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this subgrant agreement will be immediately remitted to the Pass-through Entity, and <br /> no longer available to the Subrecipient. <br /> c. The Pass-through Entity retains the right to suspend financial assistance, in whole <br /> or in part, to protect the integrity of the funds or to ensure proper operation of <br /> the program, providing the Subrecipient is given prompt notice and the opportunity <br /> for an informal review of the Pass-through Entity's decision. The EDD Chief Deputy <br /> Director or his/her designee will perform this informal review and will issue the <br /> final administrative decision within 60 days of receiving the written request for <br /> review. Failure on the part of the Subrecipient or a Subcontractor of the <br /> Subrecipient to comply with the provisions of this subgrant agreement, or with WIOA <br /> or other applicable regulations, when such failure involves fraud or misappropriation <br /> of funds, may result in immediate withholding of funds. <br /> d. If applicable, the chief elected official (CEO) of a unit of general local government <br /> designated as a Local Workforce Development Area shall be liable to the Pass-through <br /> Entity for all funds not expended in accordance with WIOA, and shall return to the <br /> Pass-through Entity all of those funds. If there is more than one unit of general <br /> local government in a local area, the CEO(s) will be the individual(s) designated <br /> under an agreement executed by the CEO(s) of the local units of government. The <br /> CEO(s) designated under the agreement shall be liable to the Pass-through Entity for <br /> all funds not expended in accordance with WIOA, and shall return to the Pass-through <br /> Entity all of those funds. <br />4. Insurance <br /> a. Except for city and county governmental entities, Subrecipients must provide the <br /> Pass-through Entity evidence of the coverage specified in paragraphs (i), (ii), (iii) <br /> and (iv) below. The evidence of coverage shall include the registration number of <br /> the subgrant agreement for identification purposes. <br /> i. Subrecipient will obtain a fidelity bond in an amount of not less than <br /> ______________, prior to the receipt of funds under this subgrant agreement. If <br /> the bond is canceled or reduced, Subrecipient will immediately notify the Pass- <br /> through Entity. In the event the bond is canceled or revised, the Pass-through <br /> Entity will make no further disbursements until it is assured that adequate <br /> coverage has been obtained. <br /> ii. Subrecipient will provide general liability insurance with a combined limit of <br /> $1,000,000, or public liability and property damage coverage with a combined <br /> limit of not less than $1,000,000. <br /> iii. Subrecipient will provide broad form automobile liability coverage with limits <br /> as set forth in (ii) above, which applies to both owned/leased and non-owned <br /> automobiles used by the Subrecipient or its agents in performance of this <br /> subgrant agreement. Or, in the event that the Subrecipient will not utilize <br /> owned/leased automobiles but intends to require employees, trainees or other <br /> agents to utilize their own automobiles in performance of this subgrant <br /> agreement, Subrecipient will secure and maintain on file from all such <br /> employees, trainees or agents a self-certification of automobile insurance <br /> coverage. <br /> iv. Subrecipient will provide workers' compensation insurance, which complies with <br /> provisions of the California Labor Code, covering all employees of the <br /> Subrecipient and all participants enrolled in work experience programs. Medical <br /> and Accident Insurance will be carried for those participants not qualifying as <br />            "employee" (§ 3350, et seq. of the California Labor Code) for workers' <br /> compensation. <br /> v. The Pass-through Entity will be named as "Certificate Holder" of policies <br /> secured in compliance with paragraphs (i), (ii), (iii) and (iv) above and will <br /> be provided certificates of insurance or insurance company "binders" prior to <br /> any disbursement of funds under this subgrant agreement, verifying the insurance <br /> requirements have been complied with. The coverage noted in paragraphs (iii) <br /> and (iv) above must contain the following clauses: <br /> 1. Insurance coverage will not be canceled or changed unless 30 days prior to <br /> the effective date of cancellation or change written notice is sent by the <br /> Subrecipient to: Employment Development Department, Central Office Workforce <br />Page 5 of 16