SR-11-11-1980-6R7!
Santa Monica, California, October 30, 1980
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Approval of General Revenue Sharing Contracts
for Social Services
4()V 1 1 1tl80
Background
On June 12, 1980, the City Council approved the distribution of 1980 -81 General
Revenue Sharing funds for social service agencies. Funds totaling $544,431,
were allocated to eighteen (18) separate agencies (see attached list).
Concurrently with this action, the Council directed staff to develop separate
agreements with the funded agencies to assure adequate administrative oversight
and fiscal control. The form of Agreement has now been developed and is attached
for Council consideration. Exhibits A and B of the Agreement consist of an
individual workplan (Exhibit A) and budget (Exhibit B) for each agency. Copies
of the workplans and budgets for seventeen of the funded agencies are attached.
Discussion
The Agreement format has been developed for application to the broad range of
social service activities funded by the General Revenue Sharing funds. Each
Agreement incorporates the following requirements:
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(a) annual audits;
(b) quarterly program activity reports;
(c) quarterly fiscal reports;
(d) program activity monitoring;
(e) program activity evaluations;
(f) FY 1980 -81 General Revenue Sharing fund disbursement schedules; and,
(g) insurance requirements.
Each Agreement also incorporates seven (7) standard exhibits:
"A" Twelve Month Workplan
"B" Program Budget
"C" General Revenue Sharing Regulations
"D'' Quarterly Program Status Report
M
Nov 1 1 1980
Mayor and City Council
-2- October 30, 1980
"E" Quarterly Fiscal Progress Report
"F" City of Santa Monica Contract Accounting and Administrative Handbook
"G" Special Provisions
Recommendation
It is recommended that the Council approve the attached form of Agreement, approve
the seventeen workplans and budgets and authorize the City Manager to execute the
Agreements with these agencies.
Prepared by: Bruce Murray
John Hemer
BM: JH:sh
Attachments: Basic form of Agreement
Exhibits C, D, E, F & G
Contracts for the individual agencies (exhibit A) can be
reviewed in the Council office,
1.
2.
3.
4.
5.
6.
7,
8.
9
10
11
12
13
14
15
16
17
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APPROVED 1930 -81
GENERAL REVENUE SHARING FUNDED SOCIAL SERVICE AGENCIES
Family Service of Santa Monica
$
52,000
Child Care Information Service
$
20,400
New Start - Youth Services
$
41,038
Ocean Park Community Center
$104,109
Radio Station KCRW
$
32,909
Retired Seniors Volunteer Program (RSVP)
$
3,864
Santa Monica Chamber of Commerce
$
8,500
Westside Senior Health & Counseling Center
$
30,000
Legal Aid Society of Santa Monica
$
28,400
Santa Monica Symphony Association
$
14,000
Symphonies -By- The -Sea
$
5,000
Westside Ecumenical Conference
$
11,000
S.M. Bay Volunteer Bureau
$
82,305
The Children's Place
$
15,106
Clare Foundation, Inc.
$
22,500
Center for Human Rights - Project NOVA
$
27,324-;
New Start - Adult Services
$
21,165
Santa Monica Youth Orchestra
$
5,000
<Interim funding for payroll only
AGREEMENT
THIS AGREEMENT is made as of , 1980, by and
between the CITY OF SANTA MONICA, a municipal corporation, hereinafter
referred to as the "City," and
, hereinafter referred to as the "Contractor."
Recitals
WHEREAS, the State and Local Fiscal Assistance Act of 1972,
Title I of Public Law 92 -512 approved October 20, 1972, as amended by
the State and Local Fiscal Assistance Amendments of 1976, Public Law
94- 488.approved October 13, 1976, hereinafter referred to as "General
Revenue Sharing," created a trust fund to receive a portion of Federal
individual income taxes for disbursement to State and local units of
government; and,
WHEREAS, General Revenue Sharing funds may be used, obligated
or appropriated for any purpose for which a recipient may spend its own
revenues; and,
WHEREAS, General Revenue Sharing funds may be transferred to
a public or private secondary recipient for use by that secondary
recipient in connection with a permissible expenditure under the State
and Local Fiscal Assistance Act of 1972, as amended; and,
WHEREAS, the City of Santa Monica is authorized to use,
obligate or appropriate revenues for a social service program; and,
WHEREAS, the Contractor desires to participate in this program
and is authorized to do so.
NOW, THEREFORE, City and Contractor agree as follows:
1. TERM OF AGREEMENT
This Agreement shall become effective as of the date herein-
above stated and shall continue in effect until the program services
provided for herein have been performed or until June 30, 1981,
unless this Agreement is sooner terminated as provided hereinafter.
Services shall be undertaken and completed in such sequence as to
assure their effectiveness in implementing this Agreement.
2. PROGRAM SERVICES TO BE PERFORMED BY CONTRACTOR
A. The Contractor shall in a proper and satisfactory manner
as determined by the City, implement, operate, conduct and perform the
duties, services and functions of said program as set forth in the
exhibits identified below:
Exhibit "A" Twelve Month Workplan
Exhibit "B" Program Budget
Exhibit "C" General Revenue Sharing Regulations
Exhibit "D" Quarterly Program Status Report
Exhibit "E" Quarterly Fiscal Progress Report
Exhibit "F" City of Santa Monica Contract Accounting
an i
d Admnistrative Handbook
Exhibit "G" Special Provisions
Exhibits A, B, C, D, E, F and G are made a part hereof by
reference and incorporated herein as if fully set forth herein.
B. Furthermore, the Contractor shall comply with all Federal,
State and local laws, and applicable provisions of the General Revenue
Sharing Act and the regulations, procedures and standards promulgated
thereunder by the Department of the Treasury and the Office of Revenue
Sharing including, but not limited to, the following:
(1) Selection of participants and staff.
(2) Use of Federal funds.
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(3) Requirements for recordkeeping and reporting.
(4) Provisions relative to the compensation and working
conditions of participants.
(5) Nondiscrimination requirements.
C. In addition, the Contractor shall allow the duly autho-
rized agents, employees or servants of the City or the Office of
Revenue Sharing to inspect, during normal business hours, those records,
books, documents, and other data which pertain to the program.
3. REPORTS AND RECORDS
A. The Contractor shall file each and every one of the
hereinafter described reports or records with the City on or before the
deadline set forth hereinbelow; provided, however, that if the date of
one of said deadlines falls on a Sunday, Saturday, or legal holiday,
then said record or report shall be filed with the City on or before
the first business day preceding said deadline date.
B. The Contractor shall submit a Quarterly Program Status
Report to the City, and said report shall detail the program activities
undertaken during the preceding quarter. This report shall be delivered
no later than the tenth (10th) working day of the quarter following the
quarter for which it is prepared. The format to be utilized in develop-
ing this report is attached hereto as Exhibit "D."
C. The Contractor shall also submit a Quarterly Fiscal
Progress Report to the City, and said report shall detail the program
expenditures during the preceding quarter. This report shall be
delivered no later than the tenth (10th) working day of the quarter
following the quarter for which it is prepared. The format to be
utilized in developing this report is attached hereto as Exhibit "E."
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D. In addition to the other requirements of this Agreement,
Contractor agrees to provide any and all such other reports, books,
records and other data as may be reasonably requested by the City.
E. The information contained in said reports, books, records
and other data shall be subject to all applicable provisions of Federal
and State law concerning the confidentiality or disclosure thereof.
F. Either an original or legible photostatic copy of each
and every report, book, record or other data prepared or supplied by
Contractor in accordance with the terms and conditions of this Agree-
ment shall be retained for a period of at least three (3) years
following the term of this Agreement.
G. The Contractor shall fully cooperate with any authorized
agent, employee, or servant of the City or the United States who wishes
to interview or communicate with any agent, employee, or servant of the
Contractor during any normal business hours.
4. DISBURSEMENT OF FUNDS AND PROGRAM BUDGET
A. The appropriation and disbursement of funds, the incurring
of costs and expenses and other financial or accounting matters in
regard to the performance of this Agreement shall be pursuant to the
Program Budget, which is attached hereto as Exhibit "B" and made a part
of this Agreement by reference; provided, however, the Contractor shall
not spend or incur costs or expenses of more than of General
Revenue Sharing funds in the performance of this Agreement.
B. The Contractor agrees that the dollar amount budgeted for
individual tasks or prescribed periods as set forth in said Program
Budget are the maximum allowable, and no additional sums shall be paid
for services or otherwise rendered by the Contractor under this Agreement.
C. Notwithstanding any other provision of this Agreement or
exhibits hereto, should the City decide or determine, after an analysis
and evaluation of any reports, records, or other documents filed by the
Contractor under this Agreement, that an adjustment or modification of
the Program Budget, including any portion thereof, is proper or neces-
sary due to a deviation of the measured performance of the Contractor
from the relevant goals or standards, the City may, at its option and
sole discretion, make said adjustment or modification upon the giving
of written notice to the Contractor, provided that the dollar amount
does not exceed ten percent (10 %) of the City's General Revenue Sharing
entitlement funds. The City shall be the sole judge as to whether said
adjustment or modification is proper or necessary.
D. Furthermore, any unit cost, or otherwise, set forth in
the exhibits to this Agreement may be adjusted by the City if (a) the
period of operation is less than the period specified in this Agreement,
(b) if the number of participants or geographical area to be served is
adjusted, or (c) if any other amendment or modification is made in this
Agreement.
5. INDEPENDENT CONTRACTOR
The Contractor is an independent contractor and not an agent,
employee, officer, servant or otherwise of the City, and shall, at its
sole cost and expense, comply with all laws, rules, ordinances and
regulations applicable to this Agreement.
6. PUBLIC STATEMENTS
The Contractor shall indicate in any press release or state-
ment to the public related to the program funded under this Agreement
that it is funded by the City of Santa Monica from funds made available
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from the Federal government under General Revenue Sharing.
7. INDEMNIFICATION AND HOLD HARMLESS
A. The Contractor shall indemnify, save harmless and defend
the City from all liability, loss, damage, or injury arising out of or
incident to the performance of this Agreement, including, without
limitation, all consequential damages.
B. The Contractor agrees that all participants in the program
assigned to or employed by the Contractor in its performance under this
Agreement are agents, employees, officers or servants of the Contractor
and not the agents, employees, officers or servants of the City; and in
this connection, the Contractor shall, unless specifically exempted by
law, maintain appropriate Workers' Compensation insurance coverage for
each and every said participant in the program.
C. Pursuant to Section 895.4 of the California Government
Code, in the event that the Contractor is a public entity, the Contractor
shall contribute and indemnify the City upon any liability arising out
of the performance under this Agreement.
8. INSURANCE
A. Contractor shall procure and maintain, during the term
of this Agreement, the following insurance in form and substance
satisfactory to the City. All such insurance shall name the City as
additional insured. All policies of insurance shall be with a company
or companies authorized by law to transact business in the State of
California.
B. No payment shall be made to the Contractor hereunder
unless the provisions of this section have been complied with and unless
the demand therefor is accompanied or preceded by a certificate from
MM.
the insurance carrier with whom the above insurance is carried stating
that such insurance is so carried by such carrier. Said certificate(s)
shall provide that said policies shall not be subject to cancellation
without thirty (30) days prior written notice by registered mail having
been given to the City stating such intention.
(1) Workers' Compensation: Contractor shall provide
Workers' Compensation insurance and benefits, and /or medical and
accident coverage as required by State and /or Federal law.
(2) Liability: Contractor shall purchase Liability
insurance in the amount of Three Hundred Thousand Dollars ($300,000)
combined single limit for all liability for personal injuries, death,
property damage and, if required by the City, comprehensive auto
liability, professional liability or incidental malpractice insurance
to protect the City, its officers and employees against liability
resulting from any negligent act or omission of any officer, agent, or
employee of the Contractor in the performance of this Agreement or from
the condition of any property owned or controlled by the Contractor
used in the performance of this Agreement.
(3) Crime Coverage: Contractor shall provide a compre-
hensive crime policy in an amount no less than Twenty -Five Thousand
Dollars ($25,000) insuring against loss of money, securities or other
property referred to hereunder, which may result from (a) dishonest or
fraudulent acts of officers, directors, agents or employees, or (b)
disappearance, destruction or wrongful abstraction inside the premises
of the Contractor while in care, custody or control of the Contractor,
or (c) sustained through forgery or alteration of checks, drafts, or
any order or direction to pay a sum certain in money.
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9. PERMITS AND LICENSES
Contractor shall obtain all the necessary licenses and
permits for the performance of this Agreement.
10. ASSIGNMENTS AND SUBCONTRACTS
The Contractor shall not assign this Agreement or enter into
any subcontract in the performance of this Agreement without securing
the prior written consent from the City. Any such assignment or
subcontract without prior written consent shall be null and void. All
appropriate provisions and requirements of this Agreement shall apply
to any subcontract or agreement.
11. NOTICE TO CITY OF LABOR DISPUTES
Whenever the Contractor has knowledge that any actual or
potential labor dispute involving clients or other employees is delaying
or threatens to delay the timely performance of this Agreement, the
Contractor shall immediately give notice thereof including all pertinent
information with respect thereto.
12. TITLE TO MATERIALS AND WORK
Title to all material acquired from payments made under this
Agreement or produced by the Contractor in the performance of this
Agreement shall vest in the City.
13. COPYRIGHT
No material produced in whole or in part under this Agreement
shall be subject to copyright in the United States or in any other
country. The City and the Office of Revenue Sharing shall have
unrestricted authority to publish, disclose, distribute and otherwise
use, in whole or in part, any reports, data or other materials prepared
under this Agreement.
14. LIMITATION ON COSTS
No cost shall be allowed under this Agreement which is not
included in the Contractor's Program Budget, attached hereto as
Exhibit "B."
