Loading...
CDBG Agreement with Boys and Girls Clubs of Miami-Dade, INC. i c;2 0/3—. 1 COMMUNITY DEVELOPMENT BLOCK GRANT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND BOYS AND GIRLS CLUBS OF MIAMI DADE INC. This Agreement made and entered into this day of J01Q4rV 201X, by and between the CITY OF MIAMI BEACH, a Florida municipal corporation having its prin pal office at 1700 Convention Center Drive, Miami Beach, Florida, 33139, (hereinafter referred to as 'City"), and BOYS AND GIRLS CLUBS OF MIAMI DADE, INC., a non-for profit corporation having its principal office at 2805 S.W. 32nd Avenue, Miami, Florida, 33133(hereinafter referred to as "Provider"). WHEREAS, the City is an entitlement recipient of U.S. Department of Housing and Urban Development (HUD) grant programs, Community Development Block Grant (CDBG) funds, and HOME Investment funds (HOME), and the City expects to continue to receive entitlement funds from these grant programs to operate the City's housing and community development activities; and WHEREAS, each year, the City prepares a One-Year Action Plan detailing how it intends to allocate funds received from HUD to conduct eligible activities for the benefit of low and moderate-income Miami Beach residents; and WHEREAS, on May 8, 2013, the City's Community Development Advisory Committee (CDAC) approved the funding recommendations of the One-Year Action Plan for Fiscal Year (FY) 2013/2014 activities; and WHEREAS, in accordance with HUD regulations and the City's Citizen Participation Plan concerning the preparation of the One-Year Action Plan, the Administration held two (2) public meetings, receiving citizens'comments, and advertized a 30-day citizen comment period,from June 13, 2013, through July 12, 2013;and WHEREAS, on July 17, 2013, the City Commission approved Resolution No. 2013- 28292, approving the One-Year Action Plan for Federal Funds for FY 2013/14, providing CDBG funds, in the amount of $14,500, to Provider for the Miami Beach Juvenile Program, located at 1420 Washington Avenue and 1200 Michigan Avenue, Miami Beach, Florida, 33139. NOW, THEREFORE, in consideration of the mutual benefits contained herein, the City and Provider agree as follows: Section 1. Agreement Documents: Agreement documents shall consist of this Agreement and the following four(4)exhibits, all of which are attached and incorporated in this Agreement: • Exhibit A—Scope of Services. • Exhibit B-Documentation. • Exhibit C—Budget. • Exhibit D—Financial Management for CDBG funded activities. Section 2. Statement of Work: The Provider agrees to implement the Program in accordance with Exhibits A and B, which Program is summarized as follows: Miami Beach Juvenile Program To provide a free after-school program and summer camp for approximately 400 youths, ranging in age from 5 to 16, with at least 51% of these from income-eligible families. The Program is coordinated by a unit director and counselors and include components such as homework assistance, educational and athletic field trips, sports, league activities, and indoor and outdoor recreational activities. 1 Section 3. Agreement Amount: The City agrees to make available FOURTEEN THOUSAND FIVE HUNDRED DOLLARS ($14,500) for use by the Provider during the Term of the Agreement (hereinafter, the aforestated amount including, without limitation, any additional amounts included thereto as a result of a subsequent amendment(s) to the Agreement, shall be referred to as the"Funds"). Section 4. Alterations: Any proposed changes in the Program including, without limitation, the Budget in Exhibit II, shall first be submitted, reviewed, and approved, in writing, by the City Manager, which approval, if given at all, shall be at his sole reasonable judgment and discretion. Section 5. Method of Payment and Reporting Requirements: During the Term, Provider shall submit Monthly Program Progress reports to the City on the 10th day of each month, respectively. As part of the report submitted in October, 2014, the Provider also agrees to include, a comprehensive final report covering the agreed-upon Program objectives, activities, and expenditures, and including, but not limited to, performance data on client feedback with respect to the goals and objectives outlined in Exhibit A. Exhibit B contains reporting forms to be used in fulfillment of this requirement. Other reporting requirements may be required by the City Manager in the event of Program changes; the need for additional information or documentation arises; and/or legislative amendments are enacted. Reports and/or requested documentation not received by the due date shall be considered delinquent and may be cause for default and termination of this Agreement, pursuant to Section 12 hereof. Section 6. Monitoring: At its discretion, the City may schedule at least one (1) annual on-site monitoring visit with the Provider to evaluate the progress of the Program, and/or to provide technical assistance. At the City's option, a desk top review of the activities may be conducted in lieu of an on-site visit. Section 7. Additional Conditions and Compensation: The parties acknowledge that the Funds originate from CDBG grant funds from HUD, and must be implemented in full compliance with all of HUD's rules and regulations. In the event of curtailment or non- production of said federal funds, the financial sources necessary to continue to pay the Provider all or any portions of the Funds will not be available. In that event, the City may terminate this Agreement, which termination.shall.be effective as of the date that it is determined by the City Manager, in his sole discretion and judgment, that the Funds are no longer available. In the event of such termination, the Provider agrees that it will not look to, nor seek to hold the City, nor any individual member of the City Commission and/or City Administration, personally liable for the performance of this Agreement, and the City shall be released from any further liability to Provider under the terms of this Agreement. Section 8. Compliance with Local, State and Federal Regulations - The Provider agrees to comply with all applicable Federal regulations as they may apply to Program administration and to carry out each activity in compliance with the laws and regulations as described in 24 CFR 570 Subpart K, as same may be amended from time to time. Additionally, the Provider will comply with all State and local (City and County) laws and ordinances hereto applicable. It shall be the Provider's sole and absolute responsibility to continually familiarize itself with any and all such applicable Federal, State, County, and City regulations, laws, and/or ordinances. Section 9. Restrictions for Certain Resident Aliens - Certain newly legalized aliens, as described in 24 CFR Part 49, are not eligible to apply for benefits under covered - activities funded by the CDBG Program. "Benefits" under this section means financial assistance, public services, jobs, and access to new or rehabilitated housing and other 2 I facilities made available under activities funded by the CDBG Program. "Benefits" do not include relocation services and payments to which displacees are entitled by law. Section 10. Assignment/Subcontract: No part of this Agreement may be assigned or subcontracted without the prior written consent of the City, which consent, if given at all, shall be at the City's sole discretion and judgement. Section 11. Term: This Agreement shall commence on October 1, 2013, and terminate on September 30, 2014, (the Term), with the understanding that at, the end of the Term, the City Commission has the authority to reappropriate any remaining unused Funds. Section 12. Termination of Agreement: 12.1 Termination for Convenience: This Agreement may be terminated by the City, for convenience and without cause, through its.City Manager, upon 30 days prior written notice to Provider. In the event of such termination for convenience, the City shall cease any payments to Provider for costs resulting from obligations which were not approved before the effective date of termination. Provider shall be solely responsible for immediately returning any unused or unapproved Funds as of the date of termination, and shall also be solely responsible for submitting a final report, as provided in Section 5 hereof, (detailing all Program objectives, activities and expenditures up to the effective date of the termination). Said final report shall be due within five (5) working days following the effective date of termination. Upon timely receipt of Provider's final report, the City, at its sole discretion, shall determine the amount (if any) of any additional portion of the Funds to be returned to the City as a result of any unapproved or unused Funds, or incomplete Program items, and shall provide Provider with written notice of any monies due. Said additional monies shall be due and payable immediately upon receipt of such notice by Provider. Notwithstanding the preceding, the City reserves any and all legal rights and remedies it may have with regard to recapture of all or any portion of the Funds, or any assets acquired or improved in whole or in part with said Funds. 12.2 Termination for Cause: Notwithstanding Subsection 12.1 above, the City may also terminate this Agreement.for cause. "Cause" shall include, but not be limited to, the following: a. Failure to comply and/or perform, in accordance with the terms of this Agreement, or any Federal, State, County or City law, or regulation. b. Submitting reports to the City which are late, incorrect, or incomplete in any material respect. C. Implementation of this Agreement, for any reason, is rendered impossible or infeasible. d. Failure to respond in writing to any concerns raised by the City, including substantiating documents when required/requested by the City. e. Any evidence of fraud, mismanagement, and/or waste, as determined by the City's monitoring and applicable HUD rules and regulations. The City shall notify the Provider in writing when the Provider has been placed in default. Such notification shall include: (i) actions taken by or to be taken by the City, such as withholding of payments; (ii) actions to be taken by the Provider as a condition precedent to curing the default; and (iii) a reasonable cure period, which shall be no less than thirty (30) days from notification date. In the event the Provider fails to cure such default within the aforestated cure period, this Agreement shall be considered terminated for cause, without requiring further notice to Provider, and Provider shall be solely responsible for repayment to the 3 City of all or any portion of the Funds disbursed to Provider, as deemed required by the City, in its sole and reasonable discretion. Said monies shall be immediately due and payable by Provider. Notwithstanding the preceding, the City reserves any and all legal rights and remedies it may have with regard to recapture of all or any portion of the Funds, or any assets acquired or improved in whole or in part with said Funds. 