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HomeMy WebLinkAbout6. NEW BUSINESS 5/4/04 Village of Mount Prospect Community Development Department MEMORANDUM MICHAEL E. JANONIS, VILLAGE MANAGER TO: FROM: DATE: SUBJECT: MARISA WARNEKE, NEIGHBORHOOD PLANNER APRIL 26, 2004 RESOLUTIONS AUTHORIZING EXECUTION OF AGREEMENTS BETWE N THE VILLAGE AND CDBG SUB-RECIPIENTS As you may recall, on November 7, 2003 the Village Board approved the 2004 Community Development Block Grant (CDBG) Action Plan. This plan includes funding for several public service agencies that provide a variety of services and programs for the Village's low- and moderate-income residents. Attached, please find contracts for t he agencies I isted below and resolutions a uthorizing the execution of agreements between the V illage of Mount Prospect and these individual agencies: . Camp Fire USA Metropolitan Chicago Council CEDA Northwest Self-Help Center, Inc. - Child Care Broker Program CEDA Northwest Self-Help Center, Inc. - Emergency Housing Program Children's Advocacy Center Clayground Creative Center Girl Scouts Illinois Crossroads Council Greater Wheeling Area Youth Organization - Summer Adventure Journeys From PADS To HOPE, Inc. Mount Prospect Park District - Club RecPlex Orchard Village - Rehab Resource Center For the Elderly - Senior-Shared Housing Program Resources For Community Living Special Leisure Services Foundation Suburban Primary Health Care Council- Access To Care WINGS . . . . . . . . . . . . . . Please forward this memorandum and attached resolutions to the Village Board for their review and consideration at their May 4, 2004 meeting. Staff will be present at the meeting to answer any questions related to this matter. ~oncur . irector of Community Development mw H:\PLAN\CDBG\2004\Sub-Recipients\Contract Memo to Board.doc RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND RESOURCE CENTER FOR THE ELDERL Y FOR SENIOR SHARED HOUSING WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that the Resource Center for the Elderly shall provide a program to match homeowners or apartment dwellers with home seekers; providing affordable housing for the elderly, single parent, persons on fixed incomes, displaced homemakers, and other low income persons needing affordable housing for residents within the corporate boundaries of the Village of Mount Prospect; and WHEREAS, the program proposed by the Resource Center for the Elderly and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and the Resource Center for the Elderly, a not-for-profit corporate, a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit" A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004 Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H:\PLAN\CDBG\2004\Sub-Rccipieu1sIRCElResuluûon 2004.40< f AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND RESOURCE CENTER FOR THE ELDERLY SENIOR-SHARED HOUSING PROGRAM FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and the Resource Center for the Elderly (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) Senior- Shared Housing Program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to match elderly homeowners with home seekers as outlined in the Scope of Services attached herewith as Exhibit A. B. NationalObiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. II. III. .A C. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Activity Senior-Shared Housing Average Clients/Month .66/Month Total Clients/Y ear 8/Yr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $3,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-110 Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal 2 IV. report (depending on the reporting system the Sub-Recipient has decided to use) for the requested pay period. The Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub-Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. C. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub- Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Monthly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. 3 v. VI. B. Final Report A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments of the program for the fiscal year, from January 1, 2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. c. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub-Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts of the Grantee or any of its officers and employees. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect . 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Ms. Suzanne Skala Executive Director Resource Center for the Elderly 1801 W. Central Road Arlington Heights, IL 60005 (847) 577-7070 Fax: (847) 577-7073 GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- 4 Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. C. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub-Recipient's performance under this Agreement. The Sub- Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub- Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. D. Amendments 5 VII. The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendmefits make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub-Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations ofthe Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. AD MINIS TRA TIVE REO UIREMENT S A. Financial Management 1. Accounting Standards 6 The Sub-Recipient agrees to comply with Attachment F of OMB Circular I- 110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one ofthe National Objectives ofthe CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub- Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention 7 The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 8 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub-Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub- Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law, Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. C. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non- expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-110, Procurement Standards, and shall subsequently follow Attachment N, Property 9 VIII. Management Standards as modified by 24 CFR 570.502(b)(6), coveTIng utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & PAR TICIP ANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub- Recipient. 10 B. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and 11 IX. the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) 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 Sub- Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.200(j). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT RESOURCE CENTER FOR THE ELDERLY BY: BY: President of the Village Board Executive Director ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND JOURNEYS FROM PADS TO HOPE, INC. WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that Hope Now Inc. shall referral, counseling, and resource services for the homeless and near homeless population of Mount Prospect. WHEREAS, the project proposed by Journeys From PADS to HOPE, Inc. and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and Journeys from PADS to HOPE, Inc., a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit "A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004 Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H: \P LAN\CD BG \2 004 IS u b- Roc i pi en 1s'J ou m cys lReso lu Û on 2 004. doc c; AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND JOURNEYS FROM PADS TO HOPE FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and the Journeys from PADS to HOPE (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to provide case management services, preventative, services, follow-up, advocacy, transportation, housing and food vouchers, emergency medical referral and vouchers, housing location inspection, job preparation, employment services, and clothing and food pantry resources for the homeless and near homeless population of Mount Prospect as outlined in the Scope of Services attached herewith as Exhibit A. B. National Obi ectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. C. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Average Clients/Month 2.08/ Month Total Clients/Y ear 25/Yr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. II. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. III. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $5,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-110 Attachment F. 2 IV. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal report (depending on the reporting system the Sub-Recipient has decided to use) for the requested pay period. The Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub- Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. c. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub-Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances £rom the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Quarterly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 3 V. VI. 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. B. Final Report A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments of the program for the fiscal year, from January 1,2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. C. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub- Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts of the Grantee or any of its officers and employees. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Mr. Geoffrey Gephart Director of Development Journeys from PADS to HOPE 1140 E. Northwest Highway Palatine, IL 60067 (847) 963-9163 Fax: (847) 963-9120 GENERAL CONDITIONS 4 A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. C. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub- Recipient's performance under this Agreement. The Sub-Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf ofthe Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub-Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. 5 VII. D. Amendments The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub- Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRATIVE REQUIREMENTS 6 A. Financial Management 1. Accounting Standards The Sub-Recipient agrees to comply with Attachment F of OMB Circular 1-110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub-Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention 7 The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 8 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub- Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub-Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law, Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. c. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-llO, Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 3. Travel 9 VIII. The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & P ARTICIP ANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the S ub- Recipient. B. Conduct 1. Assignments 10 The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Pro gram. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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 11 IX. officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, it will complete and submit Standard Fonn- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all sub awards at all tiers (including subcontracts, subgrants, and contracts under grants, loans and cooperative agreements) and that all Sub-Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.200(j). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT JOURNEYS FROM PADS TO HOPE BY: BY: President of the Village Board Director of Development ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND WINGS PROGRAM, INC. WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that WINGS Program, Inc. shall provide a transitional living program for women and their children who are homeless for near homeless and homeless low and moderate income residents of the Village of Mount Prospect; and WHEREAS, the program proposed by the WINGS Program, Inc. and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and the WINGS Program, Inc., for the provision of a transitional housing program, a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit "A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H:\PLAN\CDBG\2004\Su b-Rccipicn1s\ WINGSIRcsoIulion 2004.doc ~ AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND WINGS PROGRAM, INC. FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and WINGS Program, Inc. (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to provide women and their children with a transitional living program as outlined in the Scope of Services attached herewith as Exhibit A. B. National Obiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. II. III. c. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Average Clients/Month .33 Households/Month Total Clients/Y ear 4 HouseholdslYr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $3,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-l10 Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal report (depending on the reporting system the Sub-Recipient has decided to use) for the requested pay period. The Grantee will determine the appropriate amount to 2 IV. allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub-Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. C. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub- Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Quarterly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. 3 V. VI. B. Final Report A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments of the program for the fiscal year, from January 1, 2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15,2005. C. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub-Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts of the Grantee or any of its officers and employees. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Ms. Rebecca Darr Executive Director 887 E. Wilmette Road, Suite E-2 Palatine, IL 60074 (847) 963-8910 Fax: (847) 963-8920 GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. 4 The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. C. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub-Recipient's performance under this Agreement. The Sub- Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub- Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. D. Amendments The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in 5 VII. writing, signed by a duly authorized representative of both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub-Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. AD MINIS TRA TIVE REQUIREMENTS A. Financial Management 1. Accounting Standards 6 The Sub-Recipient agrees to comply with Attachment F of OMB Circular I- 110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives ofthe CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub- Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention 7 The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 8 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub-Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub- Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law, Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG- funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. C. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non- expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-II 0, Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 9 VIII. 3. Travel The Sub-Recipient shall obtain written approval ITom the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & P ARTICIP ANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub- Recipient. 10 B. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbving The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 11 IX. 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, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all sub awards at all tiers (including subcontracts, sub grants, and contracts under grants, loans and cooperative agreements) and that all Sub- Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.200G). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT WINGS PROGRAM, INC. BY: BY: President of the Village Board Executive Director ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND THE GREATER WHEELING AREA YOUTH OUTREACH, INC. WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that the Greater Wheeling Area Youth Outreach, Inc. shall provide "Summer Adventure" a summer program that includes educational and recreational activities for the residents of the Boxwood Area located within the corporate limits ofthe Village of Mount Prospect; and WHEREAS, the program proposed by the Greater Wheeling Area Youth Outreach, Inc. and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and the Greater Wheeling Area Youth Outreach, Inc., a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit" A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H:\PLAN\CDBG\2004\SUB-RECIPIENTS\SUMMER ADVENTUREIRESOLUTtON 2004.DOC I AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND GREATER WHEELING AREA YOUTH OUTREACH, INC. FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and the Greater Wheeling Area Youth Outreach, Inc. (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) Summer Adventure Program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to provide a summer day camp to youth from the southern area of Mount Prospect as outlined in the Scope of Services attached herewith as Exhibit A. B. National Obiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. II. III. c. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Activity Summer Adventure Total Clients/Y ear 100IYr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $14,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-110 Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal report (depending on the reporting system the Sub-Recipient has decided to use) for 2 IV. the requested pay period. The Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub-Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. C. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub- Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the u.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Summer Monthly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. 3 V. VI. B. Final Report A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments ofthe program for the fiscal year, from January 1, 2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15,2005. c. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub-Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts of the Grantee or any of its officers and employees. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient Mr. William J. Cooney, JI. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Mr. Phillip Herman Executive Director GW A YO 550 Business Center Drive Mount Prospect, IL 60056 (847) 759-0679 Fax: (847) 759-0687 GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- 4 Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. C. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub-Recipient's performance under this Agreement. The Sub- Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub- Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. D. Amendments 5 VII. The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub-Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards 6 The Sub-Recipient agrees to comply with Attachment F of OMB Circular I- 110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-l10; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub- Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention 7 The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. Disclosure 4. The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 8 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub-Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub- Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law. Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. C. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non- expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-II 0, 9 VIII. Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & P ARTICIP ANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub- Recipient. 10 B. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and 11 IX. the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) 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 Sub- Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.2000). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT GREATER WHEELING YOUTH OUTREACH, INe. BY: BY: President of the Village Board Executive Director ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND SPECIAL LEISURE SERVICES FOUNDATION WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that the Resource Center for Community Living shall provide a program an "inclusion program" which allows residents of Mount Prospect with special needs to participate in park district programs with their non-disabled peers. WHEREAS, the program proposed by the Special Leisure Services Foundation and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and Special Leisure Services Foundation a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit" A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H:\PLANlCDBG\2004\Sub-Rccipicn1sISLSlRcsolution 2004.doc :.r AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND SPECIAL LEISURE SERVICES FOUNDATION FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and the Special Leisure Services Foundation (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) Inclusion Program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub...Recipient for operation of a program to provide an inclusion program that would give 33 individuals with special needs the opportunity to participate in a park district program with their non- disabled peers as outlined in the Scope of Services attached herewith as Exhibit A. B. National Obiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. II. III. C. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Activity Inclusion Program Average Clients/Season 2.75/Season Total Clients/Y ear 33/Yr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall hot exceed $2.500.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-llO Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal report (depending on the 2 IV. reporting system the Sub-Recipient has decided to use) for the requested pay period. The Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub- Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. C. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub-Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Seasonal Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. 3 v. VI. B. Final Report A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments of the program for the fiscal year, from January 1, 2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15,2005. c. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub- Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts of the Grantee or any of its officers and employees. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient MY. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 MY. Kevin Kendrigan President Special Leisure Services Foundation 3000 Central Road, Suite 205 Rolling Meadows, IL 60008 (847) 392-2848 Fax: (847) 392-2870 GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. 4 The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations ofthe Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub- Recipient. C. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub- Recipient's performance under this Agreement. The Sub-Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub-Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. D. Amendments The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the 5 VII. Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub- Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Sub-Recipient agrees to comply with Attachment F of OMB Circular"1-110 and agrees to adhere to the accounting principles and procedures required therein, 6 utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-II 0; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub-Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities 7 funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 7. Audits & Inspections 8 All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub- Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub-Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law, Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. c. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-110, Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. 9 VIII. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. N ondiscriminati on The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub-Recipient. B. Conduct 1. Assignments 10 The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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 11 IX. Congress in connection with this Federal contract, grant, loan or cooperative agreement, it will complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, sub grants, and contracts under grants, loans and cooperative agreements) and that all Sub-Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.2000). