This Second-Tier Subaward Agreement (“Second-Tier Subaward”) is entered into by and between the County of Del Norte as the Subrecipient (“County” or “Subrecipient”); City of Crescent City as the Participating Agency (“Participating Agency”), for the Participating Agency to perform the work set forth in this Second-Tier Subaward. The County, and Participating Agency are collectively referred to herein as the “Parties.”
RECITALS
Whereas, the County and California Office of Emergency Services (“Cal OES”) entered a Grant Subaward Agreement (“Grant Subaward”) for Cal OES Program Homeland Security Grant Program (CFDA #97.067 & FAIN # EMW-2023-SS-00042 (“Program”);
Whereas, the County is the organization identified as the Subrecipient on the Grant Subaward Face Sheet (Cal OES Form 2-101) for the Program that receives the Grant Subaward funds; Whereas, the County is authorized to enter into a second-tier subaward with one or more participating agencies to assist with the implementation of the Grant Subaward and to accomplish the goals and objectives thereof;
Whereas, the County, and Participating Agency desire to enter this Second-Tier Subaward to set forth the roles and responsibilities of the Parties, including, but not limited to the Participating Agency’s role in assisting with the implementation of the Grant Subaward; and NOW, THEREFORE, for the consideration set forth herein, the Parties mutually agree as follows:
AGREEMENT
1. Titles and Contact Information. The titles and contact information for the individuals that will serve as the primary contacts for this Second-Tier Subaward are as follows:
County/Subrecipient: Neal Lopez
981 H St Suite 210
Crescent City, CA 95531
707.464.7214 [email protected]
Participating Agency: Eric Wier
City of Crescent City
377 J Street
Crescent City, CA 95531
707-464-7483 [email protected]
2. Term. The term of this Second-Tier Subaward shall commence on May 14, 2024 and shall expire on March 31, 2026. The Parties may agree to extend the term by mutual written agreement.
3. Roles and Responsibilities. The roles and responsibilities of the parties shall include, but are not specifically limited to the following:
a. County shall be responsible for:
i) Reimbursing Participating Agency for the purchase of one (1) customized UTV with a trailer for Crescent City Fire and Rescue not to exceed Seventeen Thousand Dollars ($17,000.00). ii) Reimbursing Participating Agency for the purchase of one (1) Cell Phone Analyzer (including, hardware, software, subscription, and training) for Crescent City Police Department not to exceed Sixteen Thousand Five Hundred Dollars ($16,500.00). b. Participating Agency shall be responsible for:
i) The purchase of one (1) customized UTV with a trailer for Crescent City Fire and Rescue not to exceed Seventeen Thousand Dollars ($17,000.00).
ii) The purchase of one (1) Cell Phone Analyzer (including, hardware, software, subscription, and training) for Crescent City Police Department not to exceed Sixteen Thousand Five Hundred Dollars ($16,500.00).
iii) Equipment will be utilized in Del Norte County for the purpose of preparedness and response to emergency situations and to support state and local efforts to prevent terrorism and other catastrophic events.
iv) The Participating Agency is solely responsible for the service and maintenance of equipment and supplies provided under this Second-Tier Subaward.
v) The equipment and supplies granted shall be considered the property of Participating Agency. Participating Agency shall maintain and administer a sound business program for ensuring the proper use, protection, insurance and preservation of the equipment granted under this Second-Tier Subaward. Participating Agency may not sell, transfer or otherwise dispose of any equipment or supplies granted under this Second-Tier Subaward without prior approval by County. Participating Agency shall take reasonable steps to ensure that all equipment and supplies granted under this Second-Tier Subaward are made available for use pursuant to a bonafide request for mutual-aid or interagency disaster assistance. vi) Participating Agency will obtain three quotes for equipment prior to purchase. The Participating Agency will use the lowest price option that meets the needs of the Participating Agency. If three quotes are not available this will be documented and the documentation provided to County prior to the purchase.
vii)Participating Agency will track equipment purchased with grant funds and provide identification tag numbers, serial numbers or other form of tracking for equipment purchased.
The Participating Agency may obtain an identification sticker from County of Del Norte Office of Emergency Services if another tracking method is not available. viii) Participating Agency shall follow the Standard Assurances For All Cal OES Federal Grant Programs, attached hereto as Exhibit A.
ix) Participating Agency will follow the County of Del Norte Office of Emergency Services Grants Monitoring Policies and Procedures, attached hereto as Exhibit B. x) Participating Agency will comply with annual equipment inventory requests from the County. Requested inventory information will be returned within ten (10) days. The County may inventory items in person with reasonable notice.
xi) Participating Agency will comply with Prohibitions on Expending FEMA Award Funds for Covered Telecommunications Equipment or Services FEMA Policy #405-143-1. The policy is available at https://www.fema.gov/sites/default/files/documents/fema_policy-405-143-1- prohibition-covered-services-equipment-gpd.pdf.
4. Shared Resources. All non-fiscal resources shared between the Parties shall be as follows:
a. None.
5. Reporting Requirements. Participating Agency shall comply with all reporting requirements necessary for the County to meet Cal OES reporting requirements, including but not limited to:
a. All reporting activities and records requirements set forth in:
i) Standard Assurances For All Cal OES Federal Grant Programs, attached hereto as Exhibit A. ii) County of Del Norte Office of Emergency Services Grants Monitoring Policies and Procedures, attached hereto as Exhibit B.
6. Transfer of Grant Subaward Funds.
a. Total Amount of Funds. The total amount of Grant Subaward funds that may be transferred to the Participating Agency under this Second-Tier Subaward is Thirty-Three Thousand Five Hundred Dollars ($33,500.00).
b. Invoicing. The Participating Agency shall submit invoices for approval to the County not more frequently than monthly and not less frequently than annually. In order to be eligible for reimbursement, invoices shall be for allowable, approved costs incurred in accordance with the terms of this Second-Tier Subaward. All invoices submitted under this Second-Tier Subaward including the final invoice must be received by the County no later than thirty (30) days after the end of the reporting period for that invoice. All invoices should include: Grant Subaward number, Program name, and the period for which payment is being requested. An authorized representative of the Participating Agency shall sign and certify on each invoice that the costs for which reimbursement is requested are the actual costs as recorded in the Participating Agency’s records and as expended for the work actually performed in accordance with the terms of this Second-Tier Subaward.
c. Payment. Payment for allowable, approved expenses shall be made upon receipt by the County of an invoice. Payment shall be contingent upon County’s receipt of Grant Subaward funds and upon the Participating Agency’s compliance with the terms and conditions of this Second-Tier Subaward. All payments shall be subject to correction and adjustment upon audit or any disallowance. The Participating Agency is solely responsible for reimbursing the County for amounts paid to the Participating Agency but disallowed under the terms of this Second-Tier Subaward. The County reserves the right to withhold final payment under this Second-Tier Subaward until acceptance by the County of all services, reports, supplies and/or documentation called for hereunder. Payment terms are net thirty (30) days computed either from the date of delivery and acceptance of the work or from the date of receipt of correct and proper invoices prepared in accordance with the terms of the Second-Tier Subaward, whichever date is later.
