Common use of Independent Audits Clause in Contracts

Independent Audits. GRANTEE shall perform an independent fiscal and compliance audit at least annually, in conformance with the accounting standards and principles described in Paragraph 4(a)(5) below. Such audits must identify the funds received and disbursed relating to this Agreement. The costs for such audits shall be at GRANTEE's expense, unless otherwise provided for in this Agreement. The following provisions apply to the completion of the independent audit required by this Section 1.02(B)(4): (1) Funds will be set aside in GRANTEE’s budget for the independent audit. A separate line item will be established. (2) GRANTEE shall enter into an agreement with an independent public accountant certified to practice in the State of California no later than sixty (60) days before the end of this Agreement to perform audit of GRANTEE’s fiscal year which ends concurrently with or immediately after the end of this Agreement. (3) The audit must be completed and sent to CITY's Housing Department staff within the later of one hundred fifty (150) days of the end of this Agreement or ninety (90) days after the end of GRANTEE's fiscal year. (4) Should GRANTEE not enter into the agreement with an independent public accountant certified to practice in the State of California, or should an audit not be done on a timely basis, CITY, at its sole discretion, may enter into an agreement with an independent public accountant certified to practice in the State of California to perform the audit and utilize GRANTEE’s set-aside funds for the audit. (5) The independent fiscal audit shall conform to generally accepted governmental auditing principals and, when applicable, Office of Management and Budget Circular A-102, “Attachment P, Audit Requirements.” Such audits shall identify the funds received and disbursed under this Agreement. (6) For grantees that expend $500,000 or more of Federal financial assistance in a fiscal year, in addition to conducting normal financial audit procedures, the GRANTEE’s independent public accountant certified to practice in the State of California shall perform tests to ascertain that: (i) Expenditures submitted for reimbursement are allowable under OMB Circular A-87; (ii) Expenditures are in compliance with the grant agreements between the CITY and GRANTEE; and (iii) Applicable laws and regulations. Further, the independent public accountant certified to practice in the State of California shall render an opinion as to whether the Expenditures complied with the Single Audit Act of 1984 and OMB Circular A-133 “Audits of State and Local Governments and Non-Profit Organizations.” (iv) Funds may be set aside in GRANTEE’s budget in an amount equal to CITY’s fair share of GRANTEE’s cost of an A-133 independent audit, if required, with prior approval from the agency. The audit must include the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Schedule of Expenditures of Federal Awards; e. Independent Auditor’s Report on the Financial Statement and Schedule of Expenditures of Federal Awards; f. Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters; g. Auditor’s Report on Compliance with Requirements Applicable to Major Programs and on Internal Control over Compliance; h. Schedule of Findings and Questioned Costs; i. Summary of Schedule of Prior Audit Findings; j. Corrective Action Plan; k. Data Collection Form; l. Communication of Internal Control Related Maters Identified in an Audit (Management Letter) from Auditor (if one was issued) 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. (v) GRANTEES that are not required under the Single Audit Act to submit reports in conformance with the requirements of OMB Circular A-133 “Audits of State and Local Governments and Non-Profit Organizations” shall submit an audit performed in accordance with Generally Accepted Auditing Standards and submit reports which conform to Generally Accepted Accounting Principles and that includes the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue, and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Statement of Auditor’s Report; e. Communication of Internal Control Related Matters Identified in an Audit (Management Letter) from Auditor. 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. (7) For grantees that expend more than $500,000 of financial assistance in a fiscal year, the audit shall identify in a Schedule of Governmental Financial Assistance the gross amounts of grants obtained by GRANTEE from all governmental sources, the periods covered by the grants, and the grant contract or identification number(s), if any, under which funds were received and disbursed by GRANTEE during the audited fiscal year. In addition, the Schedule of Governmental Financial Assistance shall show the amount received and disbursed under each grant during the audited fiscal year, including the amount received and disbursed under this Agreement. (8) GRANTEE’s independent public accountant certified to practice in the State of California shall perform reviews of GRANTEE’s internal control systems and GRANTEE’s compliance with applicable laws, regulations and the requirements of this Agreement.

