CC RES 98-067 RESOLUTION AUTHORIZING EXECUTION OF SUB-GRANT AGREEMENT

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Exhibit I • FEDERAL AUDIT REQUIREMENTS 1. For SUB-GRANTEES who are state(includes Indian tribes) or local governments: If the SUB-GRANTEE receives total direct and indirect federal assistance of: ** Equal to or in excess of$300,000 or more per year, the SUB-GRANTEE agrees to obtain a financial and compliance audit made in accordance with the Single Audit Act of 1984 (Public Law 98-502) and the federal Office of Management and Budget(OMB) Circular A-133. The law and circular provide that the audit shall cover the entire operations of the SUB-GRANTEE government or,at the option of the SUB-GRANTEE government, it may cover departments, agencies or establishments that received, expended, or otherwise administered federal financial assistance during the year. Audits shall be made annually unless the state or local government has, by January 1, 1987,a constitutional or statutory requirement for less frequent audits. For those governments,the cognizant agency shall permit biennial audits, covering both years, if the government so requests. It shall also honor requests for biennial audits by governments that have an administrative policy calling for audits less frequent than annual,but only for fiscal years beginning before January 1, 1987. 2. For SUB-GRANTEES who are institutions of higher education,hospitals, or other nonprofit • organizations: If the SUB-GRANTEE receives total direct and indirect federal assistance of$300,000 or more per year, the SUB-GRANTEE agrees to obtain a financial and compliance audit made in accordance with OMB Circular A-133. The audit must be organization wide audit,unless it is a coordinated audit in accordance with OMB Circular A-133. However,when the $300,000 or more was received under only one program,the SUB-GRANTEE may have an audit of that one program. Audits shall usually be made annually, but not less frequently than every two years. 3. All audit shall be made by an independent auditor. An independent auditor is a state or local government auditor or a public accountant who meets the independence standards specified in the general Accounting Office's Standards for Audit of Governmental Organizations, Programs, Activities, and Functions. 4. The audit report shall state that the audit was performed in accordance with the provisions of OMB Circular A-133 as applicable. - - The reporting requirements for audit reports shall be in accordance with the American Institute of Certified Public Accountant's (AICPA) Statement on Auditing Standards(SAS) 58, "Reports on Audited Financial Statements" or, SAS 62, "Special Reports",as applicable. • - -13-