2005/06/15 Council Agenda Packet

Exhibit A Subrecipient Washington Military Department GENERAL TERMS AND CONDITIONS 1. DEFINITIONS As used throughout this contract, the following terms shall have the meaning set forth below: a. "Department" shall mean the Washington Military Department, as a state agency, any division, section, office, unit or other entity of the Department, or any of the officers or other officials lawfully representing that Department. b. "Contractor" shall mean that firm, organization, group, individual, or other entity performing services under this contract, and shall include all employees of the Contractor. It shall include any subcontractor retained by the prime Contractor as permitted under the terms of this contract. "Contractor" shall be further defined as one or the other of the following and so indicated on face sheet of the contract. 1) "Subrecipienf' shall mean a contractor that operates a federal or state assistance program for which it receives federal funds and which has the authority to determine both the services rendered and disposition of program funds. 2) "Vendo►" shall mean a contractor that agrees to provide the amount and kind of service or activity requested by the Department and that agrees to provide goods or services to be utilized by the Department. C. "Cognizant State Agency" shall mean the state agency from which the subrecipient receives federal financial assistance. If funds are received from more than one state agency, the cognizant state agency shall be the agency who contributes the largest portion of federal financial assistance to the subrecipient unless the designation has been reassigned to a different state agency by mutual agreement. d. "Subcontractor" shall mean one, not in the employment of the Contractor, who is performing all or part of those services under this contract under a separate contract with the Contractor. The terms "subcontractor" and "subcontractors" mean subcontractor(s) in any tier. e. "CFR" — Code of Federal Regulations f. "OMB" — Office of Management and Budget g. "RCW" - Revised Code of Washington h. "WAC" - Washington Administrative Code. 2. SINGLE AUDIT ACT REQUIREMENTS (INCLUDING ALL AMENDMENTS) Non-federal contractors receiving financial assistance of $500,000 or more in federal funds from all sources, direct and indirect, are required to have a single or a program -specific audit conducted in accordance with the Office of Management and Budget (OMB) Circular A -133 -Audits of States, Local Governments, and Non -Profit Organizations (revised June 27, 2003, effective for fiscal years ending after December 31, 2003). Non-federal entities that spend less than $500,000 a year in federal awards are exempt from federal audit requirements for that year, except as noted in Circular No. A-133. Circular A-133 available on the OMB Home Page at http://www.omb.gov and then select "Grants Management" followed by "Circulars". Contractors required to have an audit must ensure the audit is performed in accordance with Generally Accepted Auditing Standards (GAAS); Government Auditing Standards (the Revised Yellow Book) developed by the Comptroller General and the OMB Compliance Supplement. The Contractor has the responsibility of notifying the State Auditor's Office and requesting an audit. Costs of the audit may be an allowable grant expenditure. The Contractor shall maintain records and accounts so as to facilitate the audit requirement and shall ensure that any subcontractors also maintain auditable records. The Contractor is responsible for any audit exceptions incurred by its own organization or that of its subcontractors. Responses to any unresolved management findings and disallowed or questioned costs shall be included with the audit report. EMPG FFY 2005 Page 4 of 18 63 City of Everett EM E05-233