15. NONEXPENDABLE PROPERTY
An inventory shall be maintained for each item of nonexpend-
able property acquired for this program. Nonexpendable property shall
include tangible personal property (including but not limited to office
equipment) costing One Hundred Dollars ($100) per unit and having a
useful life of one (1) year or more, real property and any interest in
such real property, and any mortgage, trust deed, or other encumbrance
of real property, and the funds received from the sale of any such
encumbrance of real property. Any utilization of funds from such an
encumbrance or other disposition, including the sale of nonexpendable
property, must have approval of the City and otherwise comply with the
Federal regulations. In case of the program's termination, the City
reserves the right to determine the final disposition of said nonexpend-
able property, including funds and /or any other assets derived therefrom:
The Contractor shall obtain at least three (3) documented
estimates and the prior written approval of the City prior to purchasing
equipment over One Hundred Dollars ($100) per unit in value as approved
in the budget. All equipment costing over One Hundred Dollars ($100)
per unit or having a life expectancy of more than one (1) year shall
be properly identified and inventoried and shall be charged at their
actual price deducting all cash discounts, trade discounts and rebate
allowances received by the Contractor. Equipment purchases approved
in the budget and approved by the City shall be initiated no later
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than the second quarter of the program year. The above provisions
apply to leasing as well as to purchasing equipment.
16. RECORDS AND ACCOUNTABILITY
A. Records shall be maintained in accordance with City of
Santa Monica Contract Accounting and Administrative Handbook, attached
hereto as Exhibit "F."
B. All expenditures shall be supported by properly executed
payroll, time records, invoices, contracts, vouchers, orders or other
accounting documents pertaining in whole or in part to this Agreement,
and shall be clearly identified and readily accessible to City and
Federal personnel or their agents.
C. Contractor agrees to accept responsibility for receiving,
replying to and /or complying with any audit exceptions determined by
appropriate City, State or Federal audit agencies occurring as a result
of its performance under this Agreement. Contractor also agrees to pay
to the City, within thirty (30) days of demand by the City, the full
amount of the City's liability, if any, resulting from any exceptions
to the extent such as is attributable to Contractor's failure to perform
properly any of its obligations under this Agreement. The obligation
to reimburse the City for any disallowed expenditures or misuse of funds
shall survive the termination or expiration of this Agreement.
17. RETURN OF UNEXPENDED FUNDS
In the event Contractor is advanced any funds pursuant to this
Agreement, Contractor agrees that upon completion or termination of this
Agreement, any unexpended funds, or funds not irrevocably committed to
the program, shall be returned to the City within thirty (30) calendar
days of the Agreement expiration or termination date.
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18. DISPOSITION OF EQUIPMENT
All equipment purchased with General Revenue Sharing funds
for the use by Contractor in the performance of this Agreement shall
remain with Contractor so long as this Agreement remains in full force
and effect. A record shall be maintained for each item of nonexpendable
property acquired under this Agreement. Upon termination or expiration
of this Agreement, title to each item of equipment having a unit cost
of more than Twenty -Five Dollars ($25) shall vest with the City and its
General Revenue Sharing program. Contractor shall have the option to
purchase such equipment from the City, with the proceeds of such sale
to revert back to the General Revenue Sharing program.
19. STAFFING REQUIREMENTS
The Contractor shall provide job descriptions for all positions
under this Agreement. The Contractor shall hire and employ under this
Agreement only those positions listed in the Program Budget. The
Contractor shall not change the job descriptions nor exceed the budgeted
salaries for said positions without written approval of the City. The
Contractor shall submit to the City for written approval the name and
qualifications of any personnel hired to fill a position designed to
receive a salary under this Agreement of Seven Thousand, Five Hundred
Dollars ($7,500) or more per annum, whether totally or partially funded
by General Revenue Sharing. Such approval shall not be withheld except
for reasons pertaining to Sections 19 and 20 herein, or as required by
any appropriate Federal agency.
20. AFFIRMATIVE ACTION
A. Contractor will comply with Title VI of the Civil Rights
Act of 1964 (Public Law 88 -352), and in accordance with Title VI of
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that Act, no person in the United States shall, on the grounds of race,
creed, color, handicap, national origin, sex, age, political affiliation
or beliefs, be excluded from participation in, be denied the benefits
of, or otherwise subjected to discrimination under any program or
activity for which the Contractor received Federal financial assistance
and will immediately take any measures necessary to effectuate this
Agreement. Any subcontracts awarded by Contractor shall additionally
contain this provision.
B. Contractor shall keep such records and submit such reports
concerning the racial and ethnic origin of applicants for employment
and employees as the Director of the Office of Revenue Sharing may
require. Contractor agrees to comply with such rules, regulations or
guidelines as the Director of the Office of Revenue Sharing may issue
to implement these requirements. Contractor shall abide by and conform
to any and all laws, ordinances, regulations and policies of the United
States, the State of California, and the City of Santa Monica.
21. NEPOTISM
Contractor shall not hire nor permit the hiring of any
persons in a position funded under this Agreement if a member of the
person's immediate family is employed in an administrative capacity as
an employee of the City of Santa Monica, or an employee of any contrac-
tors who subcontract with the City of Santa Monica. For the purpose
of this section, the term "immediate family" means wife, husband, son,
daughter, mother, father, brother, sister, brother -in -law, sister -in-
law, son -in -law, daughter -in -law, mother -in -law, father -in -law, aunt,
uncle, niece, nephew, stepparent and stepchild. The term "administrative
capacity" means persons who have selection, hiring or supervisory
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responsibilities.
22. CONFLICT OF INTEREST
Contractor covenants that neither the Contractor nor any of
its agents or employees who presently exercise any function or respon-
sibility in connection with this program has or shall have or acquire
any personal, financial or economic interest, direct or indirect, which
will be materially affected by this Agreement except to the extent that
he /she may receive compensation for his /her performance pursuant to the
Agreement. For the purposes of this section, an economic or financial
interest includes:
(1) Any business entity in which the person has a direct
or an indirect investment worth more than One Thousand Dollars ($1,000);
(2) Any real property in which the person has a direct
or indirect interest worth more than One Thousand Dollars ($1,000);
(3) Any source of income, loans or gifts which when
combined are worth Two Hundred Fifty Dollars ($250) or more in value
received by or promised to the person within twelve (12) months prior
to the time this Agreement was executed; and,
(4) Any business entity in which the person is a
director, officer, partner, trustee, employee, or holds any position
of management.
For the purpose of this section, direct or indirect interest
means any investment or interest owned by the spouse, parent, child,
brother, sister, father -in -law, mother -in -law, brother -in -law, sister-
in-law, daughter -in -law, son -in -law, or the person, by an agent on
his /her behalf, by any business entity controlled by said person or by
a trust in which he /she has substantial interest. A business entity is
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controlled by a person if that person, his /her agent, or a relative,
as defined above, possesses more than fifty percent (500) of the
ownership interest. A person has a substantial interest in a trust
if said person or an above - defined relative has a current or future
interest worth more than One Thousand Dollars ($1,000).
23. POLITICAL ACTIVITIES
A. No program under General Revenue Sharing financing may
involve political activities.
B. No participant may engage in partisan or nonpartisan
political activities during hours for which the participant is paid
with General Revenue Sharing funds.
C. No participant may, at any time, engage in partisan or
nonpartisan political activities in which such participant represents
himself /herself as a spokesperson of the General Revenue Sharing
funded program.
D. No General Revenue Sharing paid participant may be
employed or outstationed in the office of a member of Congress or a
State or local legislator, or on any staff of a State or local legis-
lative committee.
E. No equipment, materials or premises acquired, donated
or designated as part of the program under the terms of this Agreement
may be used directly or indirectly for any political purpose including,
but not limited to:
(1) sponsoring or conducting candidates' meetings;
(2) voter registration activity;
(3) voter transportation;
(4) any partisan political activity designed to elect
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or defeat any candidate for public office, or any activity designed
to approve or defeat any initiative or referendum; nor,
(5) circulation of petitions to qualify initiatives
or referenda for local or State ballots.
24. RELIGIOUS ACTIVITIES
A. No program under General Revenue Sharing funding may be
involved in any religious activities, nor may any General Revenue
Sharing funds be expended for religious or anti - religious activities.
B. No equipment, materials, or premises acquired, donated
or designated as part of the program under the terms of this Agreement
may be used directly nor indirectly for any religious or anti - religious
activity.
25. LOBBYING ACTIVITIES
No funds provided under General Revenue Sharing may be used
to pay the costs arising from the personal solicitation nor exercise
of personal influence upon members of a legislative body for the
purpose of influencing pending or proposed legislation regarding the
provisions of the General Revenue Sharing Act. Prohibited lobbying
activities include, but are not limited to, the following:
(1) Personal solicitation of individual members of a
legislative body to influence legislation regarding the General Revenue
Sharing program by personal interview, letter, financial contributions,
and other means.
(2) To employ a lobbyist to engage in proscribed
activities.
26. SUSPENSION BY CITY FOR UNSATISFACTORY PERFORMANCE
Should the City at any time become dissatisfied with the
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Contractor's performance under this Agreement, the City Manager may
suspend performance under this Agreement immediately by giving notice
in writing to the Contractor at least five (5) days before the
effective date of such suspension as provided for in Section 29.
Such notice shall state the reasons for dissatisfaction. Upon receipt
of this notice, performance shall be suspended. The Contractor may
appeal the suspension to the City Council. The City shall be the sole
judge as to whether the performance of the Contractor is satisfactory.
27. TERMINATION BY CITY FOR DEFAULT
In the event that the Contractor defaults in the performance
of this Agreement or materially breaches any of its provisions, the
City Manager shall have the option of terminating this Agreement
immediately by giving written notification effective as provided for
hereinafter in Section 29. Such notice shall state the reasons for
the termination. The Contractor may appeal the termination to the
City Council.
28. TERMINATION BY EITHER PARTY UPON NOTICE
Furthermore, this Agreement may be terminated by either
party by giving fifteen (15) days written notice to the other party
as provided for in this Agreement hereinbelow.
If this Agreement is so terminated, Contractor shall, within
five (5) days of receipt of notice of termination, notify all other
parties he /she has subcontracted with for services in furtherance of
this Agreement.
29. NOTICES
A. All notices, demands, requests, or approvals which are
required under this Agreement, or which either the City or Contractor
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may desire to serve upon the other, shall be in writing and shall be
conclusively deemed served when delivered personally or forty -eight
(48) hours after the deposit thereof in the United States mail, postage
prepaid, registered or certified, and addressed as hereinafter provided.
B. All notices, demands, requests, or approvals from the
Contractor to the City shall be addressed as follows:
City of Santa Monica
Department of Environmental Services
1685 Main Street, Room 206
Santa Monica, CA 90401
C. All notices, demands, requests or approvals from the City
to the Contractor shall be addressed as follows:
30. AUTHORITY TO BIND CONTRACTOR
Before receipt of a fully executed copy of this Agreement,
the Contractor shall furnish to the City a written list of the persons
authorized to execute, on behalf of the Contractor, agreements,
contracts, modifications to contracts, or other documents as they may
be required by the City. In the event authority is delegated to a
position (e.g., President, Vice - President, Treasurer, etc.) rather
than to an individual, the list of persons so authorized shall be
furnished.
31. WARRANTY OF SERVICES
The Contractor warrants and guarantees that all services
performed hereunder for the City by the Contractor shall be performed
in a manner commensurate with the highest professional standards.
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32. CONTAINMENT OF ENTIRE AGREEMENT HEREIN
This Agreement supersedes any and all other agreements,
either oral or in writing, between the parties hereto with respect
to the subject matter of this instrument and contains all of the
covenants and agreements between the parties with respect to such
subject matter in any manner whatsoever. Each party to this
Agreement acknowledges that no representations, inducements, promises,
or agreements, orally or otherwise, have been made by any party, or
anyone acting on behalf of any party, which are not embodied herein,
and that no other agreement, statement or promise not contained in
this Agreement shall be valid or binding.
33. MODIFICATION OF AGREEMENT
Except as otherwise provided for in this Agreement, any
amendment or modification to this Agreement will be effective only
if in writing and signed by the party to be charged.
34. PARTIAL INVALIDITY
If any provision of this Agreement is held by any competent
court to be invalid, void, or unenforceable, the remaining provisions
shall nevertheless continue in full force and effect.
35. GOVERNING LAW
The validity of this Agreement and any of its terms or
provisions, as well as the rights and duties hereunder, shall be
interpreted and construed pursuant to and in accordance with the laws
of the State of California.
36. INTERPRETATION
The terms and conditions of this Agreement shall be construed
to their plain and ordinary meaning and shall not be interpreted
Or=
against the maker.
37. SECTION HEADINGS
The section headings appearing herein shall not be deemed
to govern, limit, modify or in any way affect the scope, meaning or
intent of these conditions.
38. ATTORNEY FEES
If any action at law or in equity, including an action for
declaratory relief, is brought to enforce or interpret this Agreement,
the prevailing party shall be entitled to reasonable attorney fees
which may be set by the court in the same action or in a separate
action brought for that purpose, in addition to any other relief to
which it may be entitled.
EXECUTED at Santa Monica, California, on the day and year
first above written.
APPROVED AS TO FORM: CONTRACTOR:
ie
Acting City Attorney
CITY OF SANTA MONICA:
ATTEST:
City Manager
City Clerk
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GENERAL REVENUE SHARING REGULATIONS
Title 31 —Money and Finance: Treasury
CHAPTER 1 — MONETARY OFFICES
DEPARTMENT OF THE TREASURY
PART 51 — FISCAL ASSISTANCE TO
STATE AND LOCAL GOVERNMENTS
Interim Regulations
Subpart 0— Prohibitions and Restrictions on
Use or Funds
See.
51.40 Matching funds.
51.41 Permissible expenditures for local
governments.
51.43 wage rates and labor standards.
51.43 Restriction on expenditures by In.
dian tribes and Alaskan native vil-
lages.