Independent Audits. City Council requires each non-profit organization receiving Three Hundred Twenty Thousand Dollars ($320,000) or more in funds from the CITY (in the aggregate) during any fiscal year, to prepare and make available for public view on the internet, annual audited financial statements. See Section 26 of the Grant Agreement for the CITY’s requirements. If the Three Hundred Twenty Thousand Dollar ($320,000) threshold is not met, the CITY’s Grant Manager has authority to impose the requirement to obtain an independent audit. GRANTEE shall perform an independent fiscal be notified if this requirement is to be imposed and compliance audit at least annually, the requirement will be included in conformance with the accounting standards and principles described in Paragraph 4(a)(5) below. Such audits must identify the funds received and disbursed relating Exhibit A to this AgreementAGREEMENT. The costs for such audits shall be at GRANTEE's expenseIf an audit is required, unless otherwise provided for in this Agreement. The the following provisions apply to the completion of the independent audit required by this Section 1.02(B)(4):apply: (1) Funds will be set aside in GRANTEE’s budget for the independent audit. A separate line item will be established. (2) GRANTEE shall enter into an agreement with an independent public accountant certified to practice in the State of California no later than sixty (60) days before the end of this Agreement AGREEMENT to perform audit of GRANTEEXXXXXXX’s fiscal year which ends concurrently with or immediately after the end of this AgreementAGREEMENT. (3) The audit must be completed and sent to CITY's Housing Department staff within the later of one hundred fifty (150) days of the end of this Agreement AGREEMENT or ninety (90) days after the end of GRANTEE's fiscal year. (4) Should GRANTEE not enter into the agreement with an independent public accountant certified to practice in the State of California, or should an audit not be done on a timely basis, CITY, at its sole discretion, may enter into an agreement with an independent public accountant certified to practice in the State of California to perform the audit and utilize GRANTEEXXXXXXX’s set-aside funds for the audit. (5) The independent fiscal audit shall conform to generally accepted governmental auditing principals and, when applicable, Office of Management and Budget Circular A-102Super Circular, “Attachment P, Audit Requirements.” Such audits shall identify the funds received and disbursed under this AgreementAGREEMENT. (6) For grantees GRANTEEs that expend $500,000 750,000 or more of Federal financial assistance in a fiscal year, in addition to conducting normal financial audit procedures, the GRANTEE’s independent public accountant certified to practice in the State of California shall perform tests to ascertain that: (i) Expenditures submitted for reimbursement are allowable under OMB Circular A-872 CFR 200; (ii) Expenditures are in compliance with the grant agreements between the CITY and GRANTEE; and (iii) Applicable laws and regulations. Further, the independent public accountant certified to practice in the State of California shall render an opinion as to whether the Expenditures complied with the Single Audit Act of 1984 and OMB Appendix XI to 2 CFR Part 200—Compliance Supplement (previously known as the Circular A-133 “Audits of State and Local Governments and Non-Profit Organizations.Compliance Supplement)..” (iv) Funds may be set aside in GRANTEE’s budget in an amount equal to CITY’s fair share of GRANTEE’s cost of an A-133 independent audit, if required, with prior approval from the agency. The audit must include the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Schedule of Expenditures of Federal Awards; e. Independent Auditor’s Report on the Financial Statement and Schedule of Expenditures of Federal Awards; f. Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters; g. Auditor’s Report on Compliance with Requirements Applicable to Major Programs and on Internal Control over Compliance; h. Schedule of Findings and Questioned Costs; i. Summary of Schedule of Prior Audit Findings; j. Corrective Action Plan; k. Data Collection Form; l. Communication of Internal Control Related Maters Identified in an Audit (Management Letter) from Auditor (if one was issued) 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. (v) GRANTEES that are not required under the Single Audit Act to submit reports in conformance with the requirements of OMB Super Circular A-133 “Audits of State and Local Governments and Non-Non- Profit Organizations” shall submit an audit performed in accordance with Generally Accepted Auditing Standards and submit reports which conform to Generally Accepted Accounting Principles and that includes the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue, and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Statement of Auditor’s Report; e. Communication of Internal Control Related Matters Identified in an Audit (Management Letter) from Auditor. 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. (7) For grantees GRANTEEs that expend more than $500,000 750,000 of financial assistance in a fiscal year, the audit shall identify in a Schedule of Governmental Financial Assistance the gross amounts of grants obtained by GRANTEE from all governmental sources, the periods covered by the grants, and the grant contract or identification number(s), if any, under which funds were received and disbursed by GRANTEE during the audited fiscal year. In addition, the Schedule of Governmental Financial Assistance shall show the amount received and disbursed under each grant during the audited fiscal year, including the amount received and disbursed under this AgreementAGREEMENT. (8) GRANTEEXXXXXXX’s independent public accountant certified to practice in the State of California shall perform reviews of GRANTEE’s internal control systems and GRANTEE’s compliance with applicable laws, regulations and the requirements of this AgreementAGREEMENT. a. The independent public accountant certified to practice in the State of California shall issue a report on the financial statements and the Schedule of Governmental Financial Assistance, a report on the study and evaluation of internal controls and a report on GRANTEE compliance. The three reports may be bound into a single report, or presented at the same time as separate documents.

