2014/07/16 Council Agenda Packet

7 compliance with Circular A-133, to include the Washington State Auditor's Office, a federal auditor, or a public accountant performing work using GAGAS, as appropriate. Costs of the audit may be an allowable grant expenditure as authorized by Circular A-133. The Subgrantee shall maintain auditable records and accounts so as to facilitate the audit requirement and shall ensure that any sub -contractors also maintain auditable records. The Subgrantee is responsible for any audit exceptions incurred by its own organization or that of its sub -contractors. Responses to any unresolved management findings and disallowed or questioned costs shall be included with the audit report. The Subgrantee must respond to County or Department requests for information or corrective action concerning audit issues or findings within 30 days of the date of request. The County or Department reserves the right to recover from the Subgrantee all disallowed costs resulting from the audit. Once the single audit has been completed, the Subgrantee must send a full copy of the audit to the County and a letter stating there were no findings, or if there were findings, the letter should provide a list of the findings. The Subgrantee must send the audit and the letter no later than nine (9) months after the end of the Subgrantee's fiscal year(s) to: Regional Coordinator Snohomish County — Dept. of Emergency Management 720 80t" Street SW Everett, WA 98203 In addition to sending a copy of the audit, the Subgrantee must include a corrective action plan for any audit findings and a copy of the management letter if one was received. If Subgrantee claims it is exempt from the audit requirements of Circular A-133, Subgrantee must send a letter identifying this Grant Agreement and explaining the criteria for exemption no later than nine (9) months after the end of the Subgrantee fiscal year(s) to the same address shown above. The County retains the sole discretion to determine whether a valid claim for an exemption from the audit requirements of this provision has been established The Subgrantee shall include the above audit requirements in any sub -contracts. Conducting a single or program -specific audit in compliance with Circular A-133 is a material requirement of this Grant Agreement. In the absence of a valid claim of exemption from the audit requirements of Circular A-133, the Subgrantees failure to comply with said audit requirements may result in one or more of the following actions in the County's sole discretion: a percentage of federal awards being withheld until the audit is completed in accordance with Circular A-133; the withholding or disallowing of overhead costs; the suspension of federal awards until the audit is conducted and submitted; or termination of the federal award. A.3 ADVANCE PAYMENTS PROHIBITED The County shall make no payments in advance or in anticipation of goods or services to be provided under this Grant Agreement. Subgrantee shall not invoice the County in advance of delivery and invoicing of such goods or services. A.4 AMENDMENTS AND MODIFICATIONS The Subgrantee or the County may request, in writing, an amendment or modification of this Grant Agreement. However, such amendment or modification shall not be binding, take effect or be incorporated herein until made in writing and signed by the authorized representatives of the County and the Subgrantee. No other understandings or agreements, written or oral, shall be binding on the parties. SHSP-FFY 12 Page 11 of 25 E13-152 — Everett -DEM 50