51.44 Lobbying,
51.45 Use of entitlement funds Sor debt re-
tirement.
Au-rrro ary: State and Local Fiscal Assist-
ance Act of 1972, as amended, Title I. Pub. L.
92 -512 and State and Local Fiscal Assistance
Amendments of 1972, Pub. L. 94-488 (31
U.S.C. 1221 - 1263): Treasury Dept. Order No.
224, dated January 26, 1973 (38 FR 3342).
Subpart D—Prohibitions and Restrictions
on Use of Funds
§51.40 Matching funds.
(a) Applicability to entitlement funds
appropriated or budgeted on or after
January 1, 1977. The provisions of this
section shall not apply to entitlement
funds appropriated or budgeted on or
after January 1, 1977.
(b) Applicability to entitlement funds
appropriated or budgeted on or before
December 31, 1976, may not be used,
appropriated or budgeted on or before
December 31, 1976, may not be used,
directly or indirectly, as a contribution
Ill order to obtain any Federal funds
under any Federal program. The indi-
rect use of entitlement fonds to match
Federal funds is defined to mean the
allocation of entitlement funds to a non -
matching expenditure and thereby re-
leasing or displacing local funds which
are used for the purpose of matching
Federal funds. This prohibition on use
of entitlement funds as matching funds
applies to Federal programs where Fed-
eral funds are required to be matched
by non - Federal funds and to Federal
programs which allow matching from
either Federal or non - Pederal funds.
(1) .Secondary recipients. The prohi-
bition of paragraph (b) of this section
applies . to a recipient government's en-
thlemmrt funds which are transferred by
it to another governmental unit or pri-
vate organization. A violation of this
section by a secondary reeipent shall
constitute a violation by the recipient
government and the penalty provided by
paragraph (b) (5) of this Bestial' shall
be imposed on the recipient government.
(2) Certification required. Tile chief
executive officer of each recipient gov-
ernment must certify to the Director that
entitlement folds received by it have not
beefy used fn violation of this section.
(3) Increased Stale or local govern-
ment revenues. No recipient government
shall be determined to have used funds fn
violation of paragraph (b) of this sec-
tion with respect to any funds received
for any entitlement period (or during its
fiscal year) to the extent that net reve-
nues received by it from its own sources
during such period exceed the net reve-
nues received by it from its own sources
during the 1 -year period beginning July
1, 1971 (or its fiscal year ending during
the same period). In the case of the en-
titlement periods of 6 months, one -half
of such net revenues shall be measured.
(4) Presumptions of compliance. No
recipient government shall be deter-
mined to have used entitlement funds in
violation of the indirect prohibition of
paragraph (b) of this section to the
extent that:
(f) The expenditure of entitlement
funds was accompanied by an aggregate
Increase in nonmatching funds expendir
tllres.
(II) The receipt of entitlement funds
permitted that government to reduce
taxes: Provided, Nonentitlement reve-
nue is sufficient to cover all matching
funds contributions.
(111) The matching funds contribution
in question is accounted for by in -kind
contribution which was not financed di-
rectly or indirectly with entitlement
funds..
(5) Determination by Director of the
Office of Revenue Sharing. If the Di-
rector has reason to believe that a recip-
ient government has used entitlement
funds to match Federal funds in viola-
tion of paragraph (b) of this section the
Director shall give such government
notice and opportunity for hearing. If
the Director determines that such
government has, in fact, used funds in
violation of paragraph (b) of this Sec-
tion, he shall notify such government of
his determination arid shall request re-
payment to the United States of an
amount equal to the funds so used. To
the extent that such government fails to
repay such amount, the Director shall
withhold from subsequent entitlement
payments to that government an amount
of entitlement funds equal to the funds
used in violation of paragraph (b) of this
section or, if this method Is imprac-
ticable, the Director may refer the
matter to the Attorney General for
appropriate civil action.
6. Use of entitlement funds to supple-
ment Federal grant funds. Tile prohi-
bition on use of entitlement funds con-
tained in paragraph (b) of this section
does not prevent tile use of entitlement
funds to supplement other Pedeml grant
funds. For example, if expenditures for
a project exceed the amount available
from non- Federal funds plus matched
Federal funds, the recipient government
may use entitlement funds to defray the
excess costs: Provided, however, That
the entitlement funds are not used to
match other Federal funds: And pro-
vided further, That in the case of a unit
of local government, the use of entitle-
ment funds to Supplement Federal grants
is restricted to the category of expendi-
tures as set forth In 4 51.41.
§ 51.ft Prnuisihlc expenditures for
local guvernmeu(s.
(a) Applicability to entitlement funds
appropriated or budgeted on or after
Exhibit "C"
January 1, 1977. The provisions of this
section shall not apply to entitlement
funds appropriated or budgeted by units
of local government on or after Janu-
ary 1, 1977.
(b) Applicability to entitlement funds
appropriated or budgeted on or before
December 31, 1976. Entitlement funds
appropriated or budgeted by units of
local government on or before Decem-
ber 31, 1976 may be used only for priority
expenditures. As used in this part, the
term "priority expenditures" means:
(1) Ordinary and necessary mainte-
nance and operating expenses for:
(I) Public safety (including law en-
forcement, fire protection, and building
code enforcement) ;
(if) Environmental protection (in-
cluding sewage disposal, sanitation, and
pollution abatement) ;
(iii) Public transportation (including
transit systems and streets and roads) ;
(iv) Health;
(v) Recreation;
(vi) Libraries;
(vii) Social services for the poor or
aged; and
(viil) Financial administration, and
(2) Ordinary and necessary capital
expenditures authorized by law.
No unit of local government may use
entitlement funds for nonpriority ex-
penditures which are defined as any ex-
penditures other than those included in
subparagraphs (1) and (2) of this para-
graph. The chief executive officer of each
unit of local government must certify -
to the Director that entitlement funds
received by it have been used only for
priority expenditures as required by the
Act.
(3) Use of entitlement funds for debt
retirement. The Ilse of entitlement funds
for the repayment of debt is a permis-
sible expenditure provided that:
(I) Entitlement funds are not used to
pay any interest incurred .because of
the debt,
(if) The debt was originally incurred
for a priority expenditure purpose as
defined in this section,
QlD The actual expenditure from the
proceeds of the indebtedness ti.e., for
materials, contractors, etc.) was made
on or after January 1, 1972 (the begin-
ning of the first entitlement period),
(iv) Tire actual expenditures from the
proceeds of the indebtedness were not
in violation of any restrictions enum-
erated in Subparts p and E of this
part.
(4) Effect of noncompliance. In the
case of a unit of local government which
appropriates entitlement funds on or be-
fore December 31, 1976 for other than
priority expenditures as defined in pm a-
graph (b) of this section, it will pay over
to the Secretary (for deposit in the gen-
eral fund of the Treasury) an amount
equal to 110 percent of any amount ex-
pended in violation of paragraph (b, of
this section, unless such mnount of en-
titlement fonds t; promptly repaid to the
trust fund of the local government after
notice by the Director and opportunity
for corrective action.
Revenue Sharing Advisory Service Augusr 1977 Revenue Sharing Handbook — Second Edibnn
§ 51.42 «Vase rules and labor standards.
(a) Construction laborers and me-
chanics. A recipient government which
receives entitlement funds tinder the
Act shall- require that all laborers and
mechanics employed by contractors or
subcontractors in the performance of
work on any construction project cost-
ing in excess of $2000.000 and of which
25 percent or more of the cost is paid
out of its entitlement funds:
(1) Will be paid wages at rates not less
than those prevailing on similar con-
struction in the locality as determined
by the Secretary of Labor in accordance
with the Davis -Bacon Act as amended
(40 U.S.C. 276a- 276a -5) : and
(2) Will be covered by labor standards
'specified by the Secretary of Labor pur-
suant to 29 CFR Parts 1, 3, 5, and 7.
(b) Request for wage determination.
In situations where the Davis -Bacon
standards are applicable, the recipient
government must ascertain the U.S. De-
partment of Labor wage rate determina-
tion for each intended project and insure
that the wage rates and the contract
clauses required by 29 CFR 5.5 are in-
corporated in the contract specifications.
The recipient government must also
satisfy itself that the bidder is made
aware of his labor standards responsi-
bilities under the Davis -Bacon Act. Wage
rate determinations may be obtained by
filing a Standard Form 308 with the Em-
ployment Standards Administration of
the applicable regional office of the U.S.
Department of Labor at least 30 days
before the invitation for bids or, in case
of construction covered by general wage
rate determinations, the appropriate
rate may be obtained from the FEDERAL
REGISTER.
(c) Government employees. A recipi-
ent government which employs individ-
uals whose wages are paid in whole or
in part from entitlement funds must pay
wages which are not lower than the pre-
vailing rates of pay for persons employed
In similar public occupations by the
same employer. However, this subsection
shall apply with respect to employees in
any category only if 25 percent or more
of the wages of all employees of the re-
cipient government in such category are
paid from the trust fund established by
It under § 51,100(a).
§ 51.13 Restriction on expenditures by
ludian tribes unit Abukan native
Villages.
htdian tribes and Alaskan native vil-
lages as defined in § 51.2 are required to
expend entitlement funds only for the
benefit of members of the tribe or vil-
lage residing in the county area from
which the allocation of entitlement funds
was originally made. Expenditures which
are so restricted will not constitute a
failure to comply with the requirement of
Subpart E of this part.
§ 51.44 Lobbying.
(a) fn general. Entitlement funds may
not be used by any State or unit of local
government to pay the costs arising from
the personal solicitation or exercise of
personal Influence upon members of a
legislative body by representatives of the
recipient government for the purpose of
Influencing pending or proposed legisla-
tion regarding the provisions of the Act.
(b) Activities prohibited. Prohibited
lobbying activities include but are not
limited to the following:
(1) Personal solicitation of individual
members of a legislative body to influence
legislation regarding the General Rev-
enue Sharing Program by personal inter-
view, letter, financial contributions, and
other means.
(2) To employ a lobbyist to engage in
proscribed activities.
(c) Activities permitted. Without vio-
lation of this Section a recipient govern-
ment may:
(1) Use revenue sharing funds to pay
dues to national or State organizations.
(2) Use revenue sharing funds to at-
tempt to influence public opinion or to
convey opinions and judgments to the
public regarding provisions of the Act, by
publications, distribution of books, pam-
phlets and other writings.
§ 51.45 Use of entitlement funds for
debt retirement.
Where the actual expenditures of the
proceeds of indebtedness were made on or
after October 20, 1972, the appropriation
of entitlement funds on or after Janu-
ary 1, 1977 for the repayment of the in-
debtedness (notwithstanding when such
indebtedness was incurred), is permis-
sible provided that the expenditures from
the proceeds of the indebtedness are
made in compliance with the restrictions
and prohibitions enumerated in Subparts
D and E of this part.
GRevenue Sharing Advisory Service August 1977 -2- Revenue Sharing Handbook — Second Edition
Title 31 -Money and Finance
CHAPTER I- MONETARY OFFICES,
DEPARTMENT OF THE TREASURY
PART 51-FISCAL STATE
Interim Rn7•lhtioas
Subpart E- Nondiscrimination by Redpient
Governments Receiving Entitlement Funds
Sec.
51.50
Purpose.
51.51
Definitions.
51,52
Discrimination prohibited.
51.53
Employment discrimination.
51.54
Discrimination on the basis of sex.
51.55 Reserved.
$1.56 Discrimination on the basis of na-
tional origin.
51.57 Discrimination on the basis of re-
ligion.
51.59 Assurances required.
51.59 Compliance information and reports.
51.60 Compliance reviews and affirmative
action.
51.61 Administrative complaints and in-
vestigations.
51.62 Finding by the Director.
51.63 Notification of complainant.
51.64 Exhaustion of administrative Note -
dies.
51.65 Procedure for effecting compliance.
51.66 licarings before administrative law
judge.
51.67 Holding by a court or Federal govern-
mental agency.
51.68 Procedure for affecting compliance in
case of holding.
51.69 Initial decision of adnrinistrttivc law
judge pursuant to 5 U.S.C. 557.
51.70 Resumption of Suspended ealide-
meat p:ryments.
51.71 Compliance agrccnrents.
51.72 Hearing pruccdurcs.
51.73 Jurisdiction over property.
51.74 Agreements between agencies.
51.75 Authority of tilt Attomc-v Ccnerai of
the United States.
AuTtwa Ill: State and Local .lsauit nec Ar r
of 1072 as amended, Title I, Pub. L. 92 -612:
Finite and Local Flscni Aslstmice Amend-
ments of 1972, Pub. L. 04-480 (31 U.S.C. 1221-
1203); Treasury Department outer No. 224,
doted January 26, 1973 (30 Pit 3342).
Subpart E- Nondiscrimination by Recip-
ient Governments Receiving Entitlement
Funds
§ 51.50 Purpose.
The purpose of this subpart is to ef-
fectuate section 122 of the Act to the end
that no person in the United States shall.
on the ground of race, color, national ori-
gin, or sex, be excluded from ptirticipa-
tion in, be denied the benefits of, or be
subjected to discrimination under any
program or activity of a recipient gov-
ernment, which government receive.,
funds made available under subpart A.
Any prohibition against discrimination
on the basis of age under the Age Dis-
crimination Act of 1975 or with respect
to an otherwise qualified handicapped
individual as provied in Section 504 of
individual as provided in section 504 of
prohibition against discrimination on
the basis of religion as well as any ex-
emption from such prohibition, as pro-
vided in the Civil Rights Act of 1964 or
the Civil Rights Act of 1968, shall also
apply to any such program or activity.
§51.51 Definitions.
Unless the context requires otherwise,
as used in this subpart, the term:
(a) "Age discrimination" refers to any
discrimination on the basis of age under
the Age Discrimination Act of 1975.
(b) "Compliance review" means a re-
view of a recipient's selected employment
practices, facilities, or delivery of serv-
ices for comllliance with the provisions
of this part.