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT SPECIAL LEISURE SERVICES BY: BY: President of the Village Board President ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND RESOURCES FOR COMMUNITY LIVING WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that the Resource Center for Community Living shall provide a program that includes "Community Living," and "Shared Housing for Special Populations" for the residents of the Village of Mount Prospect in the corporate boundaries of the Village of Mount Prospect; and WHEREAS, the program proposed by the Resource Center for Community Living and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and the Resource Center for Community Living, a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit "A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H:\PLAN\CDBG\2004\Su b-Rccipieu1sIRCL \Resolution 2004.doc \( AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND RESOURCES FOR COMMUNITY LIVING FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and Resources for Community Living (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; SCOPE OF SERVICE I. A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to provide housing options and support services to people with developmental and/or physical disabilities as outlined in the Scope of Services attached herewith as Exhibit A. B. NationalObiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. II. III. C. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Average Clients/Month 1.66/Month Total Clients/Y ear 20IYr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $6,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-11O Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal report (depending on the reporting system the Sub-Recipient has decided to use) for the requested pay period. The Grantee will determine the appropriate amount to allocate per reporting period depending 2 IV. on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub- Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. C. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub-Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Monthly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. B. Final Report 3 V. VI. A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments of the program for the fiscal year, from January 1, 2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. c. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub- Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts ofthe Grantee or any of its officers and employees. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub- Recipient Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Dr. Robert Walsh Executive Director Resources for Community Living 4300 Lincoln Avenue, Suite K Rolling Meadows, IL 60008 (847) 701-1554 Fax: (847) 701-1560 GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. 4 The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. c. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub- Recipient's performance under this Agreement. The Sub-Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf ofthe Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub-Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. D. Amendments The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the 5 VII. Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub- Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval ofthe Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Sub-Recipient agrees to comply with Attachment F of OMB Circular 1-110 and agrees to adhere to the accounting principles and procedures required therein, 6 utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Princi{>les The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-lID; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub-Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, 7 litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b)(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 7. Audits & Inspections 8 All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub- Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub-Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law. Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. c. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-110, Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 3. Travel 9 VIII. The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & P ARTICIP ANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub-Recipient. 10 B. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited ITom using funds provided herein or personnel employed in the administration ofthe program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 11 IX 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, it will complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all sub awards at all tiers (including subcontracts, subgrants, and contracts under grants, loans and cooperative agreements) and that all Sub-Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.200(j). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT RESOURCES FOR COMMUNITY LIVING BY: BY: President of the Village Board Executive Director ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND ORCHARD VILLAGE WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that Orchard Village provides a group home for adults with disabilities to Mount Prospect residents within the corporate limits of Mount Prospect; and WHEREAS, the project proposed by the Orchard Village and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and the CEDA Northwest Self-Help Center, to rehabilitate the group home located in Mount Prospect. A copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit "A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H:\PLAN\CDBG\2004\SUB-RECIPIENTSIORCHARD VILLAGElRESOLUTlON 2004.DQC L ..- AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND ORCHARD VILLAGE FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and Orchard Village (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; SCOPE OF SERVICE I. A. Activities The Grantee elects to contract for services with the Sub-Recipient for the rehabilitation of 703 N. Eastman, a small group home in Mount Prospect. Orchard Village's mission statement is outlined in the Scope of Services attached herewith as Exhibit A. B. NationalObiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. II. III. C. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $20,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-I10 Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub- Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub-Recipient. 2 IV. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. C. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub- Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the u.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Final Report A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments ofthe program for the fiscal year, from January 1, 2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. B. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub-Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts of the Grantee or any of its officers and employees. 3 V. VI. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient Mr. William J. Cooney, JI. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 MI. John Winke Resource Development Officer Orchard Village 7670 Marmora Manor Skokie, IL 60077 (847) 967-1800 Fax: (847) 967-9543 GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. 4 c. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub-Recipient's performance under this Agreement. The Sub- Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub- Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. D. Amendments The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub-Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the 5 VII. Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photo graphs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the eVent there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Sub-Recipient agrees to comply with Attachment F of OMB Circular I- 110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities 6 to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one ofthe National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-llO; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub- Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure 7 The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub-Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub- Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law. Regulations and Orders 8 VIII. The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CPR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. c. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non- expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-llO, Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & PAR TICIP ANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act. 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the 9 Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub- Recipient. B. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest 10 The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all sub awards at all tiers (including subcontracts, sub grants, and contracts under grants, loans and cooperative agreements) and that all Sub- Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d 11 IX. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.200(j). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT ORCHARD VILLAGE BY: President of the Village Board BY: Resource Development Officer ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND GIRL SCOUTS - ILLINOIS CROSSROADS COUNCIL WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that Girl-Scout Illinois Crossroad Council shall provide quality program activities that will change attitudes and behavior and equip girls and female teens with information and skills they need to become competent, confident adults in the corporate limits of the Village of Mount Prospect; and WHEREAS, the program proposed by the Girl-Scouts-Illinois Crossroads Council and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and, Girl Scouts-Illinois Crossroads Council a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit "A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H,IPLANlCDBG\2004\Sub-Recipieu1slGid ScoutslResotuûon 2004.doc M AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND GIRL SCOUTS - ILLINOIS CROSSROADS COUNCIL FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and the Girl Scouts - Illinois Crossroads Council (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) ¡Soy Unica! ¡Soy Latina! in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to provide Girl Scouting services to girls ages 9 to 14, especially of the Hispanic population as outlined in the Scope of Services attached herewith as Exhibit A. B. National Obi ectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. Levels of Accomplishment c. In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Activity ¡Soy Unica! ¡Soy Latina! Average Clients/Month 10.42/Month Total Clients/Y ear 125/Yr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. II. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. III. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $4,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-I10 Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal report (depending on the reporting system the Sub-Recipient has decided to use) for the requested pay period. The Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of 2 IV. certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub- Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. C. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub-Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Monthly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. B. Final Report A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments of the program for the fiscal year, from January 1, 2004 to 3 December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. C. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub- Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts ofthe Grantee or any of its officers and employees. V. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 VI. GENERAL CONDITIONS A. General Compliance Sub-Recipient Ms. Mary Otte Marketing Manager Girl Scouts - Illinois Crossroads 100 650 N. Lakeview Pkwy, PO Box 8116 Vernon Hills, IL 60061 (847) 573-0500 Fax: (847) 573-1104 The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner 4 affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. C. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub- Recipient's performance under this Agreement. The Sub-Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub-Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. D. Amendments The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement 5 VII. The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub- Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Sub-Recipient agrees to comply with Attachment F of OMB Circular 1-110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles 6 The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives ofthe CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-1l0; and g. Other records necessary to document compliance with Subpart K of24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub-Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration ofthe three-year period, whichever occurs later. 7 Client Data 3. The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub- 8 VIII. Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub-Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law, Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. C. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-lIO, Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards as modified by 24 CFR 570.502(b )(6), covering utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & P ARTICIP ANT CONDITIONS 9 B. A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub-Recipient. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 10 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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, it will complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all sub awards at all tiers 11 IX. (including subcontracts, sub grants, and contracts under grants, loans and cooperative agreements) and that all Sub-Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, u.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.200G). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT GIRL SCOUTS ILLINOIS CROSSROADS COUNCIL BY: BY: President of the Village Board Marketing Manager ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND MOUNT PROSPECT PARK DISTRICT FOR CLUB REC PLEX WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees ofthe Village of Mount Prospect that the Mount Prospect Park District shall provide a Friday evening youth program for the residents of the Village of Mount Prospect in the corporate boundaries of the Village of Mount Prospect; and WHEREAS, the program proposed by the Mount Prospect Park District and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and the Mount Prospect Park District, a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit" A". SECTION TWO: That this Resolution shall be in full force and effect ITom and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H:\PLAN\CDBG\2004\Sub-Rccipicn1s\Club RecPlexlRe501ution 2004.doc ~\ AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND THE MT. PROSPECT PARK DISTRICT- CLUBRECPLEXPROGRAM FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and the Mt. Prospect Park District (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) Club RecPlex in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to provide supervised recreational amenities Friday evenings as outlined in the Scope of Services attached herewith as Exhibit A. B. NationalObiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. c. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Activity Club RecPlex Average Clients/Month 333.33/Month Total Clients/Year 4000IYr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. II. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including pro gram income. III. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $2,000.00. Payments may be contingent upon certification of the Sub-Recipient' s financial management system in accordance with the standards specified in OMB Circular A-110 Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal report (depending on the 2 IV. reporting system the Sub-Recipient has decided to use) for the requested pay period. The Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub- Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. C. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub-Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Quarterly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. 3 B. Final Report A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments of the program for the fiscal year, ITom January 1,2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. C. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub- Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising ITom the negligent acts of the Grantee or any of its officers and employees. V. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Mr. Scott McClaskey Lions Center Coordinator Mt. Prospect Park District 411 S. Maple Street Mount Prospect, IL 60056 (847) 632-9333 Fax: (847) 632-9325 VI. GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- 4 Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. C. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub- Recipient's performance under this Agreement. The Sub-Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub-Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. 5 D. Amendments The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub- Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. 6 VII. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Sub-Recipient agrees to comply with Attachment F of OMB Circular 1-110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-I22 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives ofthe CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub-Recipient may establish program income criteria below that noted in Exhibit C. 7 2. Retention The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration ofthe three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b)(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 8 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub- Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub-Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law, Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. c. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-110, Procurement Standards, and shall subsequently follow Attachment N, Property Management 9 VIII. Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub-Recipient. 10 B. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 11 IX. 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, it will complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, sub grants, and contracts under grants, loans and cooperative agreements) and that all Sub-Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.200(j). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT MT. PROSPECT PARK DISTRICT BY: BY: President of the Village Board Lions Center Coordinator ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND CLA YGROUND, A DNISION OF RNER TRAILS PARK DISTRICT WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that Clayground, Inc. shall provide a teaching ceramics/art program for the residents of the Village of Mount Prospect located within the corporate limits of the Village of Mount Prospect; and WHEREAS, the program proposed by Clayground and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and Clayground, a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit" A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H: \P LANlCD BG \2 004 \Sub-Red pi eu 1sIC! aygroundIReso! orion 2 004. doc 0 AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND CLAYGROUND, A DIVISION OF RIVER TRAILS PARK DISTRICT FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and Clayground, a Division of River Trails Park District (herein referred to as the "Sub- Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to teach clay art and painting to 55 high risk youth as outlined in the Scope of Services attached herewith as Exhibit A. B. NationalObiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. II. III. C. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Activity Clayground Average Clients/Month 4.58/Month Total Clients/Y ear 55/Yr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $6,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-l10 Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal 2 IV. report (depending on the reporting system the Sub-Recipient has decided to use) for the requested pay period. The Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub-Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. c. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub- Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Monthly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. 3 V. VI. B. Final Report A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments of the program for the fiscal year, from January 1,2004 to December 31,2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. C. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub-Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts of the Grantee or any of its officers and employees. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Ms. Dianne Kovack President Clayground 550 Business Center Drive Mount Prospect, IL 60056 (847) 342-6653 Fax: (847) 255-1285 GENERAL CONDITIONS A. General Compliance 4 The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. C. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub-Recipient's performance under this Agreement. The Sub- Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub- Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. 5 VII. D. Amendments The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub-Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRA TNE REQUIREMENTS 6 A. Financial Managernent 1. Accounting Standards The Sub-Recipient agrees to comply with Attachment F of OMB Circular I- 110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-2l "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CPR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives ofthe CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub- Recipient may establish program income criteria below that noted in Exhibit C. 7 2. Retention The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash 8 advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub-Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub- Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law, Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. C. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non- expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards 9 VIII. The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-110, Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & P ARTICIP ANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable 10 laws and regulations concerning privacy and reasonable notice to the Sub- Recipient. B. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration ofthe program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any 11 IX. Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, sub grants, and contracts under grants, loans and cooperative agreements) and that all Sub- Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.200G). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT CLAYGROUND BY: BY: President of the Village Board President ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND CHILDREN'S ADVOCACY CENTER WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that Children's Advocacy Center, shall provide immediate support and crisis intervention to child victims of abuse and their parents, for the residents of Mount Prospect located within the corporate limits of the Village of Mount Prospect; and WHEREAS, the program proposed by the Children's Advocacy Center and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low and moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and Children's Advocacy Center, a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit "A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H:\PLAN\CDBG\2004\Sub-Recipien1s\Childrcn's Advocacy\Resolution 2004.doc l' AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND CHILDREN'S ADVOCACY CENTER FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and the Children's Advocacy Center (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; SCOPE OF SERVICE I. A. Activities The Sub-Recipient will be responsible for administering a CDBG Year 2004 program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to assist child victims of sexual assault and their families as outlined in the Scope of Services attached herewith as Exhibit A. B. National Objectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. C. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Activity Children's Advocacy Average Clients/Month 3.58/MONTH Total Clients/Year 43/YR D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. II. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. III. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $4,500.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-110 Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal report (depending on the reporting system the Sub-Recipient has decided to use) for the requested pay period. The 2 IV. Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub- Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. c. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub-Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the US. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Monthly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. B. Final Report 3 V. VI. A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments of the program for the fiscal year, from January 1,2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. C. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub- Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts of the Grantee or any of its officers and employees. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Mr. Mark Parr Executive Director Children's Advocacy Center 640 lllinois Boulevard Hoffinan Estates, IL 60194 (847) 885-0100 Fax: (847) 885-0187 GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. 4 The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. c. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub- Recipient's performance under this Agreement. The Sub-Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub-Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. D. Amendments The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and appróved by the 5 VII. Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement .' The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in thy funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub- Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with àny applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Sub-Recipient agrees to comply with Attachment F of OMB Circular 1-110 and agrees to adhere to the accounting principles and procedures required therein, 6 utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives ofthe CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub-Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, 7 litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration ofthe three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the 8 Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub- Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub-Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law. Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. c. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-llO, Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. 9 VIII. PERSONNEL & P ARTICIP ANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub-Recipient. B. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 10 2. Prohibited Activity The Sub-Recipient is prohibited ITom using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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, it will complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; 11 IX. c. It will require that the language of paragraph (d) of this certification be included in the award documents for all sub awards at all tiers (including subcontracts, sub grants, and contracts under grants, loans and cooperative agreements) and that all Sub-Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.200(j). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT CHILDREN'S ADVOCACY CENTER BY: BY: President of the Village Board Executive Director ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND THE CEDA NORTHWEST SELF-HELP CENTER WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that the CEDA Northwest Self-Help Center shall provides an emergency housing program and a child care subsidy program to assist near homeless and homeless low and moderate income residents of the Village of Mount Prospect; and WHEREAS, the programs proposed by the CEDA Northwest Self-Help Center and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and the CEDA Northwest Self-Help Center, for the provision of an Emergency Housing Program, a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit "A". SECTION TWO: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and the CEDA Northwest Self-Help Center, for provision of a Child Care Subsidy Program, a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit "B". SECTION THREE: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H:IPLAN\CDBG\2004\Sub-Rœipieu1sICEDAIResolntiou 2004.doc Q AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND CEDA NORTHWEST SELF-HELP CENTER FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and the CEDA Northwest Self-Help Center (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) Emergency Housing Program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to assist individuals with transitional housing, rent assistance and housing counseling as outlined in the Scope of Services attached herewith as Exhibit A. B. National Obiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. c. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Activity Emergency Housing Average Clients/Month 12.25/Month Total Clients/Y ear 147/Yr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. II. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. III. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $6,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-11O Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal report (depending on the reporting system the Sub-Recipient has decided to use) for the requested pay period. The 2 IV. Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub- Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. c. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub-Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances ITom the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Quarterly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. B. Final Report 3 A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments ofthe program for the fiscal year, :fÌ"om January 1, 2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. C. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub- Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising :fÌ"om the negligent acts ofthe Grantee or any of its officers and employees. v. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub- Recipient Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Mr. Ron Jordan Executive Director CEDA Northwest 1300 W. Northwest Hwy Mount Prospect, IL 60056 (847) 392-2332 Fax: (847) 392-2427 VI. GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. 4 The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. C. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub- Recipient's performance under this Agreement. The Sub-Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub-Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. D. Amendments The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the 5 VII. Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub- Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Sub-Recipient agrees to comply with Attachment F of OMB Circular 1-110 and agrees to adhere to the accounting principles and procedures required therein, 6 utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives ofthe CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-II 0; and g. Other records necessary to document compliance with Subpart K of24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub-Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, 7 litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for. services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 7. Audits & Ins{>ections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the 8 Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub- Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub-Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law, Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. C. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination ofthis contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-llO, Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. 9 VIII. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub-Recipient. B. Conduct 1. Assignments 10 The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which. are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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 11 IX. officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, it will complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, sub grants, and contracts under grants, loans and cooperative agreements) and that all Sub-Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.200(j). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT CEDA NORTHWEST BY: BY: President of the Village Board Executive Director ATTEST: Village Clerk Notary Public 13 AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND CEDA NORTHWEST SELF-HELP CENTER FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and the CEDA Northwest Self-Help Center (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) Child Care Broker Program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to assist low-and moderate-income residents with child care subsidies as outlined in the Scope of Services attached herewith as Exhibit A. B. National Obiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. II. III. c. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Activity Child Care Broker Average Clients/Month .42 Families/Month Total ClientsNear 5 FamiliesIYr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $4,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-110 Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal report (depending on the reporting system the Sub-Recipient has decided to use) for 2 IV. the requested pay period. The Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub-Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. c. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub- Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Quarterly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. 3 V. VI. B. Final Report A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments of the program for the fiscal year, from January 1, 2004 to December 31,2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. C. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub-Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts of the Grantee or any of its officers and employees. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Mr. Ron Jordan Executive Director CEDA Northwest 1300 W. Northwest Hwy Mount Prospect, IL 60056 (847) 392-2332 Fax: (847) 392-2427 GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- 4 Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. c. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub-Recipient's performance under this Agreement. The Sub- Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub- Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. D. Amendments 5 VII. The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient ffom its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub-Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards 6 The Sub-Recipient agrees to comply with Attachment F of OMB Circular I- 110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-I22 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one ofthe National Objectives ofthe CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub- Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention 7 The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 8 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub-Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub- Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law, Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. C. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non- expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-II 0, Procurement Standards, and shall subsequently follow Attachment N, Property 9 VIII. Management Standards as modified by 24 CFR 570.502(b)(6), covenng utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & PAR TICIP ANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub- Recipient. 10 B. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and 11 IX. the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all sub awards at all tiers (including subcontracts, sub grants, and contracts under grants, loans and cooperative agreements) and that all Sub- Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.2000). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT CEDA NORTHWEST BY: BY: Executive Director President of the Village Board ATTEST: Notary Public Village Clerk 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND CAMP FIRE USA, CHICAGO METROPOLITAN COUNCIL WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that Camp Fire USA, Chicago Metropolitan Council shall provide a summer program that includes educational and recreational activities for the residents of the Boxwood Area located within the corporate limits of the Village of Mount Prospect; and WHEREAS, the program proposed by Camp Fire USA, Chicago Metropolitan Council and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and Camp Fire USA, Chicago Metropolitan Council, a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit" A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk RIPLAN\CDBG\2004\SUB- RECIPIENTSICAMP FtREIRESOLUTION 2004 .DOC R AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND CAMP FIRE USA, CHICAGO METROPOLITAN COUNCIL FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and the Camp Fire USA, Chicago Metropolitan Council (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) Campin' Kids Program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to offer summer day camp to youth from the Boxwood area of Mount Prospect as outlined in the Scope of Services attached herewith as Exhibit A. B. NationalObiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. II. III. C. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Activity Campin' Kids Total Clients/Y ear 100IYr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $12,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-110 Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal report (depending on the reporting system the Sub-Recipient has decided to use) for 2 IV. the requested pay period. The Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub-Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. c. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub- Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Summer Monthly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. 3 V. VI. B. Final Report A final report shall accompany the Sub-Recipient's final billing. This report will highlight the accomplishments of the program for the fiscal year, from January 1, 2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. c. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub-Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts of the Grantee or any of its officers and employees. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Ms. Jean Lachowitz Executive Director Camp Fire USA 203 N. Wabash Ave., Suite 1518 Chicago, IL 60601 (312) 263-6218 (312) 263-6386 GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- 4 Recipient further agrees to'utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term ofthe award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. C. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors ITom any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub-Recipient's performance under this Agreement. The Sub- Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub- Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction ofthe defense. D. Amendments 5 VII. The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub-Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRATIVE REOUIREMENTS A. Financial Management 1. Accounting Standards 6 The Sub-Recipient agrees to comply with Attachment F of OMB Circular I- 110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-I22, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub- Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention 7 The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b)(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 8 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub-Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub- Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law, Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. C. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non- expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-II 0, Procurement Standards, and shall subsequently follow Attachment N, Property 9 VIII. Management Standards as modified by 24 CFR 570.502(b)(6), covenng utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, maritaVfamilial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub- Recipient. 10 B. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and 11 IX. the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all sub awards at all tiers (including subcontracts, subgrants, and contracts under grants, loans and cooperative agreements) and that all Sub- Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, u.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.2000). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT CAMP FIRE USA BY: BY: President of the Village Board Executive Director ATTEST: Village Clerk Notary Public 13 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND SUBURBAN PRIMARY HEALTH CARE COUNCIL, INC FOR THE ACCESS TO CARE PROGRAM WHEREAS, the Village of Mount Prospect is a recipient of funds under the Community Development Block Grant Program; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that the Suburban Primary Health Care Council, Inc. shall provide a program to facilitate access to primary health care in the corporate limits of the Village of Mount Prospect; and WHEREAS, the program proposed by the Suburban Primary Health Care Council, Inc. and approved herein, complies with the requirements of the Department of Housing and Urban Development with respect to benefiting low/moderate-income persons. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk directed to attest his signature on an agreement for Community Development Block Grant implementation, which Agreement is between the Village of Mount Prospect and Suburba:n Primary Health Care Council, Inc, a copy of which Agreement is attached hereto and hereby made a part hereof as Exhibit" A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by the law. AYES: NAYS: ABSENT: PASSED and APPROVED this 4th day of May 2004. Gerald L. Farley, Mayor ATTEST: Kimberly Dewis, Deputy Village Clerk H:\PLAN\CPBG\2004\SUB-RECIPIENTS\ACCESS TO CAREIRESOLUTION 2004.00C s .., ,..----. AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND SUBURBAN PRIMARY HEALTH CARE COUNCIL, INC. FOR THE ACCESS TO CARE PROGRAM FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, entered this day of , 2004, by and between the Village of Mount Prospect (herein referred to as the "Grantee") and the Suburban Primary Health Care Council, Inc. (herein referred to as the "Sub-Recipient"). WHEREAS, the Grantee has applied for and received Community Development Block Grant (herein referred to as "CDBG") funds from the United States Department of Housing and Urban Development (herein referred to HUD) under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Sub-Recipient to assist the Grantee in utilizing such funds NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Sub-Recipient will be responsible for administering a CDBG Year (2004) Access To Care in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. This program will include the following activities eligible under the CDBG program. The Grantee elects to contract for services with the Sub-Recipient for operation of a program to facilitate access to primary health care as outlined in the Scope of Services attached herewith as Exhibit A. B. NationalObiectives The Sub-Recipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives as defined in 24 CRF Part 570.208: 1. Benefit Low/Moderate Income Persons; 2. Aid in the prevention or elimination of slums or blight; or 3. Meet a need having a particular urgency/emergency. II. III. C. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Sub-Recipient agrees to provide the following levels of program services: Average Clients/Month 2.3/Month Total ClientsNear 28/Yr D. Performance Monitoring The Grantee will monitor the performance of the Sub-Recipient against goals and performance standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Recipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. TIME PERFORMANCE Services of the Sub-Recipient shall start on January 1, 2004 and end on December 31, 2004. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-Recipient remains in control of CDBG funds or other assets, including program income. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this contract shall not exceed $12,000.00. Payments may be contingent upon certification of the Sub-Recipient's financial management system in accordance with the standards specified in OMB Circular A-110 Attachment F. A. Payment Procedures The Grantee will pay to the Sub-Recipient funds available under this contract based upon information submitted by the Sub-Recipient and consistent with any approved budget and Grantee policy concerning payments. The Grantee will not process any invoices received until the Sub-Recipient submits a monthly, quarterly or seasonal 2 IV. report (depending on the reporting system the Sub-Recipient has decided to use) for the requested pay period. The Grantee will determine the appropriate amount to allocate per reporting period depending on the Levels of Accomplishment achieved by the Sub-Recipient. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Sub-Recipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Sub-Recipient. B. Indirect Costs If indirect costs are charged, the Sub-Recipient will develop an indirect cost allocation plan for determining the appropriate Sub-Recipient's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. C. Program Income The Sub-Recipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under the contract. The use of program income by the Sub-Recipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub- Recipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Guarantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income but needs to be remitted promptly to the Grantee. REPORTING A. Progress Reports The Sub-Recipient shall submit a Monthly Report to the Grantee in the form, content, and frequency as required by the Grantee. This report should include the following: 1. Each client served during the month using CDBG funds; 2. Client's address; and 3. Type of service used by that client. 3 v. VI. B. Final Report A final report shall accompany the Sub-Recipient' s final billing. This report will highlight the accomplishments ofthe program for the fiscal year, from January 1,2004 to December 31, 2004, summarize the number of Mount Prospect residents served and include the completion of Exhibit B, herein attached. This report shall be due no later than January 15, 2005. c. Submission to HUD Subsequent to the execution of this Agreement, the Grantee shall file all necessary documents with HUD and shall comply with all applicable rules and regulations necessary to facilitate acquisition of funds approved for this program by HUD. The Sub-Recipient shall not file any lawsuit against the Grantee or any of its officers or employees as a result of this contract, except that this Section shall not act as a bar to any lawsuits arising from the negligent acts of the Grantee or any of its officers and employees. NOTICES & COMMUNICATIONS Notices and communications under this Agreement shall be sent registered or certified mail postage prepaid to the respective parties as follows: Grantee Sub-Recipient Mr. William J. Cooney, Jr. Director of Community Development Village of Mount Prospect 100 S. Emerson Street Mount Prospect, IL 60056 (847) 818-5328 Fax: (847) 818-5329 Ms. Victoria Bigelow President Suburban Primary Health Care Council 2225 Enterprise Drive, Suite 2504 Westchester, IL 60154 (708) 531-0680 Fax: (708) 531-0686 GENERAL CONDITIONS A. General Compliance The Sub-Recipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG). The Sub- 4 Recipient further agrees to utilize funds available under this Agreement to supplement rater than supplant funds otherwise available. The Sub-Recipient shall, at all times, observe and comply with all laws, ordinances or regulations of the Federal, State, County and local government which may in any manner affect the performance of this Agreement, and the Sub-Recipient shall be required to perform all acts under this agreement in the same manner as the Grantee, as a contractor of the Federal Government, is or would be required to perform such acts. Suspension or termination shall occur if the Sub-Recipient materially fails to comply with any term of the award in accordance with 24 CFR 85.44. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parities. The Sub-Recipient shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub-Recipient is an independent Sub-Recipient. C. Hold Harmless The Sub-Recipient shall hold harmless, save and indemnify the Grantee and each and everyone of its officers, agents, employees, servants, attorneys, insurers and successors from any and all claims, demands, causes of actions, expenses, injuries, losses or damages of whatever kind, character of description the Grantee may suffer as a result of any cause, matter, act, or omission arising out of the Sub-Recipient's performance or non-performance, or those acting under it to conform to the statues, ordinances or other regulations or requirements of any governmental authority, in connection with e the Sub-Recipient's performance under this Agreement. The Sub- Recipient agrees to defend any claims brought or actions filed against the Grantee with respect to the subject of the indemnity contained herein, whether such claims or actions are rightfully or wrongfully brought or files. In case of such a claim brought or such an action files, the Grantee agrees that the Sub-Recipient may employ attorneys of its own selection to appear and defend the claim or action on behalf of the Grantee, subject to reasonable approval by the Grantee, at the expense of the Sub- Recipient. The Sub-Recipient, at its option, shall have the sole authority for the direction of the defense. Amendments D. 5 VII. The Grantee or Sub-Recipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Recipient from its obligations under this Agreement The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Sub-Recipient. E. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Section I, A above may only be undertaken with the prior approval of the Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Sub-Recipient under this Agreement shall, at the option of the Grantee, become the property of the Grantee, and the Sub-Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The Grantee may also suspend or terminate this Agreement, in whole or in part, if the Sub-Recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Sub-Recipient ineligible for any further participation in the Grantee's contracts, in addition to other remedies as provided by the law. In the event there is probable cause to believe the Sub-Recipient is in non-compliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-Recipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards 6 The Sub-Recipient agrees to comply with Attachment F of OMB Circular I- 110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost PrincitJles The Sub-Recipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations or A-21 "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. OMB Circular A-122 is included as Exhibit D. B. Documentation and Record-Keeping 1. Records to be Maintained The Sub-Recipient shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall not include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one ofthe National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of24 CFR 570. If applicable, said records shall include verification of household income and information on race/national origin and ethnicity. Eligible households for this program must have income below those noted in Exhibit C. The Sub- Recipient may establish program income criteria below that noted in Exhibit C. 2. Retention 7 The Sub-Recipient shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this contract shall be retained for five (5) years after final disposition of such property. Notwithstanding the above, if there are claims, litigation, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the three-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 3. Client Data The Sub-Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request. 4. Disclosure The Sub-Recipient understands that client information collected under this contract is private. The use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Recipient's responsibilities with respect to services provided under this contract, is prohibited, unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Property Records The Sub-Recipient shall maintain a real property inventory, which identifies properties purchased, improved or sold using CDBG funds. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b )(8), as applicable. 6. Close-Outs The Sub-Recipient's obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. 8 7. Audits & Inspections All Sub-Recipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub-Recipient with 30 days after receipt by the Sub-Recipient. Failure of the Sub-Recipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Sub- Recipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Recipient audits and, as applicable OMB Circular A-133. 8. Availability of Law, Regulations and Orders The Grantee shall, upon the request of the Sub-Recipient, provide copies of all laws, regulations and orders, including those cited in this contract which regulate operation of the CDBG-funded programs, or which might otherwise affect the performance of this Agreement. This Agreement include program income requirements (See Section V, C, 1: Program Income.) set forth in section 24 CFR 570.504 (c) but is not applicable to the Sub-Recipient and uniform administrative requirements described in section 24 CFR 570.502. C. Procurement 1. Compliance The Sub-Recipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non- expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Sub-Recipient shall procure all materials, property, or services in accordance with the requirements of Attachment 0 of OMB Circular A-II 0, Procurement Standards, and shall subsequently follow Attachment N, Property 9 VIII. Management Standards as modified by 24 CFR 570.502(b)(6), covenng utilization and disposal of property. 3. Travel The Sub-Recipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. PERSONNEL & P ARTICIP ANT CONDITIONS A. Civil Rights 1. Compliance The Sub-Recipient agrees to comply with the Illinois Human Rights Act (Act 775ILCS 5-1-101 et seq.) and with Title VIII of the Civil Rights Act of 1968 as amended, Section 1 04(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Sub-Recipient shall not discriminate against any worker, employee, applicant for employment or any member of the public because of race, color, creed, religion ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Such affirmative action shall include, but not be limited to the following: employment, upgrading demotion or transfer, termination, compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places available to employees and applicants for employment, notices setting forth the provisions of this non-discriminatory clause. This policy of non-discrimination and affirmative action shall be applicable with regard to both the Sub-Recipient's internal personnel practices and its actions in the performance of this Agreement. The Sub-Recipient hereby certifies that 1-9 forms are current and employment verification has been completed regarding all employees. The Sub-Recipient agrees and authorizes the Grantee and HUD to conduct compliance reviews or any other procedures to assure compliance with these provisions, subject to applicable laws and regulations concerning privacy and reasonable notice to the Sub- Recipient. 10 B. Conduct 1. Assignments The Sub-Recipient shall not assign the Agreement or any part thereof and the Sub-Recipient shall not transfer or assign any funds or claims due or to be come due hereunder without the prior written approval of the Village Manager. Any transfer or assignment of funds pursuant to this agreement, either in whole or in part, or any interest therein shall be due to the Sub-Recipient shall be deemed of no force or effect and shall not be binding upon the Grantee. 2. Prohibited Activity The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities: sectarian or religious activities; lobbying, political patronage, and nepotism activities 3. Conflict of Interest The Sub-Recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the Agreement. The Sub-Recipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients which are receiving funds under the CDBG Entitlement Program. 4. Lobbying The Sub-Recipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and 11 IX. the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; 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, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; c. It will require that the language of paragraph (d) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, sub grants, and contracts under grants, loans and cooperative agreements) and that all Sub- Recipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. Religious Organizations The Sub-Recipient agrees that funds provided under this contract will not be utilized for religious activities to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CR 570.200G). SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, and all other parts f this Agreement shall nevertheless be in full force and effect. 12 IN WITNESS WHEREOF, the Parties have executed this contract: THE VILLAGE OF MOUNT PROSPECT SUBURBAN PRIMARY HEALTH CARE COUNCIL BY: BY: President of the Village Board President ATTEST: Village Clerk Notary Public 13 VILLAGE OF MOUNT PROSPECT CDBG PUBLIC SERVICE PROGRAM YEAR-END REPORT FISCAL YEAR JANUARY 1, 2004 TO DECEMBER 31,2004 Name of Agency: Name of Program: Prepared By: Date: Please complete this form for the total number of households or persons your program assisted. If reporting by household, supply data on the entire household income and statistics on the head of the household. 1) Beneficiaries counted by households or persons (H or P): - 2) Total Number of Beneficiaries for the Year: 3) Total Number of Males Assisted: Total Number of Females Assisted: 4) Total Number of Female-Headed Households: 5) Ethnicity/Race of Beneficiaries Total * Hispanic or Latino American Indian or Alaska Native: Asian: Black or African-American: Native Hawaiian or Other Pacific Islander: White: American Indian or Alaska Native & White: Asian & White: Black or African-American & White: American Indian or Alaska Native & Black or African-American: Other-Multi-Racial * SUl11 of "Total" column should match number reported in #2 6) Income of Beneficiaries Please refer to 2004 HUD Income Limits Form. Number of Extremely Low-Income Beneficiaries: Number of Low-Income Beneficiaries: Number of Moderate-Income Beneficiaries: VILLAGE OF MOUNT PROSPECT CDBG PROGRAM 2004 HUD INCOME LIMITS HUD'S 2004 LOW-INCOME LIMITS # in Household 1 2 3 4 5 6 7 8 Gross Income $40,250 $46,000 $51,750 $57,500 $62,100 $66,700 $71,300 $75,900 HUD'S 2004 INCOME CLASSIFICATIONS Number of People in Household 1 2 3 4 5 6 7 8 Extremely $0 $0 $0 $0 $0 $0 $0 $0 to to to to to to to to Low-Income* $15,850 $18,100 $20,350 $22,600 $24,450 $26,250 $28,050 $29,850 $15,851 $18,101 $20,351 $22,601 $24,451 $26,251 $28,051 $29,851 Low-Income** to to to to to to to to $26,400 $30,150 $33,950 $37,700 $40,700 $43,750 $46,750 $49,750 Moderate- $26,401 $30,151 $33,951 $37,701 $40,701 $43,751 $46,751 $49,751 Income*** to to to to to to to to $40,250 $46,000 $51,750 $57,500 $62,100 $66,700 $71,300 $75,900 The 2004 Median Income for the area is $69,600. * Extremely Low-Income is an applicant whose household income is 0% to 30% of the Median Income. ** Low-Income is an applicant whose household income is 31% to 50% of the Median Income. *** Moderate-Income is an applicant whose household income is 51% to 80% of the Median Income. - Circular No. A-I 10 -- Uniform Administrative Requirements for Grants and Agreements.. Page 1 of 5 I t Office of Management and Budget Click to Print ~ this document ~ CIRCULAR A-II 0 (REVISED 11/19/93, As Further Amended 9/30/99) CIRCULAR NO. A-II0 Revised TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Unifonn Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non- Profit Organizations 1. Purpose. This Circular sets forth standards for obtaining consistency and unifonnity among Federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals, and other non-profit organizations. 2. Authority. Circular A-110 is issued under the authority of31 U.S.c. 503 (the Chief Financial Officers Act), 31 U.S.C. 1111,41 U.S.C. 405 (the Office of Federal Procurement Policy Act), Reorganization Plan No.2 of 1970, and E.O. 11541 ("Prescribing the Duties of the Office of Management and Budget and the Domestic Policy Council in the Executive Office of the President"). 3. Policy. Except as provided herein, the standards set forth in this Circular are applicable to all Federal agencies. If any statute specifically prescribes policies or specific requirements that differ from the standards provided herein, the provisions of the statute shall govern. The provisions of the sections of this Circular shall be applied by Federal agencies to recipients. Recipients shall apply the provisions of this Circular to subrecipients perfonning substantive work under grants and agreements that are passed through or awarded by the primary recipient, if such subrecipients are organizations described in paragraph 1. This Circular does not apply to grants, contracts, or other agreements between the Federal Government and units of State or local governments covered by OMB Circular A-I 02, "Grants and Cooperative Agreements with State and Local Governments," and the Federal agencies' grants management common rule which standardized and codified the administrative requirements Federal agencies impose on State and local grantees. In addition, sub awards and contracts to State or local governments are not covered by this Circular. However, this Circular applies to subawards made by State and local governments to organizations http://www.whitehouse.gov/omb/circulars/all0/print/aII0.html 1011 6/2002 Circular No. A- I 10 -- Uniform Administrative Requirements for Grants and Agreements.. Page 2 of 5 I covered by this Circular. Federal agencies may apply the provisions of this Circular to commercial organizations, foreign governments, organizations under the jurisdiction of foreign governments, and international organizations. 4. Definitions. Definitions of key terms used in this Circular are contained in Section .2 in the Attachment. 5. Required Action. The specific requirements and responsibilities of Federal agencies and institutions of higher education, hospitals, and other non-profit organizations are set forth in this Circular. Federal agencies responsible for awarding and administering grants to and other agreements with organizations described in paragraph 1 shall adopt the language in the Circular unless different provisions are required by Federal statute or are approved by OMB. 6. OMB Responsibilities. OMB will review agency regulations and implementation of this Circular, ,and will provide interpretations of policy requirements and assistance to insure effective and efficient implementation. Any exceptions will be subject to approval by OMB, as indicated in Section _.4 in the Attachment. Exceptions will only be made in particular cases where adequate justification is presented. 7. Information Contact. Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management, Office of Management and Budget, Washington, DC 20503, telephone (202) 395-3993. t.< "",,~,,>, 8. Termination Review Date. This Circular will have a policy review three years from date of issuance. 9. Effective Date. The standards set forth in this Circular which affect Federal agencies will be effective 30 days after publication of the final revision in the Federal Register. Those standards which Federal agencies impose on grantees will be adopted by agencies in codified regulations within six months after publication in the Federal Register. Earlier implementation is encouraged. Attachment . Top of Page . Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations SUBPART A - GENERAL Sec. _.1 Purpo;;~. _.2 Definitions. http://www.whitehouse.gov/omb/circulars/al I O/print/aII O.html 10/16/2002 . ..""""""")"':,'¡'tP"..""'.",,,.,..'.""':"""",,q?:,"""f,"""""',- Circular No. A-II 0 -- Uniform AdmInIstratIve ReqÛ~r!!fuênts for Grants and Agreements.. Page 3 of 5 I .3 EITe~t on oth~J:issuances. .4 Deviations. .5 Subawards. SUBPART B - PRE-A W ARD REQUIREMENTS _.10 Purpose. _,II ¡>:r~-aw<:l.rdpQlicies. _.12 F_omJ~..fQL~RWy.ing for F edeTéll~$$j~!m1.£~. _.13 Debann~ntalld suspension. _.14 Specialawarclconditions. _.15 Metrjc syst~I11 of measurement. _,16 ResQy,rç~ Col1$t;rv~tion and RecQYt;ry AçJ. :; .17 ÇS:Jtific.;:¡tionsand representations. SUBPART C - POST -A W ARD REQUIREMENTS Financial and Program Management _.20 purpJ)_$~_Qf fiJl:'ID.çjal aI1c1 progr<1JII m@aí!:eJneJ.lt. _.21 Sta,ndards fortinancial managementsY$t~[I1s. .22 Pavment. -" _.23 Cost sharing or matching. _.24 PI:Q,gŒ!1Ünc_Qm.~. _,25 Revision of budget and program plans. _,26 Non-Federal audits. .27 Allowable costs. _.28 r~riod QLavaj}a,bility of funds. _.29 Conditional exemptions. http://www.whitehouse.gov/ornb/circulars/allO/printiaI 10.html I 011 6/2002 Circular No. A- I 10 -- Uniform Administrative Requirements for Grants and Agreements.. Page 4 of 5 I Property Standards _.30 Purpose of property standards. _.3 1 19~4r:ê,llc~_.fQY_~fËge . _.32 R~~l prqperty. _.33 FederaIJY-Q\vned .and exempt property. _.34 Equipment. _.35 S.!wpJies cmQ oth~L~~pçnQgbl~ proPc;:I1Y. _.36 Intangiþle property. _.3 7 Pmperty trlJst relatiQn~hip. Procurement Standards _.40 PurposçQfprQcurementstandards. _.41 Rc;:cipient rc;:sponsiþilities. .,. . _.42 ÇpdesQf~9nduc1. _.43 Competition. _.44 Procurernent proçedures. _.45 Cost and price allalysis. _.46 rx.Q~4r~!l1entI~~Qn:l~. _.4 7 Contract ,admini~tration. _.48 CQntractpn,)Visions. Reports and Records _.50 Purpose of reports and records. _.51 Monitoring and repot1ing program p~rformanc~. _.52 Fjmulci~l repQrting. _.53 Retention and access requirements for records. http://www.whitehouse.gov/omb/circulars/al I O/print/al IO.html 10/16/2002 Circular No. A-II 0 -- Uniform Administrative Requtrèl'nentsfôtGr-ânts and Agreements.. Page 5 of 51 . ' Termination and Enforcement _.60 Purpose of tern1ination and enforcement. _,61 T~ffiliI}?-1iQn. _.62 Enforcement. SUBPART D - AFfER- THE-A W ARD REQUIREMENTS _.70 Purpose. _.71 C oseollt proçedllr~~, -. 72 Subs~quent~dju~lm~PtsI1l1(I. cQPtipuÌpg responsibi lities. _.73ÇQlt~çJiop ofat11ourlJs d.~. APPENDIX A - CONTRACT PROVISIONS ***** SUBPART A - General _.1 Purpose, This Circular establishes uniform administrative requirements for Federal grants and agreements awarded to institutions of higher education, hospitals, and other non-profit organizations. Federal awarding agencies shall not impose additional or inconsistent requirements, except as provided in Sections _.4, and _,14 or unless specifically required by Federalstatute or executive order. Non-profit organizations that implement Federal programs for the States are also subject to State requirements. .2 Definitions. (a) Accrued expenditures means the charges incurred by the recipient during a given period requiring the provision of funds for: (1) goods and other tangible property received; (2) services performed by employees, contractors, subrecipients, and other payees; and, (3) other amounts becoming owed under programs for which no current services or performance is required. (b) Accrued income means the sum of: (1) earnings during a given period from (i) services performed by the recipient, and (ii) goods and other tangible property delivered to purchasers, and (2) amounts becoming owed to the recipient for which no current services or performance is required by the recipient. (c) Acquisitìon cost of equipment means the net invoice price of the http://www.whitehouse.gov/omb/circulars/a 11 O/printl~ 110 .html 10/16/2002 Circular No. A- 110 -- Uniform Administrative Requirements for Grants and Agreements.. Page 6 of 51 equipment, including the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired. Other charges, such as the cost of installation, transportation, taxes, duty or protective in-transit insurance, shall be included or excluded from the unit acquisition cost in accordance with the recipient's regularaccouIiting practices. . (d) Advance means a payment made by Treasury check or other appropriate payment mechanism to a recipient upon its request either before outlays are made by the recipient or through the use of predetermined payment schedules. (e) A ward means fmancial assistance that provides support or stimulation to accomplish a public purpose. Awards include grants and other agreements in the form of money or property in lieu of money, by the Federal Government to an eligible recipient. The term does not include: technical assistance, which provides services instead of money; other assistance in the form of loans, loan guarantees, interest subsidies, or insurance; direct payments of any kind to individuals; and, contracts which are required to be entered into and administered under procurement laws and regulations. (f) Cash contributions means the recipient's cash outlay, including the outlay of money contributed to the recipient by third parties. (g) Closeout means the process by which a Federal awarding agency determines that all applicable administrative actions and all required work of the award have been completed by the recipient and Federal awarding agency. (h) Contract means a procurement contract under an award or subaward, and a procurement subcontract under a recipient's or subrecipient's contract. Ci) Cost sharing or matching means that portion of project or program costs not borne by the Federal Government. (j) Date of completion means the date on which all work under an award is completed or the date on the award docwnent, or any supplement or amendment thereto, on which Federal sponsorship ends. (k) Disallowed costs means those charges to an award that the Federal awarding agency determines to be unallowable, in accordance with the applicable Federal cost principles or other terms and conditions contained in the award. . (1) Equipment means tangible nonexpendable personal property including exempt property charged directly to the award having a useful life of more than one year and an acquisition cost of $5000 or more per unit. However, consistent with recipient policy, lower limits may be established. hnp://www. whitehouse.gov/omb/circulars/all O/print/al 10.html 10/16/2002 Ä;"""~,.,<{>:t,j""""."".'..""""""""",¡;;.",X',,y """;'..M,;,;f"1/;Y;"~. Circular No. A-I 10 -- Uniform Administrative Reqtilf¡~Inents for Grants and Agreements.. Page 7 of 51 '.,; rf.'.' ;;~ ',.,' ,,;,,~,,:t¡~.ii¡-;~\i$~~'WZ~~~~JA~;~~e'~~,{;~~t,iL; . ... '.. .... .. (m) Excess property means property undetthe control of any Federal awarding agency that, as determined by the head thereof, is no longer required for its needs or the discharge of its responsibilities. (n) Exempt property means tangible personal property acquired in whole or in part with Federal funds, where the Federal awarding agency has statutory authority to vest title in the recipient without further obligation to the Federal Government. An example of exempt property authority is contained in the Federal Grant and Cooperative Agreement Act (31 V.S.C. 6306), for property acquired under an award to conduct basic or applied research by anon-profit institution of higher education or non-profit organization whose principal purpose is conducting scientific research. (0) Federal awarding agency means the Federal agency that provides an award to the recipient. (P) Federal funds authorized means the total amount of Federal funds obligated by the Federal Government for use by the recipient. This amount may include any authorized carryover of unobligated funds from prior funding periods when pennitted by agency regulations or agency implementing instructions. . "', (q) Federal share of real property, equipment, or supplies means that percentage of the property's acquisition costs and any improvement expenditures paid with Federal funds. '. (r) Funding period means the period of time when Federal funding is available for obligation by the recipient. (s) Intangible property and debt instruments means, but is not limited to, trademarks, copyrights, patents and patent applications and such property as loans, notes and other debt instruments, lease agreements, stock and other instruments of property ownership, whether considered tangible or intangible. (t) Obligations means the amounts of orders placed, contracts and grants awarded, services received and similar transactions during a given period that require payment by the recipient during the same or a future period. (u) Outlays or expenditures means charges made to the project or program. They may be reported on a cash or accrual basis. For reports prepared on a cash basis, outlays are the sum of cash disbursements for direct charges for goods and services, the amount of indirect expense charged, the value of third party in-kind contributions applied and the amount of cash advances and payments made to subrecipients. For reports prepared 011 an accrual basis, outlays are the sum of cash disbursements for direct charges for goods and services, the amount of indirect expense incurred, the value of in-kind contributions applied, and the net increase (or http://www.whitehouse.gov/omb/circulars/al 1 O/printlal 10.html 1011 6/2002 Circular No. A- 110 -- Uniform Administrative Requirements for Grants and Agreements.. Page 8 of 5 I decrease) in the amounts owed by the recipient for goods and other property received, for services performed by employees, contractors, subrecipients and other payees and other amounts becoming owed under programs for which no current services or performance are required. .