12.3 Termination for Lack of Funds: In the event of curtailment of, or regulatory constraints placed on the Funds by HUD, this Agreement will terminate, effective as of the time that it is determined by the City Manager that such Funds are no longer available. Costs of the Provider incurred after termination are not allowable unless expressly authorized in writing by the City Manager (whether in the notice of termination or subsequent thereto), and, in that case, may only be allowable if, in the sole discretion of the City Manager: a. The costs resulted from obligations which were properly incurred before the effective date of termination, were not in anticipation of it, and are noncancelable; and b. The costs would be allowable if the Agreement expired normally at the end of its Term. Section 13. Equal Employment Opportunities: The Provider shall comply with equal employment opportunities as stated in Executive Order 11246, entitled "Equal Employment Opportunity" as amended Executive Order 11375, and as supplemented in Department of Labor regulations. Section 14. Program Income: Any "Program Income" (as such term is defined under applicable Federal regulations) gained from any activity of the Provider funded by CDBG funds shall be reported to the City and utilized by the Provider in the operation of the Program. Section 15. Religious Organization or Owned Property: CDBG funds may be used by religious organizations or on property owned by religious organizations only with prior written approval from the City Manager, and only in accordance with requirements set in 24 CFR §570.2000). The Provider shall comply with First Amendment Church/State principles, as follows: a. It will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion. b. It will not discriminate against any person applying for public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion. C. It will retain its independence from Federal, State, and local governments, and may continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that it does not use direct CDBG funds to support any inherently religious activities, such as worship, religious instruction, or proselytizing. d. The Funds shall not be used for the acquisition, construction, or rehabilitation of structures to the extent that those structures are used for inherently religious activities. Where a structure is used for both eligible and inherently religious activities, CDBG funds may not exceed the cost of those portions of the acquisition, construction, or rehabilitation that are attributable to eligible activities in accordance with the cost accounting requirements applicable to CDBG funds in this part. Sanctuaries, chapels, or other rooms that a CDBG-funded religious congregation uses as its principal place of worship, however, are ineligible for CDBG-funded improvements. 4 i Section 16. Reversion of Assets: In the event of a termination of this Agreement, or upon expiration of the Agreement, and in addition to any and all other remedies available to the City (whether under this Agreement, or at law or in equity), the Provider shall immediately transfer to the City any Funds on hand at the time of termination (or expiration) and any accounts receivable attributable to the use of CDBG funds. The City's receipt of any Funds on hand at the time of termination, shall not waive the City's right (nor excuse Provider's obligation) to recoup all or any portion of the Funds, as the City may deem necessary. Any real property under the Provider's control that was acquired or improved in whole or in part with CDBG funds (including CDBG funds provided to the Provider in the form of a loan) in excess of$25,000 must either: a. Be used to meet one of the national objectives in 24 CFR 570.208(formerly section 570.901) until five years after expiration of the term of this Agreement, or for such longer period of time as determined to be appropriate by the City and as memorialized by the City and Provider in an amendment to this Agreement or such instrument as the City, at its discretion, determines appropriate; or b. If not used in accordance with the above subsection (a), the Provider shall pay to the City an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, or improvement to, the property. No payment is required after the period of time specified in subsection (a). Section 17. Conformity to HUD regulations: The Provider agrees to abide by guidelines set forth by HUD for the administration and implementation of the CDBG Program, including applicable Uniform Administrative Requirements set forth in 24 CFR 570.502, and applicable federal laws and regulations in 24 CFR 570.600, et seq. In this regard, the Provider agrees that duly authorized representatives of HUD shall have access to any books, documents, papers and records of the Provider that are directly pertinent to this Agreement for the purpose of making audits, examinations, excerpts and transcriptions. The Provider shall comply with the requirements and standards of OMB Circular No. A- 122, "Cost Principles for Non-profit Organizations", or OMB Circular No. A-21, "Cost Principles for.Educational Institutions"as.applicable._ The Provider shall comply with the following provisions of the Uniform Administrative requirements of OMB Circular A-110 (implemented at 24 CFR Part 84, "Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations")or the related CDBG provision, as specified in this section: a. Subpart A-"General"; b. Subpart B - "Pre-Award Requirements", except for 84.12, "Forms for Applying for Federal Assistance"; c. Subpart C-"Post-Award Requirements", except for: (1) Section 84.22, "Payment Requirements" -Grantees shall follow the standards of 85.20(b)(7)and 85.21 in making payments to sub-recipients; (2) Section 84.23, "Cost Sharing and Matching"; (3) Section 84.24, "Program Income"- In lieu of 84.24, CDBG sub-recipients shall follow 570.504; (4) Section 84.25, "Revision of Budget and Program Plans"; 5 (5) Section 84.32, 'Real Property" - In lieu of 84.32, CDBG sub-recipients shall follow 570.505; (6) Section 84.34(g), "Equipment" - In lieu of the disposition provisions of 84.34(g), the following applies: a. In all cases in which equipment is sold, the proceeds shall be program income (pro-rated to reflect the extent to which CDBG funds were used to acquire the equipment); and b. Equipment not needed by the sub-recipient for CDBG activities shall be transferred to the recipient for the CDBG program or shall be retained after compensating the recipient; (7) Section 84.51(b), (c), (d), (e), (f), (g), and (h), "Monitoring and Reporting Program Performance"; (8) Section 84.52, "Financial Reporting"; (9) Section 84.53(b), "Retention and access requirements for records". Section 84.53(b)applies with the following exceptions: a. The retention period referenced in 84.53(b) pertaining to individual CDBG activities shall be four years; and b. The retention period starts from the date of submission of the annual performance and evaluation report, as prescribed in 24 CFR 91.520, in which the specific activity is reported on for the final time rather than from the date of submission of the final expenditure report for the award; (10)Section 84.61, "Termination"- In lieu of the provisions of 84.61, CDBG subrecipients shall comply with 570.503(b)(7); and d. Subpart D - "After-the-Award Requirements" - except for 84.71, "Closeout Procedures". Section 18. Sponsorships: The Provider agrees that all notices, informational pamphlets, press releases, advertisements, descriptions of the sponsorship of the Program, research reports, and similar public notices prepared and released by the Provider for, on behalf of, and/or about the Program, shall include the statement: "FUNDED BY THE CITY OF MIAMI BEACH COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM" In written materials, the words "CITY OF MIAMI BEACH COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS ADMINISTERED BY THE CITY OF MIAMI BEACH OFFICE OF REAL ESTATE HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT" shall appear in the same size letters or type as the name of the Provider. Section 19. Examination of Records: The Provider shall maintain sufficient records in accordance with 24 CFR 570.502 and 570.506 to determine compliance with the requirements of this Agreement, the CDBG Program, and all other applicable laws and regulations. This documentation shall include, but not be limited to, the following: 6 a. Books, records and documents in accordance with generally accepted accounting principles, procedures and practices, which sufficiently and properly reflect all revenues and expenditures of funds provided directly or indirectly by this Agreement, including matching funds and Program Income. These records shall be maintained to the extent of such detail as will properly reflect all net costs, direct and indirect labor, materials, equipment, supplies and services, and other costs and expenses of whatever nature for which reimbursement is claimed under the provisions of this Agreement. b. Time sheets for split-funded employees, which work on more than one activity, in order to record the CDBG activity delivery cost by Program and the non-CDBG related charges. C. How the Statutory National Objective(s) as defined in 24 CFR 570.208 and the eligibility requirement(s) under which funding has been received, have been met. These also include special requirements such as necessary and appropriate determinations as defined in 24 CFR 570.209, income certifications, and written Agreements with beneficiaries, where applicable. The Provider is responsible for maintaining and storing all records pertinent to this Agreement in an orderly fashion in a readily accessible, permanent and secured location for a period of four (4) years after expiration of this Agreement, with the following exception: if any litigation, claim or audit is started before the expiration date of the four (4) year period, the records will be maintained until all litigation, claims or audit findings involving these records are resolved. The City shall be informed in writing after closeout of this Agreement, of the address where the records are to be kept. Section 20. Audits and Inspections: At any time during normal business hours, and as often as the City(and/or its representatives) may deem necessary, the Provider shall make available all records, documentation, and any other data relating to all matters covered by the Agreement, for review, inspection or audit. Audits shall be conducted annually and shall be submitted to the City 180 days after the end of the Provider's fiscal year. The Provider shall comply with the requirements and standards of OMB A-133, "Audits of Institutions of High Education and Other Non-Profit Institutions" (as set forth in 24 CFR Part 45), or OMB Circular A-128, "Audits of State and Local Governments" (as set forth in 24 CFR Part 44), as applicable. If this Agreement is closed-out prior to the receipt of an audit report, the City reserves the right to recover any disallowed costs identified in an audit after such closeout. Section 21. Indemnification/Insurance Requirements: The Provider shall indemnify and hold harmless the City, and its officers, employees, contractors and agents, from any and all claims, liability, losses and causes of action which may arise out of any act, error, omission, negligence or misconduct on the part of the Provider, or any of its officers, employees, contractors, agents, patrons, guests, clients, licensees, invitees, or any persons acting under the direction, control, or supervision of Provider pursuant to this Agreement and/or the Program. The Provider shall pay all claims and losses of any nature whatsoever in connection therewith and shall defend all suits in the name of the City, and shall pay all costs (including attorney's fees) and judgements which may issue thereon. This Indemnification shall survive the termination and/or expiration of this Agreement. The Provider shall not commence any work and/or services pursuant to this Agreement until all insurance required under this Section has been obtained and the City's Risk Manager has approved-such insurance. In the event evidence of such insurance is not forwarded to the City's Risk Manager within thirty (30) days after the commencement 7 date of the Term, this Agreement shall automatically terminate and become null and void, and the City shall have no obligation under the terms and conditions hereof. The Provider shall maintain and carry in full force during the Term of this Agreement, and/or throughout the duration of the Program contemplated herein, whichever is longer, the following insurance: a. General Liability Policy with coverage for Bodily Injury and Property Damage, in the amount of $1,000,000 single limit, subject to adjustment for inflation. The policy must include coverage for contractual liability to cover the above indemnification. b. Worker's Compensation and Employers Liability, as required pursuant to Florida