7. Compliance With All Applicable Requirements. Participating Agency shall comply with all applicable requirements of Notice of Funding Opportunity (NOFO) for the Program. Participating Agency shall further comply with all provisions of the California Supplement to the Federal Notice of Funding Opportunity concerning use of the Grant Subaward funds.
By entering this Second-Tier Subaward, Participating Agency acknowledges and represents that Participating Agency is familiar with the requirements of the NOFO and California Supplement to the Federal Notice of Funding Opportunity, as applicable, and certifies that Participating Agency will comply with all applicable requirements therein.
Participating Agency shall also comply with any and all applicable state or federal requirements necessary for carrying out its work under this Second-Tier Subaward. Participating Agency shall also comply with the assurances and requirements set forth in the 2023 HSGP Standard Assurances for All Cal OES Federal Grant Programs applicable to the Grant Subaward and/or the Program.
8. Audits. Participating Agency shall be subject to audits and all audit requirements set forth in the Notice of Funding Opportunity (NOFO) Fiscal Year 2023 Homeland Security Grant Program and the Fiscal Year 2023 California Supplement to the Federal Notice of Funding Opportunity. Further, County, or its duly authorized representatives shall, until three (3) years after final payment under this Second-Tier Subaward, have access to any of the Participating Agency’s records related to this Second-Tier Subaward, at the Participating Agency’s regular place of business, for the purpose of conducting audits. The period of access for records relating to: a) appeals under a dispute, b) litigation or settlement of claims arising from the performance of this Second-Tier Subaward, or c) costs and expenses of this Second-Tier Subaward to which exception has been taken shall continue until such appeals, litigation, claims, or exceptions are disposed of.
9. Independent Contractor. Participating Agency is and shall at all times remain as to the County a wholly independent contractor. The personnel performing the services under this Second-Tier Subaward on behalf of Participating Agency shall at all times be under Participating Agency’s exclusive direction and control. Neither County or their employees or agents shall have control over the conduct of Participating Agency or any of Participating Agency’s officers, employees or agents, except as set forth in this Second-Tier Subaward. Participating Agency shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the County. Participating Agency shall not incur or have the power to incur any debt, obligation or liability whatever against County, or bind the County in any manner.
10. Assignment. The Participating Agency may not assign, transfer or subaward any part of this Second-Tier Subaward, any interest herein or claims hereunder, without the prior, written approval of the County.
11. Termination. The County may at any time cancel this Second-Tier Subaward or renewal thereof, with or without cause, by giving thirty (30) days advance written notice to Participating Agency, which shall commence on the date of mailing of the written notice by certified mail or personal delivery. Thereafter, this Second-Tier Subaward shall become null and void except for the portion or portions of payment herein agreed upon for which expenses have been necessarily incurred in the performance of this Second-Tier Subaward.
12. General Release. The Participating Agency’s acceptance of payment of the final invoice under this Second-Tier Subaward shall release the County from all claims of the Participating Agency, and from all liability to the Participating Agency concerning the work.
13. Amendments and Modifications. By mutual written consent, the Parties may make modifications or changes to the work and/or to the terms of this Second-Tier Subaward. Any such modifications or changes shall be in the form of a written amendment signed by authorized representatives of all Parties.
14. Indemnification. Participating Agency shall defend, indemnify and hold harmless County, their officers, employees, and agents from and against any and all liability, loss, expense (including reasonable attorneys' fees), or claims for injury or damages arising out of the performance of this Second-Tier Subaward. This indemnification provision shall survive termination of the Subaward and remain in effect.
15. Insurance. Participating Agency shall procure and maintain for the duration of the Second-Tier Subaward insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Participating Agency, his agents, representatives, employees or subcontractors. a. Minimum Scope of Insurance:
Coverage shall be at least as broad as:
i) Commercial General Liability (CGL): Insurance coverage on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury with limits no less than One Million Dollars ($1,000,000.00) per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this Second-Tier Subaward or the general aggregate limit shall be twice the required occurrence limit.
ii) Automobile Liability: Insurance covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with a limit no less than One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage. iii) Workers’ Compensation: as required by the State of California, with statutory limits, and Employer’s Liability Insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease.
Workers’ Compensation and Employer’s Liability Insurance is not required if the Participating Agency provides written verification it has no employees. b. Additional Insurance Coverage:
To the extent coverage is applicable to Participating Agency’s services under this Second-Tier Subaward, Participating Agency must maintain the following insurance coverage:
i) Cyber Liability: Insurance, with limits not less than Two Million Dollars ($2,000,000.00) per occurrence or claim, Two Million Dollars ($2,000,000.00) aggregate. c. Other Insurance Provisions:
i) If the Participating Agency maintains broader coverage and/or higher limits than the minimums shown above, the County requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Participating Agency. Any available insurance
proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the County.
ii) The County, its officers, officials, employees, and volunteers are to be covered as additional insureds on the Commercial General Liability policy with respect to liability arising out of work or operations performed by or on behalf of the Participating Agency. iii) For any claims related to this Second-Tier Subaward, the Participating Agency’s insurance coverage shall be primary coverage as respects the County, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the County shall be excess of the Participating Agency’s insurance and shall not contribute with it. iv) Each insurance policy required by this Second-Tier Subaward shall provide that coverage shall not be canceled, except with written notice to the County thirty (30) days prior to the policy’s termination date.
v) Participating Agency hereby grants to the County a waiver of any right to subrogation which any insurer of Participating Agency may acquire against the County by virtue of the payment of any loss under such insurance. Participating Agency agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the County has received a waiver of subrogation endorsement from the insurer.
vi) The Participating Agency shall contractually require and verify that all subcontractors maintain insurance applicable to their scope of work, meeting all the indemnity and insurance requirements required of the Participating Agency under this Agreement, and shall also require its subcontractors to provide endorsements (a.) Naming the County as an additional insured, (b.) Agreeing that the subcontractor's insurance shall be primary and shall not require contribution from the County's insurance or self-insurance program, and (c.) Waiver of subrogation rights in favor of the County and provide proof of such upon the County's request.
vii)Prior to commencing any work under this Second-Tier Subaward, Participating Agency shall furnish County with certificates of insurance and original endorsements evidencing the coverage, limits, and conditions required by this Second-Tier Subaward.
