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5. Subcontracting
<br />a). Any of the work or services specified in this subgrant agreement which will be performed by other
<br />than by the Subgrantee will be evidenced by a written agreement specifying the terms and conditions of
<br />such performance.
<br />b). The Subgrantee will maintain and adhere to an appropriate system, consistent with federal, state and
<br />local law, for the award and monitoring of contracts which contain acceptable standards for insuring
<br />accountability.
<br />C). The system for awarding contracts will contain safeguards to insure that the Subgrantee does not
<br />contract with any entity whose officers have been convicted of fraud or misappropriation of funds within
<br />the last two years.
<br />6. Insurance
<br />Except for city and county governmental entities, Subgrantees must provide the 'pass-through" entity
<br />evidence of the coverage specified in a, b, c and d below. The evidence of coverage shall include the
<br />registration number of the subgrant agreement for identification purposes.
<br />a). Subgrantee will obtain a fidelity bond in an amount of not less than
<br />prior to the receipt of funds under this subgrant agreement. If the bond is canceled or reduced,
<br />Subgrantee will immediately so notify the "pass-through" entity. In the event the bond is canceled or
<br />revised, the "pass-through" entity will make no further disbursements until it is assured that adequate
<br />coverage has been obtained.
<br />b). Subgrantee will provide general liability insurance with a combined limit of $1,000,000 or public
<br />liability and property damage coverage with a combined limit of not less than $1,000,000.
<br />c). Subgrantee will provide broad form automobile liability coverage with limits as set forth in (b)
<br />above, which applies to both owned/leased and non -owned automobiles used by the Subgrantee or its agents
<br />in performance of this subgrant agreement, or, in the event that the Subgrantee will not utilize
<br />owned/leased automobiles but intends to require employees, trainees or other agents to utilize their own
<br />automobiles in performance of this subgrant agreement, Suhgrantee will secure and maintain on file from
<br />all such employees, trainees or agents a self -certification of automobile insurance coverage.
<br />I). Subgrantee will provide Worker's Compensation Insurance, which complies with provisions of the
<br />California Labor Code, covering all employees of the Subgrantee and all participants enrolled in work
<br />experience programs. Medical and Accident Insurance will be carried for those participants not
<br />qualifying as "employee" (Section 3350, et seq. of the California Labor Code) for Worker's Compensation.
<br />e). The "pass-through" entity will be named as ^Certificate Holder" of policies secured in compliance
<br />with paragraphs a -d above and will be provided certificates of insurance or insurance company ^binders"
<br />prior to any disbursement of funds under this subgrant agreement, verifying the insurance requirements
<br />have been complied with. The coverage noted in b and c above must contain the following clauses:
<br />(1). Insurance coverage will not be canceled or changed unless 30 days prior to the effective date of
<br />cancellation or change written notice is sent by the Subgrantee to:
<br />Employment Development Department
<br />Workforce Services Division
<br />Financial Management Unit
<br />P. O. Box 826880, MIC 69
<br />Sacramento, CA 94280-0001
<br />(2). State of California, its officers, agents, employees and servants are included as additional
<br />insured, but only insofar as the operations under this subgrant agreement are concerned.
<br />(3). The State of California is not responsible for payment of premiums or assessments on this policy.
<br />7. Resolution
<br />A county, city, district or other local public body must provide the state with a copy of a resolution,
<br />order, motion, or ordinance of the local governing body which by law has authority to enter into an
<br />agreement, authorizing execution of this subgrant agreement. Preferably resolutions should authorize a
<br />designated position rather than a named individual.
<br />B. Funding
<br />It is mutually understood between the parties that this subgrant agreement may have been written before
<br />ascertaining the availability of congressional and legislative appropriation of funds, for the mutual
<br />benefit of both parties, in order to avoid program and fiscal delays which would occur if the subgrant
<br />agreement was executed after that determination was made.
<br />This subgrant agreement is valid and enforceable only if (1) sufficient funds are made available by the
<br />State Budget Act of the appropriate state fiscal years covered by this subgrant agreement for the
<br />purposes of this program and; (2) sufficient funds available to the state by the United States Government
<br />for the fiscal years covered by this subgrant agreement for the purposes of this program. In addition,
<br />this subgrant agreement is subject to any additional restrictions, limitations, or conditions enacted by
<br />the Congress and Legislature or any statue enacted by the Congress and Legislature which may affect the
<br />provisions, terms, or funding of this subgrant agreement in any manner.
<br />a). At the expiration of the terms of this subgrant agreement or upon termination prior to the expiration
<br />of this subgrant agreement, funds not obligated for the purpose of this subgrant agreement will be
<br />immediately remitted to the "pass-through" Entity, and no longer available to the Subgrantee.
<br />b). The "pass-through" entity retains the right to suspend financial assistance, in whole or in part, to
<br />protect the integrity of the funds or to ensure proper operation of the program, providing the Subgrantee
<br />is given prompt notice and the opportunity for an informal review of the "pass-through" entity's
<br />decision. The Chief Deputy Director or his designee will perform this informal review and will issue the
<br />final administrative decision within 60 Days of receiving the written request for review. Failure on the
<br />part of the Subgrantee or a Subcontractor of the Subgrantee to comply with the provisions of this
<br />subgrant agreement, or with the WIOA or regulations, when such failure involves fraud or misappropriation
<br />of funds, may result in immediate withholding of funds.
<br />C). The local Chief Elected Official (CEO) of a unit of general local government designated as a Local
<br />Workforce Development Area (LWDA) shall he liable to the EDD for all funds not expended in accordance
<br />with WIOA, and shall return to the EDD all of those funds. If there is more than one unit of general
<br />local government in a LWDA, the CEOs) will be the individual(s) designated under an agreement executed
<br />by the CEO(s) of the local units of government. The CEO(s) designated under the agreement shall be
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