(c) "FacRAY" includes all or any part
of structures, equipment, or other real
or personal property or interests therein.
(d) 'Finding' -See § 51.62 for mean-
ing of this term.
(e) 'Funded" means funds have been
made available for expenditure In a des-
ignated program or activity through leg-
islative action.
(f) "Handicapped status discrimina-
timi' refers to discrimination with re-
spect to an otherwise qualified handi-
capped individual under § 504 of the Re-
habilitation Act of 1973.
(g) "Holding" -See § 51.67 for mean-
ing of Lilts term,
(h) "Investigation" includes both
fact- finding efforts and attempts to se-
cure the voluntary resolution of com-
plaints.
(D ,program or activity" means tiny
function conducted by an agency or de-
partment of the recipient government
which government has received or is re-
ceiving entitlement funds, or by any
other unit of government or Private con-
tractor which has received or is receiv-
ing entitlement funds from the recipient
government.
(j) "Religious discrimination" refers
to any prohibition against discrimina-
tion on the basis of religion as well as any
exenipiton from such proliihition as pro-
vided in the Civil Rights Act of 1964 or
the Civil Rights Act of 1968.
§51.52 Discrimination prohibited.
(a) In general. No person in the United
States :hail, on the ground of race, color,
national origin, or sex, be excluded from
participation under, denied the benefits
of, or be subjected to discrimination un-
der any program or activity of a recipient
government which government receives
funds made available under Subtitle A
of the Act. Any prohibition against dis-
crimination on the basis of age under
the Age Discrimination Act of 1975
(hereinafter referred to as discrimina-
tion on the basis of age) or with respect
to an otherwise qualified handicapped in-
dividual as provided in section 504 of the
Rehabilitation Act of 1973, (hereinafter
referred to as discrimination on the basic.
of handicapped status) or any prohibi-
tion against discrimination on the basis
of religion, as well as any exemption
from such prohibition as provided in the
Civil Rights Act of 1964 or the Civil
Rights Act of 1968 (hereinafter referred
to as discrimination on the basis of reli-
gion) shall also apply to any such pro-
gram or activity.
(b) Specific discriminatory actions
prohibited. (1) A recipient government
shall not, on the ground of race, color,
national origin, or sex:
(D Deny any service or other benefit
provided.
(ii) Provide any service or other bene-
fit which is different, or is provided in
a different form from that provided to
others.
(iii) Subject any person to segregated
or separate treatment in any facility or
in any matter or process related to re-
ceipt of any service of benefit.
(iv) Restrict in any way the enjoy-
ment of any advantage or privilege en-
joyed by others receiving any service or
benefit.
(v) Treat an individual differently
from others in determining whether the
individual satisfies any admission, en-
rollment, eligibility, membership, or
other requirement or condition which
individuals must meet in order to he
provided any service or other benefit.
(2) A recipient government shall not
on the ground of race, color, national
origin, sex, handicapped status, age or
religion:
(i) Deny any person an opportunity to
participate in a program or activity as
an employee.
(it) Deny any' person an equal Oppor-
tunity to participate as appointed mem-
bers of planning or advisory bodies In
connection with the disposition of en-
titlement fluids.
(3) I11 areas of employment, a recipt-
cut government lllay Clot Utilize criteria
or methods of administration which have
the effect of:
(1) Subjecting individuals to discrimi-
nation on the basis of race. color, na-
tional origin, sex, age, handicapped
status, or religion.
(it) Perpetuating the results of past
discriminatory Practices.
(Ili) Defeathlgor substantially impaL-
Ing file accomplisluucnt of the objectives
of the program or activities with respect
to individuals of a particular race, color,
national origin, sex, age, handicapped
status, or religion.
(4) .A recipient government may not
on the ground of race, color, nationtd
origin, or sex make selectiom of site or
.Revenue Sharing Advisory Service A.pm 1977 -3- Rev =nue Sherin3 Handbl,6' - Srz ^roi
location of facilities which have the
effect of:
(f) Excluding Individuals from such
facilities.
(if) Denying the individuals the bene-
fits of such facilities.
(iii) Subjecting individuals using the
facilities to discrimination.
(5) Recipient governments are en-
couraged to take action with entitlement
funds to ameliorate an imbalance in
services or facilities provided to any
geographic area or specific group in order
to overcome the effects of prior discrim-
inatory practice or usage. If a recipient
government funds T program or activity
which is found to provide an imbalance
of services or facilities to persons pro-
,rated by this subpart, then such im-
balance shall be ameliorated.
(6) The enumeration of specific forms
of prohibited discrimination in this par-
agraph does not limit the generality of
the prohibition in paragraph (a) of this
section.
(c) Exemptions. The provisions of
paragraphs (a) and (b) shall not apply:
(1) Where a recipient government
demonstrates by clear and convincing
evidence that a program or activity, with
respect to which discrimination is al-
leged, is not funded in whole or ill part
with entitlement funds.
(2) To construction projects com-
menced prior to January 1, 1977, with
respect to discrimination on the basis of
handicapped status. A construction proj-
ect shall be deemed to have commenced
when the recipient government has obli-
gated itself by contract for the physical
construction of the project or any per, -
tion of the project.
§ 51.53 Employment discrimination.
(a) Employment practices. In general,
employment practices mean all terms
and conditions of employment including
recruitment, recruitment advertising,
hiring, layoff, termination, upgrading,
demotion, transfer, rates of pay, fringe
benefits, training, or other forms of corn -
Pensation, use of facilities, and other
terms and conditions of employment. A
recipient government which receives en-
titlement funds may not (through can -
tractual or other arrangements) subject
any Individual to employment discrimf-
`uation on the ground of race, color, na-
tional origin, sex, age, handicapped
status, or religion.
(b) Employee selection procedures.
The Equal Employment Opportunity
Commission, in carrying out its respon-
sibilities In ensuring compliance with
title VII of the civil Rights Act of 1964,
has published Guidelines on EmPIOy'ee
Selection Procedures l29 CPR Part 16071
to assist In establishing and mafutafnfung
equal employment opportunities. Among
other things, these Guidelines forbid the
use of employee selection practices, Pro-
cedures, and devices (such as tests, mild-
mum educational levels, and the like)
which disqualify a disproportionate num-
ber of minority individuals or women for
employment and which are not related
to job performance. Recipient govern-
ments using selection procedures which
are not in conformity with the EEOC
Guidelines shall, upon request of the DI-
rector, set forth the reasons for any such
nonconformity.
(c) recruitment practices o/ recipient
governments. Recruitment practices of
recipient governments should be an-
alyzed to determine whether they are
making information about job opportun-
ities equally available to minority groups
and women. Where racial, ethnic or sex
groups are being or have been denied
employment opportunities, or are under-
utilized in a job classification or classi-
fications, the use of recruiting procedures
designed to attract members of racial,
ethnic or sex groups which have been
denied employment opportunities is Per-
missible and may be required to comply
with these regulations.
(d) Sell - evaluation. Recipient govern-
ments are expected to conduct a con-
tinuing program of self - evaluation to as-
certain whether any of their recruitment,.
employee selection, or promotional
policies (or lack thereof) directly or in-
directly have the effect of denying equal
employment opportunities to minorities
or women.
(e) Employment compliance reviews.
Compliance reviews of recipient govern-
ments will be scheduled by the Office of
Revenue Sharing, giving priority to any
recipient government receiving entitle-
ment funds which shows a significant dis-
parity between the percentage of minori-
ties or women in the relevant work force
and the percentage of minority or women
employees in the applicable government.
On such reviews the standards of Title
VII of the Civil Rights Act of 1964 shall
apply.
§ 51.54 Diserim illation on the basis of
sex.
(a) General. No person shall, on the
basis of sex, be excluded from participa-
tion in, be denied the benefits of, or be
subjected to discrimination in recruit-
ment, hiring, or employment, whether
full -time or part -time, under any pro-
gram or activity funded in whole or in
part by a recipient government which
receives entitlement funds.
(b) Recruitment and advertisement.
(1) Recipient governments engaged in
recruiting activity shall recruit em-
ployees of both sexes for all jobs.
(2) Advertisements in newspapers and
other media for employment shall not
express a sex preference. The placement
of an advertisement ill columns headed
"Male" or "Female" will be considered
to be a discriminatory limitation.
(3) A recipient government shall not
recruit primarily or exclusively at en-
tities which furnish az applicants only or
predominantly members of are sex If
such recruitment has the effect of dis-
criminating on the basis of sex.
(c) Job policies and practices. (D Em-
ployees of both sexes shall have an equal
Opportunity to any available job that he
or she is qualified to perform.
(2) Recipient governments shall not
make any distinction based upon sex in
employment opportunities,. wages, hours
or other conditions of employment. It
shall be an unlawful employment prac-
tice for an employer to have it Pension or
retirement plan which establishes differ-
ent optional or compulsory retirement
ages based on sex. It shall be an unlaw-
ful employment practice for an em-
ployer to provide for both unequal bene-
fits and unequal contributions in the
areas of insurance, pension or retirement
plans, welfare or other fringe benefit
programs. Further, if shall be an unlaw-
ful employment practice for an employer
to provide for either unequal benefits or
unequal contributions in such areas un-
less such unequal benefits or unequal
contributions are directly related to ac-
tuarial differences. Proof of such ac-
tuarial differences shall be provided by
the recipient government upon the re-
quest of the director. In the areas of in-
surance, pensions, welfare programs and
other fringe benefits, it shall be an un-
lawful employment practice for a recip-
ient government to make available bene-
fits for the wives of male employees
which are not made available.for female
employees; or to make available benefits
to the husbands of female employees,
which are not made available for male
employees.
(3) Any distinction between married
males and married females and any dis-
tinction between unmarried males and
unmarried females will be considered to
be a distinction made on the basis of
sex. Similarly, a recipient government
must not deny employment to women
with young children unless it has the
same exclusionary policies for men; or
terminate an employee of one sex in a
particular job classification upon reach-
ing a certain age unless the same rule
Is applicable to persons of the opposite
sex.
(4) A recipient government may not
refuse to hire men or women, or deny
men or women a particular job because
there are no separate restrooms or other
separate facilities. The recipient govern-
ment's policies and practices shall assure
that appropriate facilities are available
for use by both sexes,
(5) Recipient governments may not
deny any employee the right to any job,
which the employee is qualifield to per-
form, in reliance upon a State "protec-
tive" law that does not apply equally to
both sexes.
(6) A recipient government shall not:
(1) Classify a job as being for males
or for females;
(it) S:aintain or establish separate
lines of progression, seniority lists, career
ladders, tenure, systems, position de-
serlptions or job requirements which are
based on se:. or which classify persons
on the basis of sex unless such procedure
is dictated by the provisions of an Af-
firmative Action Program.
(d) Marital or parental status. In any
program or activity funded in whole or
In part by a recipient government which
receive entitlement funds:
(1) Family status. A recipient govern-
ment shall not treat an employee or ap-
plicant for employment differently oil
the basis of sex in any employment ra-
tion or policy because of the employee's
or applicant's marital status or status
as a parent.
(2) Pregnancy as a basis for employ-
ment action. A recipient government
GRevenue Sharing Advisory Service August 1977 -4- Revenue Sharing Handbook — Second Edition
L.
shall not have a written or unwritten
policy which results in different treat-
ment of temporary disabilities caused by
pregnancy with respect to the coln-
mencement or duration of employment.
or leave.
(3) Sex as a bona fide occupmtional
qualification. Nothing in these regula-
tions shall prohibit the hiring of em-
ployees of one sex if sex is a bona tide
occupational qualification. A bona fide
occupational qualification is only al-
lowed where there Is a reasonable factual
basis to- believe that all, or substantially
all, of one sex are unable to perform the
job in question. Further, the burden of
denonstrating that sex is a bona fide
occupational qualification for a given
job rests on the recipient government.
§ 51.55 (Rescrvcdl
§ 51,56 Discrimination on the ba,is of
national origin.
The Equal Employment Opportunity
Commission has adopted guidelines" on
discrimination on the basis of national
origin. These guidelines provide practical
assistance to enable recipient govern-
ments to bring themselves into com-
pliance with Federal law, Recipient gov-
ernments using selection procedures
which are not in conformity with the
E.E.O.C. Guidelines shall, upon the re-
quest of.the Director set forth the reasons
for such nonconformity. The Equal Em-
ployment Opportunity Commission
guidelines are as follows:
41606.1 Guidelines on discrimination be-
cause of national origin.
(a) The Commission is aware Of the wide-
spread practices of discrimination on the
basis of national origin, and Intends to apply
the full force of law to eliminate sueh-dis-
elimnlat(on. The bona fide occupational
qualification exception as it pertains to ua-
Stand origin cases shall be strictly construed.
(b) Title VII is Intended to eliminate
covert as well as the overt practices of dis-
crinnimitlon, and the Commission will, there-
fore, examine with particular concern cases
where persons within the jurisdiction of the
Conrntisslon have been denied equal em-
ployment opportunity for reasons which are
grounded in national origin cousmeratlons.
Examples of cases Of this character which
have come to file attention of the Commis -
,1.0 include: The use of tests In the Earlier)
language where the Individual tested came
front circumstcmcts where English was net
that person's first language or mother
tongue, slid where English linguaroi, skill I:;
not a requirement of the work. to be per-
formed; denial of equal Opportunity to per -
sells of a .specific national origin; denial of
equal Opportunity because of tneubership
ht lawful orgauizatlmis Identified with or
seeking to promrte the Interests of naLiunal
groups: denial of equal opportunity because
of atCuaance at schools or churches coal -
uwnly utilized by persons of a given ne-
Islam origin; denial of equal opportmdty
because their name or that of their spun >e
rencets a certain national origin: and denial
of equal opportunity to persons who re a
China of persons tend to fall outulde national
norms for height and weight whom Such
height end weight speeracadons are not
necessary for the performance of the vmrlc
hrvolvcd.