- (v) Personal property means property of any kind except real property. It may be tangible, having physical existence, or intangible, having no physical existence, such as copyrights, patents, or securities. (w) Prior approval means written approval by an authorized official "evidencing prior consent. (x) Program income means gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the award (see exclusions in paragraphs _.24 (e) and (h)). Program income includes, but is not limited to, income from fees for services performed, the use or rental of real or personal property acquired under federally-funded projects, the sale of commodities or items fabricated under an award, license fees and royalties on patents and copyrights, and interest on loans made with award funds. Interest earned on advances of Federal funds is not program income. Except as otherwise provided in Federal awarding agency regulations or the terms and conditions of the award, program income does not include the receipt of principal on loans, rebates, credits, discounts, etc., or interest earned on any of them. ."" (y) Project costs means all allowable costs, as set forth in the applicable Federal cost principles, incurred by a recipient and the value of the contributions made by third parties in accomplishing the objectives of the award during the project period. (z) Project period means the period established in the award document during which Federal sponsorship begins and ends. (aa) Property means, unless otherwise stated, real property, equipment, intangible property and debt instruments. (bb) Real property means land, including land improvements, structures and appurtenances thereto, but excludes movable machinery and equipment. (cc) Recipient means an organization receiving financial assistance directly from Federal awarding agencies to carry out a project or program. The term includes public and private institutions of higher education, public and private hospitals, and other quasi-public and private non-profit organizations such as, but not limited to, comÎnuÌlÌty aètion agencies, research institutes, educational associations, and health centers. The term may include commercial organizations, foreign or international organizations (such as agencies of the United Nations) which are recipients, subrecipients, or contractors or subcontractors of recipients or subrecipients http://www.whitehouse.gov/omb/circulars/al I O/printlal 1O.html 10/16/2002 Circular No. A-I 10 -- Uniform Adl11iniŠttãrr~~1{èq~fe'niêrit~~rÓr'Gfants and Agreements.. Page 9 of51 c<)... ,c,,; . at the discretion of the Federal awardingag~nçY. The term does not include go vernment -owned co ntractdr -6pê'~rê'd'fáttìrn~f:'~~'è;~~ãfch centers providing continued support for mission-oriented, large-scale programs that are government-owned or controlled, or are designated as federally-funded research and development centers. ..",...... . < . ",~;i,'¡"' .\ér,:, \:,' (dd) Research and development means all research activities, both basic and applied, and all development activities that are supported at universities, colleges, and other non-profit institutions. "Research" is defined as a systematic study directed toward fuller scientific knowledge or understanding of the subject studied. "Development" is the systematic use of knowledge and understanding gained from research directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes. The term research also includes activities involving the training of individuals in research techniques where such activities utilize the same facilities asother research and development activities and where such activities are not included in the instruction function. (ee) Small awards means a grant or cooperative agreement not exceeding the small purchase threshold fixed at 41 U.S.C. 403(11) (currently $25,000). (ft) Subaward means an award of financial assistance in the form of money, or property in lieu of money, made under an award by a recipient to an eligible subrecipient or by a subrecipient to a lower tier subrecipient. The term includes financial assistance when provided by any legal agreement, even if the agreement is called a contract, but does not include procurement of goods and services nor does i!include any form of assistance which is excluded from the definition of "award" in paragraph (e). (gg) Sub recipient means the legal entity to which a sub award is made and which is accountable to the recipient for the use of the funds providéd. The tenn may include foreign or international organizations (such as agencies of the United Nations) at the discretion of the Federal awarding agency. (hh) Supplies means all personal property excluding equipment, intangible property, and debt instruments as defined in this section, and inventions of a contractor conceived or first actually reduced to practice in the perfonnance of work under a funding agreement("subject inventions"), as defined in 3 7 CFR part 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts, and Cooperative Agreements:" ' (ii) Suspension means an action by a Federal awarding agency that temporarily withdraws Federal sponsorship under an award, pending corrective action by the recipient or pending a decision to terminate the award by the Federal awarding agency. Suspension of an award is a http://www.whitehouse.gov/omb/circulars/al I O/print/al 10.html 10/16/2002 Circular No~ A- I 1 0 -- Uniform Administrative Requirernents for Grants and Agreements.. Page lO of 51 0 separate action from suspension under Federal agency regulations implementing E.O.s 12549 and 12689, "Debarment and Suspension." OJ) Termination means the cancellation of Federal sponsorship, in whole or in part, under an agreement at any time prior to the date of completion. (kk) Third party in-kind contributions means the value of non-cash contributions provided by non-Federal third parties. Third party in-kind contributions may be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefiting and specifically identifiable to the project or program. (11) Unliquidated obligations, for financial reports prepared on a cash basis, means the amount of obligations incurred by the recipient that have not been paid. For reports prepared on an accrued expenditure basis, they represent the amount of obligations incurred by the recipient for which an outlay has not been recorded. (rom) Unobligated balance means the portion of the funds authorized by the Federal awarding agency that has not been obligated by the recipient and is detennined by deducting the cumulative obligations from the cumulative funds authorized. (nn) Unrecovered indirect cost means the difference between the amount awarded and the amount which could have been awarded under the recipient's approved negotiated indirect cost rate. (00) Working capital advance means a procedure where by funds are advanced to the recipient to cover its estimated disbursement needs for a given initial period. _.3 Effect on other issuances. For awards subject to this Circular, all administrative requirements of codified program regulations, program manuals, handbooks and other nonregulatory materials which are inconsistent with the requirements of this Circuiar shall be superseded, except to the extent they are required by statute, or authorized in accordance with the deviations provision in Section _.4. _.4 Deviations. The Office of Management and Budget (OMB) may grant exceptions for classes of grants or recipients subject to the requirements of this Circular when exceptions are not prohibited by statute. However, inthe interest of maximum uniformity, exceptions from the requirements of this Circular shall be permitted only in unusual . circumstances. Federal awarding agencies may apply more restrictive requirements to a class of recipients when approved by OMB. Federal awarding agencies may apply less restrictive requirements when awarding small awards, except for those requirements which are statutory. Exceptions on a case-by-case basis may also be made by Federal awarding agencIes. http://www.whitehouse.gov/omb/circulars/all O/print/al 10.html 10/16/2002 4'.:"Y.¡"".,'f"'j"¡'j!""j~jfØ ..","",:ë"}!f"'." ""'t'.",.!1'.'i,,y~,",H~':Jk; Circular No. A- I 10-- Uniform Administhiiì\ii;; Req'ûítèÌn'¿l1tsYôi'Grants an<i Agreements.. Page 11 of 51 , . - .;j~.,., .",,". ¡ . .""./<4. .'. . .', . , , , ..'.';..',.;.,.',.. ..,',},' . ,':; ",. .. ..."IÄi\~?'L~kl~'k¡þ!i#~1~:i;¡¿:¡~~¡)Ø4~~¡'~li~~'Ü'f;:h: .5 Suba\Yê,¡:-d::;. Unless sectIons of thIS ClrcÜlaispéclficålIy exclude subrecipients from coverage, the provisions of this Circular shall be applied to subrecipients performing work under awards if such subrecipients are institutions of higher education, hospitals or other non-profit organizations. State and local government subrecipientsare subject to the provisions of regulations implementing the grants management common rule,"Unifonn Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments," published at 53 FR 8034 (3/1 1/88). SUBPART B - Pre-Award Requirements _.10 Purpose. Sections _.11 through _.17 prescribes forms and instructions and other pre-award matters to be used in applying for Federal awards. _.11 Pre-award policies, '. (a) Use of Grants and Cooperative Agreements, and Contracts. In each instance, the Federal aWarding agency shall decide on the appropriate award instrument (i.e., grant, cooperative agreement, or contract). The Federal Grant and Cooperative Agreement Act (31 U.S.c. 6301-08) governs the use of grants, cooperative agreements and contracts. A grant or cooperative agreement shall be used only when the principal purpose of a transaction is to accomplish a public purpose of support or stimulation authorized by Federal statute. The statutory criterion for choosing between grants and cooperative agreements is that for the latter, "substantial involvement is expected between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement." Contracts shall be used when the principal purpose is acquisition of property or services for the direct benefit or use of the Federal Government. (b) Public Notice and Priority Setting. Federal awarding agencies shall notify the public of its intended funding priorities for discretionary grant programs, unless funding priorities are established by Federal statute. _.12 FonnsfQxmmlyjng for Federal assistan.ç~~ . (a) Federal awarding agencies shall comply with the applicable report clearance requirements of 5 CFR part 1320, "Controlling Paperwork Burdens on the Public," with regard to all fonns used by the Federal awarding agency in place of or as a supplement to the Standard Form 424 (SF-424) series. (b) Applicants shall use the SF -424 series or those forms and instructions prescribed by the Federal awarding agency. (c) For Federal programs covered by E.O. 12372, "Intergovernmental http://www.whitehouse.gov/omb/circulars/al 1 O/printlal 10.html 10/16/2002 Circular No. A- 110 -- Uniform Administrative Requirements for Grants and Agreements .. Page 12 of 51 Review of Federal Programs," the applicant shall complete the appropriate sections of the SF-424 (Application for Federal Assistance) indicating whether the application was subject to review by the State Single Point of Contact (SPOC). The name and address of the SPOC for a particular State can be obtained from the Federal awarding agency or the Catalog of Federal Domestic Assistance. The SPOC shall advise the applicant whether the program.forwhich application is made has been selected by that State for review. (d) Federal awarding agencies that do not use the SF-424 form should indicate whether the application is subject to review by the State under £.0. 12372. _.13 Debarment and suspen~i()n. Federal awarding agencies and recipients shall comply with the nonprocurement debarment and suspension common rule implementing £.O.s 12549 and 12689, "Debarment and Suspension." This common rule restricts subawards and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. _,14 Special rl\vard conditions. If an applicant or recipient: (a) has a history of poor performance, (b) is not financially stable, (c) has a management system that does not meet the standards prescribed in this Circular, (d) has not conformed to the terms and conditions of a previous award, or (e) is not otherwise responsible, Federal awarding agencies may impose additional requirements as needed, provided that such applicant or recipient is notified in writing as to: the nature of the additional' requirements, the reason why the additional requirements are being imposed, the nature of the corrective action needed, the time allowed for completing the corrective actions, and the method for requesting reconsideration of the additional requirements imposed. Any special conditions shall be promptly removed once the conditions that prompted them have been corrected. . I 5 Metric system of measurement. The Metric Conversion Act, as - - amended by the Omnibus Trade and Competitiveness Act (15 U.S.C. 205) declares that the metric system is the preferred measurement system for U.S. trade and commerce. The Act requires each Federal agency to establish a date or dates in consultation with the Secretary of Commerce, when the metric system of measurement will be used in the agency's procurements, grants, and other business-related activities. Metric implementation may take longer where the use of the system is initially impractical or likely to cause significant inefficiencies in the accomplishment of federally-funded activities. Federal awarding agencies shall follow the provisions ofE.O. 12770, "Mètric Usage in Federal Government Programs." _.16 Resource Conservation and Recovery Act (RCRA) (Pub. L. 94-580 http://www.whitehouse.gov/omb/circulars/al1 O/printlall O.html I 0/16/2002 .,\7")\i'ffY*:~'!"'cW'>""""'~~JIì"",,~,.'4""'¡.W'"'1'W ;n;'."i\'K".7%.':,~ Circular No. A-I 10 -- Uniform AdministråtivèRequlrèments for Grants and Agreements '. Page 13 of 51 '...' , - : .. . j' c,. .',:i:>., codified at 42 L.S.C 6962). Under fu~/ÞA:ß~~¥)$t~t~agency or agency of a . ...,..,J"."r."*"""".~w.'!¡._.,,,r¡;"".'%"".".<:"""~'f".'1'"".""....,..,. political subdivision of a State WhlcIÙsû'slngâþpropnàted Federal funds must comply with Section 6002. Section 6002 requires that preference be given in procurement programs to the purchase of specific products containing recycled materials identified in guidelines developed by the Environmental Protection Agency (EPA) (40 CFR parts 247-254). Accordingly, State and local institutions of higher education, hospitals, and non-profit organizations that receive direct Federal awards or other Federal funds shall give preference in their procurement programs funded with Federal funds to the purchase of recycled products pursuant to the EP A guidelines. _.17 Certifications and repre$eIltatiQn$, Unless prohibited by statute or codified regulation, each Federal awarding agency is authorized and encouraged to allow recipients to submit certifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the auth<:>rity to ensure recipients' compliance with the pertinent requirements. SUBPART C - Post-Award Requirements Financial and Program Management _.20 Purpose of financial andprQgrélI11 maIlé.3,g~ment. Sections _,21 through _.28 prescribe standards for financial management systems, methods for making payments and rules for: satisfying cost sharing and matching requirements, accounting for program income, budget revision approvals, making audits, determining allowability of cost, and establishing fund availability. -,-,21 Standards for financial manageI1'1~ntsY$tem$, (a) Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b) Recipients' financial management systems shall provide for the following. (I) Accurate, current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section _,52. If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system. These recipients may develop such accrual data for its reports on the basis of an hrtp://www,whitehouse.gov/ornb/circulars/all O/printlall O,html 1 0/ I 6/2002 Circular No. A-I 10 -- Uniform Administrative Requirements for Grants and Agreements.. Page 14 of 51 analysis of the documentation on hand. (2) Records that identify adequately the source and application of funds for federally-sponsored activities. These records shall contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, outlays, income and interest. (3) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. (4) Comparison of outlays with budget amounts for each award. Whenever appropriate, financial information should be related to performance and unit cost data. (5) Written procedures to minimize the time elapsing between the transfer of funds to the recipient from the U.S. Treasury and the issuance or redemption of checks, warrants or payments by other means for program purposes by the recipient. To the extent that the provisions of the Cash Management Improvement Act (CMIA) (Pub. L. 101-453) govern, payment methods of State agencies, instrumentalities, and fiscal agents shall be consistent with CMIA Treasury-State Agreements or the CMIA default procedures codified at 31 CFR part 205, "Withdrawal of Cash from the Treasury for Advances under Federal Grant and Other Programs." ::. (6) Written procedures for determining the reasonableness, allocability and allowability of costs in accordance with the provisions of the applicable Federal cost principles and the terms and conditions of the award. (7) Accounting records including cost accounting records that are supported by source documentation. ( c) Where the Federal Government guarantees or insures the repayment of money borrowed by the recipient, the Federal awarding agency, at its discretion, may require adequate bonding and insurance if the bonding and insurance requirements of the recipient are not deemed adequate to protect the interest of the Federal Government. (d) The Federal awarding agency may require adequate fidelity bond coverage where the recipient lacks sufficient coverage to protect the Federal Government's interest. (e) Where bonds are required in the situations described above, the.bonds shall be obtained from companies holding certificates of authority as J http://www.whitehouse.gov/omb/circulars/allO/printial 10.html 10/ I 6/2002 ~"~;';'1.i"mw",,"".;,'i'i'~'1'¡iIi ,. ¡'.¡!~;;;;/!'N;t"'¡','~?"."V'\ Circular No. A-I 10 -- Uniform Administrativé Reqû.Jr~mentsfor Grants and Agreements .. Page 15 of 5 I , . .' '. " \';' ~;... ;'<. acceptable sureties, as prescribedin3JÇFR,þaí1..42:3,"Surety Companies .. ... . i¡',';l$!#;;~1""""";;+"F;"'"i<;;~;i,¡.,;;<'..Jr"¡.,1.';..,,.,, Doing Business with the United States. 11. . . .22 P~.Y!ILem, (a) Payment methods shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. Payment methods of State agencies or instrumentalities shall be consistent with Treasury-State CMIA agreements or default procedures codified at 31 CFR part 205. (b) Recipients are to be paid in advance, provided they maintain or demonstrate the willingness to maintain: (I) written procedures that minimize the time elapsing between the transfer of funds and disbursement by the recipient, and (2) fmancial management systems.that meet the standards for fund control and accountability as established in Section _.21. Cash advances to a recipient organization shall be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the recipient organization in carrying out the purpose of the approved program or project. The timing and amount of cash advances shall be as close as is administratively feasible to the actual disbursements by the recipient organization for direct program or project costs and the proportionate share of any allowable indirect costs. ( c) Whenever possible, advances shall be consolidated to còver anticipated cash needs for all awards made by the Federal awarding agency to the recipient. (1) Advance payment mechanìsms include, but are not limited to, Treasury check and electronic funds transfer. (2) Advance payment mechanisms are subject to 31 CFR part 205. (3) Recipients shall be authorized to submit requests for advances and reimbursements at least monthly when electronic fund transfers are not used. (d) Requests for Treasury check advance payment shall be submitted on SF-270, "Request for Advance or Reimbursement," or other forms as may be authorized by OMB. This form is not to be used when Treasury check advance payments are made to the recipient automatically through the use of a predetennined payment schedule or if precluded by special Federal awarding agency instructions for electronic funds transfer. (e) Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met. Federal awarding agencies may also use this hnp://www.whitehouse.gov/omb/circulars/al I 0/print/a1l O.html 10/16/2002 Circular No. A-II 0 -- Uniform Administrative Requirements for Grants and Agreements .. Page 16 of 5 I method on any construction agreement, or ¡fthe major portion of the construction project is accomplished through private market financing or Federal loans, and the Federal assistance constitutes a minor portion of the project. (1) When the reimbursement method is used, the Federal awarding agency shall make payment within 30 days after receipt of the billing, unless the billing is improper. (2) Recipients shall be authorized to submit request for reimbursement at least monthly when electronic funds transfers are not used. . (f) If a recipient cannot meet the criteria for advance payments and the Federal awarding agency has determined that reimbursement is not feasible because the recipient lacks sufficient working capital, the Federal awarding agency may provide cash on a working capital advance basis. Under this procedure, the Federal awarding agency shall advance cash to the recipient to cover its estimated disbursement needs for an initial period generally geared to the awardee's disbursing cycle. Thereafter, the Federal awarding agency shall reimburse the recipient for its actual cash disbursements. The working capital advance method of payment shall not be used for recipients unwilling or unable to provide timely advances to their subrecipient to meet the subrecipient's actual cash disbursements. (g) To the extent available, recipients shall disburse funds available from repayments to and interest earned on a revolving fund, program income, rebates, refunds, contract sèttlements, audit recoveries and interest earned on such funds before requesting additional cash payments. (h) Unless otherwise required by statute, Federal awarding agencies shall not withhold payments for proper charges made by recipients at any time during the project period unless (1) or (2) apply. (I) A recipient has failed to comply with the project objectives, the terms and conditions of the award, or Federal reporting requirements. (2) The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A-129, "Managing Federal Credit Programs." Under such conditions, the Federal awarding agency may, upon reasonable notice, inform the recipient that payments shall not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Govemmènt is.1iquidated. (i) Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/circulars/al I O/printlal 10.html 10/16/2002 d"f1;."W".'frc:"T,')'":e'~~1~....,,.."~j;";"t;"Y'Ì~~{Y;¡~'¡.' Circular No. A-IIO, -- Unifonn Adminl~tiaÜJe Req~itêrnerit~'f~;G;ànts and Agreements .. Page 17 of 51 ' . .,'; :",.,'",' (1) Except for paragraph (i)(2), Federal awarding agencies shall not require separate depository accounts for funds provided to a recipient or establish any eligibility requirements for depositories for funds provided to a recipient. However, recipients must be able to account for the receipt, obligation and expenditure of funds. (2) Advances of Federal funds shall be deposited and maintained in insured accounts whenever possible. G) Consistent with the national goal of expanding the opportunities for women-owned and minority-owned business enterprises, recipients shall be encouraged to use women- owned and minority-owned banks (a bank which is owned at least 50 percent by women or minority group members). (k) Recipients shall maintain advances of Federal funds in interest bearing accounts, unless (1), (2) or (3) apply. (1) The recipient receives less than $120,000 in Federal awards per year. " . (2) The best reasonably available interest bearing account would not be expected to earn interest in excess of $250 per year on Federal cash balances. (3) The depository would require an average or minimum balance so high that it would not be feasible within the expected Federal and non-Federal cash resources: (1) For those entities where CMIA and its implementing regulations do not apply, interest earned on Federal advances deposited in interest bearing accounts shall be remitted annually to Department of Health and Human Services, Payment Management System, Rockville, MD 20852. Interest amounts up to $250 per year may be retained by the recipient for administrative expense. State urtiversities and hospitals shall comply with CMIA, as it pertains to interest. If an entity subject to CMIA uses its own funds to pay pre-award costs for discretionary awards without prior written approval from the Federal awarding agency, it waives its right to recover the interest under CMIA. (m) Except as noted elsewhere in this Circular, only the following fonns shall be authorized for the recipients in requesting advances and . reimbursements. Federal agencies shall not require inorethan an original and two copies of these forms. (1) SF-270, Request for Advance or Reimbursement. Each Federal awarding agency shall adopt the SF-270 as a standard, form for all nonconstruction programs when electronic funds http://www.whitehouse.gov/omb/circulars/al 1 O/print/al 10.html 10/16/2002 Circular No. A-II 0 -- Uniform Administrative Requirements for Grants and Agreements.. Page 18 of 5 I transfer or predetermined advance methods are not used. Federal awarding agencies, however, have the option of using this form for construction programs in lieu of the SF-271, "Outlay Report and Request for Reimbursement for Construction Programs." (2) SF-271, Outlay Report and Request for Reimbursement for Construction Programs. Each Federal awarding agency shall adopt the SF-27las the standard form to be used for requesting reimbursement for construction programs. However, a Federal awarding agency may substitute the SF- 270 when the Federalawarding agency determines that it provides adequate information to meet Federal needs. .23 Cost shariní! or matchiní!. - .................-........-..................... (a) All contributions, including cash and third party in-kind, shall be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria. (1) Areverifiable from the recipient's records. (2) Are not included as contributions for any other federally- assisted project or program. <':'."