SANTA ANA UNIFIED SCHOOL DISTRICT (SAUSD) (4)

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L. Indirect Cost Rate. Pursuant to 2 CFR §200.33'1(a)(4), the Indirect Cost Rate for the award shall be an approved federally recognized indirect cost rate negotiated between the District and the Federal government, or, if no such rate exists, the de minimis indirect cost rate as defined in 2 CFR §200.414(b) Indirect (F&A) costs. For this Agreement, the de minimis indirect cost rate of 0% will apply. M. Program Income. District shall comply with program income requirements set for the in 24 CFR 570.504(c). Program income received by the District shall be returned to the City unless otherwise provided for in this Agreement. N. Equipment. The purchase of equipment is not allowable under this Agreement. 0. Prohibited Use. District hereby certifies and agrees that it will not use funds provided through this Agreement to pay for entertainment, meals or gifts, or other prohibited uses. P. Women- and Minority -Owned Businesses. District will use its best efforts to afford small businesses, minority business enterprises, and women's business enterprises the maximum practicable opportunity to participate in the performance of this Agreement in accordance with the requirements of 2 CFR 200.321 "Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms". As used in this Agreement, the term "small business" means a business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and "minority and women's business enterprise" means a business at least fifty-one percent (.51 %) owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are African-Americans, Spanish-speaking, Spanish surnamed or Spanish -heritage Americans, Asian -Americans, and American Indians. District may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. Q. Conflict of Interest. Pursuant to the conflict of interest requirements set forth in 24 CFR 570.611 and 2 CFR 200.112, the District. certifies that no meraber, officer, employee, agent or assignee of the City having direct or indirect control of any CDBG monies granted to the City, inclusive of the subject CDBG funds, shall serve as an officer of the District. Further, any conflict or potential conflict of interest of any officer of the District shall be fully disclosed in writing prior to the execution of this Agreement and said writing shall be attached and deemed fully incorporated as a part hereof. Notice shall be sent by the District to the City regarding any changes or modifications to its board of directors and list of officers. R. Limitation of Funds. The United States of America, through IND, may in the future place programmatic or fiscal limitations on the use of CDBG fiends which limitations are not presently anticipated. Accordingly, the City reserves the right to revise this Agreement in order to take account of actions affecting HUD program funding. In the event of funding reduction, the City may, in its sole and absolute Exhibit 2