16. Appropriated Funds. The continuation and renewal of this Second-Tier Subaward shall be subject to sufficient appropriated funds being received by County to administer and support the Program. In the event sufficient funds are not available or are discontinued at any time, the County may cancel this Second-Tier Subaward by delivering written notice to the Participating Agency.
17. Notices. All notices required or permitted by this Second-Tier Subaward shall be by written instrument and shall be mailed by certified mail or personally delivered to the respective primary contact listed in Section 1 of this Second-Tier Subaward.
18. Waiver. No waiver of any breach of this Second-Tier Subaward shall be held to be a waiver of any other subsequent breach. The failure of the County to enforce at any time any of the provisions of this Second-Tier Subaward, or to require at any time performance of any of the provisions thereof, shall in no way be construed to be a waiver of such provisions nor in any way affect the validity of this Second-Tier Subaward or effect the rights of the County to thereafter seek enforcement of the Second-Tier Subaward.
19. Applicable Law. This Second-Tier Subaward shall be interpreted and governed by the laws of the State of California and venue shall be the Superior Court for the County of Del Norte.
20. Entire Agreement. This Second-Tier Subaward is the complete agreement of the Parties and supersedes all prior understandings regarding the services provided hereunder.
21. Severability. If any provision of this Second-Tier Subaward is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby.
22. Counterparts and Electronic Signatures. This Second-Tier Subaward may be executed in one or more counterparts, and counterparts may be exchanged by facsimile, email or other electronic transmission, each of which will be deemed an original, but all of which together constitute one and the same instrument.
IN WITNESS WHEREOF, the respective parties have executed this Subaward on the dates indicated below.
***********
COUNTY OF DEL NORTE as
Subrecipient
By:
(Signature of Authorized Official of County)
Name: __________________________
Title: ___________________________
Date: ___________________________
CITY OF CRESCENT CITY as
Participating Agency
By:
(Signature of authorized official of Participating
Agency)
Name:
Title:
Date: __________________________________
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
As the duly authorized representative of the Applicant, I hereby certify that the Applicant has the legal authority to apply for federal assistance and the institutional, managerial, and financial capability (including funds sufficient to pay any non-federal share of project cost) to ensure proper planning, management, and completion of the project described in this application, within prescribed timelines.
The requirements outlined in these assurances apply to Applicant and any of its subrecipients.
I further acknowledge that the Applicant is responsible for reviewing and adhering to all requirements within the:
(a) Applicable Federal Regulations (see below);
(b) Federal Program Notice of Funding Opportunity (NOFO); (c) Federal Preparedness Grants Manual;
(d) California Supplement to the NOFO; and
(e) Federal and State Grant Program Guidelines.
Federal Regulations
Government cost principles, uniform administrative requirements, and audit requirements for federal grant programs are set forth in Title 2, Part 200 of the Code of Federal Regulations (C.F.R.). Updates are issued by the Office of Management and Budget (OMB) and can be found at http://www.whitehouse.gov/omb/.
In the event Cal OES determines that changes are necessary to the subaward after a subaward has been made, including changes to period of performance or terms and conditions, Applicants will be notified of the changes in writing. Once notification has been made, any subsequent request for funds will indicate Applicant acceptance of the changes to the subaward.
State and federal grant award requirements are set forth below. The Applicant hereby agrees to comply with the following:
1. Proof of Authority
The Applicant will obtain proof of authority from the city council, governing board, or authorized body in support of this project. This written authorization must specify that the Applicant and the city council, governing board, or authorized body agree:
Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
(a) To provide all matching funds required for the grant project and that any cash match will be appropriated as required;
(b) Any liability arising out of the performance of this agreement shall be the responsibility of the Applicant and the city council, governing board, or authorized body;
(c) Grant funds shall not be used to supplant expenditures controlled by the city council, governing board, or authorized body;
(d) The Applicant is authorized by the city council, governing board, or authorized body to apply for federal assistance, and the institutional, managerial and financial capability (including funds sufficient to pay the non-federal share of project cost, if any) to ensure proper planning, management and completion of the project described in this application; and
(e) The official executing this agreement is authorized by the Applicant.
This Proof of Authority must be maintained on file and readily available upon request.
2. Period of Performance
The period of performance is specified in the Award. The Applicant is only authorized to perform allowable activities approved under the award, within the period of performance.
3. Lobbying and Political Activities
As required by Section 1352, Title 31 of the United States Code (U.S.C.), for persons entering into a contract, grant, loan, or cooperative agreement from an agency or requests or receives from an agency a commitment providing for the United States to insure or guarantee a loan, the Applicant certifies that:
(a) No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.
Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
(b) If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
(c) The Applicant shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.
The Applicant will also comply with provisions of the Hatch Act (5 U.S.C. §§ 1501- 1508 and §§ 7324-7328) which limit the political activities of employees whose principle employment activities are funded in whole or in part with federal funds.
Finally, the Applicant agrees that federal funds will not be used, directly or indirectly, to support the enactment, repeal, modification or adoption of any law, regulation or policy without the express written approval from the California Governor’s Office of Emergency Services (Cal OES) or the federal awarding agency.
4. Debarment and Suspension
As required by Executive Orders 12549 and 12689, and 2 C.F.R. § 200.214 and codified in 2 C.F.R. Part 180, Debarment and Suspension, the Applicant will provide protection against waste, fraud, and abuse by debarring or suspending those persons deemed irresponsible in their dealings with the federal government. The Applicant certifies that it and its subrecipients:
(a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency;
(b) Have not within a three-year period preceding this application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;
Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
(c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph (4)(b) of this certification; and (d) Have not within a three-year period preceding this application had one or more public transaction (federal, state, or local) terminated for cause or default.
Where the Applicant is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this application.
