• R equests for bribes/kickbacks/gratuities by County personnel • F avoritism/nepotism in the awarding of County contracts, selection of vendors or hiring of Subrecipient’s employees
• T heft or misuse of any funds, resources or equipment • F alsification of records
• V iolation of conflict of interest requirements; etc.
2.0 Failure to report the types of fraud/misconduct discussed above may be grounds for termination of this Subaward as solely determined by County.
3.0 Reports can be made anonymously to the Los Angeles County Department of Auditor-Controller, Office of County Investigations as follows:
Website: www.fraud.lacounty.gov
E-Mail Address: [email protected]
Fraud Hotline: (800) 544-6861
Mail: County of Los Angeles
Department of Auditor-Controller
Office of County Investigations
500 W. Temple St., Suite 514
Los Angeles, CA 90012
4.0 User Complaint Report
4.1 County’s staff shall complete the User Complaint Report (UCR) to report Subrecipient’s non-compliance with the requirements of this Subaward. Areas of Subrecipient’s non-compliance include, but are not limited to, the following:
• S ubrecipient’s Project Manager or other staff not responding to messages/requests from County staff.
• S ubrecipient’s Project Manager or other staff does not attend trainings/meetings required by County.
• S ubrecipient staff changes without prior notification to County. • I llegal or inappropriate behavior by Subrecipient’s staff. • S ubrecipient not submitting reports/documents or maintaining records as required.
• Subrecipient not complying with the quality assurance requirements as specified in this Subaward.
4.2 County’s Compliance Manager shall maintain the UCR, and it will be used to evaluate Subrecipient’s performance of the requirements of this Subaward in addition to being used as the basis for placing Subrecipient on probation, suspending payment, suspending this Subaward, terminating this Subaward or any other remedies that are available in this Subaward. The UCR may also be used during County’s solicitation process to evaluate Subrecipient's past performance on this Subaward in addition to being used when Subrecipient requests a reference from County for purposes of applying for other grants.
ATTACHMENT NO. 2
FY 202 -2
EXHIBIT R
(JOINT FUNDING REVENUE DISCLOSURE)
List all revenue provided to Subrecipient on an annual basis (including the Subaward Sums, foundation grants, donations, etc.). Use additional pages as necessary.
Revenue Source (Agency or Organization
Name, Contact Name and Phone Number) Funding Amount Funding Period Start Date End Date
PAGE TOTAL
GRAND TOTAL OF ALL PAGES
Subrecipient’s Legal Name Number
Name of Preparer (Print) Date Prepared
ATTACHMENT NO. 2
EXHIBIT S
(PURCHASE, INVENTORY AND DISPOSAL REQUIREMENTS
FOR FIXED ASSETS, NON-FIXED ASSETS AND SUPPLIES)
I. GOVERNING REGULATIONS AND POLICIES
A. If this Subaward indicates that Subrecipient may purchase Fixed Assets, Non -Fixed Assets and Supplies using Subaward Sums , pursuant to Subp aragraph 9.5 (Fixed Assets, Non -Fixed Assets and Supplies) of the Subaward , Subrecipient shall adhere to all Federal, State and County purchasing and fiscal policies, procedures and requirements. Regardless of the source of the Subaward Sums (i.e., Federal, State or County/local monies), Subrecipient shall adhere to these purchasing, inventor y and disposal requirements for all Fixed Assets, Non-Fixed Assets and Supplies which are defined in Section II (Fixed Asset, Non -Fixed Asset and Supplies), herein. Such requirements include, but are not limited to, the following:
1.0 Area Agency on Aging (AAA) Programs:
1.1 The requirements of this Exhibit S.
1.2 Administrative requirements, procurement standards
and cost principles (Administrative Requirements)
outlined in Title 2 Code of Federal Regulations P art
200 et seq. and Title 45 Code of Federal
Regulations Part 75 et seq.
1.3 Additional requirements which may be communicated
to Subrecipient through County memorandum,
directives, Change Notices, Subaward Amendments,
etc.
2.0 All Other Programs :
2.1 The requirements of this Exhibit S.
2.2 Administrative requirements, procurement
standards and cost principles (Administrative
Requirements) outlined in Title 2 Code of Federal
Regulations Part 200 et seq.
2.3 Additional requirements which may be communicated
to Subrecipient through County memorandum,
directives, Change Notices, Subaward Amendments,
etc.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 2
B. Throughout this Exhibit S, references will be made to the Administrative Requirements. These references shall mean that Subrecipient shall follow Administrative Requirements that apply to Subrecipient based on the type of Program being funded through this Subaward (e.g., Area Agency on Aging Programs , etc.) and the type of entity that best describes Subrecipient’s organization (e.g., non - profit, local government, educational institution, etc.).
C. The requirements outlined in this Section I, herein, are applicable to Fixed Assets and Non -Fixed Assets. When specific requirements related to Supplies are not addressed, Subrecipient shall exercise the same due diligence and care required for the purchase, inventory and disposal of Fixed Assets and Non -Fixed Assets when Subrecipient uses Subaward Sums to purchase Supplies.
D. In the event of any conflict or inconsistency between the requirements established in this Exhibit S and any of the governing Administrative Requirements, the conflict shall be resolved by giving precedence to the governing Administrative Requirements.