(c) Title VII of the Civil Rights Act o
1964 protects all individuals, both citlzetw
and noncitizens, domiciled ur residing In
the United States, against in'Ortnonation
on the basis of race, color, religion s,a, of
national Origin.
(a) where discrlmivatlon ml cite civ;b: Co
citizenship agmunt a lawfully Immlgr)tell
altetl resisting in the United States has the
purpose or street of discrimination ega.lunf
persons of a particular national origu,.:%it,:h
person may not be discriminated ar:nilwl. on
the bands of citizenship, except th,,t h, h no.
an unlawful einnloyment practiec ier :u)
employer pursuant to section 763(gj to re-
fuse to employ any person who does not ful-
fill the requirements Imposed in the interests
of national security pursuant to any stntuto
of the United States or any Executive Order
of the President respecting the particular
position or the particular premises In ples-
tion.
(e) In addition, some states have enacted
laws prohibiting the employment of non-
Citizens. where such laws have the purpose
of effect of discrimination on the basis of
national origin, they are in conflict with and
are, therefore, superseded by Title VII of the
Civil Rights Act of 1964, as amended. (Sec.
713(a), 78 Stat. 265; 42 U.S.C. 2000e -12) (35
FR 421, Jan. 13, 1970; 39 1Ri. 10123, :liar. 18.
1974.)
§ 31.57 Discrimination on tine basis of
religion.
(a) In general. Any prohibition against
discrimination on the basis of religion,
or any exemption from such discrimina-
tion, as provided in the Civil Rights Act
of 1964 or title VIII of the Act of April 16,
1963, hereafter referred to as the Civil
Rights Act of 1968, shall apply to any
program or activity of a recipient gov-
ernment which receives entitlement
funds under the Act.
(b) EEOC guidelines. The Equal Em-
ployment Opportunity Commission has
adopted guidelines on discrimination on
the basis of religion. These guidelines
provide practical assistance to enable
recipient governments to bring them-
selves into compliance with Federal law
and recipient governments using selec-
tion procedures which are not in con-
formity with the E.E.O.C. Guidelines
shall upon the request of the Director,
set forth the reasons for such noncon-
formity. The E.E.O.C. guidelines are as
follows:
41005.1 Observation of the sabbath and
other religious holidays.
(a) Several complaints filed with the
Concision have raised the question
,hether it is discrimination on account of
religion to discharge or refuse to hire em-
ployees who regularly observe Friday evening
and Saturday, or sonic other day of the week.
as the Sabbath or who observe certain special
religious holldnys during the year and, as a
conosquence. do not work on inch days.
(b) The Commission believes that the
duty not to discriminate on religions
grounds, required by sectmn 703(.) (1) of
the Civil Rights Act of 1964. Includes an
Obligation on the part of the employer to
make reasonable rucommodidimts to the re-
liglo le employees where such arcommoda-
thms can be made without undue hardship
on the conduct of the employer's business.
Such undue hardship, for example, may exist
where the employee's needed work cannot
be pernallned by another employee of sub -
stautlally .similar quanllcatdons during the
period of absence of the Sabbath observer.
(c) Because of the particularly sensitive
nature of discharging or refusing to hire an
empluyee or appldrant on account of his
religions beliefs, the employer has the
burden of proving that art undue hardship
rends the required acconnmodatlons to the
religious needs of the employee unraasmt-
able.
'Revenue Sharing Advisory Service Au>_vtst 1977 -5-
fill The Commission will review each case
on an Individual hasis ha an effort to seek
an equitable application of these giuideliues
to the variety of situations which arise due
to the varied religious practices of the Airier-
term people. (See. 713(1). 78 Stat, 265: 42
U.S.C. 2000e -12) (32 FR 10298, July 13, 1967.1
§ 51..i3 assurances required.
(a) General. In order to qualify for
any payment of entitlement funds for
any entitlement period, each Governor
of a State or each chief executive officer
of a unit of local government shall, prior
to the beginning of each entitlement'
period, execute to the satisfaction of
the Director an assurance that all pro-
grams and activities of a recipient gov-
ernment will be conducted In compliance
with the requirements of this subpart.
The chief executive officer is also re-
quired to assure that in the event a
Federal or State court or Federal admin-
istrative law judge makes a holding as
defined in § 51.67 of this subpart against
the recipient government, such recipient
government will forward a certified COPY
of the holding to the Director within 30
days of receipt by the recipient govern-
ment. Assurances required under this
paragraph shall be submitted pursuant
to i 51.10(b) and shall be in such form
and detail as prescribed by the Director.
(b) Failure to comply. Any recipient
government which fails to comply with
paragraph (a) of this section shall have
its entitlement payments withheld for
the applicable entitlement period and
shall be entitled to notice and oppor-
tunity for ]tearing. However, notwith-
standing $ 51.65 no payments shall be
made for the applicable entitlement
period pending the outcome of such
hearing.
§ 31.59 Cmupli ;ace infurnmtian and
reports.
(a) Access to sources of information.
Each recipient governrent shall permit
access by authorized representatives of
the Office of Revenue Sharing and the
Department of Justice during nornnal
business hours to such of its facilities.
books, records, accounts, personnel, and
other sources of information as may be
relevant to a deterininatimn of whether
the recipient government is complying
With this subpart. Where any iufornna-
tion required of a recipient government
is in the exclusive possession of any
other agency, institution, or person, and
such agency, institution, or person fails
or refuses to furnish this information to
the Office of Revenue Sharing or its au-
thorized representatives, the respDin-
slbility for providing such information
shall remain solely with the recipient
government.
(b) Compliance reports. Each recip-
ient government shall keep such records
and submit on request of the Director
timely, complete and accurate colupli-
once report, at ,uch time,., in such form,
and containing such information, as the
Director play determine to be necessary
of useful to enable the Olrwe of Revenue
Sharing to ascertnln whether the recip-
ient government has complied or is
complying with the requirement; of this
subpart. Recipient governments shalt
make available oil request of 011ice of
Revenue Sharing Handbook — S�- :tend EM.ca,
Revenue Sharing officials, racial, ethnic,
male /female, and national origin data
shoving the extent to which minorities
and females will be beneficiaries of en-
titlement funds. The recipient govern-
ment shall also make available on re-
quest similar data concerning aged and
handicapped status. In the case of any
program under which a primary recip-
lent government extends or will extend
entitlement funds to any other secondary
recipient, such secondary recipient shall
submit such compliance reports to the
primary recipient as may be necessary or
useful to enable the primary recipient to
carry out its obligations as a recipient
government under this subpart. Each
recipient government shall identify, on
request of the Office of Revenue Sharing,
any State or local agency which has
been legally authorized to monitor its
civil rights compliance activities.
§ a1.60 Compliance reviews and affirm-
ative action.
(a) Compliance reviews. The Director
shall monitor and determine compliance
of recipient governments with the re-
quireule::ts of this subpart and of the
Act. Compliance reviews will be under -
taken from time to time, m appropriate
and feasible, at the discretion of the
Director. Such reviews shall be com-
pleted within 180 days of initiation by
the Director.
(b) A(Tnrtative action. Any recipient
government which has been determined
to be in violation of any Provisions of
this subpart shall take such action as
approved by the Director in order to
remove or overcome the consequences of
Such discrimination.
(c) Equal Employment Opportunity
Coordinating Council Policy Statement
on Affirmative Action Programs for State
and Local Government Agencies. The
Equal Employment Opportunity Co-
ordinating Council has issued a policy
statement on Affirmative Action Pro-
grams for State and Local Government
Agencies. This Statement which has
been adopted by the Department of the
Treasury (41 FR 38814) provides addi-
tional guidance to States and local
governments in meeting their affirmative
action requirements. The EEOC policy
stn Lement is as follows:
EQUAL EMPLOYMENT OPP06TUNITY
COORDINATING COUNCIL
AFFIR`.:AME ACTION PROGRAMS FOR STATE AND
LOCAL GOPERNMINT AGENCIES POLICY STATE -
AICi ;T
The Equal Employment Opportunity Co-
ordinating Council was established by Act
of Congress In 1972, and charged with re-
sponslbllity for developing and implementing
agreemcuLS and policies designed, among
other things, to eliminate conflict and Ill -
consistency among tine agencies of the Fed-
eral government responsible for adiidnls-
tering Federal law prohibiting discrlmhm-
Hun r,n 1,roU nds of race, color, sex, rellglon,
and Rational Origin. This statement IS L`sued
RS all Initial response to the requests of a
number of State and local officials for ciarf-
ficatlon of the Government's policies con-
cerning the role of affirmative action In the
overall Equal Employment Opportunity pro-
gram. While the Coordinating Council's
adoption of this statement exprmics only the
views of tine signatory agencies concerning
this important subject, the principles set
forth below should serve as policy guidance
for other Federal agencies as well.
1. Equal employment opportunity Is the
law of the land. In the public sector of our
society this means that all persons, regard-
less of race, color, religion, sex, or national
origin shall have equal access to positions In
the public service limited only by their abil-
ity to do the job. There to ample evidence to
all sectors of our society that such equal so-
coss frequently has been denied to members
of certain groups because of their sex, racial,
or ethnic characteristics. The remedy for
sutra past and present Discrimination is
twofold.
On the one hand, vigorous enforcement of
the laws against discrimination Is essential.
But equally, and perhaps even more impor-
tant are affirmative, voluntary efforts on the
part of public employers to assure that posi-
tions in the public service are genuinely and
equally accessible to qualified persons, with-
out regard to their sex, racial, or ethnic
characteristics. Without such efforts equal
employment opportunity Is no more than a
wish. The importance of voluntary affirma-
tive action on the part of employers Is un-
derscored by Title VII of the Civil Rights
Act of 1964, Executive Order 11246, and re-
lated laws and regulations —all of which em-
phasize voluntary action to achieve equal em-
ployment opportunity.
As with most management objectives, a
systematic plan based on sound organiza-
tional analysis and problem identification Is
crucial to the accomplishment of affirma-
tive action objectives. For this reason, the
Council urges all State and local governments
to develop and implement results oriented
affirmative action plans which deal with the
problems so Identified.
The following paragraphs are intended to
assist State and local governments by RIUS-
trating the kinds of analyses and activities
which may be appropriate for a public em-
ployer's voluntary affirmative action plan.
This statement does not address remedies
Imposed after a finding of unlawful
discrimination.
2. Voluntary affirmative action to assure
equal employment opportunity Is appropri-
ate at any stage of the employment process.
The first step In the construction of any
affirmative action plan should be an analysis
of the employer's work force to determine
whether percentages of sex, race or ethnic
groups In individual job classification are
substantially similar to the percentages of
those groups available in the work force in
the relevant job market who possess the basic
job related qualifications.
When substantial disparities are found
through such analyses, each element of the
overall selection process should be examined
to determine which elements operate to ex-
clude persons on the basis of sex, race, or
ethnic group. Such elements Include, but are
Not limited to, recroinnent, testing, ranking,
certincation, interview, reconinendatlous for
selection, hiring, promotion, etc. The exami-
nation of each element of the selection proc.
ess should at a minimum include a deter-
munition of Its validity in predicting Job
performance.
3. When in employer has reason to believe
that its selection procedures have the exclu-
slonary effect described in paragraph 2 above,
it should Inithuc affirmative steps to renledy
the aituntion. Such steps, which III design
Rod execution may he race, color. Sex or eth-
file "Gonscloui' include. but are not limited
to, the foituwing:.
The establishnneut of a lung let nn goal, and
'ahurt range, interim goads and timetables for
the f1pe"UC job classlficanons, all of which
Rhould tike into account the nwaiiabiiity of
baeically gnnhtied pvt'sens in the releraut
job rnarkeq
A recruitment program designed to at-
tract qualified members of tine group In
question;
A systematic effort to organize work and
re- design .Jobs in ways that provide oppor-
tunities for persons lacking "Journeyman"
level knowledge or skills to enter and, with
appropriate training, to progress In a career
field;
Revamping selection instruments or pro-
cedures which have not yet been validated
Ill order to reduce or eliminate exclusionary
effects on particular groups In particular
Job classifications;
The initiation of measures designed to as-
sure that members of the affected group
who are qualified to perform the Job are
included within the pool of persdns from
which the selecting official makes the
selection;
A systematic effort to provide career ad-
vancement training, both classroom and on-
the -Job, to employees locked into dead end
Jobs; and
The establishment of a system for regularly
monitoring the effectiveness of the particu-
lar affirmative action program, and proce-
dures for making timely adjustments In this
program where effectiveness is not demon-
strated.
4. The goal of any affirmative action plan
should be achievement of genuine equal
employment opportunity for all qualified
persons. Selection under such plan should
be based upon the ability of the applicant(s)
to do the work. Such plans should not re-
quire the selection of the unqualified, or the
unneeded, nor should they require the selec-
tion of persons on the basis of race, color,
sex, religion or national origin. Moreover,
while the Council believes that this state-
ment should serve to assist State and local
employers, as well as Federal agencies, It
recognizes that affirmative action cannot be
viewed rs a standardized program which
must be accomplished in the same way at all
times in all Slates.
Accordingly, the Council has not attempted
to set forth here either the minimum or
maximum voluntary steps that employers
may take to deal with their respective anon -
tlons. Rather, the Council recognizes that
tinder applicable authorities, State and local
employers have flexibility to formulate at-
firmative action plans that are best suited to
their particular situations. In this manner,
the Council believes that affirmative action
programs will best serve the goal of equal
employment opportunity (41 FR 38814).
§51.61 Administralkc complaints and
investigations.