5. Non-Discrimination and Equal Employment Opportunity
The Applicant will comply with all state and federal statutes relating to nondiscrimination, including:
(a) Title VI of the Civil Rights Act of 1964 (Public Law (P.L.) 88-352 and 42 U.S.C. § 2000d et. seq.) which prohibits discrimination on the basis of race, color, or national origin and requires that recipients of federal financial assistance take reasonable steps to provide meaningful access to persons with limited English proficiency (LEP) to their programs and services;
(b) Title IX of the Education Amendments of 1972, (20 U.S.C. §§ 1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex in any federally funded educational program or activity;
(c) Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794), which prohibits discrimination against those with disabilities or access and functional needs; (d) Americans with Disabilities Act (ADA) of 1990 (42 U.S.C. § 12101et seq.), which prohibits discrimination on the basis of disability and requires buildings and structures be accessible to those with disabilities and access and functional needs;
(e) Age Discrimination Act of 1975, (42 U.S.C. §§ 6101-6107), which prohibits discrimination on the basis of age;
(f) Public Health Service Act of 1912 (42 U.S.C. §§ 290 dd—2), relating to confidentiality of patient records regarding substance abuse treatment; (g) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. § 3601 et seq.), relating to nondiscrimination in the sale, rental or financing of housing as implemented by the Department of Housing and Urban Development at 24 C.F.R. Part100. The prohibition on disability discrimination includes the requirement that new multifamily housing with four or more dwelling units—i.e., the public and common use areas and individual apartment units (all units in buildings with elevators and ground-floor units in buildings without elevators)— Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
be designed and constructed with certain accessible features (See 24 C.F.R. § 100.201);
(h) Executive Order 11246, which prohibits federal contractors and federally assisted construction contractors and subcontractors, who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, sexual orientation, gender identification or national origin;
(i) Executive Order 11375, which bans discrimination on the basis of race, color, religion, sex, sexual orientation, gender identification, or national origin in hiring and employment in both the United States federal workforce and on the part of government contractors;
(j) California Public Contract Code § 10295.3, which prohibits discrimination based on domestic partnerships and those in same sex marriages; (k) Department of Homeland Security (DHS) policy to ensure the equal treatment of faith-based organizations, under which the Applicant must comply with equal treatment policies and requirements contained in 6 C.F.R.
Part 19;
(l) The Applicant will comply with California’s Fair Employment and Housing Act (FEHA) (California Government Code §§12940-12957), as applicable. FEHA prohibits harassment and discrimination in employment because of ancestry, familial status, race, color, religious creed (including religious dress and grooming practices), sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding), gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, mental and physical disability, genetic information, medical condition, age, pregnancy, denial of medical and family care leave, or pregnancy disability leave, military and veteran status, and/or retaliation for protesting illegal discrimination related to one of these categories, or for reporting patient abuse in tax supported institutions;
(m)Any other nondiscrimination provisions in the specific statute(s) under which application for federal assistance is being made; and
(n) The requirements of any other nondiscrimination statute(s) that may apply to this application.
6. Drug-Free Workplace
As required by the Drug-Free Workplace Act of 1988 (41 U.S.C. § 701 et seq.),the Applicant certifies that it will maintain a drug-free workplace and a drug-free awareness program as outlined in the Act.
Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
7. Environmental Standards
The Applicant will comply with state and federal environmental standards, including:
(a) California Environmental Quality Act (CEQA) (California Public Resources Code §§ 21000-21177), to include coordination with the city or county planning agency;
(b) CEQA Guidelines (California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387);
(c) Federal Clean Water Act (CWA) (33 U.S.C. § 1251 et seq.), which establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters; (d) Federal Clean Air Act of 1955 (42 U.S.C. § 7401) which regulates air emissions from stationary and mobile sources;
(e) Institution of environmental quality control measures under the National Environmental Policy Act (NEPA) of 1969 (P.L. 91-190); the Council on Environmental Quality Regulations for Implementing the Procedural Provisions of NEPA; and Executive Order 12898 which focuses on the environmental and human health effects of federal actions on minority and low-income populations with the goal of achieving environmental protection for all communities;
(f) Evaluation of flood hazards in floodplains in accordance with Executive Order 11988;
(g) Executive Order 11514 which sets forth national environmental standards; (h) Executive Order 11738 instituted to assure that each federal agency empowered to enter into contracts for the procurement of goods, materials, or services and each federal agency empowered to extend federal assistance by way of grant, loan, or contract shall undertake such procurement and assistance activities in a manner that will result in effective enforcement of the Clean Air Act and the Federal Water Pollution Control Act Executive Order 11990 which requires preservation of wetlands;
(i) The Safe Drinking Water Act of 1974, (P.L. 93-523); (j) The Endangered Species Act of 1973, (P.L. 93-205);
(k) Assurance of project consistency with the approved state management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.);
(l) Conformity of Federal Actions to State (Clear Air) Implementation Plans under Section 176(c) of the Clean Air Act of 1955, as amended (42 U.S.C. §§7401 et seq.); and
Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
(m) Wild and Scenic Rivers Act of 1968 (16 U.S.C. § 1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system.
The Applicant shall not be: (1) in violation of any order or resolution promulgated by the State Air Resources Board or an air pollution district; 2) subject to a cease-anddesist order pursuant to section 13301 of the California Water Code for violation of waste discharge requirements or discharge prohibitions; or 3) determined to be in violation of federal law relating to air or water pollution.
8. Audits
For subrecipients expending $750,000 or more in federal grant funds annually, the Applicant will perform the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and 2 C.F.R., Part 200, Subpart F Audit Requirements.
9. Cooperation and Access to Records
The Applicant must cooperate with any compliance reviews or investigations conducted by DHS. In accordance with 2 C.F.R. § 200.337, the Applicant will give the awarding agency, the Comptroller General of the United States and, if appropriate, the state, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to the award. The Applicant will require any subrecipients, contractors, successors, transferees and assignees to acknowledge and agree to comply with this provision.
10. Conflict of Interest
The Applicant will establish safeguards to prohibit the Applicant’s employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain.
11. Financial Management
False Claims for Payment - The Applicant will comply with 31 U.S.C §§ 3729-3733 which provides that Applicant shall not submit a false claim for payment, reimbursement, or advance.
12. Reporting - Accountability
The Applicant agrees to comply with applicable provisions of the Federal Funding Accountability and Transparency Act (FFATA) (P.L. 109-282), including but not limited to (a) the reporting of subawards obligating $30,000 or more in federal funds, Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
and (b) executive compensation data for first-tier subawards as set forth in 2 C.F.R.
Part 170, Appendix A. The Applicant also agrees to comply with the requirements set forth in the government-wide financial assistance award term regarding the System for Award Management and Universal Identifier Requirements located at 2 C.F.R.
Part 25, Appendix A.