II. FIXED ASSET, NON-FIXED ASSET AND SUPPLIES
A. Fixed Asset
1.0 A Fixed Asset is an item which has all of the following attributes:
1.1 Includes, but is not limited to, property, plant,
equipment, land, buildings, additions, attachments,
improvements, betterments, machinery, vehicles,
furniture, tools, intangibles, mineral resources, etc.
used to conduct business under this Subaward and are
not consumed/sold during the normal course of
Subrecipient’s business under this Subaward. Such
asset must provide a direct benefit to the Program and
Services.
1.2 Has a normal useful life of at least one (1) year and has a unit acquisition cost that is $5,000 or more.
1.2.1 For purposes of determining how to classify
items as either a Fixed Asset or a Non -Fixed
Asset, a unit is defined as either one (1) item or
a group of individual items which are purchased
together as a bundle in order to be used
together. As an example, a desktop computer
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 3
system which includes a tower along with other
peripheral items such as a monitor and/or
printer or a laptop system which also includes
additional peripherals are considered one (1)
unit when each of these systems are purchased
as a unit.
1.2.2 The unit acquisition cost is the net invoice price of a unit, which includes shipping costs and
sales taxes, any applicable credits and
discounts as well as the cost of any
modifications, attachments, accessories, or
auxiliary apparatus which are necessary to
make this unit usable for the purpose for which
it is acquired.
1.2.3 To determine the unit acquisition cost of an
asset, consider the following example: four (4)
identical pieces of equipment, which cost $3,000
each, totaling $12,000 would not meet the
$5,000 unit acquisition cost threshold.
1.3 Is either purchased with Subaward Sums and/or was
acquired by Subrecipient under a Predecessor
Agreement(s) for the same/similar purpose as this
Subaward. Such purchases must be allowable and
allocable under the requirements of this Subaward.
For purposes of this Subaward, a Predecessor
Agreement(s) shall mean a subaward between County
and Subrecipient that was executed prior to this
Subaward for the same/ similar Program Services as
this Subaward, and such subaward has expired or
terminated.
2.0 Must be ordered or purchased no later than May 31 st of the Fiscal Year.
B. Non-Fixed Asset
1.0 A Non-Fixed Asset is an item which has all of the following attributes:
1.1 Does not meet all of the requirements for a Fixed
Asset, which are outlined above in Subsection II.A
(Fixed Asset), herein, and includes, but is not limited to, computers, laptops, copier machines, printers, etc.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 4
used to conduct business under this Subaward . Such
asset must provide a direct benefit to the Program and
Services.
1.2 Has a normal useful life of over one (1) year and has a unit acquisition cost that is less than $5,000 but is at least $500.
1.2.1 For purposes of determining how to classify
items as either a Fixed Asset or a Non -Fixed
Asset, a unit is defined as either one (1) item or
a group of individual items which are purchased
together as a bundle in order to be used
together. As an exam ple, a desktop computer
system which includes a tower along with other
peripheral items such as a monitor and/or printer
or a laptop system which also includes additional
peripherals are considered one (1) unit when
each of these systems are purchased as a unit.
1.2.2 The unit acquisition cost is the net invoice price of a unit, which includes shipping costs and
sales taxes, any applicable credits and
discounts as well as the cost of any
modifications, attachments, accessories, or
auxiliary a pparatus which are necessary to
make this unit usable for the purpose for which it
is acquired.
1.2.3 To determine the unit acquisition cost of an
asset, consider the following example: four (4)
identical pieces of equipment, which cost $3,000
each, total ing $12,000 would meet the
requirements for the unit acquisition cost
described herein.
1.3 All computing devices, regardless of cost (including but not limited to, workstations, servers, laptops, personal digital assistants, notebook computers, tablets,
smartphones and cellphones).
1.4 All Portable electronic storage media, regardless of cost (including but not limited to, thumb/flash drives and portable hard drives).
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 5
1.5 Is either purchased with Subaward Sums and/or was
acquired by Subrecipient under a Predecessor
Agreement(s). Such purchases must be allowable and
allocable under the requirements of this Subaward.
1.6 Must be ordered or purchased no later than May 31 st of the Fiscal Year.
2.0 Whatever amount is approved for the equipment must be the same amount that’s reflected on the Budget.
3.0 You must submit a minimum of three (3) bids when
requesting approval for equipment.
C. Usage of the Term “Assets”
1.0 Throughout the entirety of this Exhibit S, references will be made to items that are classified as either Fixed Assets or Non-Fixed Assets. The use of these classifications is based on whether the item meets the requirements outlined in
Subsection II.A (Fixed Asset), herein, and Subsection II.B (Non-Fixed Asset), herein. In some instances where a specific type of asset is being discussed or addressed, the
appropriate term will be used to identify that asset as either a Fixed Asset or a Non -Fixed Asset. Otherwise, any usage of the specific term “Assets” shall mean that the requirements apply to both Fixed Assets and Non -Fixed Assets, collectively (hereafter “Assets”).
D. Types of Assets
1.0 Additions and Attachments are products that typically involve physical extensions of existing units that are necessary to make these units usable for the purposes for which they are acquired, but do not involve renovations.
1.1 An Addition or an Attachment is considered a Fixed
Asset when its cost, combined with the cost of the unit it is attached to, along with its other characteristics, meet the definition of a Fixed Asset as set forth
herein.