- (3) Are necessary and reasonable for proper and efficient accomplishment of project or program objectives. (4) Are allowable under the applicable cost principles. (5) Are not paid by the Federal Government under another award, except where authorized by Federal statute to be used for cost sharing or matching. (6) Are provided for in the approved budget when required by the Federal awarding agency. (7) Conform to other provisions ofthis Circular, as applicable. (b) Unrecovered indirect costs may be included as part of cost sharing or matching only with the prior approval of the Federal awarding agency. (c) Values for recipient contributions of services and property shall be established in accordance with the applicable cost principles. If a Federal awarding agency authorizes recipients to donate buildings or land for construction/facilities acquisition projects or long-term use, the value of the donated property for cost sharing or matching shall be the lesser of (1) or (2). http://www.whitehouse.gov/omb/circulars/a110/print/al 10.html 10/16/2002 4;"',<¡;'\:2i\~!1~~;,n\#A'~"i 111'W{),~.<;t"f,"'t1¡'3'j7'%'t~!:r11,)~ , Circular No. A- I 10 -- Uniform Admiriistrative Requirên"lerìtš'fòrGraritS and Agreements .. Page 19 of 5 I (1) The certified value of the property recorded in the recipient's accounting records at the time of donation. (2) The current fair market value. However, when there is sufficient justification, the Federal awarding agency may approve the use of the current fair market value of the donated property, even if it exceeds the certified value at the time of donation to the project. (d) Volunteer services furnished by professional and technical personnel, consultants, and other skilled and unskilled labor may be counted as cost sharing or matching if the service is an integral and necessary part of an approved project or program. Rates for volunteer services shall be consistent with those paid for similar work in the recipient's organization. In those instances in which the required skills are not found in the recipient organization, rates shall be consistent with those paid for similar work in the labor market in which the recipient competes for the kind of services involved. In either case, paid fringe benefits that are reasonable, allowable, and allocable may be included in the valuation. (e) When an employer other than the recipient furnishes the services of an employee, these services shall be valued at the employee's regular rate of pay (plus an amount of fringe benefits that are reasonable, allowable, and allocable, but exclusive of overhead costs), provided these services are in the same skill for which the employee is nonnally paid. (f)Donated supplies may include such items as expendable equipment, office supplies, laboratory supplies or workshop and classroom. supplies. Value assessed to donated supplies included in the cost sharing or matching share shall be reasonable and shall not exceed the fair market value of the property at the time of the donation. (g) The method used for determining cost sharing or matching for donated equipment, buildings and land for which title passes to the recipient may differ according to the purpose of the award, if(1) or (2) apply. (I) If the purpose of the award is to assist the recipient in the acquisition of equipment, buildings or land, the total value of the donated property may be claimed as cost sharing or matching. (2) If the purpose of the award is to. support activities that require the use of equipment, buildings or land, normally only depreciation or use charges for equipment and buildings may be made. However, the full value of equipment or other capital assets and fair rental charges for land may be allowed, provided that the Federal awarding agency has approved the http://www.whitehouse.gov/ornb/circulars/al I O/print/all O.html 10/16/2002 Circular No. A- I 10 -- Uniform Administrative Requirements for Grants and Agreements.. Page 20 of 51 charges. " (h) The value of donated property shall be determined in accordance with the usual accounting policies of the recipient, with the following qualifications. (1) The value of donated land and buildings shall not exceed its fair market value at the time of donation to the recipient as established by an independent appraiser (e.g., certified real property appraiser or General Services Administration representative) and certified by a responsible official of the recipient. (2) The value of donated equipment shall not exceed the fair market value of equipment of the same age and condition at the time of donation. (3) The value of donated space shall not exceed the fair rental value of comparable space as established by an independent appraisal of comparable space and facilities in a privately- owned building. in the same locality. (4) The value ofloaned equipment shall not exceed its fair rental value. ¡ (5) The following requirements pertain to the recipient's supporting records for in-kind contributions from third parties. (i) Volunteer services shall be documented and, to the extent feasible, supported by the same methods used by the recipient for its own employees. (ii) The basis for detennining the valuation for personal service, material, equipment, buildings and land shall be documented. _.24 I!rogram income. (a) Federal awarding agencies shall apply the standards set forth in this section in requiring recipient organizations to account for program income related to projects financed in whole or in part with Federal funds. (b) Except as provided in paragraph (h) below, program income earned during the project period shall be retained by the recipient and, in accordance with Federal awarding agency regulations or the tenns and conditions of the award, shall be used in one or more of the ways listed in the following. http://wWw.whitehouse.gov/omb/circulars/al I O/print/all O.html 1011 6/2002 ,":}\'~rm~Ct~~";':":'..\\~"'\!¡'~?i;~,.t""",;~,,':j,'W"""('il7'."~.;'¡!:. ,Circular No. A-II 0 -- Unifonn Administråtive Requirements for Grants and Agreements .. Page 2 I of 5 I (1) Added to funds project by the Federal awarding agency and recipient and used to further eligible project or program objectives. (2) Used to finance the non-Federal share of the project or program. (3) Deducted from the total project or program allowable cost in.detennining the net allowable costs on which the Federal share of costs is based. (c) When an agency authorizes the disposition of program income as described in paragraphs (b)( 1) or (b )(2), program income in excess of any limits stipulated shall be used in accordance with paragraph (b)(3). (d) In the event that the Federal awarding agency does not specify in its regulations or the tenus and conditions of the award how program income is to be used, paragraph (b)(3) shall apply automatically to all projects or programs except research. For awards that support research, paragraph (b) (1) shall apply automatically unless the awarding agency indicates in the terms and conditions another alternative on the award or the recipient is subject to special award conditions, as indicated in Section _.14. (e) Unless Federal awarding agency regulations or the terms and conditions of the award provide otherwise, recipients shall have no obligation to the Federal Government regarding program income earned after the end of the project period. (f) If authorized by Federal awarding agency regulations or the terms and conditions of the award, costs incident to the generation of program income may be deducted from gross income to determine program income, provided these costs have not been charged to the award. ~ (g) Proceeds from the sale of property shall be handled in accordance with the requirements of the Property Standards (See Sections _.30through _.37). (h) Unless Federal awarding agency regulations or the terms and condition of the award provide otherwise, recipients shall have no obligation to the Federal Government with respect to program income earned from license fees and royalties for copyrighted material, patents, patent applications, trademarks, and inventions produced under an award. However, Patent and Trademark Amendments (35 U.S.c. 18) apply to inventions made under an experimental, developmental, or research award. --,-.25 Revision of budget and program plans.. (a) The budget plan is the financial expression of the project or program as http://www.whitehouse.gov/omb/circulars/al I O/print/a 1 10.html 10/16/2002 Circular No. A- 110 -- Uniform Administrative Requirements for Grants and Agreements.. Page 22 of 51 approved during the award process. It may include either the Federal and non-Federal share, or only the Federal share, depending upon Federal awarding agency requirements. It shall be related to performance for program evaluation purposes whenever appropriate. (b) Recipients are required to report deviations from budget and program plans, and request prior approvals for budget and program plan revisions, in accordance with this section. (c) For nonconstruction awards, recipients shall request prior approvals from Federal awarding agencies for one or more of the following program or budget related reasons. (1) Change in the scope or the objective of the project or program (even if there is no associated budget revision requiring prior written approval). (2) Change in a key person specified in the application or award document. (3) The absence for more than three months, or a 25 percent reduction in time devoted to the project, by the approved project director or principal investigator. (4) The need for additional Federal funding. .,," (5) The transfer of amounts budgeted for indirect costs to absorb increases in direct costs, or vice versa, if approval is required by the Federal awarding agency. (6) The inclusion, unless waived by the Federal awarding agency, of costs that require prior approval in accordance with OMB Circular A-2l, "Cost Principles for Educational Institutions," OMB Circular A-122, "Cost Principles for Non- Profit Organizations," or 45 CFR part 74 Appendix E, "Principles for Determining Costs Applicable to Research and Development under Grants and Contracts with Hospitals," or 48 CFR part 31, "Contract Cost Principles and Procedures," as applicable. (7) The transfer of funds allotted for training allowances (direct payment to trainees) to other categories of expense. (8) Unless described in the application and fuI1ded in the approved awards, the subaward, transfer or contracting out of any work under an award. This provision does not apply to the purchase of supplies, material, equipment or general support servIces. http://www.whitehouse.gov/omb/circulars/all O/printla I 10.html 10/16/2002 Circular No. A-II 0 -- Uniform Adminišrtrfi\¥é"R~qfilf'êffi~Ht~'f6i'¡Grants and Agreements .. Page 23 of 51 , ,,' , ".[:\'~,:¡N,i~¿W¿\("'}!!.;,X¥,t~,i}1,8ki'1...," . (d) No other prior approval requiremênts foršpécific'items may be Imposed unless a deviation has been approved by OMB. (e) Except for requirements listed in paragraphs (c)( I) and (c)( 4) of this section, Federal awarding agencies are authorized, at their option, to waive cost-related and administrative prior written approvals required by this Circular and OMB Circulars A-21 and A-122. Such waivers may include authorizing recipients to do anyone or mOre of the following. . (1) Incur pre-award costs 90 calendar days prior to award or more than 90 calendar days with the prior approval of the Federal awarding agency. All pre-award costs are incurred at the recipient's risk (Le., the Federal awarding agency is under no obligation to reimburse such costs if for any reason the recipient does not receive an award or if the award is less than anticipated and inadequate to cover such costs). (2) Initiate a one-time extension of the expiration date of the award of up to 12 months unless one or more of the following conditions apply. For one-time extensions, the recipient must notify the Federal awarding agency in writing with the supporting reasons and revised expiration date at least 10 days before the expiration date specified in the award. This one- time extension may not be exercised merely for the purpose of using unobligated balances. (i) The terms and conditions of award prohibit the extension. (ii) The extension requires additional Federal funds. (iii) The extension involves any change in the approved objectives or scope of the project. (3) Carry forward unobligated balances to subsequent funding periods. (4)F or awards that support research, unless the Federal awarding agency provides otherwise in the award or in the agency's regulations, the prior approval requirements described in paragraph (e) are automatically waived (i.e., recipients need not obtain such prior approvals) unless one of the conditions included in paragraph (e)(2) applies. (f) The Federal awarding agency may, at its option, restrict the transfer of funds among direct cost categories or programs, functions and activities for awards in which the Federal share of the project exceeds $100,000 and the http://www.whitehouse.gov/omb/circulars/all O/print/al 10.html 10/16/2002 Circular No. A- I 10 -- Unifonn Administrative Requirements for Grants and Agreements .. Page 24 of 51 cumulative amount of such transfers exceeds or is expected to exceed 10 percent of the total budget as last approved by the Federal awarding agency. No Federal awarding agency shall pennita transfer that would cause any Federal appropriation or part.thereofto be used for purposes other than those consistent with the original intent of the appropriation. (g) All other changes to nonconstruction budgets, except for the changes described in paragraph 0), do not require prior approval. (h) For construction awards, recipients shall request prior written approval promptly from Federal awarding agencies for budget revisions whenever (1), (2) or (3) apply. (1) The revision results from changes in the scope or the objective of the project or program. (2) The need arises for additional Federal funds to complete the project. (3) A revision is desired which involves specific costs for which prior written approval requirements may be imposed consistent with applicable OMB cost principles listed in Section .27. (i) No other prior approval requirements for specific items may be imposed unless a deviation has been approved by OMB. '~ '. . "C~ 0) When a Federal awarding agency makes an award that provides support for both construction and nonconstruction work, the Federal awarding agency may require the recipient to request prior approval from the Federal awarding agency before making any fund or budget transfers between the two types of work supported. (k) For both construction and nonconstruction awards, Federal awarding agencies shall require recipients to notify the Federal awarding agency in writing promptly whenever the amount of Federal authorized funds is expected to exceed the needs of the recipient for the project period by more than $5000 or five percent of the Federal award, whichever is greater. This notification shall not be required if an application for additional funding is submitted for a continuation award. (1) When requesting approval for budget revisions, recipients shall use the budget fonns that were used in the application unless the Federal awarding agency indicates a letter of request suffices. (m) Within 30 calendar days from the date of receipt of the request for budget revisions, Federal awarding agencies shall review the request and notify the recipient whether the budget revisions have been approved. If the revision is still under consideration at the end of 30 calendar days, the http://www.whitehouse.gov/omb/circulars/al I O/print/all O.html 1 0/16/2002 . ',""' """"~ :.~'~"""'-}-, '"',1"~~.'#4:P .. \ ,*.;.;"r,'iU>,'A¡¡:'\;i:O/i';;¡W;, LIrcular No. A-II 0 -- Un if ann Administråtlve Reqüiremérits for Grants and Agreements .. Page 25 0[5 I Federal awarding agency shall infoffi1 the ~çcipiËIJ.Jjn writing of the date . '.. .,.,/"',%,...",,,"::.'~'f,c,,:.,;,¡;¡I'::'.!)""'.i~'. when the reCIpIent may expect the'declSlÖ'tl.'J;,', "",.li. _.26 NQIJ~E~_ci~ntL,;t_~ldìts, (a) Recipients and subrecipients that are institutions of higher education or other non-profit organizations (including hospitals) shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 USC 7501-7507) and revised OMB Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations." (b) State and local governments shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 USC 7501- 7507) and revised OMB Circular A-B3, "Audits of States, Local Governments, and Non-Profit Organizations." (c) For-profit hospitals not covered by the audit provisions of revised OMB CircularA-133 shall be subject to the audit requirements of the Federal awarding agencies. (d) Commercial organizations shall be subject to the audit requirements of the Federal awarding agency or the prime recipient as incorporated into the award document. _.27 Al1oWZlÞJ~ÇO~ts. For each kind of recipient, there is a set of Federal principles for determining .allowable costs. Allowability of costs shall be determined in accordance with the cost principles applicable to the entity incurring the costs. Thus, allowability of costs incurred by State, local or federally-recognized Indian tribal governments is determined in accordance with the provisions ofOMB Circular A-87, "Cost Principles for State, Local, and Indian Tribal Governments." The allowability of costs incurred by non-profit organizations is determined in accordance withthe provisions ofOMB Circular A-122, "Cost Principles for Non-Profit Organizations." The allowability of costs incurred by institutions of higher education is determined in accordance with the provisions ofOMB Circular A-21, "Cost Principles for Educational Institutions." The allowability of costs incurred by hospitals is determined in accordance with the provisions of Appendix E of 45 CFR part 74, "Principles for Detennining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals." The allowability of costs incurred by commercial organizations and those non-profit organizations listed in Attachment C to Circular A- 122 is determined in accordance with the provisions of the Federal Acquisition Regulation (FAR) at 48 CFR part 31. _.28P-~.IiQçL(xLZlvajJgÞiJÜYQffunci$. Where a funding period is specified, a recipient may charge to the grant only allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by the Federal awarding agency. hnp://www. whitehouse.gov/omb/circulars/al 1 O/print/a I 10.html 1011 6/2002 Circular No. A-II 0 -- Uniform Administrative Requirements for Grants and Agreements .. Page 26 of 5 I _.29 CQI).çl.ilLmL'11~:~emplÍons. (a) OMB authorizes conditional exemption from OMB administrative requirements and cost principles circulars for certain Federal programs with statutorily-authorized consolidated planning and consolidated administrative funding, that are identified by a Federal agency and approved by the head of the Executive department or establish.m.ent. A Federal agency shall consult withOMB during its consideration of whether to grant such an exemption. (b) To promote efficiency in State and local program administration, when Federal non-entitlement programs with common purposes have specific statutorily"'-authorized consolidated planning and consolidated administrative funding and where most of the State agency's resources come from non-Federal sources, Federal agencies may exempt these covered State-administered, non-entitlement grant programs from certain OMB grants management requirements. The exemptions would be from all but the allocability of costs provisions of OMB Circulars A-87 (Attach.m.ent A, subsection C.3), "Cost Principles for State, Local, and Indian Tribal Governments," A-21 (Section C, subpart 4), "Cost Principles for Educational Institutions," and A-I22 (Attachment A, subsection A.4), "Cost Principles for Non-Profit Organizations," and from all of the administrative requirements provisions of OMB Circular A-II 0, "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations," and the agencies' grants management common rule. ;.'. ,:~. (c) When a Federal agency provides this flexibility, as a prerequisite to a State's exercising this option, a State must adopt its own written fiscal and administrative requirements for expending and accounting for all funds, which are consistent with the provisions ofOMB Circular A-87, and extend such policies to all subrecipients. These fiscal and administrative requirements must be sufficiently specific to ensure that: funds are used in compliance with all applicable Federal statutory and regulatory provisions, costs are reasonable and necessary for operating these programs, and funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. Property Standards _.30 Purpose of property standards. Sections _.31 through _.37 set forth uniform standards governing management and disposition of property furnished by the Federal Government whose cost was charged to a project supported by a Federal award. Federal awarding agencies shall require recipients to observe these standards under awards and shall not impose additional requirements, unless specifically required by Federal statute. The recipient may use its own property management standards and procedures provided it observes the provisions of Sections _.31 through _.37. http://www.whitehouse.gov/omb/circulars/al 1 O/print/al 10.html 10/16/2002 "';¡gC'!t'~"'W"""!'.";~~\',;,;;~~#'¡,,f¡ "")-',,",é?'r'i'~"é'~1'¡f~'Y~'*'; ,Circular No. A- I 10 -- Uniform Administrâtive Reqùirementsfor' Grants ari.él Agreements .. Page 27()fsl _.3llp:mran~~ COy~~mgè, Recipients a provide the equivalent insurance coverage for real property and equipment acquired with Federal funds as provided to property owned by the recipient. Federally-owned property need not be insured unless required by the terms and conditions of the award. _.32 Realproperty. Each Federal awarding agency shall prescribe requirements for recipients concerning the use and disposition of real property acquired in whole or in part under awards. Unless otherwise provided by statute, such requirements, at a minim urn, shall contain the following. (a) Title to real property shall vest in the recipient subject to the condition that the recipient shall use the real property for the authorized purpose of the project as long as it is needed and shall not encumber the property without approval of the Federal awarding agency. (b) The recipient shall obtain written approval by the Federal awarding agency for the use of real property in other federally-sponsored projects when the recipient determines that the property is no longer needed for the purpose of the original project.. Use in other projects shall be limited to those under federally-sponsored projects (i.e., awards) or programs that have purposes consistent with those authorized for support by the Federal awarding agency. . (c) When the real property is no longer needed as provided in paragraphs (a) and (b), the recipient shall request disposition instructions from the Federal awarding agency or its successor Federal awarding agency. The Federal awarding agency shall observe one or more of the following disposition instructions. (1) The recipient may be permitted to retain title without further obligation to the Federal Government after it compensates the Federal Government for that percentage of the current fair market value of the property attributable to the Federal participation in the project. (2) The recipient may be directed to sell the property under guidelines provided by the Federal awarding agency and pay the Federal Government for that percentage of the current fair market value of the property attributable to the Federal participation in the project (after deducting actual and reasonable selling and fix-up expenses, if any, from the sales proceeds). When the recipient is authorized or required to sell the property, proper sales procedures shall be established that provide for competition to the extent practicable and result in the highest possible return. http://www.whitehouse.gov/omb/circulars/al 1 a/print/at 10.html 10/16/2002 Circular No. A-I 10 -- Unifonn Administrative Requirements for Grants and Agreements .. Page 28 of 51 , (3) The recipient may be directed to transfer title to the property to the Federal Government or to an eligible third party provided that, in such cases, the recipient shall be entitled to compensation for its attributable percentage of the current fair market value of the property. /- _.33 Federally-o\\:11ed and exempt property. (a) Federally-owned property. (1) Title to federally-owned property remains vested in the Federal Government. Recipients shall submit annually an inventory listing of federally-owned property in their custody to the Federal awarding agency. Upon completion of the award or when the property is no longer needed, the recipient shall report the property to the Federal awarding agency for further Federal agency utilization. (2) If the Federal awarding agency has no further need for the property, it shall be declared excess and reported to the General Services Administration, unless the Federal awarding agency has statutory authority to dispose of the property by alternative methods (e.g., the authority provided by the Federal Technology Transfer Act (15 U,S.C. 3710 (I» to donate research equipment to educational and non-profit organizations in accordance with E.O. 12821, "Improving Mathematics and Science Education in Support of the National Education Goals. ") Appropriate instructions shall be issued to the recipient by the Federal awarding agency. .'.,' (b) Exempt property. When statutory authority exists, the Federal awarding agency has the option to vest title to property acquired with Federal funds in the recipient without further obligation to the Federal Government and under conditions the Federal awarding agency considers appropriate. Such property is "exempt property." Should a Federal awarding agency not establish conditions, title to exempt property upon acquisition shall vest in the recipient without further obligation to the Federal Government. _.34 Equipmcnt. (a) Title to equipment acquired by a recipient with Federal funds shall vest in the recipient, subject to conditions of this section. (b) The recipient shall not use equipment acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by Federal statute, for as long as the Federal Government retains an interest in the equipment. http://www.whitehouse.gov/omb/circulars/al 1 O/printlal IO.html 10/1612002 iW,W:;'<":"",-/~'.1>.:j ,;;,. 