Statutes. c. Automobile and vehicle coverage shall be required when the use of automobiles and other vehicles are involved in any way in the performance of the Agreement. Limits for such coverage shall be in the amount of $500,000, subject to adjustment for inflation. The City of Miami Beach shall be named as an additional insured under all such insurance contracts. Thirty- (30) day written notice of cancellation or substantial modification of the insurance coverage must be given to the City's Risk Manager by the Provider and its insurance company. The insurance must be furnished by insurance companies authorized to do business in the State of Florida, and approved by the City's Risk Manager. The companies must be rated no less than "B+"as to management, and not less than "Class VI" as to strength by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent, subject to the approval of the City's Risk Manager. Original Certificates of Insurance for the above coverage must be submitted to the City's Risk Manager for approval prior to any work commencing. These certificates will be kept on file in the Office of the Risk Manager, Third Floor City Hall. The City shall have the right to obtain from the Provider specimen copies of the insurance policies, in the event that submitted Certificates of Insurance are inadequate to ascertain compliance with required coverage. Compliance with the foregoing requirements shall not relieve.the Provider of its obligation to indemnify and hold the City harmless, as required in this section. Section 22. Conflict of Interest: The Provider covenants that no person under its employ who presently exercises any functions or responsibilities in connection with community development funded activities has any personal financial interests, direct or indirect, in this Agreement. The Provider covenants that in the performance of this Agreement, no person having such conflicting interest shall be employed. The Provider covenants that it will comply with all provisions of 24 CFR 570.611 "Conflict of Interest", and the, State, County and City of Miami Beach statutes, regulations, ordinances or resolutions governing conflicts of interest. The Provider shall disclose, in writing, to the City any possible conflicting interest or apparent impropriety that is covered by the above provisions. This disclosure shall occur immediately upon knowledge of such possible conflict. The City will then render an opinion, which shall be binding on both parties. Section 23. Venue: This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state court, and the U.S. District Court, Southern District- of Florida, if in federal court. BY ENTERING INTO THIS AGREEMENT, CITY AND PROVIDER EXPRESSLY WAIVE ANY RIGHTS EITHER 8 PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF,THIS AGREEMENT. Section 24. Notices: All notices required under this Agreement shall be sent to the parties at the following address: City: Maria L. Ruiz, Interim Director Office of Housing and Community Development City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 Provider: Alex Rodri uez-Roi , Executive Director 9 9 Boys and Girls Clubs of Miami Dade, Inc. 2805 SW 32nd Avenue Miami, FL 33133 Section 25. Limitation of Liability: The City desires to enter into this Agreement only if in so doing the City can place a limit on City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of$10,000. Provider hereby expresses its willingness to enter into this Agreement with Provider's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of$10,000. Accordingly, Provider hereby agrees that the City shall not be liable to Provider for damages in an amount in excess of $10,000, for any action or claim for breach of contract arising out of the performance or nonperformance of any obligations imposed upon the City by this Agreement. Nothing contained in this subparagraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon City's liability as set forth in Florida Statutes, Section 768.28. Section 26. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. [SIGNATURES TO FOLLOW] I 9 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officials on the day and date first above indicated. BOYS AND GIRLS CLUBS OF MIAMI DADE, INC. a Florida not-for-profit corporation ATTEST: Secretary President Signature TT4?4k �QG� � Alex Rodriquez-Roig, Executive Director Print Name Print Name and Title CITY OF MIAMI BEACH a Florida Municipal corporation ATT City Clerk Z7a T n �e wel e_ Print Name e �� • X VED APPROVED AS TO .?f�CO,�P OF�A FORM & LANGUAGE &FOR EXECUTION i 4trorney wi Dat F:\RHCD\$ALL\HSG-CD\Brian\FY 2013 14\13oys and Girls Club\Boys&Girls Clubs Contract\Juvenile Program\Boys and Girls Club CDBG Agreement-Juvenile Program-As of 9 4 13.doc 10 EXHIBIT "A" "SCOPE OF SERVICES" The Sub-Recipient agrees to provide the following: Units of Service Service I Provision for free, high quality, after-school Minimum of 204 income-eligible youth and teen program athletics, recreational (low to moderate income households) activities, and 8 week summer program to Miami Beach youth, ages 5- 16. Related Definitions: Davis-Bacon Act Compliance — The Davis-Bacon Act applies to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Davis-Bacon Act and Related Act contractors and subcontractors must pay their laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. The Davis-Bacon Act directs the Department of Labor to determine such locally prevailing wage rates. Affordable housing rehabilitation projects of eight (8) or more units using CDBG funds must ensure Davis-Bacon Act compliance. Affordable housing rehabilitation projects of 12 or more units using HOME funds must ensure Davis-Bacon Act compliance. Environmental Review — Projects must have an Environmental Review unless they meet criteria specified in HUD regulations that would exempt or exclude them from Request for Release of Funds (RROF) and environmental certification requirements (24 CFR sections 58.1, 58.22, 58.34, 58.35 and 570.604). Evidence of Procurement—All expenses incurred with grant funds require evidence of procurement according to this Agreement. Please carefully read the Agreement and related HUD rules to ensure compliance. HUD Income Limits — The Sub-Recipient must ensure that HUD Income Limits (household income) are utilized when determining client eligibility for HUD-funded services. Income limits are posted further below. Monthly Progress Report — The Sub-Recipient is required to submit a monthly project progress report by the10th of the following month. The report must be signed by the person who prepared the report as well as the agency's authorizing party. The report summarizes the progress made, expenses incurred and deliverables completed. This report must be completed regardless of whether or not funds are requested. Monthly Financial Report — The Sub-Recipient is required to submit a monthly financial report by the 10th of the following month regardless of whether or not funds 1 are requested. The report delineates project expenses incurred including non-City funds and must include the corresponding evidence of expense incurred for any expense which is being submitted for reimbursement. Monthly Proformas — All Capital projects with multiple (more than one) funding sources require the submission of monthly proformas to the City. Professional Services Contracts — Professional services funded through this Agreement must adhere to procurement guidelines as appropriate and have executed written agreements between the Sub-Recipient and the respective Vendor. Contracts must, at a minimum, specify the cost, timeline and scope of service. A copy of all professional service contracts must be submitted to the City prior to reimbursement request. Proof of Insurance — Evidence of appropriate and required insurance must be submitted prior to contract execution. No City funds will be disbursed prior to submission of required insurance coverage. Retainage — All capital projects are subject to the withholding of 10 percent of appropriate expenses in the form of a retainage. All retained funds will be released when the project fulfills its National Objective. Section 3 Compliance — Any Agreement greater than $200,000 that involves rehabilitation, housing construction, or other public construction, requires the Sub- Recipient complete and submit to the City Form HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very-Low Income Persons (OMB No. 2529-0043). Service Deliverables Services must be delivered as follows: Service Urift of Service Service Location Tirnefrarne Provision for free, Up to 204 youth Fienberg Fisher K-8 October 1, 2013— high quality, after- Center and/or Boys & September school and teen Girls Club South 30,2014 program athletics, Beach Youth Center recreational activities, and 8 week summer program to Miami Beach youth, ages 5- 16 2 i Service Benchmarks Service Bencbmark(s) Provision for free, high quality, after-school Low and moderate-income youth enrolled and teen program athletics, recreational activities, and 8 week summer program to Miami Beach youth, ages 5- 16 Service Documentation Services will be deemed as provided when the following documentation is provided Within the noted timeframes: Documentation Service Provision for free, high quality, after-school 1. Completed and executed client and teen program athletics, recreational intake form with consents activities, and 8 week summer program to 2. Back-up material demonstrating Miami Beach youth, ages 5- 16 household income 3. Daily attendance rolls Applicable Federal Regulations The Sub-Recipient must apply to all applicable federal regulations including: I. Non-Discrirnination and Equal Access No person in the United States shall on the grounds of race, color, national origin, religion or sex be excluded, denied benefits or subjected to discrimination under any program funded in whole or in part by CDBG/HOME funds. The Provider must take measures to ensure non-discriminatory treatment, outreach and access to program resources. This applies to employment and contracting, as well as to marketing and selection of program participants. Fair Housing and Equal Opportunity The Provider must comply with all the following Federal laws, executive orders and regulations pertaining to fair housing and equal opportunity. They are summarized below: Title Vl of the Civil Rights Act of 1964, As Amended (42 USC 2000d et seq.): States that no person may be excluded from participation in, denied the benefits of, or subjected to discrimination under any program or activity receiving Federal financial assistance on the basis of race, color or national origin. The regulations implementing the Title VI Civil Rights Act provisions for HUD programs may be found in 24 CFR Part 1. The Fair Housing Act (42 USC 3601-3620): Prohibits discrimination in the sale or rental of housing, the financing of housing or the provision of brokerage services against any person on the basis of race, color, religion, sex, national origin, handicap of familial status. Fair Housing Act implementing regulations may be found in 24 CFR Part 100-115. 