1.2 Examples of Additions and Attachments include new
rooms, new roof, new heating, ventilation and air
conditioning (HVAC) system added to an existing
building, etc.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 6
2.0 Improvements and Betterments are products that typically do not increase the physical size of the unit.
2.1 Requirements for AAA Programs and all Other
Programs
2.1.1 Improvements and Betterments enhance the
condition of a unit (e.g., extend life, increase
service capacity, lower operating costs, etc.).
2.1.2 An Improvement or a Betterment is considered
a Fixed Asset when the final cost of the unit
being improved or bettered along with its other
characteristics, meet the definition of a Fixed
Asset as set forth in Subsection II.A (Fixed
Asset), herein.
2.1.3 Examples of Fixed Assets that might be
improved or bettered include roads, bridges,
curbs and gutters, tunnels, parking lots, streets
and sidewalks, drainage and lighting systems,
etc.
3.0 Intangible Property is an item which lacks physical substance but gives valuable rights to the owner; and, such item can be either a Fixed Asset or a Non-Fixed Asset.
3.1 The acquisition cost of the Intangible Property
includes all amounts incurred to acquire and to ready
the Asset for its intended use. Typical Intangible
Property costs include the purchase price, legal fees,
and other costs incurred to obtain title to the Asset.
3.2 Examples of Intangible Property include patents,
copyrights, leases, computer software, etc.
4.0 Hardware consists of tangible equipment including
computers, printers, terminals, etc.; and, such item can be either a Fixed Asset or a Non -Fixed Asset.
E. Supplies
1.0 Supplies are items which have all of the following attributes:
1.1 Are goods, materials or other items which are
consumed during the normal course of business and
may include, but are not limited to, paper, pencils,
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 7
printer cartridges, file folders, etc. (i.e., Supplies are items which are used in such a way that once used,
they cannot be re-used or recovered afterward).
1.2 Have a unit acquisition cost that is less than $500.
1.3 Are necessary for Subrecipient to effectively and
efficiently carry out the objectives, tasks and activities of the Program and provide Services hereunder.
1.4 Are either purchased with Subaward Sums and/or were acquired by Subrecipient under a Predecessor
Agreement(s).
III. GENERAL REQUIREMENTS FOR ASSETS AND SUPPLIES
A. The following requirements are applicable to both Assets and Supplies. In some areas, the requirements are only applicable to Assets; however, Subrecipient shall exercise due diligence in the use and maintenance of Supplies when specific requirements related to Supplies are not addressed.
B. Management of Assets and Supplies
1.0 To prevent misuse, destruction or theft, Subrecipient shall exercise due diligence in its care, use, maintenance,
protection and preservation of all Assets and Supplies.
2.0 During the entire term of this Subaward, Subrecipient is responsible for the replacement or repair of Assets until Subrecipient has complied with all written instructions f rom County regarding the final disposition of the Assets as detailed in Section X (Disposal Requirements for Assets and Supplies) herein.
3.0 Subrecipient shall not use Assets or Supplies for personal gain or to usurp the competitive advantage of a privat ely- owned business entity.
4.0 Subrecipient shall use Assets and Supplies for the purpose for which they are intended under this Subaward. When no longer needed for that purpose, Subrecipient shall treat them as prescribed in Section X (Disposal Requireme nts for Assets and Supplies), herein.
5.0 Subrecipient may share use of Assets or allow use by other programs upon prior written approval of County. As a
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 8
condition of approval, County may require payment under this Subaward for that use.
C. Loss, Destruction or Theft of Assets
1.0 Subrecipient shall promptly investigate, fully document and report the loss, destruction or theft of Assets. Subrecipient shall report such loss, destruction or theft as follows:
1.1 Subrecipient shall notify the local law enforcement agency with jurisdiction over the location where the
crime occurred by telephone (and confirmed in writing
by filing a police report) within twenty -four (24) hours of occurrence or discovery of such incident.
1.2 Subrecipient shall notify County’s Contract Manager by telephone (and confirmed in writing) or by e -mail within five (5) bus iness days of occurrence or discovery of
such crime. Subrecipient shall prepare an Incident
Report, as described below, which shall be provided to
County’s Contract Manager.
1.3 Incident Report
1.3.1 At a minimum, Subrecipient’s Incident Report of
such loss shall contain the following elements:
1.3.1.1 Identification of the Asset(s)
1.3.1.2 Recorded value(s) of each Asset
1.3.1.3 Facts relating to the crime
1.3.1.4 A copy of the police report, where
appropriate
1.3.2 Subrecipient shall retain the Incident Report
pursuant to the record retention requirements
outlined in Subparagraph 8.38 (Record
Retention, Inspection and Audit Settlement) of
the Subaward.
2.0 Subrecipient agrees to indemnify County for any loss resulting from the use of any Assets.
IV. DEPRECIATION, USE ALLOWANCE AND CAPITALIZATION POLICY
FOR ASSETS
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 9
A. Any Asset purchased with the Federal portion of Subaward Sums, if any, and/or with Subrecipient’s required matching contributions may not be depreciated or capitalized.
B. Any Asset purchased with the non -Federal portion of Subaward Sums, if any, may be capitalized and/or depreciated over the estimated useful lives of these Assets pursuant to Subrecipient’s acquisition policies.