Independent Audits. GRANTEE shall perform an independent fiscal and compliance audit at least annually, in conformance with the accounting standards and principles described in Paragraph 4(a)(5) below. Such audits must identify the funds received and disbursed relating to this AgreementAGREEMENT. The costs for such audits shall be at GRANTEE's expense, unless otherwise provided for in this AgreementAGREEMENT. The following provisions apply to the completion of the independent audit required by this Section 1.02(B)(4): (1) Funds will be set aside in GRANTEE’s budget for the independent audit. A separate line item will be established. (2) GRANTEE shall enter into an agreement with an independent public accountant certified to practice in the State of California no later than sixty (60) days before the end of this Agreement AGREEMENT to perform audit of GRANTEEXXXXXXX’s fiscal year which ends concurrently with or immediately after the end of this AgreementAGREEMENT. (3) The audit must be completed and sent to CITY's Housing Department staff within the later of one hundred fifty (150) days of the end of this Agreement AGREEMENT or ninety (90) days after the end of GRANTEE's fiscal year. (4) Should GRANTEE not enter into the agreement with an independent public accountant certified to practice in the State of California, or should an audit not be done on a timely basis, CITY, at its sole discretion, may enter into an agreement with an independent public accountant certified to practice in the State of California to perform the audit and utilize GRANTEEXXXXXXX’s set-aside funds for the audit. (5) The independent fiscal audit shall conform to generally accepted governmental auditing principals and, when applicable, Office of Management and Budget Circular A-102, “Attachment P, Audit HOME-17-001 T-344.532/1435160 Requirements.” Such audits shall identify the funds received and disbursed under this AgreementAGREEMENT. (6) For grantees that expend $500,000 or more of Federal financial assistance in a fiscal year, in addition to conducting normal financial audit procedures, the GRANTEE’s independent public accountant certified to practice in the State of California shall perform tests to ascertain that: (i) Expenditures submitted for reimbursement are allowable under OMB Circular A-87; (ii) Expenditures are in compliance with the grant agreements between the CITY and GRANTEE; and (iii) Applicable laws and regulations. Further, the independent public accountant certified to practice in the State of California shall render an opinion as to whether the Expenditures complied with the Single Audit Act of 1984 and OMB Circular A-133 “Audits of State and Local Governments and Non-Profit Organizations.” (iv) Funds may be set aside in GRANTEE’s budget in an amount equal to CITY’s fair share of GRANTEE’s cost of an A-133 independent audit, if required, with prior approval from the agency. The audit must include the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Schedule of Expenditures of Federal Awards; e. Independent Auditor’s Report on the Financial Statement and Schedule of Expenditures of Federal Awards; f. Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters; g. Auditor’s Report on Compliance with Requirements Applicable to Major Programs and on Internal Control over Compliance; h. Schedule of Findings and Questioned Costs; i. Summary of Schedule of Prior Audit Findings; j. Corrective Action Plan; k. Data Collection Form; l. Communication of Internal Control Related Maters Identified in an Audit (Management Letter) from Auditor (if one was issued) 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. . HOME-17-001 T-344.532/1435160 (v) GRANTEES that are not required under the Single Audit Act to submit reports in conformance with the requirements of OMB Circular A-133 “Audits of State and Local Governments and Non-Profit Organizations” shall submit an audit performed in accordance with Generally Accepted Auditing Standards and submit reports which conform to Generally Accepted Accounting Principles and that includes the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue, and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Statement of Auditor’s Report; e. Communication of Internal Control Related Matters Identified in an Audit (Management Letter) from Auditor. 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. (7) For grantees that expend more than $500,000 of financial assistance in a fiscal year, the audit shall identify in a Schedule of Governmental Financial Assistance the gross amounts of grants obtained by GRANTEE from all governmental sources, the periods covered by the grants, and the grant contract or identification number(s), if any, under which funds were received and disbursed by GRANTEE during the audited fiscal year. In addition, the Schedule of Governmental Financial Assistance shall show the amount received and disbursed under each grant during the audited fiscal year, including the amount received and disbursed under this AgreementAGREEMENT. (8) GRANTEEXXXXXXX’s independent public accountant certified to practice in the State of California shall perform reviews of GRANTEE’s internal control systems and GRANTEE’s compliance with applicable laws, regulations and the requirements of this AgreementAGREEMENT.

