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Services Division Financial Management Unit, P.O. Box 826880, MIC 69, EXHIBIT 2 <br />Sacramento, CA 94280-0001. <br />2. State of California, its officers, agents, employees, and servants are <br />included as additional <br />insured, but only Insofar as the operations under this subgrant agreement are <br />concerned. <br />3. State of California Is not responsible for payment of premiums or assessments <br />on this policy. <br />vi. Subrecipient agrees that the liability insurance herein provided for shall be in <br />effect at all times during the term of this subgrant agreement. In the event <br />said Insurance coverage expires at any time or times during the time of this <br />contract, the Subrecipient agrees to provide, at least 30 days before said <br />expiration date, a new certificate of Insurance evidencing insurance coverage as <br />provided for herein for not less than the remainder of the term of the subgrant <br />agreement or for a period of not less than one year. New certificates of <br />insurance are subject to the approval of the Pass-through Entity, and the <br />Subrecipient agrees that no work or services shall be performed prior to such <br />approval. The Pass-through Entity may, in addition to any other remedies it may <br />have, terminate this subgrant agreement should Subrecipient fail to comply with <br />these provisions. <br />5. Resolution <br />A county, city, district or other local public body must provide the state with a copy <br />of a resolution, order, motion, or ordinance of the local governing body which by law <br />has authority to enter into an agreement, authorizing execution of this subgrant <br />agreement. Preferably resolutions should authorize a designated position rather than a <br />named individual. <br />6. Procurement Standards <br />The Subrecipient must use the methods of procurement in accordance with 2 C.F.R. <br />§ 200.320. <br />7. Grievances and Complaint System <br />Subrecipient will establish and maintain a grievance and complaint procedure in <br />compliance with the WIOA section 181, OMB Guidance, Uniform Requirements, federal <br />regulations and state statutes, regulations and policy. <br />8. Remedies for Non -Compliance <br />If the Subrecipient fails to comply with Federal statutes, regulations or the terms and <br />conditions of a Federal award, the Pass-through Entity may impose additional conditions, <br />as described in 2 C.F.R. § 200.207, Specific conditions. If the Pass-through Entity <br />determines that noncompliance cannot be remedied by imposing additional conditions, the <br />Pass-through Entity may take one or more of the following actions listed in 2 C.F.R. <br />§ 200.338. <br />9. Disallowed Costs <br />Except to the extent that the state determines it will assume liability, the <br />Subrecipient will be liable for and will repay to the Pass-through Entity, any amounts <br />expended under this subgrant agreement found not to be in accordance with WIOA <br />including, but not limited to, disallowed costs. Such repayment will be from funds (Non - <br />Federal), other than those received under the WIOA. <br />10. Termination <br />This subgrant agreement may be terminated in whole or in part for either of the two <br />following circumstances: . <br />Page 7 of 17 <br />55E-11 <br />