2012/10/31 Council Agenda Packet

• • 7 4. Industrial Insurance. The RECIPIENT certifies full compliance with all applicable state industrial insurance requirements. If the RECIPIENT fails to comply with such laws,the DEPARTMENT shall have the right to immediately terminate this agreement for cause as provided in Section K.1,herein. G.KICKBACKS The RECIPIENT is prohibited from inducing by any means any person employed or otherwise involved in this project to give up any part of the compensation to which he/she is otherwise entitled or,receive any fee, commission or gift in return for award of a subcontract hereunder. II.AUDITS AND INSPECTIONS 1. The RECIPIENT shall maintain complete program and financial records relating to this agreement. Such records shall clearly indicate total receipts and expenditures by fund source and task or object. All grant/loan records shall be kept in a manner which provides an audit trail for all expenditures. All records shall be kept in a common file to facilitate audits and inspections. Engineering documentation and field inspection reports of all construction work accomplished under this agreement shall be maintained by the RECIPIENT. 2. All grant/loan records shall be open for audit or inspection by the DEPARTMENT or by any duly authorized audit representative of the state of Washington for a period of at least three years after the final grant payment/loan repayment or any dispute resolution hereunder. If any such audits identify discrepancies in the financial records,the RECIPIENT shall provide clarification and/or make adjustments accordingly. 3. All work performed under this agreement and any equipment purchased,shall be made available to the DEPARTMENT and to any authorized state,federal or local representative for inspection at any time during the course of this agreement and for at least three years • following grant/loan termination or dispute resolution hereunder. • - 4. RECIPIENT shall meet the provisions in OMB Circular A-133 (Audits of States,Local Governments &Non Profit Organizations),including the compliance Supplement to OMB - Circular A-133,if the RECIPIENT expends$500,000 or more in.a year in Federal funds. The• $500,000 threshold for each year is a cumulative total of all federal funding from all sources. The RECIPIENT must forward a copy of the audit along with the RECIPIENT'S response • and the final corrective action plan to the DEPARTMENT within 90 days of the date of the audit report. • I.PERFORMANCE REPORTING The RECIPIENT shall submit progress reports to the DEPARTMENT with each payment request or such other schedule as set forth in the Special Conditions. The RECIPIENT shall also report in writing to the DEPARTMENT any problems,delays or adverse conditions which will materially affect their ability to meet project objectives or time schedules. This disclosure shall be accompanied by a statement of the action taken or proposed and any assistance needed from the DEPARTMENT to resolve the situation.Payments maybe withheld if required progress reports are not submitted. Quarterly reports shall cover the periods January 1 through March 31, 17 64 •