Independent Audits. City Council requires each non-profit organization receiving Three Hundred Twenty Thousand Dollars ($320,000) or more in funds from the CITY (in the aggregate) during any fiscal year, to prepare and make available for public view on the internet, annual audited financial statements. See Section 26 of the Grant Agreement If the Three Hundred Twenty Thousand Dollar ($320,000) threshold is not to obtain an independent audit. GRANTEE shall perform an independent fiscal be notified if this requirement is to be imposed and compliance audit at least annually, the requirement will be included in conformance with the accounting standards and principles described in Paragraph 4(a)(5) below. Such audits must identify the funds received and disbursed relating Exhibit A to this Agreement. The costs for such audits shall be at GRANTEE's expense, unless otherwise provided for in this Agreement. The following provisions apply to the completion of the independent audit required by this Section 1.02(B)(4):AGREEMENT. (1) Funds will be set aside in GRANTEE’s budget for the independent audit. A separate line item will be established. (2) GRANTEE shall enter into an agreement with an independent public accountant certified to practice in the State of California no later than sixty (60) days before the end of this Agreement AGREEMENT to perform audit of GRANTEE’s fiscal year which ends concurrently with or GRA immediately after the end of this AgreementAGREEMENT. (3) The audit must be completed and sent to CITY's Housing Department staff within the later of one hundred fifty (150) days of the end of this Agreement AGREEMENT or ninety (90) days after the end of GRANTEE's fiscal year. (4) Should GRANTEE not enter into the agreement with an independent public accountant certified to practice in the State of California, or should an audit not be done on a timely basis, CITY, at its sole discretion, may enter into an agreement with an independent public accountant certified to practice in the State of California to perform the audit and utilize GRANTEE’s set-aside -aside funds for the audit. (5) The independent fiscal audit shall conform to generally accepted governmental auditing principals and, when applicable, Office of Management and Budget Circular A-102, “Attachment P, Audit Requirements.” Such audits shall identify the funds received and disbursed under this AgreementAGREEMENT. (6) For grantees that expend $500,000 750,000 or more of Federal financial assistance in a fiscal year, in addition to conducting normal financial audit procedures, the GRANTEE’s independent public accountant certified to practice in the State of California shall perform tests to ascertain that: (i) Expenditures submitted for reimbursement are allowable under OMB Circular A-872 CFR 200; (ii) Expenditures are in compliance with the grant agreements between the CITY and GRANTEE; and (iii) Applicable laws and regulations. Further, the independent public accountant certified to practice in the State of California shall render an opinion as to whether the Expenditures complied with the Single Audit Act of 1984 and OMB Appendix XI to 2 CFR Part 200 Compliance Supplement (previously known as the Circular A-133 “Audits of State and Local Governments and Non-Profit Organizations.” A- (iv) Funds may be set aside in GRANTEE’s budget in an amount equal to CITY’s fair share of GRANTEE’s cost of an A-133 independent audit, if required, with prior approval from the agency. The audit must include the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Schedule of Expenditures of Federal Awards; e. Independent Auditor’s Report on the Financial Statement and Schedule of Expenditures of Federal Awards; f. Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters; g. Auditor’s Report on Compliance with Requirements Applicable to Major Programs and on Internal Control over Compliance; h. Schedule of Findings and Questioned Costs; i. Summary of Schedule of Prior Audit Findings; j. Corrective Action Plan; k. Data Collection Form; l. Communication of Internal Control Related Maters Identified in an Audit (Management Letter) from Auditor (if one was issued) 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. (v) GRANTEES that are not required under the Single Audit Act to submit reports in conformance with the requirements of OMB Circular A-133 “Audits of State and Local Governments and Non-Profit Organizations” shall submit an audit performed in accordance with Generally Accepted Auditing Standards and submit reports which conform to Generally Accepted Accounting Principles and that includes the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue, and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Statement of Auditor’s Report; e. Communication of Internal Control Related Matters Identified in an Audit (Management Letter) from Auditor. 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. (7) For grantees that expend more than $500,000 of financial assistance in a fiscal year, the audit shall identify in a Schedule of Governmental Financial Assistance the gross amounts of grants obtained by GRANTEE from all governmental sources, the periods covered by the grants, and the grant contract or identification number(s), if any, under which funds were received and disbursed by GRANTEE during the audited fiscal year. In addition, the Schedule of Governmental Financial Assistance shall show the amount received and disbursed under each grant during the audited fiscal year, including the amount received and disbursed under this Agreement. (8) GRANTEE’s independent public accountant certified to practice in the State of California shall perform reviews of GRANTEE’s internal control systems and GRANTEE’s compliance with applicable laws, regulations and the requirements of this Agreement.