'i1j':rJj(,\~/,'Y"".';'!.'(;;;.;..'¡;'!¡'j;Mfj¡>;;'~ Circular No. A-llO -- Uniform Administrative Reqûitc~ments for Grants and Agreements .. Page 29 of 51 , . Hf¡';;i(!¥j>\';;,f~~;i1i¿*t~i;~¡:;j;¡j¡?¡j'Jfj;i:1,,;. . (c) The recipient shall use the equipm~~n~?th~"p~~j~ct or program for which it was acquired as long as needed, whether or not the project or program continues to be supported by Federal funds and shall not encumber the property without approval of the Federal awarding agency. \Vhen no longer needed for the original project or program, the recipient shall use the equipment in connection with its other federally-sponsored activities, in the following order of priority: (i) Activities sponsored by the Federal awarding agency which funded the original project, then (ii) activities sponsored by other Federal awarding agencies. (d) During the time that equipment is used on the project or program for which it was acquired, the recipient shall make it available for use on other projects or programs if such other use will not interfere with the work on the project or program for which the equipment was originally acquired. First preference for such other use shall be given to other projects or programs sponsored by the Federal awarding agency that financed the equipment; second preference shall be given to projects or programs sponsored by other Federal awarding agencies. If the equipment is owned by the Federal Government, use on other activities not sponsored by the Federal Government shall be permissible if authorized by the Federal awarding agency. User charges shall be treated as program income. (e) \Vhen acquiring replacement equipment, the recipient may use the equipment to be replaced as trade-in or sell the equipment and use the proceeds to offset the costs of the replacement equipment subject to the approval of the Federal awarding agency. . (f) The recipient's property management standards for equipment acquired with Federal funds and federally-owned equipment shall include all of the following. (1) Equipment records shall be maintained accurately and shall include the following information. (i) A description of the equipment. (ii) Manufacturer's serial number, model number, Federal stock number, national stock number, or other identification number. (iii) Source of the equipment, including the award number. . (iv) Whether title vests in the recipient or the Federal Government. (v) Acquisition date (or date received, if the equipment was furnished by the Federal http://www.whitehouse.gov/omb/circulars/all O/print/all O.html 10/16/2002 Circular No. A-II 0 -- Uniform Administrative Requirements for Grants and Agreements ..Page 30 of 5 I Government) and cost. (vi) Information from which one can calculate the percentage of Federal participation in thè cost of the equipment (not applicable to equipment furnished by the Federal Government). (vii) Location and condition of the equipment and the date the information was reported. (viii) Unit acquisition cost. (ix) Ultimate disposition data, including date of disposal and sales price or the method used to determine current fair market value where a recipient compensates the Federal awarding agency for its share. (2) Equipment owned by the Federal Government shall be identified to indicate Federal ownership. (3) A physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years. Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference. The recipient shall, in connection with the inventory, verify the existence, current utilization, and continued need for the equipment. (4) A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft of equipment shall be investigated and fully documented; if the equipment was owned by the Federal Government, the recipient shall promptly notify the Federal awarding agency. (5) Adequate maintenance procedures shall be implemented to keep the equipment in good condition. (6) Where the recipient is authorized or required to sell the equipment, proper sales procedures shall be established which provide for competition to the extent practicable and result in the highest possible return. (g) When the recipient no longer needs the equipment, the equipment may be used for other activities in accordance with the following standards. For equipment with a current per unit fair market value of $5000 or more, the recipient may retain the equipment for other uses provided that http://www.whitehouse.gov/omb/circulars/a 11 O/print! a 110 .html 10/16/2002 .!',"~1!r,1liJi:;;'$!!N""""""!¡;"...,,,.,.;~i".' ...',.""~,~,~j.it",{,~",,,!,~M'," ,Circular No. A-II 0 -- Unifonn AdminiStrativè 'Requï't~1fuents for Grants and Agreements .. Page 31 of 5 1 ~i' ..,.! compensation is made to the origin~.lgç,qi~:~¡:¡A,~)X~Qing agency or its "",<!1:h..i~",',>'.:' .~'i,,'í""¡""~KWi¡";H' '.'.'........ . successor. The amount of compensatlOn snaIl becÖh1puted by applYIng the percentage of Federal participation in the cost of the original project or program to the current fair market value of the equipment. If the recipient has no need for the equipment, the recipient shall request disposition instructions from the Federal awarding agency. The Federal awarding agency shall determine whether the equipment can be used to meet the agency's requirements. If no requirement exists within that agency, the availability of the equipment shall be reported to the General Services Administration by the Federal awarding agency to determine whether a -requirement for the equipment exists in other Federal agencies. The Federal awarding agency shall issue instructions to the recipient no later than 120 calendar days after the recipient's request and the following procedures shall govern. .~ (1) If so instructed or if disposition instructions are not issued within 120 calendar days after the recipient's request, the recipient shall sell the equipment and reimburse the Federal awarding agency an amount computed by applying to the sales proceeds the percentage of Federal participation in the cost of the original project or program. However, the recipient shall be permitted to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for the recipient's selling and handling expenses. (2) If the recipient is instructed to ship the equipment elsewhere, the recipient shall be reimbursed by the Federal Government by an amount which is computed by applying the percentage of the recipient's participation in the cost of the original project or program to the current fair market value of the equipment, plus any reasonable shipping or interim storage costs incurred. . (3) If the recipient is instructed to otherwise dispose of the equipment, the recipient shall be reimbursed by the Federal awarding agency for such costs incurred in its disposition. (4) The Federal awarding agency may reserve the right to transfer the title to the Federal Government or to a third party named by the Federal Government when such third party is otherwise eligible under existing statutes. Such transfer shall be subject to the following standards. (i) The equipment shall be appropriately identified in the award or otherwise made known to the recipient in writing. (ii) The Federal awarding agency shall issue disposition instructions within 120 calendar days http://www.whitehouse.gov/omb/circulars/al 10/printlal 10.html 10/16/2002 Circular No. A- I 10 -- Unifonn Administrative Requirements for Grants and Agreements .. Page 32 of 5 I , after receipt of a final inventory. The final inventory shaUlist all equipment acquired with grant funds and Jederally-o\VI1ed equipment. If the Federal awarding agency fails to issue disposition instructions within the 120 calendar day period, the recipient shall apply the standards of this section, as appropriate. r (iii) When the Federal awarding agency exercises its right to take title, the equipment shall be subject to the provisions for federally-o\VI1ed equipment. _.35 Supplies and other expendable property. (a) Title to supplies and other expendable property shall vest in the recipient upon acquisition. If there is a residual inventory of unused supplies exceeding $5000 in total aggregate value upon termination or completion of the project or program and the supplies are not needed for any other federally-sponsored project or program, the recipient shall retain the supplies for use on non-Federal sponsored activities or sell them, but shall, in either case, compensate the Federal Government for its share. The amount of compensation shall be computed in the same manner as for equipment. (b) The recipient shall not use supplies acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by Federal statute as long as the Federal Government retains an interest in the supplies. _.36 lm?f}giþl~ PIQper1y, (a) The recipient may copyright any work that is subject to copyright and was developed, or for which ownership was purchased, under an award. The Federal awarding agency(ies) reserve a royalty-free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use the work for Federal purposes, and to authorize others to do so. (b) Recipients are subject to applicable regulations governing patents and inventions, including government-wide regulations issued by the Department of Commerce at 37 CFR part 40 I, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements." (c) The Federal Government has the right to: (I) obtain, reproduce, publish or otherwise use the data first produced under an award; and http://www.whitehouse.gov/omb/circulars/al 1 O/printlal 10.html 10/16/2002 t',~W,';"'!f',~¡¡:;'Ì(j'~""";."""""\!f,."ff'1'C,~:;1i'¡'¡.~.i!..'(Ji"f'fiJr¡, ,Circular No. A- I 10 -- Uniform Administráfivè'R'eqîiiièmêr1ts"'fbr"Cirants and Agreements .. Page 33 of 51 (2) authorize others to publish, or otherwise use such data for Federal purposes. (d) (1) In addition, in response to a Freedom ofInformation Act(FOIA) request for research data relating to published research findings produced under an award that were used by the Federal Government in developing an agency action that has the force and effect oflaw, the Federal awarding agency shall request, and the recipient shall provide, within a reasonable time, the research data so that they can be made available to the public through the procedures established under the FOIA. If the Federal awarding agency obtains the research data solely in response to a FOrA request, the agency may charge the requester a reasonable fee equaling the full incremental cost of obtaining the research data. This fee should reflect costs incurred by the agency, the recipient, and applicable subrecipients. This fee is in addition to any fees the agency may assess under the FOIA (5 U.S.c. 552(a)(4)(A)). (2) The following definitions apply for purposes of paragraph (d) of this section: ¿. (i) Research data is defined as the recorded factual material commonly accepted in the scientific community as necessary to validate research findings, but not any of the following: preliminary analyses, drafts of scientific papers, plans for future research, peer reviews, or communications with colleagues. This "recorded" material excludes physical objects (e.g., laboratory samples). Research data also do not include: '"' (A) Trade secrets, commercial information, materials necessary to be held confidential by a researcher until they are published, or similar information which is protected under law; and (B) Personnel and medical information and similar information the disclosure of which would constitute a clearly unwarranted invasion of personal privacy, such as information that could be used to identify a particular person in a research study. (ii) Published is defined as either when: http://www.whitehouse.gov/omb/circulars/al I 0/printla1 10.html 10/16/2002 Circular No. A-I 10 -- Uniform Administrative Requirements for Grants and Agreements.. Page 34 of 51, (A) Research findings are published in a peer-reviewed scientific or technical journal; or (B) A Federal agency publicly and officially cites the research findings in support of an agency action that has the. force and effect of law. (iii) Used by the Federal Government in developing an agency action that has the force and effect of law is defined as when an agency publicly and officially cites the research findings in support of an agency action that has the force and effect of law. (e) Title to intangible property and debt instruments acquired under an award or subaward vests upon acquisition in the recipient. The recipient shall use that property for the originally-authorized purpose, and the recipient shall not encumber the property without approval of the Federal awarding agency. When no longer needed for the originally authorized purpose, disposition of the intangible property shall occur in accordance with the provisions of paragraph _.34(g). _.37 PJ:QP-~rt-ytIllstI~li!!içm~hÜ2, Real property, equipment, intangible property and debt instruments that are acquired or improved with Federal funds shall be held in trust by the recipient as trustee for the beneficiaries of the project or program under which the property was acquired or improved. Agencies may require recipients to record liens or other appropriate notices of record to indicate that personal or real property has been acquired or improved with Federal funds and that use and disposition conditions apply to the property. . ~ Procurement Standards _.40 Purpose of procurement standard$, Sections _.41 through _.48 set forth standards for use by recipients in establishing procedures for the procurement of supplies and other expendable property, equipment, real property and other services with Federal funds. These standards are furnished to ensure that such materials and services are obtained in an effective manner and in compliance with the provisions of applicable Federal statutes and executive orders. No additional procurement standards or requirements shall be imposed by the Federal awarding agenCies upon recipients, unless specifically required by Federal statute or executive order or approved by OMB. _.4 I Recipient responsibilities. The standards contained in this section do not relieve the recipient of the contractual responsibilities arising under http://www.whitehouse.gov/ornb/circulars/al 1 O/printJall O.html 10/16/2002 ':'1"\i~'~"\':;q'%'i!'",'Jr:)'^\Ý'.,.'>.'A.w,"¡~rn::',i;-i'PW'<'![f,f&""1!;... , . . , Circular No. A- I 10-- Uniform Administrative Reqilirëments for Grants and Agreements .. Page 35 of 51 , .',.'., "'.,; .. "'X¡.'å:,);J¡,. its contract(s). The recipient is the responsible au~hority. without recourse to the Federal awarding agency, i~g~a'íng'tfí~¡';s~itÎ~Ihent and satisfaction of all contractual and administrative issues arising out of procurements entered into in support of an award or other agreement. This includes disputes, claims, protests of award, source evaluation or other matters of a contractual nature. Matters concerning violation of statute are to be referred to such Federal, State or local authority as may have proper jurisdiction. _.42 Codes of conduct. The recipient shall maintain v.TÏtten standards of conduct governing the performance of its employees engaged in the award and administration of contracts. No employee, officer, or agent shall participate in the selection, award, or administration of a contract supported by Federal funds if a real or apparent conflict of interest would be involved. Such a conflict would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in the flrm selected for an award. The officers, employees, and agents of the recipient shall neither solicit nor accept gratuities, favors, oranything of monetary value from contractors, or parties to subagreements. However, recipients may set standards for situations in which the fmancial interest is not substantial or the gift is an unsolicited item of nominal value. The standards of conduct shall provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the recipient. ~ .. ", ~.43 Ç9rnpetition. All procurement transactions shall be conducted in a manner to provide,.to the maximum extent practical, open and free competition. The recipient shall be alert to organizational conflicts of interest as well as noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor perfonnance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, invitations for bids and/or requests for proposals shall be excluded from competing for such procurements. A wards shall be made to the bidder or offeror whose bid or offer is responsive to the solicitation and is most advantageous to the recipient, price, quality and other factors considered. Solicitations shall clearly set forth all requirements that the bidder or offeror shall fulfill in order for the bid or offer to be evaluated by the recipient. Any and all bids or offers may be rejected when it is in the recipient's interest to do so. --:-.44 Procurement procedures. (a) All recipients shall establish written procurement procedures. These procedures shall provide for, at a minimum, that (1), (2) and (3) apply. (I) Recipients avoid purchasing unnecessary items. (2) Where appropriate, an analysis is made of lease and http://www.whitehouse.gov/omb/circulars/al I O/print/all O.html 10/16/2002 Circular No. A- 110 -- Unifonn Administrative Requirements for Grants and Agreements .. Page 36 of 5 I . purchase alternatives to determine which would be the most economical and practical procurement for the Federal Government. .,.~ (3) Solicitations for goods and services provide for all of the following. (i) A clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, such a description shall not contain features which unduly restrict competition. (ii) Requirements which the bidder/offeror must fulfill and all other factors to be used in evaluating bids or proposals. (iii) A description, whenever practicable, of technical requirements in terms of functions to be performed or perfonnance required, including the range of acceptable characteristics or minimum acceptable standards. (iv) The specific features of "brand name or equal" descriptions that bidders are required to meet when such items are included in the solicitation. (v) The acceptance, to the extent practicable and economically feasible, of products and services dimensioned in the metric system of measurement. (vi) Preference, to the extent pracûçable and economically feasible, for products and services that conserve natural resources and protect the environment and are energy efficient. (b) Positive efforts shall be made by recipients to utilize small businesses, minority-owned finns, and women's business enterprises, whenever possible. Recipients of Federal awards shall take all of the following steps to further this goal. (1) Ensure that small businesses, minority-owned firms, and women's business enterprises are used to the fullest extent practicable. (2) Make information on forthcoming opportunities available and arrange time frames for purchases and contracts to encourage and facilitate participation by small businesses, minority-owned firms, and women's business enterprises. http://www.whitehouse.gov/omb/circulars/al I O/print/all O.html 10/16/2002 ..".T'!I""-;".'¡;1"'{)"_'""~i<!\~I,;~,."F"".:-""¡;~;F;'"'_.'~;:';.;. Circular No. A- 110 -- Uniform Adn1Ìnisträti~èReqùtiémènis for G~ants and Agreements .. Page 37 of 51 . . .;..";',. "-A"." :;'-,:;' .~-,:.::~. . ,i¡:jÐi1:-~,~fë;i~'.Ji"'r:{~~iki!-,,\¡Îi'Yi.~j¡;:i< . (3) Consider in the contract process whether firms competing for larger contracts intend to subcontract with small businesses, minority-owned firms, and women's business enterprises. (4) Encourage contracting with consortiums of small businesses, minority-owned firms and women's business enterprises when a contract is too large for one of these rums to handle individually. (5) Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Department of Commerce's Minority Business Development Agency in the solicitation and utilization of small businesses, minority- owned firms and women's business enterprises. (c) The type of procuring instruments used (e.g., fixed price contracts, cost reimbursable contracts, purchase orders, and incentive contracts) shall be determined by the recipient but shall be appropriate for the particular procurement and for promoting the best interest of the program or project involved. The "cost-plus-a-percentage-of-cost" or "percentage of construction cost" methods of contracting shall not be used. (d) Contracts shall be made only with responsible contractors who possess the potential ability to perform successfully under the terms and conditions of the proposed procurement. Consideration shall be given to such matters as contractor integrity, record of past performance, financial and technical resources or accessibility to other necessary resources. In certain circumstances, contracts with certain parties are restricted by agencies' implementation ofE.O.s 12549 and 12689, "Debarment and Suspension." (e) Recipients shall, on request, make available for the Federal awarding agency, pre-award review and procurement documents, such as request for proposals or invitations for bids, independent cost estimates, etc., when any of the following conditions apply. (I) A recipient's procurement procedures or operation fails to comply with the procurement standards in the Federal awarding agency's implementation of this Circular. (2) The procurement is expected to exceed the small purchase threshold fixed at 41 V.S.C. 40.3 (l I) (currently $25,000) and is to be awarded without competition or only one bid or offer is received in response to a solicitation. (3) The procurement, which is expected to exceed the small purchase threshold, specifies a "brand name" product. http://www.whitehouse.gov/omb/circulars/al 1 O/print/al IO.html 10/16/2002 Circular No. A- I 10 -- Unifonn Administrativè Requirements for Grants and Agre¿ments .. Page 38 of 51, (4) The proposed award over the small purchase threshold is to be awarded to other than the apparent low bidder under a sealed bid procurement. (5) A proposed contract modification changes the scope of a contract or increases the contract amount by more than the amount of the small purchase threshold. _.45 Cost and pricecmaIY$is, Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various ways, including the comparison of price quotations submitted, market prices and similar indicia, together with discounts. Cost analysis is the review and evaluation of each element of cost to determine reasonableness, allocability and allowability. _.46 Procur~m~m.reçQrçls. Procurement records and files for purchases in excess of the small purchase threshold shall include the following at a minimum: (a) basis for contractor selection, (b) justification for lack of competition when competitive bids or offers are not obtained, and (c) basis for award cost or price. _.47 çg!1@.Ç!-1!gministratio!l, A system for contract administration shall be maintained to ensure contractor conformance with the terms, conditions and specifications of the contract and to ensure adequate and timely follow up of all purchases. Recipients shall evaluate contractor performance and docwnent, as appropriate, whether contractors have met the terms, conditions and specifications of the contract. ,- ,'. " _.48 ContractprQyisiQl1$, The recipient shall include, in addition to provisions to define a sound and complete agreement, the following provisions in all contracts. The following provisions shall also be applied to subcontracts. (a) Contracts in excess of the small purchase threshold shall contain contractual provisions or conditions that allow for administrative, contractual, or legal remedies in instances in which a contractor violates or breaches the contract terms, and provide for such remedial actions as may be appropriate. (b) All contracts in exceSs of the small purchase threshold shall contain suitable provisions for termination by the recipient, including the manner by which tennination shall be effected and the basis for settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be tenninated because of circwnstances beyond the control of the contractor. http://www.whitehouse.gov/omb/circulars/al10/print/al 10.html 10/16/2002 . ,::?""'"'Ç.W"1'f'."':'~"""".""W",§,\;....,~f.::"",.'e'"",,~,.;.'::'\"1;, Circular No. A-I 10 -- Unifonn Adm!nistrative Reqûlternents for Grants and Agreements.. Page 39 of 51 . . . . . . '" ,'J.¡.,fl,.