1994-099E:\WPDOCS\ORD\CITY-CTY.DAY
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND
DENTON CITY-COUNTY DAY NURSERY; AUTHORIZING THE EXPENDITURE OF
FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the city Manager is hereby authorized to
execute, on behalf of the City, an agreement between the city of
Denton and Denton City-County Day Nursery, a copy of which is
attached hereto and incorporated by reference herein.
SECTION II. That the expenditure of funds in the amount of
Forty Five Thousand Nine Hundred sixty-Six Dollars ($45,966.00) is
hereby authorized.
SECTION IV. That this ordinance shall become effective immed-
iately upon its passage an~ appro~ ~
PASSED AND APPROVED this the / day of , 1994.
BOB'CASTLEBERRY, MAY7 ~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
DEBRA A. DRAYOVITCH, CITY ATTORNEY
AGREEMENT BETWEEN THE CITY OF DENTON
· ,ND DENTON CITY-COUNTY DAY NURSERY
This Agreement is made and entered into by and between the
city of Denton, a Texas municipal corporation, acting by and
through its City Manager, pursuant to ordinance, hereinafter
referred to as CITY, and Denton city-County Day Nursery, 1603
Paisley, Denton, Texas 76201, a not-for-profit corporation, herein-
after referred to as CONTRACTOR.
WHEREAS, CITY has received certain funds from the U. S.
Department of Housing and Urban Development under Title I of the
Housing and Community Development Act of 1974, as amended; and
WHEREAS, CITY has adopted a budget for such funds and included
therein an authorized budget for expenditure of funds for the
repair of floors and the drainage system of the City-County Day
Nursery, a local child care facility; and
WHEREAS, CITY has designated the Community Development Office
as the division responsible for the administration of this Agree-
ment and all matters pertaining thereto; and
WHEREAS, CITY wishes to engage CONTRACTOR to carry out such
project;
NOW, THEREFORE, the parties hereto agree, and by the execu-
tion hereof are bound to the mutual obligations and to the per-
formance and accomplishment of the conditions hereinafter de-
scribed.
I.
TERM
This Agreement shall commence on or as of October 1, 1993, and
shall terminate on September 30, 2004, unless adjusted by the CITY.
Request for such an adjustment must be in writing and is to be sub-
mitted to the Community Development Office.
II.
RESPONSIBILITIES
CONTRACTOR hereby accepts the responsibility for the perfor-
mance of all services and activities, described in the Work State-
ment attached hereto as Attachment "A", in a satisfactory and ef-
ficient manner as determined by CITY, in accordance with the terms
herein. CITY will consider CONTRACTOR'S executive director to be
CONTRACTOR's representative responsible for the management of all
contractual matters pertaining hereto, unless written notification
to the contrary is received from CONTRACTOR, and approved by CITY.
The CITY'S Community Development Administrator will be CITY's
representative responsible for the administration of this Agree-
ment.
III.
CITY'S OBLIGATION
$45,966~
A. CITY shall provide funds in the amount of $~ or less
to assist the CONTRACTOR in the repair of flooring and walls at the
facility located at 1603 Paisley, Denton, Texas.
B. The CONTRACTOR agrees to hold and save harmless the City
of Denton from any and all loss, cost, or damage of every kind,
nature or description arising under this Agreement or from any
source whatsoever.
C. The CITY shall prepare agreements with the CONTRACTOR and
Architect and issue checks to the CONTRACTOR in accordance with the
contracted schedule for performance payments.
D. The CITY shall comply with HUD office of management and
budget circular A-87. The CITY shall be responsible for performing
environmental review to insure necessary compliances are met.
E. This Agreement and the payments made hereunder are con-
tingent upon receipt of U.S. Department of Housing and Urban De-
velopment Community Development Block Grant Funds, and shall ter-
minate immediately, not withstanding the provisions of Article XV
hereof, should such funds be discontinued for any reason.
IV.
COMPLIANCE WITH STATE AND LOCAL LAWS
The CITY and CONTRACTOR agree to perform their duties in the
Programs in compliance with the U.S. Department of Housing and
Urban Development Community Development Block Grant regulations.
V.
REPRESENTATIONS
A. The CONTRACTOR warrants that it is the legal owner of the
property described in Article III, Section A and CONTRACTOR agrees
to allow the CITY access to this site for inspection purposes.
