CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT (2)

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1 this subgrant agreement will be immediately remitted to the Pass-through Entity,and no longer available tothe Subreelpient, o.The Pass-through Entity retains the right to suspend financial assistance,in whole or In part,to protect the integrity of the funds or to ensure proper operation of the program,providing the Subreciplent is given prompt notice and the opportunity for an informal review of the Pass-through Entity's decision.The EDO Chief Deputy Director or his/her designee.will perform this informal review and will Issue the final administrative decision'within 60 days Of receiving the written request for review, Failure on the pad of the Subreciplent or a Subcontractor of the Subreciplent to comply with the provisions.of this subgrant agreement,or with WIOA or other applicable regulations,when such failure Involves fraud or misappropriation of funds,may result in immediate Withholding of funds, d. If appiioable,the chief elected official(CEO)of a unit of general legal government designated as a Local Workforce Development Area shall be liable to the Pass-through Entity for all funds net expended In accordance with WIOA,and shall return to the Pass-through Entity ail of those funds. If there is more than one unit of general IC7-cal-goVemilen"t-ih3-Local-area-thz-GE0+(a^)-w111-b.e-the-individtre fierdesigneted under an agreement executed by the CEOs)of the local units of government.The CEO(s)designated under the agreement shall be liable to the Pass-through Entityfor all funds not expended in accordance with WIOA,and shall return to the Pass-through Entityall.'otthose funds, 4. Insurance a. Except for city and county governmental entitles,Subrecipients must provide the Pass through Entity evidence of the coverage'specified in paragraphs(I),(ii),(Hi) and(iv)below. The evidence of coverage shall include the registration number of the subgrant agreement for identification purposes, I. Subreciplent will obtain a fidelity bond in an amount of not less than , prior to the receipt of funds under this subgrant agreement. If the bond Is-canceled or reduced, Subrocipient will immediately notify the Pass- through Entity, In the event the bond is canceled or revised,the Pass-through Entity will make no further disbursements until It is assured that adequate coverage has been obtained. - ii. .Subreciplent will provide general liability insurance with a combined limit of $1,000,000,or public liability and,property damage coverage with a combined limit of not less than$1;000,000, III.Subreciplent will provide broad form automobile liability coverage with limits as set forth in (ii)above,which applies to both owned/leased and non-owned automobiles used by the Subreciplent or its agents In performance of this subgrant agreement,Or, in the event that the Subreciplent will not utilize owned/leased automobiles but intends to require employees,trainees or other agents to utilize their own automobiles In performance of this subgrant agreement,Subrecipieht will secure and maintain on file from all such employees,trainees or agents a self-certification of automobile Insurance coverage. Iv. Subreolplent will provide workers'compensation insurance,which.complies with provisions of'the California Labor Code,covering all employees of the Subreciplent and all participants enrolled in work experience programs, Medic.'al and Accident Insurance will be earned for those participants not qualifying as "employee"(§3350,et seq.of the California Labor Code)for workers' compensation. v. The Pass-through Entity will be named as"Certificate Holder"of.policies secured In compliance wIth paragraphs(I),(II), (Ili)and(iv)above and will be provided certificates of Insurance or insurance company"binders"prior to any disbursement of fluids under this subgrant agreement,verifying the insurance requirements have been compiled with. The coverage noted in paragraphs(ill) and(iv)above mustcontainthe following clauses: 1.Insurance coverage will not be canceled•or changed-unless•30 days prior to theeffactive date of cancellation or change written notice Is sent by the Subrecipient to:Employment Development Department,Central Office Workforce gaga 5 of 16