¡iJk.:t{;;E,6¡jii:~i\\iii¥!'YYt".: .' . . (c) Except as otherwIse reqUIred by statute, an award that reqUIres the contracting (or subcontracting) for construction or facility improvements shall provide for the recipient to follow its own requirements relating to bid guarantees, perfonnance bonds, and payment bonds unless the construction contract or subcontract exceeds $100,000. For those contracts or subcontracts exceeding $100,000, the Federal awarding agency may accept the bonding policy and requirements of the recipient, provided the Federal awarding agency has made a detennination that the Federal Government's interest is adequately protected. Ifsuch a determination has not been made, the minimum requirements shall be as follows. (1) A bid guarantee from each bidder equivalent to five percent of the bid price. The "bid guarantee" shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder shall, upon acceptance of his bid, execute such contractual documents as may be required within the time specified. (2) A performance bond on the part of the contractor for 100 percent of the contract price. A "performance bond" is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract. (3) A payment bond on the part of the contractor for 100 percent of the contract price. A "payment bond" is one executed in connection with a contract to assure payment as required by statute of all persons supplying labor and material in the execution of the work provided for in the contract. (4) Where bonds are required in the situations described herein, the bonds shall be obtained from companies holding certificates of authority as acceptable sureties pursuant to 31 CFR part 223, "Surety Companies Doing Business with the United States." (d) All negotiated contracts (except those for less than the small purchase threshold) awarded by recipients shall include a provision to the effect that the recipient, the Federal awarding agency, the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books, documents, papers and records of the contractor which are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts and transcriptions. (e) All contracts, including small purchases, awarded by recipients and their contractors shall contain the procurement provisions of Appendix A to this Circular, as applicable. http://wwvv.whitehouse.gov/ornb/circulars/aIIO/print/allO.html 10/16/2002 Circular No. A-II 0 -- Uniform Administrative Requirements for Grants and Agreements .. Page 40 of 5 I . Reports and Records _.50 Purpose of rqJOI1S and records. Sections _.51 through _.53 set forth the procedures for monitoring and reporting on the recìpient's financial and program performance and the necessary standard reporting forms. They also set forth record retention requirements. _.5 I Monitoring and reporting program performance. (a) Recipients are responsible for managing and monitoring each project, program, subaward, function or activity supported by the award. Recipients shall monitor subawards to ensure subrecipients have met the audit requirements as delineated in Section _.26. (b) The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph _.51 (f), performance reports shall not be required more frequently than quarterly or, less frequently than annually. Annual reports shall be due 90 calendar days after the grant year; quarterly or semi-annual reports shall be due 30 days after the reporting period. The Federal awarding agency may require annual reports before the anniversary dates of multiple year awards in lieu of these requirements. The final performance reports are due 90 calendar days after the expiration or termination of the award. (c) If inappropriate, a final technical or performance report shall not be required after completion ofthe project. (d) When required, performance reports shall generally contain, for each award, brief information on each of the following. ( I) A comparison of actual accomplishments with the goals and objectives established for the period, the findings of the investigator, or both. Whenever appropriate and the output of programs or projects can be readily quantified, such quantitative data should be related to cost data for computation of unit costs. (2) Reasons why established goals were not met, if appropriate. (3) Other pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs. (e) Recipients shall not be required to submit more than the original and two copies of performance reports. (f) Recipients shall immediately notify the Federal awarding agency of http://www.whitehouse.gov/omb/circulars/all 0/print/a1l O.html 10/16/2002 '.'i"W!i)'V¥".Jfè'.",¥."t;i' :""""""f"';'ifk,~~'i.\t.~íW<[Þ)@1"f;;!*f', Circular No. A-I 10-- Uniform Administratlvé Reqüitêm'erits"fòr Grants and Agreements .. Page 41 of 51 developments that have a significantirnpact Ot1th~ia':Yard-supported activities. Also, notification shall bêigVivêníntfíê~~'~1~ê'ofproblems, delays, or adverse conditions which materially impair the ability to meet the objectives of the award. This notification shall include a statement of the action taken or contemplated, and any assistance needed to resolve the situation. (g) Federal awarding agencies may make site visits, as needed. (h) Federal awarding agencies shall comply with clearance requirements of 5 CFR part 1320 when requesting performance dataJrom recipients. ....:-.52 Financialj"~PQrtipg, (a) The following forms or such other forms as may be approved by OMB are authorized for obtaining financial information from recipients. (1) SF-269 or SF-269A, Financial Status Report. (i) Each Federal awarding agency shall require recipients to use the SF-269 or SF-269A to report the status of funds for all nonconstruction projects or programs. A Federal awarding agency may, however, have the option of not requiring the SF- 269 or SF-269A when the SF-270, Request for Advance or Reimbursement, or SF-272, Report of Federal Cash Transactions, is determined to provide adequate information to meet its needs, except that a final SF-269 or SF-269Ashall be required at the completion of the project when the SF-270 is used only for advances. (ii) The Federal awarding agency shall prescribe whether the report shall be on a cash or accrual basis. If the Federal awarding agency requires accrual information and the recipient's accounting records. are not normally kept on the accrual basis, the recipient shall not be required to convert its accounting system, but shall develop such accrual information through best estimates based on an analysis of the documentation on hand. (iii) The Federal awarding agency shall determine the frequency of the Financial Status Report for each project or program, considering the size and complexity of the particular project or program. However, the report shall not be required more frequently than quarterly or less frequently than annually. A final report shall be required at the http://www.whitehouse.gov/omb/circulars/all a/print/all O.html 10/16/2002 Circular No. A-I 10 -- Uniform Administrative Requirements for Grants and Agreements.. Page 42 of 5 I, completion of the agreement. (iv) The Federal awarding agency shall require recipients to submit the SF-269 or SF-269A (an original and no more than two copies) no later than 30 days after the end of each specified reporting period for quarterly and semi-annual reports, and 90 calendar days for annual and final reports. Extensions of reporting due dates may be approved by the Federal awarding agency upon request of the recipient. ./- j , (2) SF-272, Report of Federal Cash Transactions. (i) When funds are advanced to recipients the Federal awarding agency shall require each recipient to submit the SF-272 and, when necessary, its continuation sheet, SF-272a. The Federal awarding agency shall use this report to monitor cash advanced to recipients and to obtain disbursement information for each agreement with the recipients. (ii) Federal awarding agencies may require forecasts of Federal cash requi~ements in the "Remarks" section of the report. (iii) When practical and deemed necessary, Federal awarding agencies may require recipients to report in the "Remarks" section the amount of cash advances received in excess of three days. Recipients shall provide short narrative explanations of actions taken to reduce the excess balances. . (iv) Recipients shall be required to submit not more than the original and two copies of the SF- 272 15 calendar days following the end of each quartet. The Federal awarding agencies may require a montWy report from those recipients receiving advances totaling $ I million or more per year. (v) Federal awarding agencies may waive the requirement for submission of the SF-272 for any one of the following reasons: (1 ) When monthly advances do not exceed $25,000 per recipient, provided that such advances are monitored. through other forms contained in this section; (2) http://www.whitehouse.gov/omb/circulars/aii O/print/al 10.html 10/16/2002 Circular No. A-I 10 --Uniform Admin{~frh~'t.u~R¿qfirrrifi1':~ï~'ðX7~iG~ants and Agreements.. Page 43 of 51 If, in the Fe.deral aw(ifding agency's opinion, the recipient's"âêcoJrlhîig't'ðIittols are adequate to minimize excessive Federal advances; or, (3) When the electronic payment mechanisms provide adequate data. (b) When the Federal awarding agency needs additional information or more frequent reports, the following shall be observed. (1) When additional information is needed to comply with legislative requirements, Federal awarding agencies shall issue instructions to require recipients to submit such information under the "Remarks" section of the reports. (2) When a Federal awarding agency determines that a recipient's accounting system does not meet the standards in Section _.21, additional pertinent information to further monitor awards may be obtained upon written notice to the recipient until such time as the system is brought up to standard. The Federal awarding agency, in obtaining this information, shall comply with report clearance requirements of 5 CFR part 1320. (3) Federal awarding agencies are encouraged to shade out any line item on any report if not necessary. (4) Federal awarding agencies may accept the identical information from the recipients in machine readable format or computer printouts or electronic outputs in lieu of prescribed formats. . (5) Federal awarding agencies may provide.computer or electronic outputs to recipients when such expedites or contributes to the accuracy of reporting. _.53 Retention aJ1d:lççe~~J.~qtlir~ment$ for records. (a) This section sets forth requirements for record retention and access to records for awards to recipients. Federal awarding agencies shall not impose any other record retention or access requirements upon recipients. (b) Financial records, supporting documents, statistical records, and all other records pertinent to an award shall be retained for a period of three years from the date of submission of the final expenditure report or, for awards that are renewed quarterly Or annually, from the date of the submission of the quarterly or annual financial report, as authorized by the Federal awarding agency. The only exceptions are the following. (1) If any litigation, claim, or audit is started before the http://www.whitehouse.gov/omb/circulars/all0/printlal 10.html 10/16/2002 Circular No. A-II 0 -- Unifonn Administrative Requirements for Grants and Agreements .. Page 44 of 51 . expiration of the 3-year period. the records shall be retained until all litigation, claims or audit findings involving the records have been resolved and final action taken. (2) Records for real property and equipment acquired with Federal funds shall be retained for 3 years after final disposition. (3) When records are transferred to or maintained by the Federal awarding agency, the 3-year retention requirement is not applicable to the recipient. (4) Indirect cost rate proposals, cost allocations plans, etc. as specified in paragraph _.53(g). (c) Copies of original records may be substituted for the original records if authorized by the Federal awarding agency. (d) The Federal awarding agency shall request transfer of certain records to its custody from recipients when it determines that the records possess long tenn retention value. However, in order to avoid duplicate recordkeeping, a Federal awarding agency may make arrangements for recipients to retain any records that are continuously needed for joint use. (e) The Federal awarding agency, the Inspector General, Comptroller General of the United States, or any of their duly authorized representatives, have the right oftimely and unrestricted access to any books, documents, papers, or other records of recipients that are pertinent to the awards. in order to make audits, examinations, excerpts, transcripts and copies of such documents. This right also includes timely and reasonable access to a recipient's personnel for the purpose of interview and discussion related to such documents. The rights of access in this paragraph are not limited to the required retention period, but shall last as long as records are retained. (f) Unless required by statute, no Federal awarding agency shall place restrictions on recipients that limit public access to the records of recipients that are pertinent to an award, except when the Federal awarding agency can demonstrate that such records $hall be kept confidential and would have been exempted from disclosure pursuant to the Freedom of Information Act (5 U.S.C. 552) if the records had belonged to the Federal awarding agency. (g) Indirect cost rate proposals, cost allocations plans, etc. Paragraphs (g) (I) and (g)(2) apply to the following types of documents, and their supporting records: indirect cost rate computations or proposals, cost allocation plans. and any similar accounting computations of the rate at which a particular group of costs is chargeable (such as computer usage charge back rates or composite fringe benefit rates). http://www.whitehouse.gov/omb/circulars/al 1 O/printlal 10.html 10/16/2002 ;"""""'"'.'."""':;.W"""R;'~"':":1¡$';"""!""X~"Pj'1'q",;'¡~",,"", . Circular No. A-I 10 -- Uniform Administrative Reqùi~etnents for Grants and Agreements.. Page 45 of 51 ".\:/...,>.".'!:.J?,,!!$:;ç,'} (I) If submitted for negdti'atio~'.. Ifthê' rêCipient sÙbIIli ts to the Federal awarding agency or the subrecipient submits to the recipient the proposal, plan, or other computation to form the basis for negotiation of the rate, then the 3-year retention period for its supporting records starts on the date of such submission, (2) If not submitted for negotiation. If the recipient is not required to submit to the Federal awarding agency or the subrecipient is not required to submit to the recipient the proposal, plan, or other computation for negotiation purposes, then the 3-year retention period for the proposal, plan, or other computation and its supporting records starts at the end of the fiscal year (or other accounting period) covered by the proposal, plan, or other computation, Termination and Enforcement _.60 Purpose oftermiI:l~tiQpaI1g~p,f9IÇ_~m~m, Sections _,61 and _,62 set forth uniform suspension, termination and enforcement procedures. ,61 Termination. (a) Awards may be terminated in whole or in part only if (1), (2) or (3) apply. (I) By the Federal awarding agency, if a recipient materially fails to comply with the terms and conditions of an award. (2) By the Federal awarding agency with the consent of the recipient, in which case the two parties shall agree upon the termination conditions, including the effective date and, in the case of partial termination, the portion to be terminated. (3) By the recipient upon sending to the Federal awarding agency written notification setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if the Federal awarding agency determines in the case of partial termination that the reduced or modified portion of the grant will not accomplish the purposes for which the grant was made, it may terminate the grant in its entirety under either paragraphs (a)(1) or (2). (b) If costs are allowed under an award, the responsibilities of the recipient referred to in paragraph _,71 (a), including those for property management as applicable, shall be considered. in the termination of the http://www.whitehouse.gov/omb/circulars/a 1 I O/print/aII O.html 10/16/2002 Circular No. A-It 0 -- Uniform Administrative Requirements for Grants and Agreements .. Page 46 of 51 . award, and provision shall be made for continuing responsibilities of the recipient after termination, as appropriate. .62 Enrorc~m~.nt. (a) Remedies for noncompliance. If a recipient materially fails to comply with the terms and conditions of an award, whether stated in a Federal statute, regulation, assurance, application, or notice of award, the Federal awarding agency may, in addition to imposing any of the special conditions outlined in Section _.14, take one or more of the following actions, as . appropriate in the circumstances. (1) Temporarily withhold cash payments pending correction of the deficiency by the recipient or more severe enforcement action by the Federal awarding agency. (2) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance. (3) Wholly or partly suspend or terminate the current award. (4) Withhold further awards for the project or program. (5) Take other remedies that may be legally available. .. (b) Hearings and appeals. In taking an enforcement action, the awarding agency shall provide the recipient an opportunity for hearing, appeal, or other administrative proceeding to which the recipient is entitled under any statute or regulation applicable to the action involved. (c) Effects of suspension and termination. Costs of a recipient resulting from obligations incurred by the recipient during a suspension or after termination of í¥1 award are not allowable unless the awarding agency expressly authorizes them in the notice of suspension or termination or subsequently. Other recipient costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if (1) and (2) apply. (1) The costs result from obligations which were properly incurred by the recipient before the effective date of suspension or termination, are not in anticipation of it, and in the case of a termination, are noncancellable. (2) The costs would be allowable if the award were not suspended or expired normally at the end of the funding period in which the temiination takes effect. (d) Relationship to debarment and suspension. The enforcement remedies http://www.whitehouse.gov/omb/circulars/al 1 O/print/a 11 O.html 10/16/2002 """'i..',wt"""CN""."'~'Wi¡M",i"'.'¡'?"'~"t¿'¡;;"(r"~,¡i".'O LlrcuJar No.A-IIO -- Unifonn Administrative'ReqlÍlfêments tor Grants and Agreements.. Page 47 of 5 I ./. identified in this section, including suspension andtennination, do not preclude a recipient from being subject todebarmeiJi and suspension under E.O.s 12549 and 12689 and the Federal awarding agency implementing regulations (see Section _.13). SUBPART D - After-the-Award Requirements _.70 Purpose. Sections _.71 through _.73 contain closeout procedures and other procedures for subsequent disallowances and adjustments. _.71 C I 0 seo !l.l.PIQÇS:.Q!:l.XS:s. (a) Recipients shall submit, within 90 calendar days after the date of completion of the award, all financial, perfonnance, and other reports as required by the tenns and conditions of the award. The Federal awarding agency may approve extensions when requested by the recipient. (b) Unless the Federal awarding agency authorizes an extension, a recipient shall liquidate all obligations incurred under the award not later than 90 calendar days after the funding period or the date of completion as specified in the tenns and conditions of the award or in agency implementing instructions. (c) The Federal awarding agency shall make prompt payments to a recipient for allowable reimbursable costs under the award being closed out. (d) The recipient shall promptly refund any balances of unobligated cash that the Federal awarding agency has advanced or paid and that is not authorized to be retained by the recipient for use in other projects. OMB . Circular A-129 governs unretUrned amounts that become delinquent debts. (e) When authorized by the tenns and conditions of the award, the Federal awarding agency shall make a settlement for any upward or downward adjustments to the Federal share of costs after closeout reports are received. (f) The recipient shall account for any real and personal property acquired with Federal funds or received from the Federal Government in accordance with Sections _.31 through _.3 7. (g) In the event a final audit has not been perfonned priorto the closeout of an award, the Federal awarding agency shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs resulting from the final audit. _.72 Sub.~~q!l~nLf,lc:ljustments and conJin!:l.ingI~~Qn~il¿jUtie.~~ (a) The closeout of an award does not affect any of the following. http://www.whitehouse.gov/omb/circulars/al I O/print/all O.html 10/ 16/2002 Circular No. A- I 10 -- Uniform Administrative Requirements for Grants and Agreements.. Page 48 of 5 I . (1) The right of the Federal awarding agency to disallow costs and recover funds on the basis of a later audit or other review. (2) The obligation of the recipient to return any funds due as a result of later refunds, corrections, or other transactions. (3) Audit requirements in Section _.26. (4) Property management requirements in Sections _.31 through _.3 7 . (5) Records retention as required in Section _.53. (b) After closeout of an award, a relationship created under an award may be modified or ended in whole or in part with the consent of the Federal awarding agency and the recipient, provided the responsibilities of the recipient referred to in paragraph _.73(a), including those for property management as applicable, are considered and provisions made for continuing responsibilities of the recipient, as appropriate. -. 73 CQJJ~ctiQn.9f~I1Jol.lIJt~.d,ue. (a) Any funds paid to a recipient in excess of the amount to which the recipient is fmally determined to be entitled under the terms and conditions of the award constitute a debt to the Federal Government. If not paid within a reasonable period after the demand for payment, the Federal awarding agency may reduce the debt by (1), (2) or (3). .~. .. (1) Making an administrative offset against other requests for reimbursements. (2) Withholding advance payments otherwise due to the recipient. (3) Taking other action permitted by statute. (b) Except as otherwise provided by law, the Federal awarding agency shall charge interest on an overdue debt in accordance with 4 CFR Chapter IT, "Federal Claims Collection Standards." IQ1H~f Page Appendix A Contract Provisions All contracts, awarded by a recipient including small purchases, shall http://www.whitehouse.gov/omb/circulars/aii O/printJ a 110 .html 10/16/2002 !};¡\',"'>rX~fj;i"'~'Mt(i'~",¡"",~,. *:;<j .j"¡~i#j';'",l~', Circular No. A- I 10 --Uniform AdministrabvëReqUlrèïrienis for Grants and Agreements .. Page 49 of 51 contain the following provisions as applicable: 1. Equal Employment Opportunity - All cOntracts shall contain a provision requiring compliance with E.O. 11246, "Equal Employment Opportunity," as amended by E.O. 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," and as supplemented by regulations at 41 CFR part 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." 2. Copeland "Anti-Kickback" Act (18 V.S.C. 874 and 40 V.S.C. 276c) .. All contracts and subgrants in excess of $2000 for construction or repair awarded by recipients and subrecipients shall include a provision for compliance with the Copeland "Anti-Kickback" Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR part 3, "Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled. The recipient shall report all suspected or reported violations to the Federal awarding agency. 3. Davis-Bacon Act, as amended (40 V.S.C. 276a to a- 7) - When required by Federal program legislation, all construction contracts awarded by the recipients andsubrecipients of more than $2000 shall include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by Department of Labor regulations (29 CFR part 5, "Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction"). Under this Act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage detennination made by the Secretary of Labor. In addition, contractors shall be required to pay wages not less than once a week. The recipient shall place a copy of the current prevailing wage detennination issued by the Department of Labor in each solicitation and the award of a contract shall be conditioned upon the acceptance of the wage detennination. The recipient shall report all suspected or reported violations to the Federal awarding agency. 4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333) - Where applicable, all contracts awarded by recipients in excess of $2000 for construction contracts and in excess of $2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), as supplemented by Department of Labor regulations (29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the Wages of every mechanic and laborer on the basis of a standard work week of40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1 ~ times the basic rate of pay for all http://www. whitehouse .gov / omb/ circulars/a 11 a/print! a 1 I O.html 10/16/2002 Circular No. A-II 0 -- Unifonn Administrative Requirements for Grants and Agreements .. Page 50 of 5 I hours worked in excess of 40 hours in the work week. Section 107 of the Act is applicable to construction work and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. 5. Rights to Inventions Made Under a Contract or Agreement- Contracts or agreements for the performance of experimental, developmental, or research work shall provide.for the rights of the Federal Government and the recipient in any resulting invention in accordance with 37 CFR part 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," and any implementing regulations issued by the awarding agency. 6. Clean Air Act (42 U.S.c. 7401 et seq.) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), as amended - Confracts and subgrants of amounts in excess of $1 00,000 shall contain a provision that requires the recipient to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.c. 7401 et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.c. 1251 et seq.). Violations shall be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EP A). ,.. . '.~.- 7. Byrd Anti-Lobbying Amendment (31 V.S.C. 1352) - Contractors who apply or bid for an award of $1 00,000 or more shall file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.c. 1352. Each tier shall also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient. 8. Debarment and Suspension (E.O.s 12549 and 12689) - No contract shall be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension." This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. http://www.whitehouse.gov/omb/circulars/al I O/print/al 10.html lOll 6/2002 Circular No. A- 110 -- Unifonn Administr~tivé'Rëq'ü1:1ëffient~"f~;èr;ants and Agreements.. Page 51 of 51 Top of Page Return to this article at: http://www.whitehouse.govjombjcirculars/al10jallQ.l1trnl CI~ck to Print ~ this document ~ http://www.whitehouse.gov/omb/circulars/al I O/print/all O.html 10/16/2002