3 Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259): Prohibits discrimination against individuals on the basis of race, color, religion, sex or national origin in the sale, rental, leasing or other disposition of residential property, or in the use or occupancy of housing assisted with Federal funds. Equal Opportunity in Housing regulations may be found in 24 CFR Part 107. Age Discrimination Act of 1975, As Amended (42 USC 6101): Prohibits age discrimination in programs receiving Federal financial assistance. Age Discrimination Act regulations may be found in 24 CFR Part 146. Section 109 of Title I of the Housing and Community Development Act of 1974: Requires that no person shall be excluded from participation in, denied the benefits of, or be subjected to discrimination under any program or activity funded with CDBG/HOME funds on the basis of race, color, religion, national origin or sex. Affirmative Marketing The Provider must adopt affirmative marketing procedures and requirements for all CDBG/HOME-assisted housing with five or more units. Requirements and procedures must include: 1. Methods for informing the public, owners and potential tenants about fair housing laws and the Provider's policies (for example: use of the Fair Housing logo or equal opportunity language); 2. A description of what owners and/or the Provider will do to affirmatively market housing assisted with CDBG/HOME funds; 3. A description of what owners and/or the Provider will do to inform persons not likely to apply for housing without special outreach; 4. Maintenance of records to document actions taken to affirmatively market CDBG/HOME-assisted units and to assess marketing effectiveness; and 5. A description of how efforts will be assessed and what corrective actions will be taken where requirements are not met. Handicapped Accessibility The CDBG/HOME regulations also require adherence to the three following regulations governing the accessibility of Federally-assisted buildings, facilities and programs. Americans with Disabilities Act (42 USC 12131; 47 USC 155, 201, 218 and 225): Provides comprehensive civil rights to individuals with disabilities in the areas of employment, public accommodations, state and local government services and telecommunications. The Act, also referred to as the ADA, also states that discrimination includes the failure to design and construct facilities (built for first occupancy after January 26, 1993) that are accessible to and usable by persons with disabilities. The ADA also requires the removal of architectural and communication barriers that are structural in nature in existing facilities. Removal 4 must be readily achievable, easily accomplishable and able to be carried out without much difficulty or expense. Fair Housing Act: Multi-family dwellings must also meet the design and construction requirements at 24 CFR 100.205, which implement the Fair Housing Act (42 USC 3601-19) Section 504: Section 504 of the Rehabilitation Act of 1973 prohibits discrimination in federally assisted programs on the basis of handicap. Section 504 imposes requirements to ensure that "qualified individuals with handicaps" have access to programs and activities that receive Federal funds. Under Section 504, recipients and Sub-Recipients are not required to take actions that create unique financial and administrative burdens or after the fundamental nature of the program. For any Provider principally involved in housing or social services, all of the activities of the agency -- not only those directly receiving Federal assistance -- are covered under Section 504. Contractors or vendors are subject to Section 504 requirements only in the work they do on behalf of the Provider or the City. The ultimate beneficiary of the Federal assistance is not subject to Section 504 requirements. The Architectural Barriers Act of 1968 (42 USC 4151-4157): Requires certain Federal and Federally-funded buildings and other facilities to be designed, constructed or altered in accordance with standards that ensure accessibility to, and use by, physically handicapped people. II. Employment and Contracting The Provider must comply with the regulations below governing employment and contracting opportunities. These concern equal opportunity, labor requirements and contracting/procurement procedures. Equal Opportunity The Provider must comply with the following regulations that ensure equal opportunity for employment and contracting: Equal Employment Opportunity, Executive Order 11246, as amended. Prohibits discrimination against any employee or applicant for employment because of race, color, religion, sex or national origin. Provisions to effectuate this prohibition must be included in all construction contracts exceeding $10,000. Implementing regulations may be found at 41 CFR Part 60. Section 3 of the Housing and Urban Development Act of 1968: Requires that, to the greatest extent feasible, opportunities for training and employment arising from CDBG/HOME funds will be provided to low-income persons residing in the program service area. Also, to the greatest extent feasible, contracts for work (all types) to be performed in connection with CDBG/HOME will be awarded to business concerns that are located in or owned by persons residing in the program service area. Minority/Women's Business Enterprise: Under Executive Orders 11625, 12432 and 12138, the City and the Provider must prescribe procedures acceptable to HUD for a minority outreach program to ensure the inclusion, to the maximum 5 extent possible, of minorities and women, and entities owned by minorities and women, in all contracts (see 24 CFR 85.36(e)). Labor Requirements The Provider must comply with certain regulations on wage and labor standards. In the case of Davis-Bacon and the Contract Work Hours and Safety Standards Acts, every contract for construction (in the case of residential construction, projects with eight or more units) triggers the requirements. Davis-Bacon and Related Acts (40 USC 276(A)-7): Ensures that mechanics and laborers employed in construction work under Federally-assisted contracts are paid wages and fringe benefits equal to those that prevail in the locality where the work is performed. This act also provides for the withholding of funds to ensure compliance, and excludes from the wage requirements apprentices enrolled in bona fide apprenticeship programs. Contract Work Hours and Safety Standards Act, as amended (40 USC 327-333): Provides that mechanics and laborers employed on Federally-assisted construction jobs are paid time and one-half for work in excess of 40 hours per week, and provides for the payment of liquidated damages where violations occur. This act also addresses safe and healthy working conditions. Copeland (Anti-Kickback) Act (40 USC 276c): Governs the deductions from paychecks that are allowable. Makes it a criminal offense to induce anyone employed on a Federally assisted project to relinquish any compensation to which he/she is entitled, and requires all contractors to submit weekly payrolls and statements of compliance. Fair Labor Standards Act of 1938, As Amended (29 USC 201, et. seq.): Establishes the basic minimum wage for all work and requires the payment of overtime at the rate of at least time and one-half. It also requires the payment of wages for the entire time that an employee is required or permitted to work, and establishes child labor standards. Contracting and Procurement Practices The CDBG/HOME programs are subject to certain Federal procurement rules. In addition, the City and the Provider must take measures to avoid hiring debarred or suspended contractors or Sub-Recipients and conflict-of-interest situations. Each is briefly discussed below. Procurement: For the City, the procurement standards of 24 CFR 85.36 apply. For non-profit organizations receiving CDBG/HOME funds, the procurement requirements at 24 CFR Part 84 apply. Conflict of Interest: The CDBG regulations require grantees (the City), state recipients and Sub-Recipients (the Provider) to comply with two different sets of conflict-of-interest provisions. The first set of provisions comes from 24 CFR Parts 84 and 85. The second, which applies only in cases not covered by 24 CFR Parts 84 and 85, is set forth in the CDBG regulations. Both sets of requirements are discussed below. 6 - The provisions at 24 CFR 85.36 and 24 CFR 84.42 apply in the procurement of property and services by grantees (the City), state recipients, and Sub-Recipients (the Provider). These regulations require the City and the Provider to maintain written standards governing the performance of their employees engaged in awarding and administering contracts. At a minimum, these standards must: Require that no employee, officer, agent of the City or the Provider shall participate in the selection, award or administration of a contract supported by CDBG/HOME if a conflict-of-interest, either real or apparent, would be involved; Require that employees, officers and agents of the City or the Provider not accept gratuities, favors or anything of monetary value from contractors, potential contractors or parties to Sub-Agreements; and - Stipulate provisions for penalties, sanctions or other disciplinary actions for violations of standards. HOME-funded projects must comply with 24 CFR 92.356. A conflict would arise when any of the following has a financial or other interest in a firm selected for an award: - An employee, agent or officer of the City or the Provider; - Any member of an employee's, agent's or officer's immediate family; - An employee's, agent's or officer's partner; or - An organization that employs or is about to employ an employee, agent or officer of the City or the Provider. - The CDBG/HOME regulations at 24 CFR 570.611 governing conflict-of- interest apply in cases not covered by 24 CFR 85.36 and 24 CFR 84.42. These provisions cover employees, agents, consultants, officers and elected or appointed officials of the grantee (the City), state recipient or Sub-Recipient (the Provider). The regulations state that no person covered who exercises or has exercised any functions or responsibilities with respect to CDBG/HOME activities or who is in a position to participate in decisions or gain inside information: May obtain a financial interest or benefit from a CDBG activity; or Have an interest in any contract, subcontract or agreement for themselves or for persons with business or family ties. This requirement applies to covered persons during their tenure and for one year after leaving the grantee (the City), the state recipient or Sub-Recipient (the Provider) entity. Upon written request, exceptions to both sets of provisions may be granted by HUD on a case-by-case only after the City has: 7 - Disclosed the full nature of the conflict and submitted proof that the disclosure has been made public; and Provided a legal opinion from the City stating that there would be no violation of state or local law if the exception were granted. Debarred contractors: In accordance with 24 CFR Part 5, CDBG/HOME funds may not be used to directly or indirectly employ, award contracts to or otherwise engage the services of any contractor or Sub-Recipient during any period of debarment, suspension or placement of ineligibility status. The City should check all contractors, subcontractors, lower-tier contractors or Sub-Recipients against the Federal publication that lists debarred, suspended and ineligible contractors. III. Environmental Requirements The City is responsible for meeting a number of environmental requirements, including environmental reviews, flood insurance, and site and neighborhood standards. Environmental Review The City is responsible for undertaking environmental reviews in accordance with the requirements imposed on "recipients" in 24 CFR 58. Reviews must be completed, and Requests for Release of Funds (RROF) submitted to HUD before CDBG/HOME funds are committed for non-exempt activities. Private citizens and organizations may object to the release of funds for CDBG/HOME projects on certain procedural grounds relating to environmental review (see 24 CFR 58.70 - 58.77). To avoid challenges, grantees (the City) and Sub-Recipients (the Provider) should be diligent about meeting procedural requirements. Flood Insurance Section 202 of the Flood Disaster Protection Act of 1973 (42 USC 4106): Requires that CDBG/HOME funds shall not be provided to an area that has been identified by the Federal Emergency Management Agency (FEMA) as having special flood hazard, unless: The community is participating in the National Flood Insurance Program, or it has been less than a year since the community was designated as having special flood hazards; and Flood insurance is obtained. IV. Lead-based Paint On September 15, 1999, the "Requirements for Notification, Evaluation and Reduction of Lead-Based Paint Hazards in Federally Owned Residential Property and Housing Receiving Federal Assistance; Final Rule" was published within title 24 of the Code of Federal Regulations as part 35 (24 CFR 35). The regulation was issued under sections 1012 and 1013 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, which is Title X (ten) of the Housing and Community Development Act of 1992. Sections 1012 and 1013 of Title X amended the Lead- Based Paint Poisoning Prevention Act of 1971, which is the basic law covering lead- based paint in federally associated housing. 