Independent Audits. GRANTEE shall perform an independent fiscal and compliance audit at least annually, in conformance with the accounting standards and principles described in Paragraph 4(a)(5) below. Such audits must identify the funds received and disbursed relating to this AgreementAGREEMENT. The costs for such audits shall be at GRANTEE's expense, unless otherwise provided for in this AgreementAGREEMENT. The following provisions apply to the completion of the independent audit required by this Section 1.02(B)(4): (1) Funds will be set aside in GRANTEE’s budget for the independent audit. A separate line item will be established. (2) GRANTEE shall enter into an agreement with an independent public accountant certified to practice in the State of California no later than sixty (60) days before the end of this Agreement AGREEMENT to perform audit of GRANTEEXXXXXXX’s fiscal year which ends concurrently with or immediately after the end of this AgreementAGREEMENT. (3) The audit must be completed and sent to CITY's Housing Department staff within the later of one hundred fifty (150) days of the end of this Agreement AGREEMENT or ninety (90) days after the end of GRANTEE's fiscal year. (4) Should GRANTEE not enter into the agreement with an independent public accountant certified to practice in the State of California, or should an audit not be done on a timely basis, CITY, at its sole discretion, may enter into an agreement with an independent public accountant certified to practice in the State of California to perform the audit and utilize GRANTEEXXXXXXX’s set-aside funds for the audit. (5) The independent fiscal audit shall conform to generally accepted governmental auditing principals and, when applicable, Office of Management and Budget Circular A-1022 CFR 200, “Attachment Psubpart F, Audit Requirements.” Such audits shall identify the funds received and disbursed under this AgreementAGREEMENT. (6) For grantees that expend $500,000 750,000 or more of Federal financial assistance in a fiscal year, in addition to conducting normal financial HALA-17-001 Xxxx Xxxxxx Center (RRHSSA) T-344.531\1433867 E-3 audit procedures, the GRANTEE’s independent public accountant certified to practice in the State of California shall perform tests to ascertain that: (i) Expenditures submitted for reimbursement are allowable under OMB Circular A-872 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; (ii) Expenditures are in compliance with the grant agreements between the CITY and GRANTEE; and (iii) Applicable laws and regulations. Further, the independent public accountant certified to practice in the State of California shall render an opinion as to whether the Expenditures complied with the Single Audit Act of 1984 and OMB Circular A-133 2 CFR 200, subpart F, “Audits of State and Local Governments and Non-Profit OrganizationsAudit Requirements.” (iv) Funds may be set aside in GRANTEE’s budget in an amount equal to CITY’s fair share of GRANTEE’s cost of an A-133 independent audit, if required, with prior approval from the agencyCITY. The audit must include the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Schedule of Expenditures of Federal Awards; e. Independent Auditor’s Report on the Financial Statement and Schedule of Expenditures of Federal Awards; f. Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters; g. Auditor’s Report on Compliance with Requirements Applicable to Major Programs and on Internal Control over Compliance; h. Schedule of Findings and Questioned Costs; i. Summary of Schedule of Prior Audit Findings; j. Corrective Action Plan; k. Data Collection Form; l. Communication of Internal Control Related Maters Identified in an Audit (Management Letter) from Auditor (if one was issued) 1. GRANTEE shall also submit to the agency CITY a written management response to the findings of the Internal Control Matters. (v) GRANTEES that are not required under the Single Audit Act to submit reports in conformance with the requirements of OMB Circular A-133 2 CFR 200, subpart F “Audits of State and Local Governments and Non-Profit OrganizationsRequirements” shall submit an audit performed in accordance with Generally Accepted Auditing Standards and submit reports which conform to Generally HALA-17-001 Xxxx Xxxxxx Center (RRHSSA) T-344.531\1433867 E-4 Accepted Accounting Principles and that includes the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue, and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Statement of Auditor’s Report; e. Communication of Internal Control Related Matters Identified in an Audit (Management Letter) from Auditor. 1. GRANTEE shall also submit to the agency CITY a written management response to the findings of the Internal Control Matters. (7) For grantees that expend more than $500,000 750,000 of financial assistance in a fiscal year, the audit shall identify in a Schedule of Governmental Financial Assistance the gross amounts of grants obtained by GRANTEE from all governmental sources, the periods covered by the grants, and the grant contract or identification number(s), if any, under which funds were received and disbursed by GRANTEE during the audited fiscal year. In addition, the Schedule of Governmental Financial Assistance shall show the amount received and disbursed under each grant during the audited fiscal year, including the amount received and disbursed under this AgreementAGREEMENT. (8) GRANTEEXXXXXXX’s independent public accountant certified to practice in the State of California shall perform reviews of GRANTEE’s internal control systems and GRANTEE’s compliance with applicable laws, regulations and the requirements of this AgreementAGREEMENT.