C. Unless otherwise approved by County, compensation for the use of buildings and other capital improvements may b e made through depreciation, or a use allowance:
1.0 The computation of depreciation/use allowance is based on the acquisition cost of the asset(s).
2.0 The computation should exclude the cost of land, buildings, and equipment donated by federal, State o r County
governments and the cost of buildings and land contributed by Subrecipient to satisfy funding matching requirements.
3.0 For depreciation, an appropriate useful life must be established for the asset(s) which considers factors such as the natu re of the asset used, susceptibility to technological obsolescence, etc.
4.0 A use allowance is computed as an annual rate that may not exceed an annual rate of two -percent (2%) of the acquisition cost if the asset is a building or improvement. A use
allowance in excess of the ceiling percentage must be justified by Subrecipient.
V. TITLE TO ASSETS
A. Assets Purchased with Subaward Sums
1.0 Unless otherwise required by Federal or State laws or regulations, or as agreed upon in writing by the parties, Assets remain the property of County until such time as County approves the final disposition of the Assets (i.e., County retains title to all Assets used in the performance of this Subaward).
B. Assets Purchased Under a Predecessor Agreement(s)
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 10
1.0 Unless otherwise required by Federal or State laws or regulations or as agreed upon in writing by the parties, Assets purchased under a Predecessor Agreement(s) remain the property of County until such time as County approves the final disposition of these Assets (i.e., County retains title to all Assets purchased under a Predecessor Agreement(s)).
C. Title to Vehicles
1.0 County retains title to vehicles that are purchased with Subaward Sums . County also retains title to vehicles
purchased with funds from a Predecessor Agreement(s),
when such vehicles are currently in the possession of
Subrecipient.
2.0 Vehicles shall be registered only in the name of Subrecipient.
Such registration applies to all vehicles which are purchased with Subaward Sums as well as those purchased under a
Predecessor Agreement(s), when such vehicles are currently in the possession of Subrecipient.
3.0 For each vehicle(s) purchased with the Subaward Sum(s) under this Subaward and/or under a Predecessor Agreement that is u sed in the operation of the Program (i.e., County - owned vehicle(s)), Subrecipient shall ensure that such
vehicle(s) undergo a certified smog inspection as required under applicable State and Los Angeles County laws.
Subrecipient must receive evidence of a passing inspection (i.e., smog certificate) for each vehicle and shall submit a copy of the smog certificate to County’s Compliance Manager on an annual basis in the manner and timeframe designated by
County. When the vehicle(s) is not required to undergo a smog inspection during any year, Subrecipient shall provide evidence (copy of vehicle registration, etc.) indicating that the inspection is not warranted for the specified year.
D. Throughout the entire term of this Subaward, Subrecipient shall adhere to the following:
1.0 Subrecipient shall provide current, ongoing and adequate insurance covering all vehicle drivers pursuant to
Subparagraph 8.24 (General Provisions for all Insurance Coverage) and Paragraph 8.25 (Insurance Coverage) of t he Subaward.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 11
2.0 Subrecipient shall ensure that each vehicle driver has a current, valid California driver's license.
VI. APPROVAL REQUIREMENTS FOR PURCHASING ASSETS
A. Necessary Prior Approval to Purchase Assets for Area Agency on Aging Programs
1.0 Prior to purchasing or acquiring any Assets, Subrecipient must receive written approval from County authorizing the purchase when Subrecipient will use any amount of Subaward Sums to purchase the Asset. Prior approval is also required for the following:
1.1 All computing devices, regardless of cost (including but not limited to, workstations, servers, laptops, personal digital assistants, notebook computers, tablets,
smartphones and cellphones).
1.2 All Portable electronic storage media, regardless of cost (including but not limited to, thumb/flash drives and portable hard drives).
2.0 Prior approval is not required for the purchase of Supplies.
However, Subrecipient shall adhere to all of the other
procurement policies governing the purchase of Supplies as outlined herein and in accordance with Administrative
Requirements.
3.0 Subrecipient shall submit a written request to County’s Contract Manager to request authorizati on to purchase such Asset. Subrecipient shall submit this written request at least thirty (30) days in advance of the date/time that Subrecipient intends to purchase the Asset.
4.0 Upon receiving written approval from County, Subrecipient shall ensure that all Asset purchases are also approved in writing by Subrecipient’s Board of Directors or its Authorized Representative, before the Asset is purchased.
5.0 County’s approval of Subrecipient’s Budget does not constitute approval for Subrecipient to purchase the Asset.
Once all written approvals have been received, Subrecipient shall then include the Asset in its Budget and proceed with the purchase.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 12
6.0 Examples
6.1 If Subrecipient intends to purchase an item which costs $475 and Subrecipient will use $475 of Subaward
Sums to purchase this item, prior approval is not
required.
6.2 If Subrecipient intends to purchase an item, which costs $550 and Subrecipient will use $500 of Subaward
Sums to purchase this item, prior written approval is
required.
VII. APPROVAL REQUIREMENTS FOR DISPOSING OF ASSETS
A. Necessary Prior Approval to Dispose of Assets for AAA Programs:
1.0 Subrecipient shall obtain prior written approval from County (and State) in order to sell, trade -in, discard , or transfer to another entity any Asset with a unit acquisition cost of at least $500 and/or any item which meets the standar ds outlined in the Subaward perta ining to Information Technology .