8 The regulation sets hazard reduction requirements that give much greater emphasis to reducing lead in house dust. Scientific research has found that exposure to lead in dust is the most common way young children become lead poisoned. Therefore, the new regulation requires dust testing after paint is disturbed to make sure the home is lead-safe. Specific requirements depend on whether the housing is being disposed of or assisted by the federal government, and also on the type and amount of financial assistance, the age of the structure, and whether the dwelling is rental or owner occupied. On April 22, 2008, the EPA issued a rule requiring the use of lead-safe practices and other actions aimed at preventing lead poisoning to protect against the hazards created by exposure to lead dust in existing structures built prior to 1978. Under the rule, all contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and follow specific work practices to prevent lead contamination. This rule (40 CFR Part 745) is enforced as of April 22, 2010. The rule must be executed by all sub-contractors. Property Exempt from Lead-based paint regulation: • Housing built since January 1, 1978, when lead paint was banned for residential use; • Housing exclusively for the elderly or people with disabilities, unless a child under age 6 is expected to reside there; • Zero-bedroom dwellings, including efficiency apartments, single-room occupancy housing, dormitories or military barracks; • Property that has been found to be free of lead-based paint by a certified lead-based paint inspector; • Property where all lead-based paint has been removed; • Unoccupied housing that will remain vacant until demolished; • Non-Residential property; and • Any rehabilitation or housing improvement that does not disturb a painted surface. Types of housing subject to 24 CFR 35: • Federally-Owned housing being sold; • Housing receiving a federal subsidy that is associated with the property, rather than with the occupants (project-based assistance); • Public housing; • Housing occupied by a family (with a child) receiving tenant-based subsidy (such as a voucher or certificate); • Multifamily housing for which mortgage insurance is being sought; and • Housing receiving federal assistance for rehabilitation, reducing homelessness, and other special needs. 9 If you want copies of the regulation or have general questions, you can call the National Lead Information Center at (800) 424-LEAD, or TDD (800) 526-5456 for the hearing impaired. You can also download the regulation and other educational materials at http://www.hud.gov/offices/lead/index.cfm. For further information, you may call HUD at (202) 755-1785, ext. 104, or e-mail HUD at lead regulations _hud.gov. - V. Displacement, Relocation, Acquisition and Replacement of Housing CDBG/HOME projects involving acquisition, rehabilitation or demolition may be subject to the provisions of the Uniform Relocation Act (UDA). Demolition or conversion of units with CDBG funds may trigger section 104 (d) (also known as the "Barney Frank Amendment" requirements.) VI. Compliance with National Objective The Provider will ensure and maintain evidence that activities assisted with CDBG/HOME funds from the City of Miami Beach comply with the primary National Objective, "Benefit to Low and Moderate Income Persons" and will provide services or activities that benefit at least 51% low and moderate income persons. A low or moderate-income household is defined as: a household having an income equal to or less than the limits cited below. Individuals who are unrelated but are sharing the same household shall each be considered as one-person households. Low and Moderate Household Income Limits (Effective 05/14/2010) (Source: U.S. Department of Housing & Urban Development) (Note: Low-Income (80% of Median Income), Very Low-Income (50 % of Median Income), Extremely Low (30% of Median Income) HUD Income Limits for FY 2013 ' - • • • - a ' - • ' - • ' - • ' - • ' - • ' . $13,750 $15,700 $17,650 $19,600 $21,200 $22,750 $24,350 $25,900 $22,900 $26,200 $29,450 $32,700 $35,350 $37,950 $40,550 $43,200 • •�'. $27,480 $31, 440 $35,340 $39,240 $42,420 $45,540 $48,660 $51,840 • $36,650 $41,850 $47,100 $52,300 $56,500 $60,700 $64,900 $69,050 10 Change Orders/Budget Amendments The goal should be to limit the use of Change Orders or Budget Amendments. Change Orders and Budget Amendments require prior written approval by the City Manager. To request a Change Order or Budget Amendment, a written request for changes must be submitted to your Grant Monitor delineating the changes and providing a detailed justification for making the request. Approvals of any changes are at the sole discretion of the City Manager. No budget amendment will be processed after June 30, 2014 for Public Service Projects. No budget amendment will be processed for Capital Projects Budgets after eighty (80) percent of the available funds have been drawn. Budget amendments or Change Orders that deviate from the original scope will be rejected and the funds in question may be subject to recapture at the sole discretion of the City Manager. Compliance with Local Rules, Regulations, Ordinances and Laws The Sub-Recipient must remain incompliance with all local rules, regulations, ordinances and laws (including having an active business license) in addition to those specified in the body of the Agreement. In addition, the Sub-Recipient must not owe any monies to the City at the time of Agreement execution or final release of grant funds. The City will verify with the Finance Department to ensure that no monies are due the City prior to Agreement execution. Employee/ Contractor File Review The following documentation must be included in the Sub-Recipient's employee/contractor file for those employees/contractors providing services under this contract. The following must be included in the employee files: • Employment Application • Evidence of degree/credentials • Job Description Signed by Employee • Evidence of Required Experience • Florida Background Criminal Screening, if applicable • National FBI Background Criminal Screening (Level 2), if applicable • Affidavit of Good Moral Character, if applicable • Proof of Knowledge of Policies & Procedures, if applicable • 1-9 Verification on File 11 The City reserves the right to inspect those employee/contractor files whose salaries are funded in part or in whole by its funds. Evaluation In its continuing effort to ensure contract compliance and performance, the City will evaluate the Sub-Recipient in its fulfillment of the terms of this agreement including, but not limited to, the following measures: • Agreement compliance • Leverage and fiscal soundness • Accuracy and timeliness of Monthly Progress Reports • Accuracy and timeliness of Monthly Financial Reports • Adherence to project timelines • Fulfillment of prescribed outcomes Fiscal Stability The Sub-Recipient is required to maintain fiscal stability throughout the terms of this Agreement. This is to ensure the Sub-Recipient's ability to fulfill the terms of this Agreement and meeting of the National Objective. For affordable housing developers, fiscal stability policies are encouraged in anticipation of additional HUD guidance regarding fiscal oversight for rental projects. More so, as projects have extended lives, fiscal stability underscores the long-term viability of the housing units. Leverage For HOME-funded projects, the Sub-Recipient must demonstrate the commitment of other sources of funds committed to the City-funded project. Furthermore, all other identified funds must be in place prior to the use of HOME funds. The documentation that demonstrates this fiscal leverage is the Subsidy Layering Review and underwriting. Monitoring & Performance Reviews The City reserves the right to inspect, monitor and/or audit the Sub-Recipient to ensure contractual compliance. This includes, but is not limited to: • Review of on-site service delivery • Inspection and review of client, budgetary and employee files (for those employees providing services under this Agreement) Monitoring visits will take place within 120 days of the commencement of services. The City will notify the Sub-Recipient a minimum of three (3) business days prior to a monitoring visit. 12 Performance Ratings The Sub-Recipient agrees that its Performance Rating, the score awarded for performance on the following measures, will be posted on the City's website on an annual basis: • Timely and accurate submission of Monthly Progress Report • Timely and accurate submissions of Monthly Financial Reports (reimbursement requests) • Delivery of contracted service units Ratings will be given for each performance measure based on the following: Performance • Rationale & Score Timely and accurate submission of ➢ "0" for failing to submit on time Monthly Progress Report ➢ "25" for submitting on time Timely and accurate submissions of ➢ "0" for failing to submit accurate report Monthly Financial Report with back-up material on time (reimbursement requests) ➢ "25" for submitting accurate report on time Delivery of contracted service units Possible score of 0 to 50 based upon within contracted timeframe completion of projected service units. Score is pro-rated if total projected service units are not met. Proformas Capital projects must submit certified-monthly proformas that indicate project funding sources and correlating uses. Proformas must be certified by the preparing party as well as the agency's signatory as reflected within this Agreement. Reporting Requirements The Contractor will provide the City with a Monthly Progress Report and Monthly Financial Report by the 10th of the following month. In the event that the 10th of the month lands on a Saturday, Sunday or holiday, the report must be submitted the following business day. 13 The following chart depicts the submission dates for the term of this Agreement: Month Date or October 2013 November 12, 2013 November 2013 December 10, 2013 December 2013 January 10, 2014 January 2014 February 10, 2014 February 2014 March 10, 2014 March 2014 April 10, 2014 April 2014 May 12, 2014 May 2014 June 10, 2014 June 2014 July 10, 2014 July 2014 August 11, 2014 August 2014 September 10, 2014 September 2014 October 10, 2014 Monthly reports will be submitted via any of the following methods: • Standard mail • Hand delivery Monthly reports will not be considered acceptable unless the following is met: • Forms are completely and accurately filled • Necessary back-up materials are included (evidence of expense incurred, invoices, time logs, executed AIA Forms, etc.) • Reports bear the signature of the person preparing the report and the Sub- Recipient's authorized signatory Monthly Progress Reports should encapsulate a project's progress in alignment with the funds expended. Rent Roll Submissions Sub-Recipients using City funds for the creation or rehabilitation of affordable housing must submit tenant rent rolls within thirty (30) days of meeting the National Objective and every year thereafter for a minimum of fifteen (15) years in adherence with the affordability period required with use of these funds. For completed projects, certified tenant rolls must be submitted annually by November 1St. Tenant rolls must be certified by the Sub-Recipient Agency's authorized signatory. Those projects with a longer affordability period require annual tenant rolls for the period of affordability established in the City's Restrictive Covenant and/or mortgage. These tenant rolls must be submitted by November 1St of each year of affordability. Tenant rolls must be certified by the Sub-Recipient Agency's authorized signatory. 