13. Whistleblower Protections
The Applicant must comply with statutory requirements for whistleblower protections at 10 U.S.C. § 2409, 41 U.S.C. § 4712, and 10 U.S.C. § 2324, 41 U.S.C. § 4304 and § 4310.
14. Human Trafficking
The Applicant will comply with the requirements of Section 106(g) of the Trafficking Victims Protection Act of 2000, as amended (22 U.S.C. § 7104) which prohibits the Applicant or its subrecipients from: (1) engaging in trafficking in persons during the period of time that the award is in effect; (2) procuring a commercial sex act during the period of time that the award is in effect; or (3) using forced labor in the performance of the award or subawards under the award.
15. Labor Standards
The Applicant will comply with the following federal labor standards:
(a) The Davis-Bacon Act (40 U.S.C. §§ 276a to 276a-7), as applicable, and the Copeland Act (40 U.S.C. § 3145 and 18 U.S.C. § 874) and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§ 327-333), regarding labor standards for federally-assisted construction contracts or subcontracts, and (b) The Federal Fair Labor Standards Act (29 U.S.C. § 201 et seq.) as they apply to employees of institutes of higher learning (IHE), hospitals and other nonprofit organizations.
16. Worker’s Compensation
The Applicant must comply with provisions which require every employer to be insured to protect workers who may be injured on the job at all times during the performance of the work of this Agreement, as per the workers compensation laws set forth in California Labor Code §§ 3700 et seq.
17. Property-Related
If applicable to the type of project funded by this federal award, the Applicant will:
(a) Comply with the requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of federal or federally-assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of federal participation in purchase;
(b) Comply with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires federal award subrecipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more;
(c) Assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. § 470), Executive Order 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16U.S.C. § 469a-1 et seq.); and
(d) Comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. § 4831 and 24 CFR Part 35) which prohibits the use of lead-based paint in construction or rehabilitation of residence structures.
18. Certifications Applicable Only to Federally-Funded Construction Projects For all construction projects, the Applicant will:
(a) Not dispose of, modify the use of, or change the terms of the real property title or other interest in the site and facilities without permission and instructions from the awarding agency. Will record the federal awarding agency directives and will include a covenant in the title of real property acquired in whole or in part with federal assistance funds to assure nondiscrimination during the useful life of the project;
(b) Comply with the requirements of the awarding agency with regard to the drafting, review and approval of construction plans and specifications; and (c) Provide and maintain competent and adequate engineering supervision at the construction site to ensure that the complete work conforms with the approved plans and specifications and will furnish progressive reports and such other information as may be required by the assistance awarding agency or State.
19. Use of Cellular Device While Driving is Prohibited
The Applicant is required to comply with California Vehicle Code sections 23123 and 23123.5. These laws prohibit driving motor vehicle while using an electronic wireless communications device to write, send, or read a text-based communication.
Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
Drivers are also prohibited from the use of a wireless telephone without hands-free listening and talking, unless to make an emergency call to 911, law enforcement, or similar services.
20. California Public Records Act and Freedom of Information Act The Applicant acknowledges that all information submitted in the course of applying for funding under this program, or provided in the course of an entity’s grant management activities that are under Federal control, is subject to the Freedom of Information Act (FOIA), 5 U.S.C. § 552, and the California Public Records Act, California Government Code §7920.000 et seq. The Applicant should consider these laws and consult its own State and local laws and regulations regarding the release of information when reporting sensitive matters in the grant application, needs assessment, and strategic planning process.
HOMELAND SECURITY GRANT PROGRAM (HSGP) –
PROGRAM SPECIFIC ASSURANCES / CERTIFICATIONS
21. Acknowledgment of Federal Funding from DHS
The Applicant must acknowledge its use of federal funding when issuing statements, press releases, requests for proposals, bid invitations, and other documents describing projects or programs funded in whole or in part with federal funds.
22. Activities Conducted Abroad
The Applicant must ensure that project activities carried on outside the United States are coordinated as necessary with appropriate government authorities and that appropriate licenses, permits, or approvals are obtained.
23. Best Practices for Collection and Use of Personally Identifiable Information (PII) DHS defines personally identifiable information (PII) as any information that permits the identity of an individual to be directly or indirectly inferred, including any information that is linked or linkable to that individual. If the Applicant collectsPII, the Applicant is required to have a publicly-available privacy policy that describes standards on the usage and maintenance of PII they collect. The Applicant may refer to the DHS Privacy Impact Assessments: Privacy Guidance and Privacy template as a useful resource.
Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
24. Copyright
The Applicant must affix the applicable copyright notices of 17 U.S.C. §§ 401 or 402 and an acknowledgement of United States Government sponsorship (including the award number) to any work first produced under federal financial assistance awards.
25. Duplication of Benefits
Any cost allocable to a particular federal financial assistance award provided for in 2 C.F.R. Part 200, Subpart E may not be charged to other federal financial assistance awards to overcome fund deficiencies, to avoid restrictions imposed by federal statutes, regulations, or federal financial assistance award terms and conditions, or for other reasons. However, these prohibitions would not preclude the Applicant from shifting costs that are allowable under two or more awards in accordance with existing federal statutes, regulations, or the federal financial assistance award terms and conditions.
26. Energy Policy and Conservation Act
The Applicant must comply with the requirements of 42 U.S.C. § 6201 which contain policies relating to energy efficiency that are defined in the state energy conservation plan issued in compliance with this Act.
27. Federal Debt Status
The Applicant is required to be non-delinquent in its repayment of any federal debt.
Examples of relevant debt include delinquent payroll and other taxes, audit disallowances, and benefit overpayments. See OMB Circular A-129.
28. Fly America Act of 1974
The Applicant must comply with Preference for United States Flag Air Carriers: (air carriers holding certificates under 49 U.S.C. § 41102) for international air transportation of people and property to the extent that such service is available, in accordance with the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. § 40118) and the interpretative guidelines issued by the Comptroller General of the United States in the March 31, 1981, amendment to Comptroller General Decision B-138942.
29. Hotel and Motel Fire Safety Act of 1990
In accordance with Section 6 of the Hotel and Motel Fire Safety Act of 1990, the Applicant must ensure that all conference, meeting, convention, or training space funded in whole or in part with federal funds complies with the fire prevention and control guidelines of the Federal Fire Prevention and Control Act of 1974, as amended, 15 U.S.C. § 2225a.
Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
30. Non-supplanting Requirement
If the Applicant receives federal financial assistance awards made under programs that prohibit supplanting by law, the Applicant must ensure that federal funds do not replace (supplant) funds that have been budgeted for the same purpose through non- federal sources.
31. Patents and Intellectual Property Rights
Unless otherwise provided by law, the Applicant is subject to the Bayh-Dole Act, Pub.
L. No. 96-517, as amended, and codified in 35 U.S.C. § 200 et seq. The Applicant is subject to the specific requirements governing the development, reporting, and disposition of rights to inventions and patents resulting from financial assistance awards located at 37 C.F.R. Part 401 and the standard patent rights clause located at 37 C.F.R. § 401.14.
32. SAFECOM
If the Applicant receives federal financial assistance awards made under programs that provide emergency communication equipment and its related activities, the Applicant must comply with the SAFECOM Guidance for Emergency Communication Grants, including provisions on technical standards that ensure and enhance interoperable communications.
33. Terrorist Financing
The Applicant must comply with Executive Order 13224 and United States law that prohibit transactions with, and the provisions of resources and support to, individuals and organizations associated with terrorism. The Applicant is legally responsible for ensuring compliance with the Order and laws.
34. Reporting of Matters Related to Recipient Integrity and Performance If the total value of the Applicant’s currently active grants, cooperative agreements, and procurement contracts from all federal assistance offices exceeds $10,000,000 for any period of time during the period of performance of this federal financial assistance award, the Applicant must comply with the requirements set forth in the government-wide Award Term and Condition for Recipient Integrity and Performance Matters located at 2 C.F.R. Part 200, Appendix XII, the full text of which is incorporated here by reference in the award terms and conditions.
Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
35. USA Patriot Act of 2001
The Applicant must comply with requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act), which amends 18 U.S.C. §§ 175-175c.
36. Use of DHS Seal, Logo, and Flags
The Applicant must obtain permission from their DHS Financial Assistance Office, prior to using the DHS seal(s), logos, crests or reproductions of flags or likenesses of DHS agency officials, including use of the United States Coast Guard seal, logo, crests or reproductions of flags or likenesses of Coast Guard officials.
37. Performance Goals
In addition to the Biannual Strategy Implementation Report submission requirements outlined in the Preparedness Grants Manual, the Applicant must demonstrate how the grant-funded project addresses the core capability gap associated with each project and identified in the Threat and Hazard Identification and Risk Analysis or Stakeholder Preparedness Review or sustains existing capabilities, as applicable. The capability gap reduction or capability sustainment must be addressed in the Project Description of the BSIR for each project.
38. Applicability of DHS Standard Terms and Conditions to Tribes The DHS Standard Terms and Conditions are a restatement of general requirements imposed upon the Applicant and flow down to any of its subrecipients as a matter of law, regulation, or executive order. If the requirement does not apply to Indian tribes or there is a federal law or regulation exempting its application to Indian tribes, then the acceptance by Tribes of, or acquiescence to, DHS Standard Terms and Conditions does not change or alter its inapplicability to an Indian tribe. The execution of grant documents is not intended to change, alter, amend, or impose additional liability or responsibility upon the Tribe where it does not already exist.
39. Required Use of American Iron, Steel, Manufactured Products, and Construction Materials
The Applicant must comply with the “Build America, Buy America” Act (BABAA), enacted as part of the Infrastructure Investment and Jobs Act and Executive Order 14005. Applicants receiving a federal award subject to BABAA requirements may not use federal financial assistance funds for infrastructure projects unless:
(a) All iron and steel used in the project are produced in the United States – this means all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States; Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
(b) All manufactured products used in the project are produced in the United States – this means the manufactured product was manufactured in the United States; and the cost of the components of the manufactured product that are mined, produced, or manufactured in the United States is greater than 55 percent of the total cost of all components of the manufactured product, unless another standard for determining the minimum amount of domestic content of the manufactured product has been established under applicable law or regulation; and
(c) All construction materials are manufactured in the United States – this means that all manufacturing processes for the construction material occurred in the United States.
The “Buy America” preference only applies to articles, materials, and supplies that are consumed in, incorporated into, or affixed to an infrastructure project. It does not apply to tools, equipment, and supplies, such as temporary scaffolding, brought to the construction site and removed at or before the completion of the infrastructure project. Nor does a “Buy America” preference apply to equipment and furnishings, such as movable chairs, desks, and portable computer equipment, that are used at or within the finished infrastructure project but are not an integral part of the structure or permanently affixed to the infrastructure project.
Per section 70914(c) of BABAA, FEMA may waive the application of a “Buy America” preference under an infrastructure program in certain cases.
On July 1, 2022, OMB approved FEMA’s General Applicability Public Interest Waiver of the BABAA requirements to be effective for a period of six months, through January 1, 2023. Applicants will not be required to follow the BABAA requirements for FEMA awards made, and any other funding FEMA obligates, during this waiver period. For any new awards FEMA makes after January 1, 2023, as well as new funding FEMA obligates to existing awards or through renewal awards where the new funding is obligated after January 1, 2023, Applicants will be required to follow the BABAA requirements unless another waiver is requested and approved.
40. Advancing Effective, Accountable Policing and Criminal Justice Practice to Enhance Public Trust and Public Safety
The Applicant must comply with the requirements of section 12(c) of Executive Order 14074. The Applicant is also encouraged to adopt and enforce policies consistent with Executive Order 14074 to support safe and effective policing.
Exhibit A
Standard Assurances
For Cal OES Federal Non-Disaster Grant Programs
IMPORTANT
The purpose of these assurances is to obtain federal and state financial assistance, including any and all federal and state grants, loans, reimbursement, contracts, etc.
Applicant recognizes and agrees that state financial assistance will be extended based on the representations made in these assurances. These assurances are binding on Applicant, its successors, transferees, assignees, etc. as well as any of its subrecipients.
Failure to comply with any of the above assurances may result in suspension, termination, or reduction of grant funds.
All appropriate documentation, as outlined above, must be maintained on file by the Applicant and available for Cal OES or public scrutiny upon request. Failure to comply with these requirements may result in suspension of payments under the grant or termination of the grant or both and the Applicant may be ineligible for award of any future grants if Cal OES determines that the Applicant: (1) has made false certification, or (2) violates the certification by failing to carry out the requirements as noted above.
All of the language contained within this document must be included in the award documents for all subawards at all tiers. Applicants are bound by DHS Standard Terms and Conditions 2023, Version 2, hereby incorporated by reference, which can be found at: https://www.dhs.gov/publication/fy15-dhs- standard-terms-and-conditions.