Subrecipient shall not dispose of any Asset or Information Technology product unless/until Subrecipient receives such written approval.
2.0 Subrecipient shall contact County’s Contract Manager to obtain specific instructions on how to request prior approval, and Subrecipient shall adhere to all County and State
requirements for the disposal of these Assets /Information Technology product.
3.0 Prior to the sale, trade -in, discard or transfer of any Asset consisting of electronic equipment with digital memory or storage capability, Subrecipient shall send a written
notification to County’s Contract Manager attesting that the device’s memory and/or any information stored in the memory is permanently removed, erased and cleared of all Subaward, Program and Client related records and information (or any information that would compromise Subrecipient’s ability to adhere to the confidential ity requirements of this Subaward, including Subparagraph 7.6 (Confidentiality) of the Subaward, Exhibit F1 (Subrecipient Acknowledgement and
Confidentiality Agreement), and Exhibit I (Business Associate Agreement Under the Health Insurance Portability and
Accountability Act of 199 6 (HIPAA)) – if/when Exhibit I (Business Associate Agreement Under the Health Insurance ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 13
Portability and Accountability Act of 1996 (HIPAA)) is included with this Subaward.
4.0 Upon receipt of written approval from County, Subrecipient shall follow all guidelines to dispose of Assets and Supplies pursuant to Section X (Disposal Requirements for Assets and Supplies), herein.
B. Necessary Prior Approval to Dispose of Assets for all Other Programs:
1.0 Subrecipient shall obtain prior written approval from County in order to sell, trade -in, discard or transfer to another entity any Asset with a unit acquisition cost of at least $500, or $300 if purchased under a Predecessor Agreement(s) (regardless of the residual or current fair market value of the Asset).
Subrecipient shall not dispose of any Asset unless/until Subrecipient receives such written approval.
2.0 Subrecipient shall contact County’s Contract Manager to obtain specific instructions on how to request prior approval from County, and Subrecipient shall adhere to all County requirements for the disposal of these Assets.
3.0 Prior to the sale, transfer, donation or other disposal of any Asset consisting of electronic equipment with digital memory or storage ca pability, Subrecipient shall send a written notification to County’s Contract Manager attesting that the device’s memory and/or any information stored in the
memory is permanently removed, erased and cleared of all Subaward, Program and Client related records and
information (or any information that would compromise
Subrecipient ’s ability to adhere to the confidentiality requirements of this Subaward, including Subparagraph 7.6 (Confidentiality), Exhibit F1 (Subrecipient Acknowledgement and Confidentiality Agreement), and Exhibit I (Business Associate Agreement Under the Health Insurance Po rtability and Accountability Act of 199 6 (HIPAA)) – if/when Exhibit I (Business Associate Agreement Under the Health Insurance Portability and Accountability Act of 199 6 (HIPAA)) is included with this Subaward .
4.0 Upon receipt of written approval from County, Subrecipient shall follow all guidelines to dispose of Assets and Supplies pursuant to Section X (Disposal Requirements for Assets and Supplies), herein.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 14
D. Necessary Prior Approval to Use Program Income from S ales Revenue
1.0 Subrecipient shall obtain prior written approval from County in order to use Program Income derived from revenue earned after the sale of Assets pursuant to Exhibit Q (Accounting, Administration and Reporting Requirements).
2.0 Subrecipient shall contact County’s Pro gram Manager to obtain specific instructions on how to request prior approval from County, and Subrecipient shall adhere to all County requirements for the use of such Program Income.
VIII. PURCHASE REQUIREMENTS FOR ASSETS
A. The following requirements are applicable only to Assets.
However, Subrecipient shall exercise due diligence in the purchase of Supplies when specific requirements related to Supplies are not addressed.
B. Cost Requirements
1.0 Subrecipient shall perform a cost or price analysis prior to the purchase of an Asset.
1.1 A cost analysis includes the review and evaluation of each element of cost to determine its reasonableness,
allocability and allowability. Subrecipient shall ensure that the cost of the Assets are allowable and allocable pursuant to the cost principles outlined in
Administrative Requirements.
1.2 A price analysis includes the comparison of price
quotations submitted, market prices, and similar
indicia, together with discounts.
2.0 Subrecipient shall conduct an analysis of lease and purchase alternatives to determine the most economical and practical procurement method.
3.0 Subrecipient shall avoid purchasing unnecessary or
duplicative items. Subrecipient shall ensure that the costs for Assets are reasonable and proper and that the Assets are necessary to carry out the purposes and activities of the Program (or are necessary and reasonable for the proper and efficient accomplishment of Program objectives).
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 15
4.0 Subrecipient shall ensure that all costs associated with the purchase of an Asset are included in the Asset’s true actual cost (i.e., the true actual cost of the Asset should include all amounts to be incurred to acquire and to ready the Asset for its intended u se). The true actual cost shall also include any deductions for discounts, refunds, adjustments, rebates and allowances received by Subrecipient as well as any charges for taxes, delivery/shipping, etc.
5.0 Subrecipient shall only charge the true actual co st of the Asset to this Subaward. If the true actual cost of the Asset is allocable to multiple funding sources, the share of costs charged to this Subaward shall not be charged by
Subrecipient to another grant, program or contract.
C. Competitive Procurement
1.0 Subrecipient shall conduct all procurements for Assets in a manner that provides full, open and free competition
consistent with the procurement standards outlined in
Administrative Requirements.