14 Retainage All capital projects utilizing HUD funds are subject to a ten (10) percent retainage that will not be released until the National Objective is met. Retainage will be held as appropriate from all submitted reimbursement requests. Subsidy Layering Review All affordable housing projects using CDBG/HOME funds require the completion of an independent Subsidy Layering Review and underwriting. These reviews must be completed prior to the project being submitted via HUD's IDIS system and precedes the incurrence of any related funds. Therefore, no capital projects will be deemed eligible for reimbursement until the Subsidy Layering Review and underwriting have been received and accepted by the City. The expense for the Subsidy Layering Review and underwriting services are eligible for reimbursement if the project proceeds but is not eligible for reimbursement otherwise. Timeliness of Reimbursement Requests Reimbursement requests must be submitted no later than sixty (60) days from the incurrence of the expense. The City will strictly monitor this element. Please note that cancelled checks must be submitted in conjunction with all reimbursement requests. Therefore, the Sub-Recipient should calendar itself accordingly to ensure that reimbursement requests are submitted to the City in a timely manner. Training Requirements The Sub-Recipient must ensure that the person responsible for preparing the Monthly Progress Report and Monthly Financial Report attends the City's Sub-Recipient Reporting Training and places the attendance certificate in the employee's personnel file for inspection by the City during its monitoring visit. Additional Documentation The following documentation must be submitted with this executed agreement: • All required insurance certificates • Copy of current audit • Copy of required business licenses and permits 15 LL 77 EXHIBIT "DOCUMENTATION" The Sub-Recipient agrees to provide the following documents as part of its reporting requirements: To Document Insurance Coverage: • Copy of insurance policy or binder (with proof of payment) with limits and scope of coverage To Document Client Eligibility and Service: • Client attendance logs • Intake and screening forms • Executed client consent agreements To Document Fiscal Leverage: • Monthly project proformas (for capital projects only) To Document Procurement: • Evidence of at least three (3) quotes obtained for service/item • Formal bid process including advertisement, scope, respondents and scoring To Document Expenses Incurred: • Cancelled checks with copy of referenced invoice • Electronic payroll ledgers with corresponding bank transactions (statement) • Executed professional service agreements (subject to procurement) • Executed and notarized AIA Forms (for capital projects only) • Executed and Filed Release of Lien (for capital projects only) • Copies of valid work permits ad clearances (for capital projects only) To Document Construction Completion: • Certificate of Occupancy (CO) To Document Lease-up of Affordable Housing: • Rent rolls • Tenant applications (with proof of income) 16 ��®� CERTIFICATE OF LIABILITY INSURANCE DATE(MMmD,YYYY) �� D3/4/2013 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED,the policy(ios)must be endorsed. If SUBROGATION IS WAIVED,sub)ect to the terms and conditions of the policy,certain policies may require an endorsoment. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER NA TACT Jeffrey C_Samas Wells Fargo Ins Services USA, Inc. (MIA) PHONE 2601 S Bayshore Dr, Suite 1600 AIC.Nc.Esll (305) 443-4886 ac No:(305) 491-0460 MAIL DD ESS- Coconut Grove FL 33133 INSURER(S)AFFORDING COVERAGE NAIC A INSURER A:Brid afield Employers Insurance 10701 INSURED INSURER B:Markel Insurance Company - _ 38970 Boys 6 Girls Clubs of Miami-Dadra Inc. INSURER C: P.O. Box 330219 INSURER D: Miami FL 33233 IN Miami (305) 446-9910 INSURER F: COVERAGES CERTIFICATE NUM13ER:Cert ID 259716 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO-ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. DOL N a POLICY EF POLICY E P L TYPEOFINSURANCE MMIDD LIMITS TR POLICYNUMBER MMIDDIYYYY i GENERAL LIABILITY EACH OCCURRENCE S 1,000,000 i E OR. ` B X COMMERCIAL GENERAL LIABILITY Y 4602CY122073-12 3/1/2013 3/1/2014 PREMISES Ea occurrence $ 200,000 i CLAIMS-IAADE X❑OCCUR MED EXP(Any one Orson) $ 5,()00 PERSONAL&ADV INJURY $ 1,000,000 I GENERAL AGGREGATE 3 3,000,000 r'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COIAPIOP AGG S 11000,000 j I POLICY PRO LOC S CO 18 NEU SINGLE LIMIT AUTOMOBILE LIABILITY IES a do BODILY INJURY(Par person) $ ANY AUTO ! AUTOOSEO SCHEDULED BODILY INJURY(Per accident) S i NON-OWNED PROPERTY DAMAGE $ HIRED AUTOS AUTOS Pe acudenl j S A UMBRELLALIAB HCLAIMS-MADE OGCUR 4602CY112073 3/1/2013 3/1/2014 EACH OCCURRENCE $ 2,000,000 EXCESS LIAO AGGREGATE S 2 000 000 _ I S , DED I X I RETENTION 10,000 WCSTATU• I JOTH. ` WORKERS COMPENSATION 830-24214 -1/1/2013 1/-1/2014 B AND EMPLOYERS'LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE YIN E.L.EACH ACCIDENT S 500,000 NIA OFFICER/MEMBER EXCLUDE09 500,000 (Myyandalory In NIi) E.L.DISEASE•EA EMPLOYE $ OE3GI d"ON OF OPERATIONS below E.L.DISEASE•POLICY LIMIT S 500,000 �! S 9 I I DESCRIPTION OF OPERATIONS/LOCATIONS I VEHICLES(Attach ACORD 101,Addlllonal Remarks Schedule,If morn apace Is required) AS RESPECTS GENERAL LIABILITY THE CERTIFICATE HOLDER IS INCLUDED AS//ADDITIONAL INSURED FOR OPERATIONS CONDUCTED BY THE NAMED INSURED. i i i E CERTIFICATE HOLDER CANCELLATION i i SHOULDANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. CITY OF MIAMI BEACH ` I ATTN: Anna Parekh ' AUTHORIZED REPRESENTATIVE 1700 CONVENTION CENTER DRIVE MIAMI BEACH FL 33139 ©1988-2010 ACORD CORPORATION. AiVrghts reserved. ACORD 25(2010105) The ACORD name and logo are registered marks of ACORD Page 1 of 1 BOYS AND GIRLS CLUBS OF MIAMI-DADE,INC.AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS, INDEPENDENT AUDITORS' REPORT AND SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED MAY 31,2013 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED MAY 31,2012) . i TABLE OF CONTENTS Independent Auditors' Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3 Financial Statements Consolidated Statements of Financial Position. . . . . . . . . . . . . 4 Consolidated Statements of Activities . . . .. . . . . . . . . . . . . . . . . . 5 Consolidated Statements of Cash Flows. . . . . . . . . .. .. . . . . . . . 6 Consolidated Statements of Functional Expenses. . . . . . . . . . . . 7 Notes to Consolidated Financial Statements. . . . .. . . . . . . . . . . 8-14 Supplementary Information Consolidating Statement of Financial Position—2013 . . . . . . . . 15 Consolidating Statement of Financial Position—2012 . . . . . . . . 16 Consolidating Statement of Activities—2013. . . . . . . . . . . . . . . 17 Consolidating Statement of Activities—2012. . . . . . . . . . . . . . .. 18 Independent Auditors' Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements. Performed in Accordance with Government Auditing Standards. . . . . . . . . . . . . . . . . . . . . . . 19-20 i LEJAN O M. ARMAS, C.P.A. VERDEJA I DE ARMAS AIEJANDR M. TRUJILLO, C.P.A. CERTIFIED PUBLIC ACCOUNTANTS OCTAvIo A. VERDEJA, C.P.A. TAB VERDEJA, C.P.A. INDEPENDENT AUDITORS'REPORT MANNY ALVAREZ, C.P.A. YESLIE CASTRO, C.P.A. To the Board of Directors of ,JOHN-PAUL MADARIAGA, C.P.A. MARIA C. PEREZ-ABREU, C.P.A. Boys and Girls Clubs of Miami-Dade, Inc. RICHARD F. PUERTO, C.P.A. and Subsidiaries OCTAVIO F. VERDEJA, C.P.A. Miami, Florida Report on the Financial Statements We have audited the accompanying consolidated financial statements of Boys and Girls Clubs of Miami-Dade, Inc. and Subsidiaries (the "Organization"), which comprise the consolidated statements of financial position as of May 31, 2013, and the consolidated related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements. Management's Responsibility.for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. A LIMITED LIABILITY PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS 255 ALHAMBRA CIRCLE, SUITE 560, CORAL GABLES, FL 33134 OFFICE: 305.446.3177 • FAx: 305.446,6370 WWW.V-DCPA.COM Opinion In our opinion, the financial statements referred to above present fairly, in all material respects the financial position of the Organization as of May 31, 2013 and the changes'in its net assets and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited of Boys and Girls Clubs of Miami-Dade, Inc. and Subsidiaries financial statements, and our report dated October 10, 2012, expressed an unqualified opinion on those audited financial statements. In our opinion,the summarized comparative information presented herein as of and for the year ended May 31, 2012, is consistent,in all material respects, with the audited financial statements from which it has been derived. Other Matter Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of consolidating statements of financial position and consolidating statements of activities on pages 15-18 are presented for purposes of additional analysis and is not a required part of the financial statements. Such information is responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 9, 2013, on our consideration of the Organization's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to Aescribe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal. control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization's internal control over financial reporting and compliance. Lji CERTIFIED PUBLIC ACCOUNTANTS Coral Gables, Florida October 9, 2013 3 BOYS AND GIRLS CLUBS OF MIAMI-DADE,INC.AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION MAY 31,2013(With Comparative Totals as of May 31,2012) ASSETS Comparative Totals CURRENT ASSETS 2013 2012 Cash and cash equivalents $ 1,893,485 $ 1,476,211 Investments at fair value 5,304,960 4,776,480 Grants receivable,no allowance necessary 143,158 133,553 Prepaid expenses and other assets 75,813 69,542 TOTAL CURRENT ASSETS 7,417,416 65455,786 PROPERTY AND EQUIPMENT including construction in progress,net 3,251,629 2,807,893 TOTAL ASSETS $ 10,669,045 $ 9,263,679 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $ 119,610 $ 159,568 Line of credit and note payable 9,603 18,245 Deferred program fees 152,394 144,841 TOTAL CURRENT LIABILITIES 281,607 322,654 TOTAL LIABILITIES 281,607 322,654 COMMITMENTS NET ASSETS Unrestricted 5,828,441 4,806,148 Temporarily restricted 4,558,997 4,134,877 TOTAL-NET ASSETS 10,387,438 8,941,025 TOTAL LIABILITIES AND NET ASSETS $ 10,669,045 $ 9,263,679 The accompanying notes are an integral part of these financial statements. 4 BOYS AND GIRLS CLUBS OF MIAMI-DADE,INC.AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED MAY 31,2013 (With Comparative Totals for the Year Ended May 31,2012) 2013 Comparative Temporarily Totals- Unrestricted Restricted Total 2012 SUPPORT,REVENUE AND INVESTMENT INCOME Support United Way allocation $ 171,228 $ - $ 171,228 $ 196,031 Contributions and bequests 970,144 629,107 1,599,251 1,395,357 Net assets released from restrictions 204,987 204,987 - - TOTAL SUPPORT 1,346,359 424,120 11770,479 1,591,388 Revenue Program and membership fees .1,287,199 - 1,287,199 1,196,866 Special events 962,325 - 962,325 959,997. Grants 824,267 - 824,267 7553052 Rental and other income 262,508 . - 262,508 251,272 TOTAL REVENUE 3,336,299 - 3,336,299 3,163,187 Investment income(expense) Interest and dividend income 239,380 - 239,380 217,093 Realized/Unrealized gain/loss,net 89,878 - 89,878 (37,012) TOTAL INVESTMENT INCOME(LOSS) 329,258 - 329,258 180,081 TOTAL SUPPORT, REVENUE AND INVESTMENT INCOME(LOSS) 5,011,916 424,120 5,436,036 4,934,656 Functional expenses Program services 35031,336 - 3,031,336 2,927,886 Supporting services 958,287 - 958,287 962,287 TOTAL FUNCTIONAL EXPENSES 3,989,623 - 3,989,623 3,890,173 CHANGE IN NET ASSETS 150225293 424,120 -1,446,413 1,0443483 Net assets,beginning of year 4,8063148 4,134,877 8,941,025 7,896,542 Net assets, end of year $ 5,828,441 $ 4,558,997 $ 10,387,438 $ 8,941,025 The accompanying notes are an integral part of these financial statements. 