CONTRACTOR further agrees to allow the CITY to bid and execute
agreements with CONTRACTOR for the repairs of the Denton city-
County Day Nursery.
B, The CONTRACTOR shall continue to utilize the facility at
1603 Paisley, Denton, Texas for a minimum of 10 years after
improvements are completed to provide affordable child care to
individuals in the community.
PAGE 2
C. The CITY is the only agent authorized to designate
changes or additions to the work to be performed. Any additions or
changes to the work authorized by the CITY can only be done in
writing with the signatures of the City Manager, Mayor, or Com-
munity Development Administrator plus representatives of the CON-
TRACTOR, and the CONTRACTOR.
VI.
COVENANTS
A. During the term of this Agreement, CONTRACTOR shall not,
without the prior written consent of CITY's Executive Director of
Planning and Development or his authorized representative the CON-
TRACTOR, change the use, or function of the property.
(1) The proposed change must meet one of the national objec-
tives and the Center must not be used for the general
conduct of government.
(2) If it is determined that the changes do not meet the
national goals for use, the CONTRACTOR must dispose of
the property or reimburse this program in the fair market
amount of the property less the amount of private funds
put into the property.
B. CONTRACTOR shall comply with the uniform administrative
requirements, as described in Section 570.502 CDBG Handbook, a copy
of which is attached hereto.
VII.
PROGRAM INCOME
All fees collected for services are considered program income,
as described in Section 570.504 CDBG Handbook (see Attachment "D"),
and shall be retained by the CONTRACTOR to be used for Program
activities as previously described. Fiscal records are to be kept
and are to reflect the use of these funds.
VIII.
MAINTENANCE OF RECORDS
A. CONTRACTOR agrees to maintain records that will provide
accurate, current, separate, and complete disclosure of the status
of the funds received under this Agreement and with any other ap-
plicable Federal and State regulations establishing standards for
financial management. CONTRACTOR's record system shall contain
sufficient documentation to provide in detail full support and
justification for each expenditure. Nothing in this Section shall
be construed to relieve CONTRACTOR of fiscal accountability and
liability under any other provision of this Agreement or any ap-
plicable law. CONTRACTOR shall include the substance of this
provision in all subcontracts.
PAGE 3
B. CONTRACTOR agrees to retain all books, records, docu-
ments, reports, and written accounting policies and procedures
pertaining to the operation of programs and expenditures of funds
under this Agreement for the period of time and under the condi-
tions specified by CITY.
C. Nothing in the above subsections shall be construed to
relieve CONTRACTOR of responsibility for retaining accurate and
current records which clearly reflect the level and benefit of
services provided under this Agreement.
D. At any reasonable time and as often as CITY may deem
necessary, the CONTRACTOR shall make available to CITY, or any of
its authorized representatives, all of its records and shall permit
CITY, or any of its authorized representatives to audit, examine,
make excerpts and copies of such records, and to conduct audits of
all contracts, invoices, materials, payrolls, records of personnel,
conditions or employment and all other data relating to the program
requested by said representatives.
E. The CONTRACTOR shall give the City of Denton, the U.S.
Department of Housing and Urban Development, or any of their duly
authorized representatives, access to and the right to examine all
books, accounts, records, reports, files and other papers belonging
to or in use by the CONTRACTOR pertaining to this Agreement. Such
rights to access shall continue as long as the records are retained
by the CONTRACTOR.
IX.
REPORTS AND INFORMATION
At such times and in such form as CITY may require, CON-
TRACTOR shall furnish such statements, records, data and informa-
tion as CITY may request and deem pertinent to matters covered by
this Agreement.
If the Agency receives federal funds in excess of $25,000,
from any source, or if for any reason an independent audit is
conducted, the CONTRACTOR agrees to submit an audit conducted by
independent examiners within 10 days after receipt of such.
X.
MONITORING AND EVALUATION
The CITY shall conduct a performance review of CONTRACTOR on
an annual basis or as otherwise deemed necessary by the CITY to
evaluate compliance with the provisions of this Agreement as
necessary in the performance of its duties of program accountabili-
ty.
PAGE 4
XI.
INSURANCE
An insurance policy shall be secured by the CONTRACTOR to
cover liability for a minimum of ten years as stipulated by the
CITY.
XII.