2.0 Subrecipient shall ensure that it obtains and thoroughly evaluates a minimum of three (3) written competitive bids from the best known sources prior to purchasing the Asset.
3.0 Subrecipient shall avoid organizational conflicts of interest and non-competitive practices among vendors that may
restrict or eliminate competition or otherwise restrain trade.
4.0 Subrecipient or Subrecipient’s agent who develops or drafts specifications, requirements, statements of work, invitation for bids and/or request for proposals for the procurement of Assets shall be excluded from competing for such
procurements.
5.0 Subrecipient shall select the most responsible vendor whose bid is most responsive to the requirements outlined in the solicitation.
6.0 Sole Source Procurement (Non-competitive Procurement)
6.1 Sole source procurement is the solicitation of a
proposal from only one (1) source or after solicitation from a number of sources, competition is determined
inadequate.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 16
6.2 Sole source procurement may only be used when the
procurement is not feasible under the small purchase
procedures, sealed bids or competitive proposals (as
defined in Administrative Requirements and at least
one (1) of the following applies:
6.2.1 The Asset is available only from a single
source/vendor.
6.2.2 Public exigency or emergency for the Asset will
not permit a delay resulting from a competitive
solicitation.
6.2.3 County provides written authorization for non -
competitive procurement of the Asset.
6.2.4 After solicitation of a number of sources, and
with written approval from County, competition
is determined inadequate.
6.3 The sol e source procurement must be documented,
and such documentation shall include a full
justification providing an explanation as to why this
non-competitive procurement method was used.
7.0 Subrecipient shall ensure that solicitations for Assets provide:
7.1 Clear and accurate description of the technical
requirements for the Asset to be procured and such
description shall not contain features which unduly
restrict competition.
7.2 Requirements which the bidder must fulfill and all
other factors to be used in evaluating bids.
7.3 Description of the functions to be performed (i.e., performance required), including the minimum
acceptable standards.
7.4 Description of specific features of “brand name”
products or an equivalent that bidders are required to
meet when such items are included in the solicitation.
7.5 Acceptance, to the extent possible and as
economically feasible, of Assets dimensioned in the
metric system of measurement.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 17
7.6 Preference, to the extent possible and as
economically feasible, for Assets that conserve
natural resources, protect the environment and are
energy efficient.
8.0 Subrecipient shall make an effort to utilize small businesses, minority -owned firms and women’s business enterprises
whenever possible, pursuant to the procurement procedures outlined in the applicable Administrative Requirements.
D. Procurement Instrument
1.0 Subrecipient shall determine the type of procuring or contracting instrument to be used for the purchase. Such instrument may include purchase orders, fixed price
subawards , cost reimbursable subawards , etc.
2.0 Subrecipient shall determine and use the most appropriate instrument for the particular procurement and such
instrument shall promote the best interests of the Program.
3.0 “Cost-plus-a-percentage-of-cost” or “percentage of construction cost” methods of contracting shall not be used.
E. Documentation Requirements
1.0 Subrecipient shall maintain proper forms of documentation to demonstrate the significant history of the procurement for all Assets (e.g., requisitions, purchase orders, receipts, price quotes/vendor bids, etc.).
2.0 Subrecipient shall have written internal procurement procedures in place (including processes for vendor
selection, requisition approval, etc.).
3.0 Subrecipient shall maintain documentation of its cost/price analysis and any sole source procurement.
4.0 Subrecipient’s Budget
4.1 Subrecipient shall report Assets purchased with
Subaward Sums on the Budget. Prior to reporting
Assets on the Budget, Subrecipient shall receive
written approval from County in order to purchase
Assets as detailed in Section VI (Approval
Requirements for Purchasing Assets), herein.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 18
4.2 Assets purchased by Subrecipient shall match the
Assets reported on the Budget.
4.3 The total cost of Assets purchased shall not exceed the amounts reported on the Budget. Subrecipient
shall be liable for the cost of any Asset when that cost exceeds the amount approved by County for the
purchase of the Asset.
4.4 In the event that the actual purchase price is less than the cost reported on the Budget, Subrecipient shall
submit a Budget Modification to County’s Contract
Manager before the end of the Fiscal Year pursuant to
Subparagraph 9.9 (Modifications) of the Subaward.
5.0 Additional Documentation Requirements for Area Agency on Aging Programs
5.1 In addition to the documentation requirements
outlined above, the following requirements shall also
apply to AAA Programs:
5.1.1 Subrecipient shall submit supporting
documents including, but not limited to,
receipts, purchase orders, invoices, etc. for all
Assets.
5.1.2 The supporting documents shall be submitted
to County’s Contract Manager at the same time
that Subrecipient submits its invoice to County
for the Asset.
F. Assets must be physically received prior to the end of the Fiscal Year during which they are purchased.
G. Assets purchased either wholly with the Federal share of Subaward Sums and/or with any required Subrecipient matching contrib ution shall be charged directly to the Program.
IX. INVENTORY REQUIREMENTS FOR ASSETS
A. The following requirements are applicable only to Assets.
However, Subrecipient shall exercise reasonable care in the maintenance and tracking of Supplies.
B. Asset Bar Code Identification Tags
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 19
1.0 Subrecipient shall ensure that all Assets are properly identified with Asset Bar Code Identification tags. These tags include a unique identifier which is used to track the Asset until its final disposition.