Independent Audits. GRANTEE shall perform an independent fiscal and compliance audit at least annually, in conformance with the accounting standards and principles described in Paragraph 4(a)(5) below. Such audits must identify the funds received and disbursed relating to this AgreementAGREEMENT. The costs for such audits shall be at GRANTEE's expense, unless otherwise provided for in this AgreementAGREEMENT. The following provisions apply to the completion of the independent audit required by this Section 1.02(B)(4): (1) Funds will be set aside in GRANTEE’s budget for the independent audit. A separate line item will be established. (2) GRANTEE shall enter into an agreement with an independent public accountant certified to practice in the State of California no later than sixty (60) days before the end of this Agreement AGREEMENT to perform audit of GRANTEE’s fiscal year which ends concurrently with or immediately after the end of this AgreementAGREEMENT. (3) The audit must be completed and sent to CITY's Housing Department staff within the later of one hundred fifty (150) days of the end of this Agreement AGREEMENT or ninety (90) days after the end of GRANTEE's fiscal year. (4) Should GRANTEE not enter into the agreement with an independent public accountant certified to practice in the State of California, or should an audit not be done on a timely basis, CITY, at its sole discretion, may enter into an agreement with an independent public accountant certified to practice in the State of California to perform the audit and utilize GRANTEE’s set-aside funds for the audit. (5) The independent fiscal audit shall conform to generally accepted governmental auditing principals and, when applicable, Office of Management and Budget Circular A-1022 CFR 200, subpart F, “Attachment P, Audit Requirements.” Such audits shall identify the funds received and disbursed under this AgreementAGREEMENT. (6) For grantees that expend $500,000 750,000 or more of Federal financial assistance in a fiscal year, in addition to conducting normal financial audit HALA-17-002 PATH (RRHSSA) T-344.530\1433852_2 E-3 procedures, the GRANTEE’s independent public accountant certified to practice in the State of California shall perform tests to ascertain that: (i) Expenditures submitted for reimbursement are allowable under OMB Circular A-872 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; (ii) Expenditures are in compliance with the grant agreements between the CITY and GRANTEE; and (iii) Applicable laws and regulations. Further, the independent public accountant certified to practice in the State of California shall render an opinion as to whether the Expenditures complied with the Single Audit Act of 1984 and OMB Circular A-133 2 CFR 200, subpart F, “Audits of State and Local Governments and Non-Profit OrganizationsAudit Requirements.” (iv) Funds may be set aside in GRANTEE’s budget in an amount equal to CITY’s fair share of GRANTEE’s cost of an A-133 independent audit, if required, with prior approval from the agencyCITY. The audit must include the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Schedule of Expenditures of Federal Awards; e. Independent Auditor’s Report on the Financial Statement and Schedule of Expenditures of Federal Awards; f. Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters; g. Auditor’s Report on Compliance with Requirements Applicable to Major Programs and on Internal Control over Compliance; h. Schedule of Findings and Questioned Costs; i. Summary of Schedule of Prior Audit Findings; j. Corrective Action Plan; k. Data Collection Form; l. Communication of Internal Control Related Maters Matters Identified in an Audit (Management Letter) from Auditor (if one was issued) 1. GRANTEE shall also submit to the agency CITY a written management response to the findings of the Internal Control Matters. (v) GRANTEES that are not required under the Single Audit Act to submit reports in conformance with the requirements of OMB Circular A-133 2 CRF 200, subpart F, “Audits of State and Local Governments and Non-Profit OrganizationsAudit Requirements” shall submit an audit performed in accordance with Generally Accepted Auditing Standards and submit reports which conform to Generally Accepted Accounting Principles and that includes the following components:: HALA-17-002 PATH (RRHSSA) T-344.530\1433852_2 E-4 a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue, and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Statement of Auditor’s Report; e. Communication of Internal Control Related Matters Identified in an Audit (Management Letter) from Auditor. 1. GRANTEE shall also submit to the agency CITY a written management response to the findings of the Internal Control Matters. (7) For grantees that expend more than $500,000 750,000 of financial assistance in a fiscal year, the audit shall identify in a Schedule of Governmental Financial Assistance the gross amounts of grants obtained by GRANTEE from all governmental sources, the periods covered by the grants, and the grant contract or identification number(s), if any, under which funds were received and disbursed by GRANTEE during the audited fiscal year. In addition, the Schedule of Governmental Financial Assistance shall show the amount received and disbursed under each grant during the audited fiscal year, including the amount received and disbursed under this AgreementAGREEMENT. (8) GRANTEE’s independent public accountant certified to practice in the State of California shall perform reviews of GRANTEE’s internal control systems and GRANTEE’s compliance with applicable laws, regulations and the requirements of this AgreementAGREEMENT.