5 BOYS AND GIRLS CLUBS OF MIAMI-DADE,INC.AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED MAY 31,2013 (With Comparative Totals for the Year Ended May 31,2012) Comparative Totals 2013 2012 CASH FLOW FROM OPERATING ACTIVITIES Change in net assets $ 1,446,413 $ 1,044,483 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 253,241 203,969 Realized/Unrealized (gain)/loss, net (89,878) 37,012 Changes in operating assets and liabilities: (Increase)decrease in grants and pledges receivable (9,605) 88,812 (Increase) in prepaid expenses and other assets (6,271) Increase in deferred program fees 7,553 17,366 (Decrease) increase in accounts payable and accrued expenses (39,958) 825407 115,082 429,566. NET CASH PROVIDED BY OPERATING ACTIVITIES 1,561,495 1,474,049 CASH FLOW FROM INVESTING ACTIVITIES Purchase of investments .(438,602) (428,615) Acquisition of property and equipment (696,977) (7295726) NET CASH USED IN INVESTING ACTIVITIES (1,135,579) (1,158,341) CASH FLOW FROM FINANCING ACTIVITIES Payments on line of credit and notes payable (8,642) (13,774) NET CASH USED IN FINANCING ACTIVITIES (8,642) (13,774) Net increase in cash and cash equivalents 417,274 3015934 Cash and cash equivalents, beginning of year 11476,211 1,1745-277 Cash and cash equivalents, end of year $ 1,8932485 $ 1,476,211 The accompanying notes are an integral part of these financial statements. 6 BOYS AND GIRLS CLUBS OF MIAMI-DADE,INC.AND SUBSIDIARIES_ CONSOLIDATED STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED MAY 31,2013 (With Comparative Totals for the Year Ended May 31,2012) 2013 Supporting Services Comparative Program Fund General and Totals, Services Raising Administrative Subtotal . Total 2012 Salaries $ 1,296,445 $ 53,614 $ 272,914 $ 326,528 $ 1,622,973 $ 1,587,283 Payroll taxes 93,590 4,136 23,896 28,032 121,622 132,274 Benefits 112,406 3,210 40,974 44,184 156,590 167,640 Total salaries and related expenses 1,502,441 .60,960 337,784 398,744 1,901,185 1,887,197 Professional fees and contracted services 175,497 - - 175,497 182,231 Utilities 329,305 - 12,687 12,687 341,992 350,669 Equipment rental and purchases 120,893 - - - 120,893 136,612 Insurance 234,719 - 1,380 1,380 236,099 218,867 Postage and shipping 3,311 - 167 167 3,478 2,874 Conferences and meetings 1,826 - 8,281 8,281 10,107 28,481 Publications and promotion 5,840 - 588 588 6,428 . 3,867 Program supplies 207,104 - - - 207,104 191,553 Office supplies 26,471 - 8,660 8,660 35,131 24,211 Telephone 13,906 . - 6,276 6,276 20,182 24,036 Taxes - 40,098 - 40,098 40,098 32,909 Awards 24,057 - - - 241057 29,247 Transportation and vehicles 110,499 . - 2,129 2,129 . 112,628 55,183 Miscellaneous 22,226 3,886 . 3,886 26,112 ..51,103 Special events - 474,450 - 474,450 474,450 4595326 Support Services - - - - - 5,946 Interest - - 941 941 941 1,892 Depreciation and amortization 253,241 - - - 253,241 203,969 Total functional expenses $3,031,336 $ 575,508 $ 382,779 $ 958,287 $3,989,623 $ 3,890,173 The accompanying notes are an integral part of these financial statements. 7 I BOYS AND GIRLS CLUBS.OF MIAMI-DARE,INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MAY 319 2013 NOTE 1 —ORGANIZATION Boys and Girls Clubs of Miami-Dade,-Inc. and subsidiaries (the "Organization") is an independent not-for- profit fund-raising.organization, which operates principally in the City of Miami, Florida. Boys and Girls Clubs of Miami-Dade Foundation, Inc. (the"Foundation") is a subsidiary of the Organization and its sole purpose is to operate as.a supporting organization for the Organization. Certain directors and officers of the Organization also act as it d ectors and officers of the Foundation. During the year ended May 31, 20005 the Organization created the Boys and Girls Clubs of Miami Northwest Property Foundation, Inc. ("Property Foundation"). The Property Foundation is a- subsidiary of the Organization and its sole purpose is to hold the title to the land located at 10915.Northwest 14 Avenue in Miami, Florida. Certain directors and officers of the Organization also act as directors and officers of the Property Foundation. Finally, The Greater Miami Boys Club Foundation, Inc. ("Greater Miami Foundation'') which holds title to the land located at 2805 S.W. 32"d Avenue, Miami, Florida was consolidated in these financial statements. . The Organization and three Foundations are exempt from federal and state income taxes under Section 501(c)(3) of the U.S.Internal Revenue Code, except for unrelated business taxable income. NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Statement of Financial Position, Statement of Activities and Cash Flow (collectively. "Financial Statements") of the Foundation have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Financial Accounting Standards Board ("FASB") implemented the Accounting Standards Codification ("ASC") which establishes FASB ASC as the source of authoritative U.S. accounting and reporting standards for nongovernmental entities. Presented below is a summary of significant accounting principles followed in the preparation of the accompanying financial statements. These consolidated financial statements are presented in accordance with FASB ASC 958-205 Presentation.of. Financial Statements. In accordance with these standards, the Organization is required to classify its resources into three separate classes of net assets: unrestricted, temporarily restricted, and permanently restricted. In addition,the Organization is required to present a statement of cash flows. Unrestricted Unrestricted net assets consist of net assets that are neither permanently nor temporarily restricted by donor- imposed stipulations. Management or the governing board has discretionary control to use these funds in carrying on the mission of the Foundation. Temporarily Restricted Temporarily restricted net assets represent net assets with a donor-imposed restriction that is satisfied either by passage of time or by actions of the Foundation. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is fulfilled, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. 8 BOYS AND GIRLS CLUBS OF MIAMI-DADE,INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STA'T'EMENTS FOR THE YEAR ENDED MAY 319 2013 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Permanently Restricted Permanently restricted net assets result primarily from contributions that contain a donor-imposed stipulation that neither expires within a certain period of time nor can be fulfilled or otherwise removed by actions of the Foundation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Comparative Financial Information The consolidated financial statements include certain prior-year summarized comparative information in total but not by net asset. class. Such information does not include sufficient detail to constitute a presentation. in conformity with.generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Organization's consolidated financial statements for the year ended May 31, 2012, from which the summarized information was derived. Principles of Consolidation The.consolidated financial statements include the accounts of the Organization and its 100% wholly owned subsidiaries, the Foundation, Property Foundation and Greater Miami Foundation. All significant intercompany accounts and transactions have been eliminated. Contributions Contributions of cash and-other assets are recorded at fair value when the pledge is received. Contributions and gifts received with no restrictions or specified uses identified by the donor or grantor is included in unrestricted revenue in the accompanying consolidated statement of activities when received.. Contributions received with donor or grantor stipulations that limit the use of donated assets are reported as either temporarily or permanently restricted support in the statement of activities when received. When donor restrictions expire, temporarily restricted net assets are reclassified as unrestricted net assets and reported in the accompanying consolidated statement of activities as net assets released from restriction. Donor restricted contributions whose restrictions are met within the same year as received are reflected as-unrestricted revenue in the accompanying financial statements. The Organization receives grant revenues on a.reimbursement basis. Program Fees Program fees are recognized as revenue in the.period in which the related program expenses are incurred. Deferred program fees relate to fees received prior to the start of a program. Cash and Cash Equivalents All highly liquid cash investments with original maturities of three months or less from the dates of purchase are classified as cash equivalents. Cash equivalents include money market funds and other short-term, highly liquid investments and are carried at market value. 9 BOYS AND GIRLS CLUBS OF MIAMI-DADE,INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MAY 31, 2013 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Investments in Marketable Securities The Organization reports investments in marketable securities at fair market value and records an unrealized gain or.loss on investments for the difference between.the cost of the investment and its fair'market value. Under. FASB ASC, investments in marketable securities with readily determinable fair values and all investments in debt securities.should be reported at their fair values in the change in net assets. Investment income and gains restricted by a donor should be reported as increases in unrestricted net assets if the restrictions are met (either by passage of time or by use) in the reporting period in which the income and gains are recognized. Pledges Receivable and Contributions Contributions received, including unconditional promises, are recognized as -revenues when the donor's commitment is received. - Conditional promises are recorded when donor stipulations are substantially met. Pledges receivable are recognized in the year in which the pledge is received at the estimated present value of the future cash flows using the risk-free rate as of the date the receivable is recognized. Unconditional promises and contributions of non-cash assets are recorded at their fair value. Property and Equipment, net Property and equipment, except donated assets, are recorded at cost and depreciated on a'straight-line basis over the estimated usefiil lives of the assets. Donated furniture and equipment are recorded at fair value at the date. of donation. Donated land is recorded at appraised value at the time of donations. When items are retired or otherwise disposed, the related costs and accumulated depreciation are removed from the accounts and any resulting gains or losses are recognized. The carrying value of property and equipment is subject.to periodic review for.reliability. Based on present circumstances,management of the Organization does not believe any impairment indicators are present. Donated Services No amounts have been reflected in the accompanying consolidated financial statements for donated services as no objective basis is available to measure the value of such services; however, a substantial number of volunteers have donated significant amounts of time to the Organization's program services and fund-raising campaigns. Income Taxes The Foundation is exempt from income tax under Section 501(c) (3) of the Internal Revenue Code and therefore, has made no provision for federal income taxes in the accompanying financial statements. In addition, the Foundation qualifies for the charitable contribution deduction under Section 170 (b) (1) (A) and has been classified as an organization other than a private foundation under Section 509 (a) (2). There are no reserves held for uncertain tax positions at May 31, 2013. Tax years that are open under the statute of limitations remain subject to examination by the IRS. 10 BOYS AND GIRLS CLUBS OF MIAMI-DADE,INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MAY 31,2013 NOTE 2'—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Allocation of Functional Expenses Expenses are allocated to functional categories based on allocation percentages approved by management. The allocations reflect costs associated with program and supporting service functions. Net Assets Released From Restrictions 'Net assets released from restrictions amounted to $204,987 due to expiration of time or purpose restrictions for the years ended May 31, 2013, respectively. Subsequent Events The Organization has evaluated subsequent events through October 9, 2013, which is the date the financial statements were available to be issued. NOTE 3 —PROPERTY AND EQUIPMENT,NET Property and equipment consisted of the following at May 31, 2013: Useful Life 2013 Land $ 51,819 Buildings and.Gymnasium 20 2,416;410 Leasehold improvements 10 1,226,723 Manitenance equipment 5 16,300 Furniture and fixtures 10 347,084 Vehicles 5 84,953 Construction in progress(See Note 15) 15186;781 5,330,070 Less: Accumulated depreciation (2,0785441) $ - 3,2515629 Depreciation expense for the year.ended May 31, 2013 was.