2.0 Subrecipient shall notify County’s Contract Manager to obtain the Asset Bar Code Identification tags and Coun ty is
responsible for ensuring that all Assets are tagged. As such, Subrecipient shall provide County full access to these Assets so that County can affix the tags on each Asset.
C. Inventory Tracking
1.0 Every two (2) years, or more frequently as requested by County, Subrecipient shall conduct a physical inventory of all Assets and shall document its activities. Subrecipient shall reconcile the results with Subrecipient’s Asset accounting and inventory records.
2.0 Subrecipient shall investigate any difference(s) between quantities determined by the physical inspection and those shown in the accounting and inventory records to determine the causes of the difference(s).
3.0 As part of its inventory tracking, Subrecipient shall verify the existence, current utilization and continued need for Assets.
4.0 Subrecipient shall inventory these Assets until the final disposition procedures have been completed for the Assets.
Upon final disposition of the Assets, Subrecipient shall remove these Assets from its accounting and inventory
records. Subrecipient shall continue to maintain the
disposition records in accordance with the record retention requirements outlined in Subparagraph 8.38 (Record
Retention, Inspection and Audit Settlement) of the Subaward.
D. Reporting Current Fiscal Year
1.0 As part of the annual Closeout process which is conducted at the end of each Fiscal Year, Subrecipient shall complete its report of all Assets purchased during that Fiscal Year.
2.0 Subrecipient shall maintain supporting records for all Assets.
3.0 County may require Subrecipient to submit such supporting records upon request.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 20
4.0 Subrecipient shall ensure that the information on the supporting records match the information reflected on
County’s inventory records.
X. DISPOSAL REQUIREMENTS FOR ASSETS AND SUPPLIES
A. The following requirements are applicable to both Assets and Supplies. Additionally, Subrecipient shall exercise due diligenc e to dispose of Supplies when specific requirements related to Supplies are not addressed. Subrecipient shall ensure that it obtains prior written approval from County in order to dispose of Assets pursuant to Section VII (Approval Requirements for Disposi ng of Assets), herein.
B. Consistent with Federal and State regulations, Subrecipient may dispose of Assets and Supplies pursuant to the guidelines reflected in this Exhibit S as well as in the Administrative Requirements.
C. For purposes of this Exhibit S, disposal shall include the sale, discard, transfer, donation, trade-in or other disposal of Assets.
D. Only Assets that are considered Salvage or Surplus may be sold, transferred, donated or otherwise disposed of.
1.0 Salvage items include Assets which are obsolete, broken or irreparable.
2.0 Surplus items are Assets which are no longer needed for the Program due to expiration or termination of this Subaward, termination of the Program, dissolution of Subrecipient’s operations, or other similar circumstances.
3.0 Subrecipient may sell, transfer, donate or otherwise dispose of Assets when these conditions are met:
3.1 Only after the Assets have first been offered to and declined in writing by County.
3.2 The sale, transfer, donation or other disposal does not create a conflict of interest for County or
Subrecipient . For purposes of this Exhibit S, a
conflict of interest may exist when the disposal of
Assets involves certain individuals or entities who
become the recipients of these Assets. The se
individuals and entities may include the
following: Subrecipient employees; Subrecipient
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 21
employees' family members; entities that conduct
business or have a relationship with Subrecipient;
Clients; etc.
E. Disposition of Assets upon Dissolution of Subrecipient’s Operations, Expiration or Termination of Subaward or Termination of Program
1.0 County reserves the right to determine the final disposition of the Assets when any of the following occurs:
1.1 After dissolution of Subrecipient’s operations
1.2 Upon expiration or termination of this Subaward
1.3 When the Program, for which Assets were purchased,
has ended
2.0 Disposition may include, but is not limited to, County taking possession of and acquiring the Assets.
3.0 Subrecipient shall prepare a final Inventory Control Form reflecting the Assets to be provided to County, and shall submit it to County’s Contract Manager within the timeframe designated by County.
4.0 County reserves the right to require Subrecipient to transfer such Assets to another entity, including, but not limited to, State, County or another subrecipient.
5.0 To exerc ise the right referenced in Sub section X.E.4.0, herein, County will issue specific written disposition
instructions to Subrecipient no later than nin ety (90) days after expiration or termination of this Subaward, notification of Subrecipient's dissolution or termination of the Program.
F. Supplies
1.0 Subrecipient shall compensate County for its share of the residual inventory of unused Supplies if the residual or current fair market value of the inventory exceeds $500 or more in the aggregate when the items are no longer needed for either the Program or another Federally-funded program.
2.0 The aggregate value in this case is the total value of all remaining unused Supplies.
G. Current Fair Market Value
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 22
1.0 Subrecipient shall determine the current fair market value of all Assets being sold, transferred, disposed of or donated.
2.0 Subrecipient shall use one (1) or more of the following methods/resources to determine the current fair market value of an Asset:
2.1 Orion Computer Blue Book
2.2 Professional or expert appraisal
2.3 Public advertisement
2.4 Industry quotation
2.5 Other similar methods/resources
H. Sale of Assets
1.0 After receiving written approval from County for this action, Subrecipient may sell Assets, which meet t he requirements outlined in Sub sections X.D.1.0 – X.D.3.0, herein, as a method of disposing those Assets.