Independent Audits. GRANTEE shall perform an independent fiscal and compliance audit at least annually, in conformance with the accounting standards and principles described in Paragraph 4(a)(5) below. Such audits must identify the funds received and disbursed relating to this AgreementAGREEMENT. The costs for such audits shall be at GRANTEE's expense, unless otherwise provided for in this AgreementAGREEMENT. The following provisions apply to the completion of the independent audit required by this Section 1.02(B)(4): (1) Funds will be set aside in GRANTEE’s budget for the independent audit. A separate line item will be established. (2) GRANTEE shall enter into an agreement with an independent public accountant certified to practice in the State of California no later than sixty (60) days before the end of this Agreement AGREEMENT to perform audit of GRANTEE’s fiscal year which ends concurrently with or immediately after the end of this AgreementAGREEMENT. (3) The audit must be completed and sent to CITY's Housing Department staff within the later of one hundred fifty (150) days of the end of this Agreement AGREEMENT or ninety (90) days after the end of GRANTEE's fiscal year. (4) Should GRANTEE not enter into the agreement with an independent public accountant certified to practice in the State of California, or should an audit not be done on a timely basis, CITY, at its sole discretion, may enter into an agreement with an independent public accountant certified to practice in the State of California to perform the audit and utilize GRANTEE’s set-aside funds for the audit. (5) The independent fiscal audit shall conform to generally accepted governmental auditing principals and, when applicable, Office of Management and Budget Circular A-1022 CFR 200, subpart F, “Attachment P, Audit Requirements.” Such audits shall identify the funds received and disbursed under this AgreementAGREEMENT. (6) For grantees that expend $500,000 750,000 or more of Federal financial assistance in a fiscal year, in addition to conducting normal financial audit procedures, the GRANTEE’s independent public accountant certified to practice in the State of California shall perform tests to ascertain that: (i) Expenditures submitted for reimbursement are allowable under OMB Circular A-872 CRF 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; (ii) Expenditures are in compliance with the grant agreements between the CITY and GRANTEE; and (iii) Applicable laws and regulations. Further, the independent public accountant certified to practice in the State of California shall render an opinion as to whether the Expenditures complied with the Single Audit Act of 1984 and OMB Circular A-133 2 CFR 200, subpart F, “Audits of State and Local Governments and Non-Profit OrganizationsAudit Requirements.” (iv) Funds may be set aside in GRANTEE’s budget in an amount equal to CITY’s fair share of GRANTEE’s cost of an A-133 independent audit, if required, with prior approval from the agency. The audit must include the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Schedule of Expenditures of Federal Awards; e. Independent Auditor’s Report on the Financial Statement and Schedule of Expenditures of Federal Awards; f. Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters; g. Auditor’s Report on Compliance with Requirements Applicable to Major Programs and on Internal Control over Compliance; h. Schedule of Findings and Questioned Costs; i. Summary of Schedule of Prior Audit Findings; j. Corrective Action Plan; k. Data Collection Form; l. Communication of Internal Control Related Maters Identified in an Audit (Management Letter) from Auditor (if one was issued) 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. (v) GRANTEES that are not required under the Single Audit Act to submit reports in conformance with the requirements of OMB Circular A-133 2 CFR 200, subpart F, “Audits of State and Local Governments and Non-Profit OrganizationsAudit Requirements” shall submit an audit performed in accordance with Generally Accepted Auditing Standards and submit reports which conform to Generally Accepted Accounting Principles and that includes the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue, and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Statement of Auditor’s Report; e. Communication of Internal Control Related Matters Identified in an Audit (Management Letter) from Auditor. 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. (7) For grantees that expend more than $500,000 750,000 of financial assistance in a fiscal year, the audit shall identify in a Schedule of Governmental Financial Assistance the gross amounts of grants obtained by GRANTEE from all governmental sources, the periods covered by the grants, and the grant contract or identification number(s), if any, under which funds were received and disbursed by GRANTEE during the audited fiscal year. In addition, the Schedule of Governmental Financial Assistance shall show the amount received and disbursed under each grant during the audited fiscal year, including the amount received and disbursed under this Agreement. (8) GRANTEE’s independent public accountant certified to practice in the State of California shall perform reviews of GRANTEE’s internal control systems and GRANTEE’s compliance with applicable laws, regulations and the requirements of this Agreement.