EQUAL OPPORTUNITY
During the performance of this Agreement, the CONTRACTOR is
subject to Executive Order 11246, as amended, and, therefore,
agrees to the following:
(1) The CONTRACTOR will not discriminate against any employee
or applicant for employment because of race, color,
religion, sex, national origin, or familial status. The
CONTRACTOR will take affirmative action to ensure that
applicants who are employed are treated during employment
without regard to their race, color, religion, sex,
national origin, or familial status, concerning such
employment, upgrading, demotion, or transfer; recruitment
or recruitment, advertising; layoff or termination; rates
of pay or their apprenticeship, the CONTRACTOR agrees to
post in conspicuous places, available to both employees
and applicants for employment, notices to be provided by
the CITY setting forth provisions of this nondiscrimina-
tion clause.
(2) The CONTRACTOR, in all solicitations or advertisements
for employees placed by or on behalf of the CONTRACTOR,
shall state that all qualified applicants will receive
consideration for employment without regard to race,
color, religion, sex, national origin, or familial
status.
XIII.
CONFLICT OF INTEREST
The CITY and CONTRACTOR state that to the best of their
knowledge no member of the City of Denton, Texas, and no officer,
employee, or agent of said authority who exercises any function or
responsibilities in connection with the carrying out of the Program
to which this Agreement pertains has a personal financial interest,
direct or indirect, in this Agreement.
XIV.
POLITICAL OR SECTARIAN ACTIVITY
A. None of the performance rendered hereunder shall involve
any political activity (including, but not limited to, and activity
PAGE 5
to further the election or defeat of any candidate for public
office) or any activity undertaken to influence the passage, defeat
or final content of legislation.
B. None of the performance rendered hereunder shall involve
or benefit in any manner any sectarian or religious activity.
XV.
TERMINATION
A. The CITY shall have the right to terminate this Agree-
ment, in whole or in part, at any time whenever the CITY determines
that the CONTRACTOR has failed to comply with any term of this
Agreement. The CITY shall notify the CONTRACTOR in writing thirty
(30) days prior to the date of termination, the effective date of
such termination, and in the case of partial termination, the
portion of the Agreement to be terminated. Property shall be sub-
ject to disposition under Sections 570.503(b)(8) & 570.504(b) (4&5)
CDBG Handbook. (See Attachment "B" and "C".)
B. The CITY shall have the right to terminate this Agreement
for convenience, in whole or in part, with the consent of CONTRAC-
TOR and when both parties agree upon the termination conditions,
including the effective date and the portion to be terminated.
C. The CONTRACTOR shall have the right to terminate this
Agreement for convenience, in whole or in part, by written noti-
fication to the CITY, which shall include the reason for such
termination, the effective date and the portion to be terminated.
If, in the case of a partial termination, it is the determination
of CITY that the remaining portion of the award is not sufficient
to accomplish the project as described in the Work Statement, CITY
may require that the entire grant be terminated.
XVI.
INDEMNIFICATION
A. It is agreed and understood by the parties that all
employees and personnel furnished by the Center and engaged in the
work of the Denton City-County Day Nursery shall not be deemed
employees of the CITY and shall be responsible to and under the
direction of the CONTRACTOR.
B. For purposes of this Agreement, all official communica-
tions and notices among the parties shall be deemed made as of the
date mailed if sent postage paid to the parties and address set for
below:
PAGE 6
TO CITY: TO CONT~CTOR:
City Manager Director
City of. Denton City-County Day Nursery
215 E. McKinney St. 1603 Paisley
Denton, Texas 76201 Denton, Texas 76201
IN~W~$ESS OF WHICH~is Agreement has been executed on this
the '~ day of ~%t~ ~ 1994.
CITY OF DENTON
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
DEBRA A. DRAYOVITCH, CITY ATTORNEY
-
DENTON CITY-COUNTY DAY NURSERY
KAY PETERS[, DIRECTOR
ATTEST:
SECRETARY
E: \UPDOCS\K\C ! TY -CTY.DAY
PAGE 7
ATTACHMENT "A"
This project shall consist of the replacement of all flooring in
the Denton City-County Day Nursery. Except for the classrooms and
bathrooms, vinyl flooring will be installed. Each classroom will
be carpeted and the bathrooms will be tiled.
In addition, new commercial wall coverings will be installed in the
classrooms, restrooms and common areas to reduce maintenance. Two
walls will be removed in the kitchen and office area for greater
efficiency of space. Door ways are also being replaced to comply
with ADA standards as necessary. Provided enough funding is
available, lighting will be changed from incandescent to energy
efficient florescent.
