Laserfiche WebLink
D. Allowable Costs. SUBRECIPIENT agrees to complete said program on or before June 30, <br />2019, and to use said funds to pay for necessary and reasonable costs allowable under the federal law and <br />regulations to operate said program. Said amounts shall include, but not be lin ted to, wages, achninistrative <br />costs, and employee benefits comparable to other similarly situated employees, and indirect costs. Other <br />allowable program costs are detailed in the budget, as set forth in "Exhibit B," attached hereto and by this <br />reference incorporated herein. SUBRECIPIENT shall use all income received from said funds only for the <br />same purposes for which said funds may be expended pursuant to the terms and conditions of this <br />Agreement. SUBRECIPIENT has the ability to adjust line item amounts in the budget with the written <br />approval of the CITY's Executive Director of the Community Development Agency, or designee, so long as <br />the total budget amount does not increase. <br />Pursuant to 2 CFR §200.331(a)(4), the Indirect Cost Rate for the SUBRECIPIENT's award shall <br />be an approved federally recognized indirect cost rate negotiated between the SUBRECIPIENT and the <br />Federal government, or, if no such rate exists, the de mhumis indirect cost rate as defined in 2 CFR <br />§200.414(b) Indirect (F&A) costs. <br />For this agreement, the de minimis indirect cost rate of 10% will apply. <br />E. Licensing. SUBRECIPIENT agrees to obtain and maintain all required licenses, <br />registrations, accreditation and inspections from all agencies governing its operations. SUBRECIPIENT <br />shall ensure that its staff shall also obtain and maintain all required licenses, registrations, accreditation and <br />inspections from all agencies governing SUBRECIPIENT's operations hereunder. Such licensing <br />requirements include obtaining a City business license, as applicable. <br />F. Zoning. SUBRECIPIENT agrees that any facility/property used in furtherance of said <br />program shall be specifically zoned and perm tted for such use(s) and aetivity(ies). Should SUBRECIPIENT <br />fail to have the required land entitlement and/or permits, thus violating any local, state or federal rules and <br />regulations relating thereto, SUBRECIPIENT shall immediately make good -faith efforts to gain compliance <br />with local, state or federal rules and regulations following written notification of said violation(s) from the <br />CITY or other authorized citing agency. SUBRECIPIENT shall notify CITY immediately of any pending <br />violations. Failure to notify CITY of pending violations, or to remedy such known violation(s) shall result in <br />termination of grant funding hereunder. SUBRECIPIENT must make all corrections required to bring the <br />facility/property into compliance with the law within sixty (60) days of notification of the violation(s); failure <br />to gain compliance within such time shall result in termination of grant funding hereunder. <br />G. Separation of Accounts. All funds received by SUBRECIPIENT from CITY pursuant to this <br />Agreement shall be maintained in an account in a federally insured banking or savings and loan institution <br />with record keeping of such accounts maintained pursuant to applicable 2 CFR 200.302 requirements. <br />SUBRECIPIENT is not required to maintain separate depository accounts for CDBG FUNDS; provided <br />however, the SUBRECIPIENT must be able to account for receipt, obligation and expenditure of CDBG <br />FUNDS pursuant to applicable 2 CFR 200.302 requirements. <br />H. Audit Report Requirements. SUBRECIPIENT agrees that if SUBRECIPIENT expends <br />Seven Hundred Fifty Thousand Dollars ($750,000) or more in federal funds, SUBRECIPIENT shall have an <br />annual audit conducted by a certified public accountant in accordance with the standards as set forth and <br />published by the United States Office of Management and Budget. SUBRECIPIENT shall provide CITY <br />with a copy of said audit by April 1 of the year following the program year in which this Agreement is <br />executed. <br />