(a) Administrative Complaints. Any
person who believes anyone has been
subjected to discrimination prohibited
by this subpart, may personally or by a
representative file with the Director of
the Office of Revenue Sharing (Treasury
Department, Washington, D.C. 30226) a
written statement setting forth the
mature of the discrimination alleged and
the facts upon which the allegation is
based. No representative of a recipient
government nor any of its agencies shall
intimidate, threaten, coerce, or discrinli-
Slate agilinst any person or Class of per -
sells because Of testitllony, assistance, Or
palticipation in an investigation, pro-
ceeding, or hearing under this subpart.
(b) Inrestigation.s. (1) The Director
shall advise the chief executive officer of
the recipient goVerunlent of any admin-
iilftltiCe coulphlint received pul :suallt to
paragraph (a) within ail da }'s of the
receipt of such complaint.
Revenue Sharing Advisory Service August 1977 —6— Revenue Sharing Handbook — Second Edition
(2) If the Director has reason to be-
lieve that the administrative complaint
shows that a recipient government has
failed to comply with the provisions of
this subpart, an investigation will be
made by the Office of Revenue Sharing,
or other appropriate Federal or State
agency, of the rroarim or activity con-
cerned within 60 days of receipt of such
complaint alleging noncompliance by the
recipient government with the provisions
of this subpart.
(3) The Director shall make a finding
within 90 days from the time of filing
of a complaint alleging noncompliance
by a recipient government with the pro-
visions of this subpart.
(4) To the maximum extent feasible,
the Director will make use of the agree-
ments between agencies as provided for
in § 51.74 of this subpart in order to
facilitate the enforcement of the pro-
visions of this subpart.
§ 51.62 Finding by the Director.
(a) In general. A finding is the admin-
istrative action taken by the Director
based on an investigation with regard
to the alleged noncompliance of a re-
cipient government with the provisions of
this subpart.
(b) Finding as result of administra-
five complaint. The Director may make
a finding as a result of an administra-
tive complaint filed with him alleging
noncompliance of a recipient government
with the provisions of this subpart. Such
finding shall be made within 90 days
after the filing of the administrative
complaint with the Director. If the Di-
rector makes a finding of noncompliance
against a recipient government, he shall
notify the chief executive officer within
10 days of his finding, pursuant to § 51.63
of this part.
(c) Finding as result of a holding of
administrative agency. Where a State or
local administrative agency has made a
determination or holding pertaining to a
recipient government, to the effect that
there has been exclusion, denial, or dis-
crimination on the grounds of race, color,
Rational origin, or sex, or a violation of
any prohibition against discrimination
on Cite basis of age under the Age Dis-
crimination Act of 1975, or with respect
to an otherwise qualified handicapped in-
dividual as provided in section 504 of the
Rehabilitation Act of 1973, or on the basis
of religion as provided in the Civil Rights
Act of 1964 or the Civil Rights Act of
1968, the Director may make a finding of
noncompliance on the basis of such State
or local administrative agency rioter -
minatiou or holding.
(d) Finding based on other in /o)vna-
lion. The Director may make a fiudipg
of noncompliance as a result of inlor-
mation contained within, or generated
within, the files of the Office of Revenue
Sharing, without Life necessity of an :xl-
ministratn c compli nit filed by a prrr:nc
party.
§ "I.G3 \uti lirN ism n, Ii;r Eon qd::i u::nl.
Upon the written request of the
complaiment the Director shall adai =e
such complainant of the status of the
investigation or review of the admilli -
trative complaint filed by the cornplaln-
ant. Within 10 days after the Director's
finding, the Director shall notify the
complainant or the complainant's coun-
sel (if any) as to the nature of the
finding.
§ 51.6E Exhaustion of administratire
remedies.
A complainant shall be deemed to have
exhausted his or her administrative rem-
edies upon the expiration of 90 days from
the date the administrative complaint
was filed with the Director or with an
agency with which the Director has an
agreement under § 51.74 of this subpart
where the Director of such agency:
(a) Issues a determination that the
recipient government against whom the
allegation is made, is in compliance with
the provisions of this subpart, or
(b) Fails to make a determination on
such complaint.
§ 51.65 Procedure for clTectiug com-
pliance.
(a) General. Whenever the Director, .
upon the conclusion of his investigation,
makes a finding that a recipient govern -
ment has failed to comply with any of
the provisions of this subpart, he shall
within 10 days notify the chief executive
officer of the noncompliance of the re-
cipient government and in the case of a
unit of local government, the Governor
of the State in which the recipient gov-
ernment is located. In the next succeed-
ing 30 days after notification to the recip-
ient government by the Director of its
noncompliance, the recipient government
will be afforded an opportunity to
demonstrate compliance, or to informally
present its evidence, or to enter into
a compliance agreement with the Direc-
tor. On or before the 30th day following
the Director's notification of noncom-
pliance to the recipient government, the
Director shall issue a determination as
to whether such government has failed
to comply with the provisions of this
subpart unless the recipient government
has entered into a compliance agree-
ment.
(b) Effect of determinations by the
Director. When the Director issues a
determination, pursuant to paragraph
(a) of this section, that the recipient
government has failed to comply with
the provisions of this subpart, he shall
notify the chief executive officer of the
reeiplent government and the Governor
of the State in which the recipient gov-
ernment is located that unless such
recipient government enters into a coal -
pliauce agreement as set forth in § 51.71
within 10 days following the Director's
determination, or requests a hearing
within the 10 clay period with respect to
the Director's determination, the Direc-
tor shall suspend the further payment
of entitlement food's to such recipient
government.
§,,1.66 Ilraring, brforr adn,ir,i.l rulicr
b).r judge.
(a) Request by recipient got"Twitenl.
A healing requested by a recipient guv-
ernment pursuant to pragraph 1b) of
§51.G5 shall be held before all ad-
nimistratiee law judge commencing
within 30 days subsequent to the receipt
of such request by the Director.
(b) Suspension of Funding or termin-
ation of payment by administrative lam
judge — preliminary finding. (1) Within
30 days after the commencement of a
hearing the administrative law judge
conducting the hearing will, on the
record of evidence then before him, issue
a preliminary finding as to whether
the recipient government has failed to
comply with the provisions of this sub-
part. If the preliminary finding of the
administrative law judge is to the effect
that the recipient government 'would not
prevail (or is not likely to prevail) on
the issues to which the hearing per-
tained, the Director shall suspend (or
continue the suspension of) the further
payment of entitlement. funds to the
recipient government.
(2) The preliminary finding by an
administrative law judge in favor of the
Director pursuant to subparagraph (1)
of this paragraph will result in the im-
mediate suspension of any further pay-
ments of entitlement funds to the
recipient government pending the final
adjudication by the administrative law
judge, unless in the interim a comph-
ance agreement has been entered into
by the recipient government and the
Director: Such preliminary finding by
the administrative law judge is not ap-
pealable by the recipient government.
After the completion of the hearing on
the merits the administrative law judge
will mike his findings and decision based
upon the complete record of the evidence.
If the administrative law judge issues his
determination that the recipient govern-
ment has failed to comply with the pro-
visions of this subpart then, unless the
recipient government enters into a com-
pliance agreement with the Director be-
fore the 31st day after such determina-
tion, the Director shall, upon the initial
decision and order of admirosh•ative law
judge, indefinitely suspend the payment
of entitlement fluids to the recipient
government, continue the suspension in-
voked under paragraph (b) (1) of this
section or terminate the payment of en-
titlement funds.
(c) Preliminary finding of compliance
by administrative iaty judge,, festwiptiom
if funding. A determination by the ad-
ministrative law judge that the recipient
government has not failed to comply
with the provisions of this subpart, will
terminate q suspension of entitlement
fluids invoked by the Director pursuant
to paragraph (b) of this section. In such
case the Director shell, as promptly as
feasible• pay over to the recipient govern-
ment all entitlement funds the payment
of which were temporarily suspended.
§.31.61 fluldio;;n b., a court or Federal
porrrunwond apcucl.
QL) In gemel'al. Whenever a Federal
court, a State court, or a Federal ad-
ministrative law judge, issues a holding
per Laining to it recipient government,
to Lite effect Lhat there has been exclu-
sion, denial. or discrimination on the
grounds of race• color, national origin,
or sex, or a nolaLiuu of any prohfbitio•l
against discrimination on the basis of
age under the Age Discrimination Act of
1975, or with respect to an otherwise
C,Revenue Sharing Advisory Service August 1977 -%- Revenue Sharing Handbook — Second Edi!• „n
qualified handicapped individual is pro-
vided in section 504 of the Rehabilita-
tion Act of 1973, or on the basis of
religion as provided in the Civil Rights
Act of 1954, or the Civil Rights Act oB
1953, the Director shall within 10 days
of the actual receipt of a certified copy of
such holding, notify the Chief Executive
Officer of the noncompliance of the
recipient government. In the case of a
unit of local government, the Director
shall also notify the Governor of the
State in which the recipient government
is located.
(b) Holding by Federal administrative
law judge. The holding of a Federal ad-
ministrative law judge shall have been
preceded by a notice and opportunity for
hearing and such holding must have been
rendered pursuant to the provisions of
the Administrative Procedure Act (5
U.S.C. 557).
(G Effect of a holding by court or
Federal administrative agency. Where
there has been a holding pursuant to
paragraph, (a) of this section with re-
spect to a recipient government, .then
within 30 days after the Director has
sent a Police of noncompliance to the
recipient government, such government
may informally present evidence to the
Director which evidence shall relate only
with respect to the question of whether
the program or activity in which the
noncompliance was found was funded
In whole or In part with entitlement
funds. In all other respects a holding
pursuant to paragraph (a) of this sec-
tion. to the effect that there has been ex-
clusion, denial, or discriminiation on ac-
count of race, color, national origin, or
sex, or a violation of any prohibition
against discrimination on the basis of
age effected by the Age Discrimination
Act of 1975, or with respect to an other-
wise qualified handicapped individual as
provided In section 504 of the Rehabilita-
tion Act of 1973, or on the basis of re-
ligion as provided in the Civil Rights Act
of 1554 or'fltlo VIII of the Civil Rights
Act of 1959, shall be treated as eoncttt-
sive.
(d) Reversal of (Holding by appellate
tribunal; resumption of funding. If a
holding pursuant to paragraph (a) of
this section is reversed by an appellate
tribunal, or by a reviewing authority in
the case of a holding by a Federal ad-
ministrative. law judge, then any pro -
ceedings initiated by the Director which
are dependent on such holding shall be
imnlrcliately (I iscontiu tied, and any sus -
Pension or termination of entitlement
payments resulting from such proceed-
ings shall also be discontfnued, and any
cntilieitent fluids the payment of which
were tcmporm'ily suspended .%hall be paid
over in the recipient govel'lnna2nit as
proa:pU.y as Erasable.
I'rurrd urr fur ulirrlinq runpli-
unr, io ra... of lu,hliac.
(a, In general. Within :10 day's after
the Director has notified it recipient gov-
enunont of its noncompliance, pursuant
to ; 51.671a) of this subpart, and unless
a compliance agreement is entered into
with such government, the Director shall
issue a determination as to whether such
government has failed to comply with
the provisions of tills subpart.
(b) Effect o/ determination by Direc-
tor; Preliminary finding of administra-
tive law judge and susPemion of funding.
Where the Director makes a determina-
tion pursuant to Paragraph (a) of this
section that the recipient government
has failed to comply with the provisions
of this subpart, he shall notify the chief
executive officer of the recipient govern-
ment and the Governor of the State In
which the recipient government is lo-
cated that unless such recipient govern-
ment enters into a compliance agree-
ment as set forth in 3 51.71 within 30
days following the Director's detennina-
tion, or requests a hearing within the 10
day period with respect to the Director's
determination, the Director shall sus-
pend further payment of entitlement
funds to such recinient government.
Such hearing requested by a recipient
government pursuant to this subpara-
graph shall be held before all adminis-
trative law judge within 30 days subse-
quent to the receipt of such request by
the Director. Within 30 days after the
commencement of the hearing the ad-
ministrative law judge will issue a pre-
liminary finding relating only on the
point of whether the specific program or
activity against which the holding
originally was rendered was furided with
entitlement funds. If the preliminary
finding by an administrative law judge
supports the Director's determination,
further payments of entitlement funds to
the recipient government will be imme-
diately suspended by the Director pend-
ing a final adjudication by the adminis-
trative law Judge, unless in the interim a
compliance agreement has been entered
into by the recinient Government and the
Director.
(c) Filial decision of administrative
law judge. After the completion of a
hearing on the merits, if one is held, the
administrative law judge will make his
findings and decision based upon the
complete record of the evidence. If the
administrative law judge issues his de-
termination that the recipient govern-
ment has failed to comply with the pro-
visions of this subpart and that the spe-
cific program or activity complained of
has been, or is, funded with entitlement
funds, then, unless the recipient gov-
ernment enters into a compliance agree-
ment with the Director before the 31st
day after such determination, the Di-
rector shall, upon the initial decision and
order of the administrative law Judge,
indefinitely suspend the payment of cu-
titlemont funds to the recipient govern-
ment, coutfutle tine suspension invoked
under pat'a -raph (b) of this section,
or terminate the payment of entitlement
funds.
!i
51.61) Inilial del-i.; nn 0 adu,iui >Irn-
lier lour judgr par -oam to .i U.S.C.
i.W.
,a) In general. As soot as Practicable
after the conclusion of a hearing oil the
merits and the receipt of any proposed
findings and conclusions tinncly submit-
ted by the patties, but In no event litter
than 30 days after the conclusion of the
hearing, the administrative law judge
shall, in accordance with 5 U.S.C. 557,
make his initial decision in the case. Tile
Initial decision shall include a statement
of the findings of fact and the conclu-
sions therefor as well as the reasons or
basis therefor upon all the material is-
sues of fact, law or discretion presented
on the record, and shall provide for one
of the following orders:
(1) An order that the Director sus-
pend the payment of all entitlement
funds to the recipient government.
(2) An order that the Director termi-
nate the payment of all entitlement
funds to the recipient government.