2.0 Subrecipient shall have proper sales procedures in place in order to sell Assets. These procedures shall provide for competition to the extent practicable and shall result in the highest possible return.
3.0 Subrecipient shall recor d all sales revenue infor mation relating to the sale or disposition of the Assets. Revenue from the sale of Assets becomes Program Income and
Subrecipient may be required to reimburse County for the revenue that is earned pursuant to Exhibit Q (Accounting, Administration and Reporting Requirements).
4.0 After the sale of an Asset, Subrecipient shall prepare an updated Inventory Control Form and submit it to County ’s Contract Manager within the timeframe to be specified by County. The updated Inventory Control Form shall reflect information on the Assets sold.
5.0 Subrecipient shall obtain receipts from the recipient of the sale item(s) acknowledging receipt of the sale item(s) and shall forward copies of the receipts to Cou nty’s Contract Manager along with the completed Inventory Control Form.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 23
I. Transfer of Assets
1.0 After receiving written approval from County to transfer Assets, which meet t he requirements outlined in Sub sections X.D.1.0 – X.D.3.0, herein, Subrecipient may proceed with this action as a method of disposing those Assets.
2.0 Subrecipient shall transfer Assets according to this order:
2.1 To another program providing the same or similar
service as that provided under this Subaward.
2.2 To a Federally or State-funded program.
3.0 After the transfer of an Asset, Subrecipient shall prepare an updated Inventory Control Form and shall submit it to County’s Contract Manager within the timeframe to be
specified by County. The updated Inventory Control Form shall reflect information for the Assets transferred.
4.0 Subrecipient shall obtain receipts from the recipient of the transferred item(s) acknowledging receipt of the transferred item(s). Subrecipient shall forward copies of these receipts to County’s Contract Manager along with the completed
Inventory Control Form.
J. Donation of Assets
1.0 After receiving written approval from County to donate Assets, which meet t he requirements outlined in
Subsections X.D.1.0 – X.D.3.0, herein, Subrecipient may proceed with this action as a method of disposing those Assets.
2.0 To donate Assets, Subrecipient shall:
2.1 Prepare an updated Inventory Control Form and
submit it to County’s Contract Manager within the
timeframe to be specified by County. The updated
Inventory Control Form shall reflect information for the Assets donated.
2.2 Obtain receipts from the recipient of the donated
item(s) acknowledging receipt of the donated item(s)
and shall forward copies of the receipts to County’s
Contract Manager along with the completed Inventory
Control Form.
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 24
2.3 Obtain liability waiver(s) for donated items.
Subrecipient shall be responsible for developing its
own liability waiver, which should provide the
following information, at a minimum:
2.3.1 Names and addresses of Subrecipient and
recipient organization.
2.3.2 Complete description of the Asset(s) being
donated including, but not limited to, Asset Bar
Code Identification tag number, Asset name
and make/model, serial number, quantity and
condition.
2.3.3 Date when donation was received by recipient
organization.
2.3.4 Certification statement to be attested to by
recipient organization releasing Subrecipient
from all liability for the donated Asset(s).
2.3.5 Name, signature and title of the recipient
organization’s authorized representative.
XI. NON-COMPLIANCE WITH PURCHASE, INVENTORY AND DISPOSAL
REQUIREMENTS
A. Subrecipient shall be under a continuing obligation throughout the entire term of this Subaward to comply with the purchase, inventory and disposal requirements outlined in this Exhibit S and in Administrative Requirements.
B. Subrecipient’s non -compliance with these requirements shall subject Subrecipient to remedies which will be determined by County at County’s sole discretion. Such remedies may include, but are not limited to, those actions noted in Subparagraph 9.19 (Remedies for Non-Compliance) of the Subaward. County may also impose the following rem edies as warranted by the non - compliance:
1.0 Disallow the cost for Assets purchased without prior written approval
2.0 Require Subrecipient to remit payment for Assets which are not properly disposed or inventoried
ATTACHMENT NO. 2
Exhibit S (Purchase, Inventory and Disposal Requirements for Fixed Assets, Non -Fixed Assets and Supplies)
Rev. 09/2022 Page 25
3.0 Remove those Assets from Subrecipient which are not properly maintained pursuant to the requirements outlined herein.
XII. RECORDKEEPING
A. Subrecipient shall retain all Inventory Control Forms and all supporting records (including but not limited to invoices, receipts, purchase orders, etc.) for Assets and Supplies pursuant to Subparagraph 8.38 (Record Retention , Inspection and Audit Settlement) of the Subaward.
B. Subrecipient shall make these documents available for collection and/or viewing by Federal, State and County authorities upon request.
ATTACHMENT NO. 2
EXHIBIT T (LIST OF )
Select the certification below that is applicable to s)/ (s):
intends to use (s)/ (s) to provide Program Services (details are provided in the chart below).
will not use (s)/ (s) to provide Program Services.
Description of Services
to be PerformedLegal Name Address and Phone Number
Congregate Meal Services
Home-Delivered Meal Services
Other (if applicable): Click here to enter text.
Click here to enter phone
number.
If you need to report additional s, use this Exhibit and include page numbers on each completed Exhibit as
FY 202 -202 (ENP) Page Enter # of Enter #
ATTACHMENT NO. 2
ATTACHMENT NO. 2