WORKSTATEMENT
City County Day Nursery
Denton city County Day Nursery is a non-profit child care facility
for low income families. Parents must be working, going to school,
or looking for employment to be eligible. DCCDN is open Monday
through Friday from 6:30 a.m. to 5:30 p.m. The staff consists of
8 teachers, 1 part-time aide, a cook, an assistant director and
director. The children are served breakfast, lunch and 2 snacks.
Tuition is based on size of family and yearly income.
ATTACHMENT "B"
24 CFR § 570.505
The standards described in this section apply to real property
within the recipient's control which was acquired or improved in
whole or in part using CDBG funds in excess of $25,000. These
standards shall apply from the date CDBG funds are first spent for
the property until five years after closeout of an entitlement
recipient's participation in the entitlement CDBG program or, with
respect to other recipients, until five years after the closeout of
the grant from which the assistance to the property was provided.
(a) A recipient may not change the use or planned use of any such
property (including the beneficiaries of such use) from that
for which the acquisition or improvement was made unless the
recipient provides affected citizens with reasonable notice
of, and opportunity to comment on, any proposed change, and
either:
(1) The new use of such property qualifies as meeting
one of the national objectives in Section 570.208
and is not a building for the general conduct of
government; or
(2) The requirements in paragraph (b) of this section
are met.
(b) If the recipient determines, after consultation with affected
citizens, that it is appropriate to change the use of the
property to a use which does not qualify under paragraph
(a)(1) of this section, it may retain or dispose of the
property for the changed use if the recipient's CDBG program
is reimbursed in the amount of the current fair market value
of the property, less any portion of the value attributable to
expenditures of non-CDBG funds for acquisition of, and
improvements to, the property.
(c) If the change of use occurs after closeout, the provisions
governing income from the disposition of the real property in
Section 570.504(b) (4) or (5), as applicable, shall apply to
the use of funds reimbursed.
(d) Following the reimbursement of the CDBG program in accordance
with paragraph (b) of this section, the property no longer
will be subject to any CDBG requirements.
ATTACHMENT "C"
24 CFR § 570.503
(a) Before disbursing any CDBG funds to a subrecipient, the
recipient shall sign a written agreement with the subrecipi-
ent. The agreement shall remain in effect during any period
that the subrecipient has control over CDBG funds, including
program income.
(b) At a minimum, the written agreement with the subrecipient
shall include provisions concerning the following items:
(1) Statement of Work. The agreement shall include a
description of the work to be performed, a schedule for
completing the work, and a budget. These items shall be
in sufficient detail to provide a sound basis for the
recipient effectively to monitor performance under the
agreement.
(2) Records and Reports. The recipient shall specify in the
agreement the particular records the subrecipient must
maintain and the particular reports the subrecipient must
submit in order to assist the recipient in meeting its
recordkeeping and reporting requirements.
(3) progra~ Income, The agreement shall include the program
income requirements set forth in Section 570.504(c).
(4) Uniform Administrative Requirements. The agreement shall
require the subrecipient to comply with applicable
uniform administrative requirements, as described in
Section 570.502.
(5) Other Program Reauirements. The agreement shall require
the subrecipient to carry out each activity in compliance
with all Federal laws and regulations described in sub-
part K of these regulations, except that:
(i) The subrecipient does not assume the recipient's
environmental responsibilities described at Section
570. 604; and
(ii) The subrecipient does not assume the recipient's
responsibility for initiating the review process
under the provisions of 24 CFR Part 52.
(6) Conditions for Reliqious Orqanizations. Where applica-
ble, the conditions prescribed by HUB for the use of CDBG
funds by religious organizations shall be included in the
agreement.
(7) Suspension and Termination. The agreement shall specify
that, in accordance with 24 CFR 85.43, suspension or
termination may occur if the subrecipient materially
fails to comply with any term of the award, and that the
award may be terminated for convenience in accordance
with 24 CFR 85.44.