Independent Audits. GRANTEE shall perform an independent fiscal and compliance audit at least annually, in conformance with the accounting standards and principles described in Paragraph 4(a)(5) below. Such audits must identify the funds received and disbursed relating to this AgreementAGREEMENT. The costs for such audits shall be at GRANTEE's expense, unless otherwise provided for in this AgreementAGREEMENT. The following provisions apply to the completion of the independent audit required by this Section 1.02(B)(4): (1) Funds will be set aside in GRANTEE’s budget for the independent audit. A separate line item will be established. (2) GRANTEE shall enter into an agreement with an independent public accountant certified to practice in the State of California no later than sixty (60) days before the end of this Agreement AGREEMENT to perform audit of GRANTEE’s fiscal year which ends concurrently with or immediately after the end of this AgreementAGREEMENT. (3) The audit must be completed and sent to CITY's Housing Department staff within the later of one hundred fifty (150) days of the end of this Agreement AGREEMENT or ninety (90) days after the end of GRANTEE's fiscal year. (4) Should GRANTEE not enter into the agreement with an independent public accountant certified to practice in the State of California, or should an audit not be done on a timely basis, CITY, at its sole discretion, may enter into an agreement with an independent public accountant certified to practice in the State of California to perform the audit and utilize GRANTEE’s set-aside funds for the audit.. PATH Fifth Amendment to Grant Agreement ESG-16-007E T-344.510.005/1437794_2 (5) The independent fiscal audit shall conform to generally accepted governmental auditing principals and, when applicable, Office of Management and Budget Circular A-102, “Attachment P, Audit Requirements.” Such audits shall identify the funds received and disbursed under this AgreementAGREEMENT. (6) For grantees that expend $500,000 750,000 or more of Federal financial assistance in a fiscal year, in addition to conducting normal financial audit procedures, the GRANTEE’s independent public accountant certified to practice in the State of California shall perform tests to ascertain that: (i) Expenditures submitted for reimbursement are allowable under OMB Circular A-872 CFR 200, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; (ii) Expenditures are in compliance with the grant agreements between the CITY and GRANTEE; and (iii) Applicable laws and regulations. Further, the independent public accountant certified to practice in the State of California shall render an opinion as to whether the Expenditures complied with the Single Audit Act of 1984 and OMB Circular A-133 2 CFR 200, subpart F “Audits of State and Local Governments and Non-Profit OrganizationsAudit Requirements.” (iv) Funds may be set aside in GRANTEE’s budget in an amount equal to CITY’s fair share of GRANTEE’s cost of an A-133 independent audit, if required, with prior approval from the agencyCITY. The audit must include the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Schedule of Expenditures of Federal Awards; e. Independent Auditor’s Report on the Financial Statement and Schedule of Expenditures of Federal Awards; f. Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters; g. Auditor’s Report on Compliance with Requirements Applicable to Major Programs and on Internal Control over Compliance; h. Schedule of Findings and Questioned Costs; i. Summary of Schedule of Prior Audit Findings; j. Corrective Action Plan; k. Data Collection Form; l. Communication of Internal Control Related Maters Identified in an Audit (Management Letter) from Auditor (if one was issued) 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. (v) GRANTEES that are not required under the Single Audit Act to submit reports in conformance with the requirements of OMB Circular A-133 “Audits of State and Local Governments and Non-Profit Organizations” shall submit an audit performed in accordance with Generally Accepted Auditing Standards and submit reports which conform to Generally Accepted Accounting Principles and that includes the following components: a. Balance Sheet or Statement of Financial Position; b. Statement of Support, Revenue, and Expenses and Changes in Fund Balances or Statement Activities; c. Statement of Functional Expenses; d. Statement of Auditor’s Report; e. Communication of Internal Control Related Matters Identified in an Audit (Management Letter) from Auditor. 1. GRANTEE shall also submit to the agency a written management response to the findings of the Internal Control Matters. (7) For grantees that expend more than $500,000 of financial assistance in a fiscal year, the audit shall identify in a Schedule of Governmental Financial Assistance the gross amounts of grants obtained by GRANTEE from all governmental sources, the periods covered by the grants, and the grant contract or identification number(s), if any, under which funds were received and disbursed by GRANTEE during the audited fiscal year. In addition, the Schedule of Governmental Financial Assistance shall show the amount received and disbursed under each grant during the audited fiscal year, including the amount received and disbursed under this Agreement. (8) GRANTEE’s independent public accountant certified to practice in the State of California shall perform reviews of GRANTEE’s internal control systems and GRANTEE’s compliance with applicable laws, regulations and the requirements of this Agreement.