2021/06/30 Council Agenda Packet

9.5 If any litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. 10. Audit. 10.1 The Subcontractor shall maintain internal controls providing reasonable assurance it is managing federal awards in compliance with all applicable laws, rules, and regulations, and grant provisions. The Subcontractor shall prepare appropriate financial statements, including a schedule of expenditures of federal awards. 10.2 In order to ensure and provide documentation that the funds are used only as provided in this Agreement, the Subcontractor shall account for all funds under this Agreement in a separate account or fund. 10.3 If the Subcontractor expends $750,000 or more in federal awards from any and/or all sources in any fiscal year applicable to this Agreement, the Subcontractor shall procure and pay for a single audit or a program- specific audit for that fiscal year. Upon completion of each audit, the Subcontractor shall (a) submit to the District the reporting package specified in OMB Super Circular 2 CFR 200.501, reports required by the program -specific audit guide (if applicable), and a copy of any management letters issued by the auditor; and (b) submit to the District follow-up and developed corrective action plans for all audit findings. The Subcontractor shall send all single audit documentation to the District within ninety (90) calendar days of receipt. 10.4 All disbursements of funds to the Subcontractor under this Agreement shall be subject to audit and recovery of disallowed costs from the Subcontractor. 11. Debarment. 11.1 The Subcontractor, defined as the primary participant and it principals, certifies by executing this Agreement that to the best of its knowledge and belief that they: i. Are not presently debarred, suspended, proposed for debarment, and declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency. ii. Have not within a three-year period preceding this Agreement, been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction, violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice; iii. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of federal Executive Order 12549; and City of Everett / Snohomish Health District ILA 2021 Page 5 of 11