(8) Reversion of Assets, The agreement shall specify that
upon its expiration the subrecipient shall transfer to
the recipient any CDBG funds on hand at the time of
expiration and any accounts receivable attributable to
the use of CDBG funds. It shall also include provisions
to the use of CDBG funds. It shall also include provi-
sions designed to ensure that any real property under the
subrecipient's control that was acquired or improved in
whole or in part with CDBG funds in excess of $25,000 is
either:
(i) Used to meet one of the national objectives in
Section 570.208 until five years after expiration
of the agreement, or for such longer period of time
as determined to be appropriate by the recipient;
or
(ii) Disposed of in a manner that results in the recipi-
ent's being reimbursed in the amount of the current
fair market value of the property less any portion
of the value attributable to expenditures of non-
CDBG funds for acquisition of, or improvement to,
the property. (Reimbursement is not required after
the period of time specified in paragraph (b) (8)
(1) of this section.)
ATTACHMENT "D"
24 CFR § 570.504
(a) Recordinq Proaram Income. The receipt and expenditure of
program income as defined in Section 570.500(a) shall be
recorded as part of the financial transactions of the grant
program.
(b) Disposition of Program Income Received by Recipients.
(1) Program income received before grant closeout may be
retained by the recipient if the income is treated as
additional CDBG funds subject to all applicable require-
ments governing the use of CDBG funds.
(2) If the recipient chooses to retain program income, that
income shall affect withdrawals of grant funds from the
U.S. Treasury as follows:
(i) Program income in the form of repayments to, or
interest earned on, a revolving fund as defined in
Section 570.500(b) shall be substantially disbursed
from the fund before additional cash withdrawals
are made from the U.S. Treasury for the same activ-
ity. (This rule does not prevent a lump sum dis-
bursement to finance the rehabilitation of private-
ly owned properties as provided for in Section
570.513.)
(ii) Substantially all other program income shall be
disbursed for eligible activities before additional
cash withdrawals are made from the U.S. Treasury.
(3) Program income on hand at the time of ¢loseout shall
continue to be subject to the eligibility requirements in
Subpart C and all other applicable provisions of this
part until it is expended.
(4) Unless otherwise provided in any grant closeout agree-
ment, and subject to the requirements of paragraph (b)
(5) of this section, income received after closeout shall
not be governed by the provisions of this part, except
that, if at the time of closeout the recipient has
another ongoing CDBG grant received directly from HUD,
funds received after closeout shall be treated as program
income of the ongoing grant program.
(5) If the recipient does not have another ongoing grant
received directly from HUD at the time of closeout,
income received after closeout from the disposition of
real property or from loans outstanding at the time of
closeout shall not be governed by the provisions of this
part, except that such income shall be used for activi-
ties that meet one of the national objectives in Section
570.208 and the eligibility requirements described in
section 105 of the Act.
COMMUNITY DEVELOPMENT 09:0645
HDR RF-000
00-00-92
derived from this calculation shall be Costs Applicable to Grants and Contracts (2) Attachment B, "Bonding and lnsur-
used for reporting purposes and in deter- with State, Local and Federally recog- ante";
mining limitations on planning and ad- nized Indian Tribal Governments", OMB (3) Attachment C, "Retention and Cus-
ministration and public services activities Circular A-128, "Audits of State and todial Requirements for Records", except
to be paid for with CDBG funds. Local Governments" (implemented in 24 that in lieu of the provisions in paragraph
(b) Revolving fund means a separate CFR Part 44) and with the following 4, the retention period for records per-
fund (with a set of accounts that are sections of 24 CFR Part 85 "Uniform taining to individual CDBG activities
independent of other program accounts) Administrative Requirements for Grants starts from the date of submission of the
established for the purpose of carrying and Cooperative Agreements to State and annual performance and evaluation re-
out specific activities which, in turn, Local Governments": port, as prescribed in § 570.507 in which
generate payments to the fund for use in (1) Section 85.3, "Definitions"; the specific activity is reported on for the
carrying out the same activities. (2) Section 85.6, "Exceptions"; final time;
(c) Subrecipient means a public or (3) Section 85.12, "Special grant or (4) Attachment F, "Standards for Fi-
private nonprofit agency, authority or subgrant conditions for"high risk' grant- nancial Management Systems," except
for paragraphs 2(h) which is superseded
organization, or an entity described in ecs";
§ 570.204(c), receiving funds from the (4) Section 85.20,"Standards for finan- by OMB Circular A-133, "Audits of lnsti-
recipient or another subrecipient to un- cial management systems," except para- tutions of Higher Education and Other
Nonprofit Institutions;"
dertake activities eligible for assistance graph (a); {5) Attachment H, "Monitoring and
under Subpart C of this part. (5) Section 85.21, "Payment," except
. Reporting Program Performance", Para-
§ 570.501 Responsibility for grant as modified by § 570.513; graph 2;
(6) Section 85.22, "Allowable costs"; (6) Attachment N, "Property Manage-
administration. (7) Section 85.26, "Non-federal au- ment Standards", except for paragraph 3
dits";
(a) One or more public agencies, in- (8) Section 85 32, "Equipment," except concerning the standards for real proper-
' ty, and except that paragraphs 6 and 7 are
eluding existing local public agencies, in all cases in which the equipment is modified so that--
may be designated by the chief executive sold, the proceeds shall be program in- (i) In all cases in which personal prop-
officer of the recipient to undertake activ- come; erty is sold, the proceeds shall be program
ities assisted by this part. A public agency (9) Section 85.33, "Suppl'es '; income, and
so designated shall be subject to the same (10) Section 85.34, "Copyrights"; (ii) Personal property not needed by
requirements as are applicable to subreci- (11) Section 85.35,"Subawards to de- the subrecipient for CDBG activities shall
pients.
