Contracts & Agreements_118-2016 - Laserfiche WebLink

Home Browse Search

determine that Subrecipient has not performed its obligations as stated in this Agreement in a satisfactory manner, or if City determines that insufficient supporting information has been submitted, City shall notify Subrecipient in writing within 15 days of receipt of the reimbursement invoice of its determination specifying in detail the objections which City has to Subrecipient's performance or expenses and the additional information needed to process the invoice, as applicable. Failure of Subrecipient to respond in writing within 30 days of the date of notice from City shall render the reimbursement request null and void. E. Changes in Grant Allocation. City reserves the right to reduce the grant allocation to Subrecipient when City's fiscal monitoring indicates that Subrecipient's rate of expenditures will result in unspent funds at the end of the Program year. Changes in the grant allocation may be made after consultation with Subrecipient. Section 3. Financial Management. A. Accounting Standards. Subrecipient shall comply with 24 CFR 84.21-28 and adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles. Subrecipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations,"or A-21, "Cost Principles for Educational Institutions" as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. C. Indirect Costs. If indirect costs are charged, Subrecipient will develop an indirect cost allocation plan for determining the appropriate Subrecipient's share of administrative costs and shall submit such plan to City for approval, in a form specified by City. D. Program Income. Subrecipient shall report quarterly all program income (as defined at 24 CFR 570.500(a)) generated by the Activities carried out with CDBG funds made available under this Agreement. The use of Program income by Subrecipient shall comply with the requirements set forth in 24 CFR 570.504. By way of further limitation, Subrecipient may use such income during the contract period for Activities permitted under this Agreement and shall reduce requests for additional funds by the amount of any such Program income balances on hand. All unexpended Program income shall be returned to City at the completion of this Agreement. Any interest earned on cash advances from the U.S. Treasury and from funds held in a revolving fund account is not Program income and shall be remitted promptly to City. Section 4. Documentation and Record Keeping. A. Records to be Maintained. Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506 that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: I. Records providing a full description of each Activity undertaken; 2. Records demonstrating that each Activity undertaken meets one of the National Objectives of the CDBG program; 3. Records required to determine the eligibility of Activities; Page 3 of 13 I:\ca\djm\Agreements\16-17 PSA Agreement-Inland Temporary Homes 6.21.16.doc