WA Dept of Natural Resources 5/20/2016

ATTACHMENT C %IINIIIIUM FEDERAL PROVISIONS The Washington State Department of Natural Resources (DNR), as a Contractor or Grantee with a federal entity, is entering into this Agreement with a sub-contractor or sub-recipient. "Sub-contractor/Sub-recipient" is defined as an entity and/or individual, including all employees, who has entered into a contract or agreement with a Contractor/Grantee receiving federal funds for the purposes of this Agreement. The information contained in this attachment is not intended to substitute federal guidance, or interpret federal law. It is intended to be used as a tool for the Sub-contractors/Sub- recipients. It is the Contractor's/Grantee's or Sub-contractor's/Sub-recipient's responsibility to ensure compliance with the most up-to-date applicable federal laws,rules and regulations in order to carry out the terms and conditions of this agreement 1. Cost Principles. By accepting Federal assistance,the Contractor/Grantee and/or Sub- contractors/Sub-recipients agrees to abide by the applicable Office of Management and Budget (OMB)Circulars including, but not limited to federal regulation 2 CFR Part 200 sections A-F as well as appendixes, revisions and additional sections as supplemented by the funding agency in the expenditure of federal funds and performance under this program. 2. Audit Requirements. Non-federal entities that expend$750,000 or more federal awards in a year are required to obtain an annual audit in accordance with the Single Audit Act Amendments of 1996. Recipients expending less than$750,000 in a year are exempt from federal audit requirements but must make records available for review or audit by federal agencies and/or DNR. 3. Executive Compensation. Contractors/Grantees as well as Sub-contractors/Sub- recipients must report the names and total compensation of each of the Contractor/Grantee's and/or Sub-contractor's/Sub-recipient's five most highly compensated executives for the Contractor/Grantee's and/or Sub-contractors/Sub-recipients preceding completed fiscal year if: In the Contractor/Grantee's and/or Sub-contractor's/Sub-recipient's fiscal year, the Contractor/Grantee and/or Sub-contractor/Sub-recipient received- 1.) 80 percent ormore of its annual gross revenues from federal procurement contracts (and sub-contracts) and federal financial assistance subject to the Transparency Act(and sub-awards); and ii.) $25,000,000 or more in annual gross revenues from federal procurement contracts (and sub-contracts)and federal financial assistance subject to the Transparency Act, (and sub-awards); and iii.) The public does not have access to information about the compensation of the executives through periodic reports filed under section I3(a)or 15(d)of the Minimum Federal Provisions 3-2-2016 Page 1 of 4