The undersigned represents that he/she is authorized to enter into this agreement for and on behalf of the Applicant.
Applicant:
Signature of Authorized Agent:
Printed Name of Authorized Agent:
Title: Date:
Exhibit A
Grants Monitoring Procedures Manual – Version 1.1 – December 2022 1 Exhibit B
COUNTY OF DEL NORTE OFFICE
OF EMERGENCY SERVICES
GRANTS MONITORING
POLICIES & PROCEDURES MANUAL
December 2022
TABLE OF CONTENTS
I. MONITORING PROGRAM OVERVIEW ...................................................................... 3 II. COMPLIANCE MONITORING PLAN/ RISK ASSESSMENT ................................. 5 III. COMPLIANCE REVIEW PROCESS .............................................................................. 6 IV. SINGLE AUDIT PROCESS ................................................................................................ 9 Approved and Adopted as an official procedure for Del Norte County Office of Emergency Services:
Date:
Grants Monitoring Procedures Manual - Version 1.1 - December 2022 2 Exhibit B
Grants Monitoring Procedures Manual – Version 1.1 – December 2022 3 Exhibit B
MONITORING PROGRAM OVERVIEW
Federal grants are subject to federal, state, and local government administrative requirements, cost principles, and audit requirements. The County of Del Norte Office of Emergency Services (DNCO OES) ensures that grants are managed appropriately using a risk-based compliance assessment model and by performing analytical and financial compliance reviews.
Grants Monitoring is comprised of monitors that assist Subrecipients to ensure compliance with applicable regulations, laws, and Grant Subaward provisions.
Items that monitors examine include:
Organization operations
Internal and management controls
Policies and procedures
Financial reports
Grant Subaward-related activities and expenditures
High-risk Subrecipients are identified through the annual risk assessment further discussed below. Monitoring reviews are used to provide technical assistance and trainings for Subrecipients to enable the Subrecipients to maintain funding and follow the applicable rules and regulations.
There are four key components the DNCO OES monitoring program model ensures:
1. Subrecipients are monitored during the term of the Grant Subaward;
2. Monitoring efforts focus on the areas of most significant risk;
3. All monitoring findings are addressed through appropriate corrective actions; and
4. Ongoing financial and administrative training and technical assistance is provided to Subrecipients to enable them to comply with Grant Subaward requirements and maintain their funding.
DNCO OES uses the following methods to monitor Subrecipient risk:
Day-to-Day communication: OES and/or County administrative personnel (“Monitors”) maintain ongoing communication with Subrecipients to provide programmatic guidance and review reimbursement requests.
Limited Scope Desk and Field Compliance Reviews: Limited scope reviews allow the Subrecipients to make certain assertions regarding various aspects of their operations, or provide Monitors an opportunity to verify the eligibility of expenditures charged to the Grant Subaward/s. These reviews consist of, but are not limited to, the following:
Grants Monitoring Procedures Manual – Version 1.1 – December 2022 4 Exhibit B
• Targeted compliance questionnaire reviews and follow-up corrective action, if required;
• Payment reviews of invoices and other documents supporting a reimbursement claimed by and made to the Subrecipient;
• Review most recent Independent Audit Report(s);
• Field inspection to verify equipment purchases and test equipment management practices; and
• Follow-up virtual and/or site visit(s) to verify implementation of required corrective action.
The scope of the review can be expanded if needed.
Technical Assistance Services: To ensure Subrecipients are educated regarding Grant Subaward requirements, high-risk problem areas are identified and tracked through the monitoring process and serve as the basis to plan and formulate technical assistance and training for Subrecipients. Monitors provide technical assistance through training (either group or one-on-one), web publications and resources and through the provision of the Subrecipient self-assessment tools. Subrecipients are also supplied information about training opportunities provided by Cal OES and FEMA.
Grants Monitoring Procedures Manual – Version 1.1 – December 2022 5 Exhibit B
COMPLIANCE MONITORING PLAN / RISK ASSESSMENT
The Annual Compliance Monitoring Plan identifies the proposed Subrecipients eligible for a compliance review for the year. The Annual Compliance Monitoring Plan is developed based on the annual risk assessment. The Plan is developed on a fiscal year basis beginning in July and ending in June of the following year.
Risk Factor Analysis and Monitoring Selection
An accurate risk assessment is critical to the success of the DNCO OES’s compliance review efforts. DNCO OES Subrecipients are weighted using the risk factors and scores to identify potential problems before they occur so that risk-handling activities may be planned to mitigate adverse impact on the results. Although Subrecipients identified as high risk are the main objective of the Monitors, medium and low-risk Subrecipients can be selected for a monitoring visit. Medium and low-risk Subrecipients may be monitored based on anonymous tips, requests from Subrecipients, or management directive/County discretion.
Risk Assessment Process
1. Obtain a list of all Subrecipients and associated grants from the FMFWs from the prior 3 years.
2. Filter by Subrecipient to show all grants the Subrecipient received from DNCO OES.
3. Review Compliance Monitoring database.
The two (2) Subrecipients with the most accrued points will receive Compliance Monitoring that year. (The County reserves the right to determine placement of other Subrecipients on the Annual Compliance Monitoring Plan for reasons stated above.)
Criteria Points Awarded
New Subrecipient (Subrecipients with no awards within the last 10 years) 3 Subrecipients with three (3) or more grants awarded within the time frame 5 + 3 ea. addt’l grant Total award within period is equal to or greater than $50,000 5 + 3 ea. addt’l $25k Last compliance review more than 3 years ago (previous Subrecipients) 3pts Previous compliance monitoring finding (within 5 years) 5pts Previous independent audit finding (within 5 years) 5pts The Annual Compliance Monitoring Plan is prepared by the DNCO OES and is approved by the County Administrative Officer and/or the Assistant County Administrative Officer.
Grants Monitoring Procedures Manual – Version 1.1 – December 2022 6 Exhibit B
COMPLIANCE REVIEW PROCESS
Compliance Review
The objective of a compliance review is to ensure the Subrecipient complies with the Code of Federal Regulations, applicable state laws, and other governing regulations, internal policies, and general good business practices. The compliance review process is outlined below:
Notification Letter: The compliance review begins with the issuance of a notification letter.
The purpose of this letter is to notify the point of contact listed for the Subrecipient in writing that a compliance review will be conducted. The letter identifies the grant(s) selected for review, scope of the review, due date for documents requested, and proposed date of field inspection.