(3) Au order that the Director resume
the paygtent of entitlements to the re-
cipient government including all entitle -
ments previously suspended.
(b) Order of suspension of /uuding.
An order of suspension of entitlement
funds means that such funds will not be
paid to the recipient government but will
continue to accumulate in the State and
Local Government Fiscal Assistance
Trust Fund until such time as compli-
ance is achieved by the recinient gov-
ernment.
(c) Order of termination of fending.
An order to terminate the payment of en-
titlement funds means that such funds
will be returned to the general fund of
the Treasury and will not thereafter be
available for entitlement payments un-
less the determination resulting in the
termination of funding is reversed by an
appellate tribunal.
x.':1.70 U',usupliva or •a•prud,d , n.
tiliv ... v"t payno'n1s.
Entitlement payments to a recipient
government which have been suspeuaea
may be resumed when:
(a) The recipient government enters
Into a compliance agreement with the
Director and the Director ascertains to
his satisfaction that the recipient gov-
ernment has complied with certain fa'o-
visions of a compliance agreement, and
that tile compliance. is conlilluillg: of
(b) Subsequent to a hearing on the
merits fm a case where the Director has
Invoked a prelaribiary suspension of en-
titionlent funds, the administrative law
judge holds that the recipient goveru-
molt is in compliance with the provi ,ions
of this subpart; or
(c) The recipi curt govern tiler 1. cuntpl ir.;
fully with the order of a court or a Fed-
eral administrative late ,judge if the to -
der covers all clatters rained b;: the Da-
rector to his ori;inal notice of uonrom-
pli;unce to the recipient. government: m•
(d) After it rehearing ur Siuliis! ;nd-
judic:ative proceedin6's it Cum', ur :ut ad-
ministrative haw Jud,lc tvhlch orl ;Valle
held that tile recipient goveruulolt hid
fallerl to comply with the PrOveaOus of
this subpart, subsequently holds that the
recipient coven'lllnunit did not Sa fail to
comply: or
(e) Au appellate court reverses the
findings of discrimination by a lower.
court or administrative law Judge upon
which tile original findings the Dhec-
tor ultimately suspended the Payment of
entitlement funds.
CRevenue Sharing Advisory Service August 1977 —8— Revenue Sharing Handbook — Second Ed.ibn
§ :1.71 Compliance agreements
(a) In r,:atters before a court of record
or administrative law judge. For purposes
of this oubpart a compliance agreement
means an agreement between the Fed-
eral or State agency or official responsible
for prosecuting the claim (including the
Attorney General of the United States)
and the chief executive officer of the re-
cipient government against whom the
noncompliance with this subpart is al-
leged. Such compliance agreement may
take the form of a consent $ecree to be
entered in the proceedings before a court
of record or to be entered by a Federal
administrative law judge having jurisdic-
tion over the proceedings. Counsel of
record representing the chief executive
officer of the recipient government or
other appropriate defendant officials of
the recipient government may Initiate or
negotiate the compliance agreement on
behalf of the chief executive officer of
the recipient government. However, In
each case the Director shall, through his
counsel or representative, indicate his
approval or rejection of the compliance
agreement. The Director may reject the
compliance agreement If, in his discre-
tion, he determines that such agreement
has not adequately remedied the dis-
crimination complained of.
(b) In matters between the Director
and a recipient government. In those
instances where a compliance agreement
is negotiated by the Director and the
chief executive officer of the recipient
government such agreement shall:
(1) Be in writing signed by the Direc-
tor and by the chief executive officer
of the recipient government concerned.
(2) Cover all matters that constitute
the failure of the recipient government
to comply with the requirements of this
subpart.
(3) Contain the terms and conditions
with which the recipient government has
agreed to comply in order to achieve
compliance with the requirements of this
subpart. Such terms and conditions may
include the payment of restitution to
persons injured by the failure of the
recipient government to comply with
any provisions of this subpart.
(4) If necessary, consist of a series of
cgreements or a series of bench marks
by which the recipient government will
achieve com nuance with the require -
nnents of this subpart.
(G Notification to comgNainauts of
aampliance agreement. Within 15 days
after the execution of a compliance
iterecment (or, in the case of an wiree-
nnent executed under paragraph (a) of
this section, upon the approval of the
Director if later than 15 days) the Di-
rector shall submit a copy of such agree-
ment to the complainant or complain-
ants who initiated the complaint against
tine recipient government. The submis-
sion of a copy of the compliance agree-
ment to counsel of record (if any) for
the complainants shall meet the re-
quirements of this paragraph.
§51.72 Heariagprocodures.
Whenever a procedure under this sub-
part requires a hearing before an ad-
ministrative law judge, such hearing
will be conducted pursuant to section 7
of the Administrative Procedure Act (5
U.S.C. 556) and the applicable proce-
dural regulations contained in subpart G
of this part shall govern.
31.73 Jurisdiction occr property.
Ian In general. The Director shall have
jurisdiction over any program or ac-
tivity for purposes of this subpart for
as long as a recipient government retains
ownership or possession of any real or
personal property or any interest therein,
which was purchased in whole or in part
with entitlement funds for the applicable
program or activity. Further, if such
property is transferred to another party,
the Director will retain jurisdiction over
the recipient government for purposes
of this subpart for as long as the prop-
erty is used to provide benefits similar to
those which were provided by the prop-
erty before the transfer.
(b) Definitions. For the purposes of
this section:
(1) Real property includes land, struc-
tures upon land and fixtures attached
to land, and buildings or structures
which cannot be removed without dam-
age to the fixtures, buildings or
structures.
(2) Personal property includes, at the
least, non - expendable tangible property
having a useful life of more than one
year and an acquisition cost of $1,000
or more per unit of property.
(3) The transfer of property means
the passage of pp;scssimn or title, or
both (except bona fide sale) of the prop-
erty to a secondary recipient, another
unit of government, another govern-
ment agency within the primary recipi-
ent government, or to any other person,
firm or agency.
(c) Use of property to provide simi-
lar benefits. For the purposes of this sec-
tion the clause in paragraph (a) of this
section "so long as the property is used
to provide benefits similar to those pro-
vided by the property before the trans-
fer' means the primary use or function
of the property and not the specific or
particular use of the property in the
Program or activity for which originally
acquired.
(d) Record keeping requirements. Re-
cipient governments shall maintain a
separate record of real property and of
tangible personal property having a
value in excess of $1,000. Such records
shall set forth the date of purchase, date
of disposal or transfer and the transferee
of the property. Upon Outright sale,
discard, or trade of such property the
Provisions of this section shall no longer
be applicable.
§ 51.71 Agreements between agenolvs,
(a) Purpose of cooperative agree -
rtclits. The Director shall endeavor to
enter into cooperative agreements with
officials of the Department, officials of
other- departments, agencies of the Fed-
eral Government, or officials of State
agencies to investigate noncompliance
with and effectuate the purposes of this
subpart, Including the achievement of
effective coordination within the execu-
tive branch in the implementation of Ti-
tle VI and Title VII of the Civil Rights
Act of 1964 (42 U.S.C. 2000d: 2000e),
the Civil Rights Act of 1968, the Reha-
bilitation Act of 1973, and the Age Dis-
crimination Act of 1975.
(b) Consent of cooperative agree-
ments. The agreements between the Di-
rector and other agencies or officials
shall:
tl) Describe the cooperative efforts
to be undertaken (including the sharing
of civil rights enforcement personnel
and resources) to secure compliance with
this subpart,
(2) Provide for immediate notifica-
tion to the Director of any actions insti-
tuted by such agencies against a recipi-
ent government alleging a violation of
any Federal civil rights statute or regu-
lations issued thereunder.
to) Preliminary decision of adminis-
tratire Iaw judge. The Director may not,
pursuant to any agreement, delegate au-
thority to any agency to review the pre-
liminary or initial decision of an ad-
ministrative law judge to officials out-
side the Department.
§ 51,75 :Authority of the Attorney Coco-
crul of the United Stales.
(a) Determination of Attorney Gen-
eral. When the Attorney General of the
United States has reason to believe that
a State government or unit of local gov-
ernment has engaged in, or is engaging
in, a pattern or practice of discrimina-
tion in violation of this subpart, he may
bring a civil action in the appropriate
United States district court.
(b) Relief to be granted. Upon holding
that a State government or unit of local
government is engaging in a pattern or
practice discrimination a court may
grant any relief necessary and appropri-
ate to insure the full enjoyment of the
rights protected under this subpart in-
cluding, but not limited to, temporary
restraining order, preliminary or perma-
nent mi . unction, suspension, termina-
tion or repayment of entitlement fonds.
Or placing any Iurthenentitlemeut fiends
in escrow pending the outcome of tine
litigation.
,;Revenue Sharing Advisory Service August 1977 —9— Revenue Sharing Handbook — Second Edition
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Exhibit "F"
OF SANTA MONICA
CONTRACT ACCOUNTING AND ADMINISTRATIVE HANDBOOK
PREFACE
The purpose of this handbook is to establish accounting, internal
control, financial reporting, and contract administration standards
for Subcontractors who contract with the City of Santa Monica.
The accounting, internal control, and reporting principles presented
are fundamental and are not intended to replace acceptable existing
procedures and financial controls or preclude the use of more sophis-
ticated financial accountability and reporting methods. Instead, the
fundamental requirements represent minimum procedures and controls
that must be embodied within each Subcontractor's accounting, internal
control, and financial reporting system. All reference to Subcontractor
shall mean Contractor.
BASIS OF ACCOUNTING AND FINANCIAL REPORTING
(1.01) Basis of Accounting
Subcontractors may elect to use either cash basis or accrual
basis method of accounting for recording financial transactions.
Quarterly invoices must be prepared on the same basis that is
used for recording financial transactions.
(1.011) The City recommends the use of the accrual basis
for recording financial transactions.
(1.012) If a Subcontractor elects to use the cash basis
for recording financial transactions during the
year:
A. Necessary adjustments must be made to record
the accruals at the beginning and the end of
the contract period.
B. All computations, supporting records, and
explanatory notes used in converting from
cash basis to the accrual basis must be
retained.
(1.02) Financial Reporting
Each Subcontractor shall present an invoice to the City
each quarter to report the financial activity of the
quarter. In addition, if advanced funding is involved
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an invoice shall be presented at the beginning of the contract
period. Invoices shall be prepared in the manner prescribed
by the City.
ACCOUNTING SYSTEM
(2.01) Each Subcontractor shall maintain (unless otherwise approved)
a double entry accounting system (utilizing debits and credits)
with a General Journal, a Cash Receipts Journal, a General
Ledger, and a Cash Disbursements Journal. The City recommends
that a Payroll Ledger also be maintained. The General Ledger
and Journals should be posted as required, at least monthly.
(2.011) General Journal - A General Journal shall be main-
tained for recording adjusting entries, reversing
entries, closing entries, and other financial
transactions not normally recorded in the Cash
Receipts Journal or Cash Disbursements Journal.
Entries in the General Journal must be adequately
documented, and entered in chronological order
with sufficient explanatory notations.
Example: DR. CR.
Rent Expense 100
Rent Payable 100
To record accrued rent
to March 31. 1980
(2.012) Cash Receipts Journal - A Gash Receipts Journal
seaT1 be maintain�or recording all cash receipts
(e.g., City warrants, contributions, interest income,
etc.). 'The Cash Receipts Journal shall contain
(minimum requirements) the following column headings:
-date
- receipt number
-cash debit columns
- income credit columns for the following
accounts:
-City payments (one column per program)
- Contributions
-Other Income (Grants, sales of supplies/
services, rental income, miscellaneous
revenue, fees, etc.)
Ica
- description
(Entries in the decription column must
specify the source of cash receipts.)
(See 4.011 for additional clarification)
(2.013) Cash Disbursements Journal - A Cash Disbursements
Journal shall e maintained for recording all cash
disbursements (e.g., rent, utilities, maintenance,
etc.).
The Cash Disbursements Journal shall contain (minimum
requirements) the following column headings:
-date
-check number
-cash (credit) column
- expense account name
- description
Note (1) Separate expense columns are recommended
for salary expense and other recurring
expense classifications for each program.
Note (2) Entries in the description column must
specify the nature of the expense and
the corresponding expense classification
if not included in the column heading.
Note (3) Checks should not be written to employees
(other than payroll, mileage, travel, and
petty cash custodian checks).
A Check Register may be substituted for the Cash
Disbursements Journal, but this is not recommended.
If used, the Check Register must contain the same
expense classifications and descriptions information
required when a Cash Disbursements Journal is used.
Disbursements without su orti
e isa owe on au it.
tation will
(2.014) General Ledger - A General Ledger shall be maintained
with accu
onts for allassets, liabilities, fund balances,
expenditures, and revenues. Separate accounts must be
maintained for each City program's expenses and revenues.
-A chart of Accounts shall be maintained;
The City recommends that agents use the
expense account titles on the monthly invoice
submitted to the City.
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-If the Subcontractor uses account titles
which differ from the account titles on the
monthly invoice, each account title must
clearly identify the nature of the trans-
action(s) posted to the account.
- Subcontractors must consistently post trans-
actions that are of a similar nature to the
same account. For example, all expenses for
travel shall be posted to the account titled
"travel" or "travel expense" and not inter-
mixed with other expense accounts.
(2,015) Payroll Ledger - The City
Ledger be maintained. The
the following information
(2.016)
-name
- position
recommends that a Payroll
ledger should contain
about each employee:
- Social Security number
- payment record including:
- accrual period
-gross pay
- itemized payroll deductions
-check number
If a Payroll Ledger is not used, the above informa-
tion must be recorded in the cash disbursements
journal.
Petty Cash Disbursements
A Petty Cash Fund may be maintained for payment of
small (less than $25.00), incidental expenses in-
curred by the Subcontractor (e.g., postage due,
small purchases of office supply items, etc.)
