2007/05/16 Council Agenda Packet

fl J 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 auditable 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. The Contractor must respond to Department requests for information or corrective action concerning audit issues or findings within 30 days of the date of request. The Department reserves the right to recover from the Contractor all disallowed costs resulting from the audit. Once the single audit has been completed, the Contractor must send a full copy of the audit to the Department and a letter stating there were no findings or if there were findings, the letter should provide a list of the findings. The Contractor must send the audit and the letter no later than nine (9) months after the end of the Contractor's fiscal year(s) to: Accounting Manager Washington Military Department Finance Division, Building #1 TA-20 Camp Murray, WA 98430-5032 In addition to sending a copy of the audit, the Contractor must include a corrective action plan for any audit findings and a copy of the management letter if one was received. The Contractor shall include the above audit requirements in any subcontracts. 5. ACCESS TO PUBLIC RECORDS a. The parties acknowledge that public records, as defined by RCW 42.56.020, that have been made or received by the Department in connection with the transaction of public business are subject to inspection by the public in accordance with RCW Chapter 42.56 and to the extent applicable WAC Chapter 118-02, except as exempted under RCW 42.56, RCW 43.21F.060(1), or other statutes. b. In compliance with RCW 39.29.080, the Contractor shall provide access to data generated under this contract to the Department and the State Auditor at no additional cost. This includes access to all information that supports the findings, conclusions, and recommendations of the Contractor's reports, including computer models and methodology for those models. 6. RECAPTURE PROVISIONS In the event that the Contractor fails to expend funds under this contract in accordance with state laws and/or the provisions of this contract, the Department reserves the right to recapture state funds in an amount equivalent to the extent of the noncompliance. Such right of recapture shall exist for a period not to exceed six years following contract termination or audit resolution, whichever is later. Repayment by the Contractor of funds under this recapture provision shall occur within 30 days of demand. In the event that the Department is required to institute legal proceedings to enforce the recapture provision, the Department shall be entitled to its costs thereof, including reasonable attorney's fees. 7. COMPLIANCE WITH APPLICABLE LAW The Contractor and all subcontractors shall comply with, and the Department is not responsible for determining compliance with, any and all applicable federal, state, tribal government, and local laws, regulations, and/or policies. 13 DHS-EMPG-FFY 07 Page 7 of 37 City of Everett Emergency Management E07-344