The Project Sponsor and its Subcontractors shall comply (when applicable) with the Copeland Kick Back Act, Contract Work Hours and Safety -Standards Act, and Lead -Based Paint Poisoning Prevention Act and all other related acts, as applicable. 7.14 USE OF FUNDS FOR LOBBYING PROHIBITED. The expenditure of Agreement funds for the purpose of lobbying the Legislature, judicial branch, or a state agency are expressly prohibited, ARTICLE VIII 8.1 PROJECT SPONSOR CERTIFICATIONS, ASSURANCES, AND REGULATIONS. The Project Sponsor certifies that: (a) The Project Sponsor certifies that it possesses the legal authority to enter into this Agreement pursuant to authority that has been duly adopted or passed as an official act of the Project Sponsor's governing body, authorizing the execution of the Agreement, including all understandings and assurances contained herein, and directing and authorizing the person identified as the official representative of the Project Sponsor to act in connection with this Agreement and to provide such information as may be required. (b) The Project Sponsor shall comply with the Hatch Act, which limits the political activity of employees, (c) The Project Sponsor shall establish safeguards to prohibit its employees from using their positions for a purpose that is or gives the appearance of being motivated by desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties. (d) To the best of its knowledge and belief, the Project Sponsor and its principals: (i) are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency; (ii) have not, within a three-year period preceding the date of this Agreement, been convicted of or had a civil judgment rendered against any of them for the commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or a contract under a public transaction; violation of Federal or State antitrust statutes or falsification or destruction or records, making false statements, or receiving stolen property; (iii) are not presently indicted for or otherwise criminally or civilly charged by a government entity (Federal, State, or local) with the commission of any of the offenses enumerated in this Article VIII; and (iv) have not, within a three-year period preceding the date if this Agreement, had one or more public transactions (Federal, State, or local) terminated for cause or default. ARTICLE IX