Petty Cash disbursements must be supported by
store receipts, petty cash vouchers, or other
authenticated documentation that indicate the
item purchased and the employee making the purchase.
Unsupported petty cash disbursements will be
aisatlowed on alit.
The petty cash fund shall be maintained on the
imprest system, i.e., a check should be drawn to
the petty cash custodian to set up the fund and to
make periodic reimbursements. Receipts, vouchers,
etc., supporting each fund replenishment must be
bound together and filed chronologically. A $25
Petty Cash Fund is recommended.
(3.01)
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ACCOUNTING RECORDS AND FILING
Retention of Accounting Records and Filing of
Supporting Documentation
(3.011)
(3.012)
(3.013)
Record Retention
All accounting records (journals, ledgers, etc.)
and supporting documentation (invoices, receipts,
checks, vouchers, etc.) must be retained for a
minimum period of five (5) years.
Adequate care shall be exercised to safeguard the
accounting records and supporting documentation.
Any destruction or theft of the Subcontractor's
accounting records or supporting documentation
shall be immediately reported to the City.
Unsupported expenses wi11 be disallowed upon
alit, resulting in overpayment assessments.
Filing and Storage
All relevant supporting documentation for reported
program expenditures and revenues shall be filed in
a systematic and consistent manner.
It is recommended that supporting documents be filed
as follows:
checks
invoices (sales)
vouchers
receipts
timecards
Referencing
- numerically
- date /vendor name
- numerically
- numerically
- date /alphabetically
Accounting transactions posted to the Subcontractor's
books shall be appropriately cross - referenced to
supporting documentation.
For example, expenditure transactions on the
Subcontractor's books must be cross - referenced
to the supporting documentation as follows:
invoices - vendor name and date
checks - number
vouchers - number
Revenue transactions must be cross - referenced
to receipt numbers.
(3.014) Supporting Documentation
Each Subcontractor shall maintain supporting
documentation for all disbursements. Unsuoo
disbursements will be disallowed on audit.'*
u icT t.
Examples of supporting documentation required for
various expenditure categories are as follows:
Personnel Services - Payroll records, time and
attendance records signed by the employee
and approved by the supervisor, time distri-
bution records by program (accounting for
total work time on a daily basis) for all
employees,
Employee Payroll Documentation - payroll records
showing actual expenditures for OASDI, FICA,
etc. (FICA and FUTA expenses are not allow-
able expenses for agencies exempted by the
IRS) .
Consultant Services - time and attendance records,
travel vouchers detailing purpose, time and
location of travel, purchase orders and invoices
for supplies.
Travel - travel policies of the agency (written);
travel expense vouchers showing location, date
and time of travel, purpose of trip, and rates
claimed; vehicle mileage logs showing dates,
destination and headquarters, purpose of trip,
and mileage.
Operating Expenses - purchase documents such as
purchase orders, invoices, requisitions, stock
received reports, bill of lading, etc.; lease
and/or lease agreements, contracts.
INTERNAL CONTROLS
(4.01) Internal Controls
Internal controls safeguard the Subcontractor's assets from
misappropriations or misstatement. Each Subcontractor shall
prepare necessary written procedures establishing internal
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controls for its personnel. The Subcontractor shall instruct
all of its personnel in said procedures and continuously monitor
operations to ensure compliance therewith. The following
internal controls are madatory:
(4.011) Cash Receipts
- Program revenue shall be maintained in a separate
account unless otherwise approved by City. If
other funds are maintained in the account, revenue
for each program must be clearly identifiable.
-All receipts (including checks) shall be receipted
by using pre- numberea receipts. Receipt forms
shall be secured to preclude unauthorized use.
-Cash receipts shall be deposited daily and intact.
- Duplicate deposit slips shall be retained and filed
chronologically, and shall contain sufficient ref -
ence information for comparison to the individual
pre - numbered receipts and the Cash Receipts Journal.
-An employee who does not handle cash shall record
cash receipts (unless a "write -it- once" Cash
Receipts Journal is used).
-The monthly bank statement shall be received and
reconciled monthly by someone independent of the
cashiering,depositing, and bookkeeping functions.
-The bank reconciliations shall be reviewed by
supervisory personnel for appropriateness and
accuracy.
-All checks shall be restrictively endorsed
immediately upon receipt.
(4.012) Disbursements
-All disbursements, other than petty cash disburse-
ments, shall be made by check. Blank check stock
shall be secured and accounted for to preclude
unauthorized use.
-A second signature shall be required on all checks.
The second party shall be independent from the cash
receipts and disbursements process.
- Checks shall not be payable to "cash" or signed in
advance.
- Voided checks must be mutilated and filed with
cancelled checks.
- Unclaimed or undelivered checks shall be cancelled
periodically.
- Supporting documents shall be examined by the
persons signing or controlling the signing of
checks at the time checks are signed.
- Supporting documents shall be marked "paid ".
- Supporting documents shall be referenced to check
numbers,
- Payroll checks shall be distributed by persons not
involved in timekeeping, preparing of payroll,or
reconciling of bank accounts.
- Employee hiring and terminating, or pay rate changing,
shall be approved by persons independent of payroll
functions.
-All disbursements, excluding petty cash purchases,
shall be approved by persons independent of check
preparing and bookkeeping.
-Fixed asset purchases shall be approved by the
agency's Board of Directors or their authorized
representative.
-A current listing of fixed assets showing funding
source shall be maintained, and a fixed asset
inventory shall be conducted at least annually.
(4,013) Bonding - All officers, employees, and agents who
handle cash or have access to the Subcontractor's
funds shall be bonded.
OVERPAYMENTS
(5.01) Method for Determining Overoavment Assessments
If upon audit, or at any other time during the contract year,
it is determined that expenditures or revenues reported to
the City and used to compute the Subcontractor's cash flow
needs were incorrectly reported, the City shall adjust the
subsequent month's invoice payment, or take other appropriate
action.
The total overpayment(sl shall be determined as follows:
Total Allowable Program Expenditures $ XXXX
Less: Unallowable Expenditures per
Audit XXYX
Allowable Expenditures to be
Reimbursed $ XXXX
Less: Advanced Payments of City Funds XXXY.
Overpayment Due City $ XXXX
LIMITATIONS ON EXPENDITUP.ES
(6.01) Payments to Affiliated Organizations /Persons
Subcontractors shall not make payments to affiliated organi-
zations /persons for program expenses (services, rent, equipment,
food, etc.) that exceed the reasonable cost for such expenses.
The City shall be solely responsible for the determination of
reasonable program costs. A reasonable cost shall be that
price which would be paid by one party to another when the
parties are dealing at arms length.
(6.011) Affiliated Organizations /Persons
Organizations /persons related to the Subcontractor
by blood, marriage, or through legal organization
(incorporation, partnership, association, etc.) will
be considered affiliated for purposes of this contract.
The City shall be solely responsible for the determi-
nation of affiliation,
(6.0112) Unallowable Expenses
Expenses by the Subcontractor to affiliated organi-
zations /persons which exceed reasonable costs for
such expenses will be disallowed on audit, If
these expenses were reimbursed by the City, over-
payment assessments against the Subcontractor may
result.
CONTRACT ADMINISTRATION
The City and its funding sources place great stress on the achievement
of a high level of performance in the management of program funds,
The Subcontractor's management is responsible for ensuring that in
addition to the preceding accounting, internal control, and reporting
requirements, the following contract administration requirements are
adopted and enforced,
(7.01)
(7.02)
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Audits
The Subcontractor will make available for inspection and
audit to City representatives, upon request, during regular
working hours, during the duration of the contract and for
a period of five years thereafter, all of its books and
records relating to the operation by it of each project or
business activity which is funded in whole or in part with
governmental monies, whether or not such monies are received
through the City. All such books and records shall be
maintained at a location within Los Angeles County.
Limitations on Expenditures of Program Funds
(7.021) Expenditures Outside of Contract Period
Expenses charged against program funds may not
be incurred prior to July 1, 1980, or subsequent
to the contract termination date.
(7.022) Appropriate and Necessary Expenditures
Only those expenditures as needed to carry out
the purposes and activities of the approved
program are allowable.
(7.023) Allocation of Cost Pools
For Subcontractors who operate many programs, or
have more than one funding source, the Subcontractors
shall allocate expenditures to the various programs or
funding sources.
The costs should be allocated on the basis most
appropriate and feasible in the circumstances.
Examples: Number of hours spent
Number of employees
Number of residents
Square footage
Relative revenue volume
Relative expense volume
The Subcontractor shall maintain proper documentation
related to the allocation of expenses (e.g., timecards,
time summaries, square footage measurements, etc.).
(7.024) Budget Limitation
Expenses may not exceed the maximum limits shown in
the contract budget.
(8.01)
(9.01)
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(7.025) Unspent Funds
The City will determine the disposition of unspent
program funds upon termination of the contract.
Limitations of Positions and Salaries
(8.011) The Subcontractor shall employ persons for those
positions listed in the contract or the attachments
thereto.
(8.012) The Subcontractor shall pay no salaries higher than
those authorized in the contract or the attachments
thereto.
(8.013) For purposes of this contract, unless approved by
the City in writing in advance, no employee shall
hold more than one position in the same program.
(8.014) For purposes of this contract, when an employee
serves in the same or dual capacities under more
than one contract, he /she may not charge more than
100, of his /her time to the contracts taken as a
whole. For example, an employee may not charge
their time to one contract 50 %, another 30 %, and
another 30 %.
(8.015) For purposes of this contract, employees who work
40 hours per week shall be considered full -time
employees. Employees who work less than 40 hours
per week shall be considered part -time employees,
and they shall be paid on a pro -rated basis, unless
otherwise approved in writing by the City.
(8.016) The agency will make no retroactive salary adjustment
for any employee without written approval from the
City.
Travel Expense Reimbursement
(9.011) Allowability
Travel expenses to be allowed must be provided for
in the contract,
(9.012) Limitations on Expenses
Travel reimbursement for transportation, meals, and
lodging shall not exceed travel allowances which
are allowed by the City,
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(10.01) Insurance
(10.011) Subcontractors are responsible for securing required
insurance coverage and maintaining it in force during
the entire contract period,
(10.012) Subcontractors must immediately notify the City when
required insurance is revoked, withdrawn, or other-
wise made ineffective.
(10.013) Insurance shall include an endorsement naming the
City and County additionally insured.
(11.01) Property Management
(11.011) The Subcontractor shall assume responsibility and
accountability for the maintenance of all non -
expendable property purchased, leased, or rented
with program funds.
(11.012) Non - expendable property is defined as any tangible
personal property costing $100 or more per unit
and having a useful life of more than one year,
real property and any interest in such real
property,such as a mortgage, trust deed, or other
encumbrance of real property, and the funds received
from the sale or any other disposition of any non -
expendable property or interest thereon.
(11.013) Acquisition of non - expendable property items that
were not listed in th-e approved contract requires
an executed modification to this contract to
provide the necessary funds.
(11.014) Unless approved by the City in writing, non -
expendable property shall not be ordered or
purchased by the Subcontractor during the last
three months of the contract period.
(11.015) The Subcontractor shall maintain an up -to -date
inventory list of all non - expendable property
items for which he is responsible, The source
of funding for each asset shall be noted.
(11.016) The Subcontractor shall report promptly, in writing,
to the City, all cases of burglary, loss, damage, or
destruction of non - expendable property, The report
shall contain, at a minimum item identification,
recorded value, facts relating to loss, and a copy
of the law enforcement agency report.
(11,017) A property inventory must be made once a year.
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(11.018) At no time will non - expendable property be disposed
of, tranferred to another agency, or used for other
than program purposes without express written
permission of the City.
Exhibit "G"
SPECIAL PROVISIONS
1. Method of Payment
City policy regarding disbursement of FY 1980 -81 General
Revenue Sharing funds for social services is as follows:
Any Contractor awarded Twenty Thousand Dollars ($20,000)
or less will receive the entire amount of their award during the
month of July.
Any Contractor awarded more than Twenty Thousand Dollars
($20,000), but less than Fifty Thousand Dollars ($50,000), will
receive funds in two (2) semiannual payments.
Any Contractor awarded Fifty Thousand Dollars ($50,000)
or more will receive funds in quarterly installments.
The City agrees to pay according to the following
schedule:
The City may advance money at any time during the term of
this Agreement, provided such a request is made by the Contractor in
writing adequately documenting need for such. Expenditures for any
advance shall be accounted for as any other expenditure.
It is expressly understood and agreed that in no event will
the total compensation to be paid Contractor hereunder exceed the
maximum amount of
All compensation for this Agreement shall be paid by the
City out of General Revenue Sharing funds received from the Federal
government and shall not be a charge upon the General Fund of the City
in any manner.
2. Salary Adjustments
Written approval from the City must be obtained prior to
making any increase in the salaries or wages for staff provided here-
under.
3. Evaluation
Contractor hereby agrees to participate fully, with the
guidance and assistance of the City, in the implementation and
maintenance of an evaluation system to continuously monitor the
program.
The services described herein shall be reviewed by the
Environmental Services Department before this Agreement has been in
operation for four (4) months. The content of the Environmental
Services Department findings shall be discussed with the Contractor
prior to its submission to the City Council.
4. Reports
The Contractor agrees to submit to the City quarterly
itemized reports of expenditures made by line item and cumulative
totals in accordance with the budget as described in this Agreement
(Exhibit "B "). These reports are due to the City no later than
ten (10) working days following the end of the quarter for which
they are reporting.
5. Insurance
All required Certificates of Insurance shall be filed with
the City no later than ten (10) working days after the effective date
of this Agreement.
6. Audit
The Contractor agrees to an audit conducted by an independent
auditing firm to determine, at a minimum, the fiscal integrity of
financial transactions and reports, and the compliance with laws,
regulations and administrative requirements.
The Contractor further agrees to establish a systematic
method to assure timely and appropriate resolution of audit findings
and recommendations.