(b) The recipient is responsible for barred and suspended parties"; be transferred to the recipient for the
ensuring that CDBG funds are used in (12) Section 85.36, "Procurement," ex- CDBG program or shall be retained after
accordance with all program require- cept paragraph (a); compensating the recipient; and
ments The use of designated public agen- (13) Section 85.37, "Subgrants'; (7) Attachment O, "Procurement Stan-
cies, subrecipients, or contractors does (14) Section 85.40, "Monitoring and dards.'
not relieve the recipient of this responsi- reporting program performance," except
bility. The recipient is also responsible for paragraphs (b) through (d) and paragraph § 570.503 Agreements with subrecipients
determining the adequacy ofperformance (0;
under subrecipient agreements and pro- (15) Section 85.41, "FinanciaI report- (a) Before disbursing any CDBG funds
curement contracts, and for taking appro- lng," except paragraphs (a), (b), and (e); to a recipient, the recipient shall sign a
priateaction when performance problems (16) Section 85.42, "Retention and written agreement with the subrecipient.
arise, such as the actions described in access requirements for records" The agreement shall remain in effect
§ 570.910. Where a unit of general local (17) Section 85.43, "Enforcement"; during any period that the subrecipient
government is participating with, or as (18) Section 85.44, "Termination for has control over CDBG funds, including
part of, an urban county, or as part of a convenience"; program income.
metropolitan city, the recipient is respon- (19) Section 85.51 "Later disallo- (b) At a minimum, the writt,en agree-
sible for applying to the unit of general wances and adjustments" and merit with the subrecipient shall include
local government the same requirements (20) Section 85.52, "Collection of provisions concerning the following roi-
as are applicable to subrecipients, except amounts due." lowing items;
that the five-year period identified under (b) Subrecipient, except subrecipients (1) Statement of work. The agreement
§ 570.503(b)(8)(i) shall begin with the which are governmental entities, shall shall include a description of the work to
date that the unit of general local govern- comply with the requirements and start- be performed, a schedule for completing
ment is no longer considered by HUD to dards of OMB Circular No. A-122, "Cost the work, and a budget. These items shall
be a part of the metropolitan city or Principles for Nonprofit Organizations," be in sufficient detail to provide a sound
urban county, as applicable, instead of or OMB Circular No. A-21, "Cost Princi- basis for the recipient effectively to moni-
the date that the subrecipient agreement pies for Educational Institutions," as ap- tor performance under the agreement.
expires, plicable, and OMB Circular A-133, "Au- (2) Records and reports. The recipient
dits of Institutions of Higher Education shall specify in the agreement the particu-
§ 570.502 Applicability of uniform and Other Nonprofit Institutions" (as set lar records the subrecipient must main-
administrative requirements, forth in 24 CFR part 45). Audits shall be tain and the particular reports the subre-
conducted annually, Such subrecipients cipient must submit in order to assist the
(a) Recipients and subrecipients which shall also comply with the following at- recipient in meeting its recordkeeping
are governmental entities (including pub- tachments to OMB Circular No. A-110: and reporting requirements.
lic agencies) shall comply with the re- (1) Attachment A, "Cash Deposito- (3) Program income. The agreement
quirements and standards of OMB Circu- des", except for paragraph 4 concerning shall include the program income require-
lar No. A-87, "Principles for Determining deposit insurance; ments set forth in § 570.504(c).
Published by Warren Gorham Lamont 6 3