Request for Documentation: A request for documentation is included with the notification letter. These records might include, but are not limited to, contracts, invoices, procurement records, indirect costs methodology, property ledger, and personnel ledger, including timesheets and supporting documentation to support match.
Internal Controls Questionnaire: An internal controls questionnaire is included with the notification letter. The questionnaire asks specific questions regarding internal controls, procurement process, personnel, and amount of state and federal grant funding received.
Entrance Conference (Meeting): An entrance conference is scheduled with the Subrecipient’s executive management and key personnel to discuss the purpose, objectives and scope of the compliance review. The Monitor will explain the compliance review process, review the documentation provided and follow up on any missing/incomplete records, and inquire if there are any specific areas where the Subrecipient would like focused technical assistance. Additionally, the Monitor will confirm the date of the field inspection.
Field Inspection: During the field inspection, the Monitor(s) will visit the Subrecipient's physical location to verify equipment purchases and test equipment management practices.
Exit Conference: The lead Monitor will schedule an Exit Conference with the Subrecipient within 30 days of the Field Inspection to discuss the results of the compliance review and any concerns that may have arisen. A draft compliance report will be provided to the Subrecipient no less than three (3) working days before the exit conference. The exit conference provides an opportunity to resolve any questions the Subrecipient may have about the concerns raised and address any other issues before the compliance report is finalized.
Grants Monitoring Procedures Manual – Version 1.1 – December 2022 7 Exhibit B
Paperwork and Reporting
Good documentation throughout the Compliance Review Process helps support conclusions, build trust between the Grantee and Subrecipient, and assists with providing technical assistance as needed.
Working Papers: Monitors should prepare and organize their working papers in a manner that helps provide an appropriate quality review. The Monitors should avoid preparing or accumulating unnecessary working papers or making extensive copies of the Subrecipient records. It is neither necessary nor practical for the monitors to document every matter considered during the review. Documentation supporting all findings must be retained in the working file. Good working papers should meet the monitoring requirements by displaying the following characteristics:
State the dates of the review, as well as the year of the grant(s) under review, so that the working paper is not confused with documentation belonging to a different year/period; List what was reviewed in the limited scope desk and field inspection review. This will enable the Monitor, and any subsequent reviewers, to determine the sufficiency of the review evidence provided by the working paper;
Document any technical assistance requested and/or provided; Working papers should clearly and objectively state the results of each tenant of the limited scope desk and filed inspection compliance reviews; Conclusions should be consistent with the results of the review and should be able to withstand independent scrutiny;
Working papers should be signed by the person who prepares them; and Working papers should be signed and dated by any person who reviews them; and Working papers should be filed appropriately as to be found easily when required at a later date.
Working papers should provide evidence that an effective, efficient, and accurate review has been carried out. They should be completed in a manner so that a Monitor with no previous experience of the review can understand the work completed and how the conclusion was reached.
Compliance Review Report: The next step is to issue the compliance review report to the Subrecipient including senior management and key administrative staff. The report outlines all non-compliance issues and findings, provides recommendations for improvement and may request the Subrecipient generate a CAP.
Findings: A finding is an operational deficiency in internal controls, noncompliance with provisions of laws, regulations, contracts, Grant Subawards, or fraud, waste and abuse.
Grants Monitoring Procedures Manual – Version 1.1 – December 2022 8 Exhibit B
Recommendations: A recommendation must provide a course of action that will correct a finding or issue that has been identified and provide improvements. Recommendations should be action-oriented, convincing, well-supported, and effective.
Questioned Costs: A questioned cost can result from a violation, or possible violation, of a statute, regulation, or the terms and conditions of a federal Grant Subaward. In addition, it could be a cost not supported by adequate documents, or appears unreasonable and does not reflect the actions a prudent Subrecipient would take in the circumstances.
Disallowed Costs: A disallowed cost is a charge that the pass-through entity determines to be unallowable according to the Code of Federal Regulations and the State or County Administrative Manual. Some examples of disallowed costs can be the purchase of alcohol, lobbying, or costs pertaining to waste, fraud, and abuse.
CAP: Once the Subrecipient receives the compliance review report, they will have 30 days to either dispute the findings or provide a CAP to correct and address any finding(s). After a CAP is received, the Subrecipient has six months from the date of the report to implement the CAP and to pay back any disallowed costs. If necessary, follow-up reviews will be conducted by the County to ensure that corrective actions are implemented timely.
If a Subrecipient fails to comply with the required necessary corrections identified, funding may be suspended until corrections are completed. Failure to comply with grant requirements may subject the Subrecipient to Special Conditions of future funding opportunities or the Subrecipient may be required to pay back a reimbursement.
Closing Letter: Once the CAP is received and the Subrecipient has satisfactorily addressed and/or corrected all findings, Grants Management will issue a closing letter informing the Subrecipient that the compliance review is closed.
Appeals Process: If the Subrecipient does not agree with the finding, they have 30 days from the date the compliance review report is issued to dispute the finding in writing and provide additional supporting documentation. If the finding is not cleared with the additional information provided, a notification letter will be issued. The Subrecipient may appeal the decision to the County within 30 days of the notification letter. The final decision on any appeal rests with the County Administrative Officer.
Grants Monitoring Procedures Manual – Version 1.1 – December 2022 9 Exhibit B
COMPLIANCE MONITORING PLAN / RISK ASSESSMENT
Subrecipients of federal grants are required to comply with the Title 2 CFR § 200.501(a). This section requires that a non-federal entity that expends $750,000 or more during the non-federal entity's fiscal year in federal awards must have a single or program-specific audit conducted for that year and submitted within the earlier of 30 calendar days after receipt of auditor's report or nine months after the end of the audit period. A non-federal entity that expends less than the $750,000 during the non-federal entity's fiscal year in federal awards is exempt from federal audit requirements for that year. Guidance on determining federal awards expended is provided in accordance with Title 2 CFR § 200.502.
Monitors review Subrecipients to ensure they comply with the audit requirement. On an annual basis, Grants Monitoring requests Subrecipients complete an Audit Form certifying whether they meet or are exempt from the audit requirement. If they meet the requirement, they must submit a copy of their single or program-specific audit report. The audit reports are tracked and used to conduct the annual risk assessment.
All audits received are tracked and reviewed within 30 days of receipt, and if required, follow-up is initiated to ensure corrective action is implemented on all DNCO OES findings. Audits with DNCO OES findings are issued a Management Decision Letter upon resolution of the finding. Subrecipients that do not comply with the audit requirement may not be eligible for future grant funding.