MERCY HOUSE LIVING CENTERS (ESG 2002) (2)

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'- 'wi 8/14/01lS W. Drug Free Workolace. SUBRECIPIENT certifies that it has established the fol- lowing drug-free workplace policy: 1. The unlawful manufacture, distribution, dispensing, possession or use of a con- trolled substance is prohibited in the workplace for any employee involved in a federally funded program. 2. As an employee working in conjunction with a federally funded program, the em- ployees of SUB RECIPIENT will be required to: a) Abide by the terms above in statement 1. b) Notify appropriate officials of SUBRECIPIENT and CITY officials of any criminal drug statute conviction for a violation occurring in the workplace not later than five days after such conviction. 3. The City and the United State Department of Housing and Urban Development will be notified within ten days after receiving notice of any such violation. 4. Within 30 days of receiving such notice, appropriate personnel action will be taken against such employee, up to and including termination. 5. Each such employee shall be required to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a federal, state or local health, law enforcement, or other appropriate agency. II. CITY'S OBLIGATIONS A. CITY shall pay to SUBRECIPIENT from funds received under the ESG when, if and to the extent received from HUD, amounts expended by SUBRECIPIENT in carrying out said program pursuant to this Agreement up to a maximum aggregate amount of TWENTY THOUSAND, FIVE HUNDRED Dollars ($20,500) in installments determined by CITY. Pay- ments shall be made to SUBRECIPIENT through the submission of quarterly invoices (on or be- fore the 15th day of October, January, April and July) in a form prescribed by CITY, detailing such expenses. CITY shall pay such invoices within thirty (30) days after receipt thereof, pro- vided CITY is satisfied that such expenses have been incurred within the scope of this Agree- ment and that SUBRECIPIENT is in compliance with the terms and conditions of this Agree- ment. Costs incurred prior to the effective date of this Agreement, accrued as of the first day of July 2002, for purposes identified herein will be allowable for reimbursement upon presentation of evidence of and invoices for such expenditures. B. CITY shall include an audit of the account maintained by SUBRECIPIENT in CITY's annual audit of all funds pursuant to the Code of Federal Regulations and other applicable federal 15