Catholic Community Services 10/24/2016

7. Audits & Inspections: All Subgrantee records with respect to any matters covered by this Agreement shall be made available to the City, its designees or the Federal Government, at any time during normal business hours, as often as the City 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 Subgrantee within 30 days after receipt by the Subgrantee. Failure of the Subgrantee to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. The Subgrantee hereby agrees to have an annual agency audit conducted in accordance with current City policy concerning Subgrantee audits and, as applicable, 2 CFR Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards). C. Reporting and Payment Procedures 1. Program Income: The Subgrantee shall report quarterly all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under this Agreement. The use of program income by the Subgrantee shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Subgrantee may use such income during the contract period for activities permitted under this Agreement 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 City at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income and shall be remitted promptly to the City. 2. Indirect Costs: If indirect costs are charged, the Subgrantee will develop an indirect cost allocation plan for determining the appropriate Subgrantee's share of administrative costs and shall submit such plan to the City for approval, in a form specified by the City. 3. Payment Procedures: The City will pay to the Subgrantee funds available under this Agreement based upon information submitted by the Subgrantee and consistent with any approved budget and City policy concerning payments. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Subgrantee, and not to exceed actual cash requirements. Payments will be adjusted by the City in accordance with advance fund and program income balances available in Subgrantee accounts. In addition, the City reserves the right to liquidate funds available under this Agreement for costs incurred by the City on behalf of the Subgrantee. 4. Progress Reports: The Subgrantee shall submit regular Progress Reports to the City in the form, content, and frequency as required by the City. B-6