$253,241. NOTE 4—INVESTMENTS Investments consisted of the following at May 31, 2013: 2013 Common stock $ 41-6535334 Corporate bonds 651,626 $ 5,304,960 NOTE 5—RISK AND UNCERTAINTY Securities and investments are exposed to interest, market and credit risk. These securities and investments may change in value and as such can affect the carrying/fair value of the investments. Subsequent to year end, the financial markets have been subject to considerable volatility. Accordingly, the value of investments held, as reflected in these financial statements,may be affected. 11 BOYS AND GIRDS CLUBS OF MIAMI-DADE,INC.'AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MAY 319 2013 NOTE 6—NOTE PAYABLE The Organization entered into a financing agreement during fiscal year 2010 with a financing company carrying a fixed interest rate of 6.74% and maturing September 12, 2014. This note had a balance of$9,603 at May 31, 2013. Aggregate maturities on the above loans are expected as follows: Year Ending May 31, Amount 2014 $ 75127 2015 2,476 Total $ 95603 NOTE 7—STATEMENT OF CASH FLOWS Interest paid during the year ended May 31, 2013 was approximately $900. NOTE 8—COMMITMENTS The Organization leases equipment under various non-cancelable operating lease agreements expiring in 2018. Minimum rental commitments under all non-cancelable operating leases are due as follows: Year Ending May 31; Amount 2014 $ 15,694 2015 8,804 2016 7,944 2017 7,944 2018 3,310 $ 43,696 NOTE 9—EMPLOYEE BENEFITS The Organization participates with the Boys and Girls Clubs of America in a non-contributory defined contribution.pension plan (the "Plan"). All full-time employees who have completed one year of service and are at least. 21 .years old on the anniversary date of the Plan are eligible to participate in the Plan.- The Organization contributes 10% of each covered employee's gross salary. Total Plan expense for the year ended May 31, 2013 was approximately $86,000 and is included in "Employee Benefits" expense in the accompanying.schedule of functional expenses. Additionally, the Organization provides medical insurance for its employees. The insurance policies are purchased through an independent third party, and all premiums are paid by the Organization. Health insurance expense for the year ended May 31, 2013 was approximately $65,000 and is included in "Employee Benefits" . in the accompanying schedule of fimctional expenses. 12 BOYS AND GIRLS CLUBS OF MIAMI-DADE,INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS .FOR THE YEAR ENDED MAY 319 2013 NOTE 10—CONCENTRATION OF CREDIT RISK Financial instruments, which potentially subject the Organization to significant concentrations of credit risk, consist principally of cash and cash equivalents, pledges receivables and investments. The Organization places its cash investments in high quality financial institutions and limits the amount of credit exposure to any one institution. In addition, the Organization has established certain Repo accounts in order to mitigate the risk of loss. Concentrations of credit risk with respect to pledges receivable are limited due to the Organization's number of donors. The Organization does not generally require collateral. Additionally, the.Foundation has historically incurred minimal credit losses. The Organization has limited the credit risk associated with its investments by purchasing high-credit quality securities in accordance with the Foundation's investment policy. In addition, the Organization has invested its excess cash in repurchase agreements backed by United.States Govermnent Securities. At May 31, 2013, the Organization did not exceed the Federal Deposit Insurance Corporation(FDIC) limit of$250,000. NOTE 11 —TEMPORARILY RESTRICTED NET ASSETS Total temporarily restricted net assets at May 31, 2013 are $4,558,997. Such amounts are held in cash and investments. Temporarily restricted net assets consist of.$4,497,940, held at the Foundation on behalf of the Rebozo Foundation for the construction of the BB.Rebozo Boys and Girls Club in Southwest Miami-Dade and $61,057 consist of amounts held at the Organization with donor imposed stipulations that.either expire by passage of time or can be fulfilled by actions of the Organization to those stipulations. NOTE 12—FAIR VALUE MEASUREMENTS FASB ASC 820, Fair Value Measurements and Disclosures,.establishes a framework for measurin g.fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation-techniques used to . measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1. measurements),and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the plan has the ability to access. Level 2 Inputs to the valuation methodology include • Quoted prices.for similar assets or liabilities in active markets; • Quoted prices for identical assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable,for the asset o r liability;ty, and • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 —Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. 13 BOYS AND GIRLS CLUBS OF MIAMI-DADE,INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MAY 319 2013 NOTE 12—FAIR VALUE MEASUREMENTS (Continued) Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at May 31, 2013. Equities: Valued at the closing price reported on the active market on which the individual securities are traded. Fixed income: Valued at fair value by discounting cash flows to estimate the value of the securities, typically based on market observable interest rates,prepayment speeds and/or option adjusted spreads. The following table sets forth by.level, within the fair value hierarchy, the Foundation's assets measured at fair value on a recurring basis as of May 31, 2013: Fair Value Measurements Using: Quoted Prices in Active Markets Significant Other Significant Fair Value at for Identical Observable Unobservable Assets 5/31/13 Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Fixed income: .Corporate bonds $ 4,6535334 $ 4,653,334 $ - $ - Equities: Common stock 6515626 651,626 - $ 553045960 $ 553045960 $ - $ - NOTE 13-RELATED PARTY TRANSACTION Due.to the trustee relationship between the Foundation and the Organization,the Organization has a receivable from the Foundation in the amount of.$941,220 at May 31., 2013 and the Foundation has a payable for the same. Such amounts are in eliminated consolidation. NOTE 14- GRANT REVENUE The Organization receives grant revenue from various local government agencies, which have been included on the accompanying consolidating statement of activities. Grant revenues consisted of the following local government agencies at May 31, 2013: Amount Miami-Dade County $ 371;314 City of Miami-CDBG 256,053 City of Miami Beach 196,900 Total $ 8245267 NOTE 15- COMMITMENT/CONSTRUCTION IN PROGRESS During the fiscal year, the Organization had total fees of approximately $1,186,000 for a $1,258,850 contract for_the construction of the new Boys and Girls Club Miami Beach unit. Construction is expected to be completed in fiscal year 2014. 14 SUPPLEMENTARY INFORMATION "C3 kn O 00 ' M V O ' M d' t� '-- I— 00 v� N 00 �.o kn ,--, d�C1 00 "d O N -• C� d1 Q1 N --' 00 00 r- C1 O O 00 N .-, V1 00 N � 00 �p 00 kn M � E"-' •-+ � M O V1 �' O O U � � O N N N N N W Coe) c1d o O O O O O O O O cz ct O. C7 Gel Goq Eoe v� ~ 00 00 00 00 00 d.. 0 a � fae cn U s Cd ��-+ 00 01 00 N N �01\ �10 00 00 t-\,6 V> kn.-- 01 •-- w kn O v) M 00 Ol O\ d 00 to kr� d. cn C! U w E011 69 r�-� \O ' •--� N 00 00 `p \O ' \O M 110 QIN O O � M `n kn to to �U 00 .,.., pap W Z 6 Gol� s� Q � H ® H . W W cif C/) c13 "Cy C/) cd Z cd i1 Ct) cd O cn xi con Cd U ,-� C7Qww dQa �1 Z H O M ' N M 0.) 00 ' V) -. 00 r- kf) O� �? 00kn d' Q\ t� std Ln cd N -:t Vl k1 00 1p kf) N 00 l0 00 O b �D l0 M 01 t- M 01 00 -t N 1p d' M cq kr)° C) 00(=> N ~ M 000 O U 69 6f3 b9 r ° N N N N N •� (ON C� W 6�9 b�} 69 b9 • U i i p i i i i i p i p p C C'3 c ~'" 0 0 O O O .: r O O O O O � p� O 6�4 69 69 cd N ~ 00 00 00 00 00 ° o.C� rgoq Qoq d- 00 N N N O N W O Nt v1 N N I:t 00 M v1 O O r- 00 N 't 00 QQ °� '� N t-- 0� O� 0l 0� O C) .� C � O U � 00 ' to •--� d' N [� 01 M •-- N k/ .O v1 kn N 00 lD D1 O� 00 kr) ® 4-� d j ON 00 .1- N 0� It It [� ay 'V O .� 1p M d' 1p V1 1p Vl r- d' N M O d' l0 V cd N ,-, 01 •-, M 1p N 00 .--+ Q N vi d' d' vl tb cn Cd A � N � O � o d d W H cn A W W W CL 0 O cd cd Ct cd cd CA 0 p� p. O. a> cn Cd u U �- C7 �1a� a d �1 � �1 Z H .d 00 O\ 01 Lr1 [— 00 ON O 00 00 �o "o t` M M kr) 00 0+ N kr) t` O1� N 110 O ON 00 l- v1 cr) M 00 N —4 N M 4 'cd M N t!1 N cr1 00 O M No � Nt O r-. 141-O\ N d' N 116 O�cr cr \p O� 116 00 "o N �O cr) cn 00 N M M Vl 00 d• r 00� p p -- t!1 N ON 00 N cn N Lo [� -• M kr) M cr1 •- 00 O p ^' 0 .S fil � sA O O O O O O C7 w° CIS i i i i i i i i O1 O� y O U 00 00 o N WU ono z O O O 00 00 00 o 0 00 t— V-)p p v1 V') 00 t- � O O O O O --� O O cn oo N cn O O M Cl?) o0 00 cr Or� O� l- lr� N V 116 PF.O %0 \O cn 00 N 01 N N r--U v1 W) N cn 00 00 O a\ C/1 yr b O w 0 00 rn O\ vn I-- 00 Q1 00 � � M vl rn 't N O N ON N \C O ON N cn 00 N O ON O N N I cr1 N k � N M N \O 00 O U N [� N �t N �p 00 r-+ M "t It It ON r- cn O 00 \10 N \C cr1 cry M cr1 "p t— �t •-- cn cad O N N ON 00 N M � O O1 O\ v') 00 'Zt crl M M Vl � 5 C, 0� M U 0 X a�iA GQhA Pol U cd (� W > o 11 A ff off o ° a � w b �� cra 4) on •v C/) O t 'b r., r- 12 cd O � 4 U 4--4 ✓' r`-' Fil O 0. A 0 O� CC3 a � aU � av� C7w Cld z z �, a, b r- 00 \0 r- N N r M N \10 [- cn en N v1 N M V•1 oo \p O1 N r- 00 01 •—+ 00 V'1 00 00 l- 00 V• N O M cn 00 ON O N •--4 O O O 110 00 N "t kl O CVS 't7 \,O kr) D1 kr) -- M l- [- O [-- N O d� \�o Ol, O\ O\ (7\ V1 kf) W) \ — M 00 M N IC (7.\ Nt O� d M `r) N O1 a1 00 O 00 01 cn [� r. r- - M Ct N 00 O U 601� cn o .5 5 W Gos O O cn , «i O O,.fl cd � 0 (Z, 69 (� U 00 00 O It o z 4,,, U � O O cn N — - � .tr) yr \10 r- r- O \O \ ON -°+ 00 It N N O\ O � �-, •-- � O O O N �O �O �O �O M �O �O [l- ll- O �o kr) vi O M �t O O vl v) r- cn 00 M '-- --� 0 d U • \O �C N 00 00 N O W cn b M p 00 0 C's l- 00 �-D t- CIA N r- \O .N 00 l- N Q1 n U M O,% N �O 01 V1 [- 00 00 �.o lzt 1�0 M ON O N oo O1 O N oo �10 v1 00 O 00 U ai \0 ON in �O O., vi r• M 00 l- �,O dT cn ON cn cn O4\ Ln v1 .v) 110 a1 N � r- N N �t cn 'C7 •-+ l- ON •--+ O1 r- N -+ O ON ON 00 N \�o 00 A „ m �r N cri d" �• U W � � o w W o w � M z ° ' �•-) [-� a a cn w a v� U Q) �' p, (n w > o �� t� 4� 'c. O bA `�. O OQ Q TJ O b N cn cn O Cd Q; wp Z a o a) � +' o O o a v f�, g O r i. p. s-. N + CO3 cn «3 O O ® a � � U � av� C7w 0 L) av� G m cd 0i CL v� > i i � U z z �+ VERDEJA I DE ARMAS PEDRO M. DE ARMAS, C.P.A. ALEJANDRO M. TRUJILLO, C.P.A. CERTIFIED PUBLIC ACCOUNTANTS OCTAvIo A. VERDEJA, C.P.A. TAB VERDEJA, C.P.A. MANNY ALVAREZ, C.P.A. YESLIE CASTRO, C.P.A. JOHN-PAUL MADARIAGA, C.P.A. REPORT ON INTERNAL CONTROL OVER MARIA C. PEREZ-ABREU, C.P.A. FINANCIAL REPORTING AND ON COMPLIANCE RICHARD F. PUERTO, C.P.A. AND OTHER MATTERS BASED ON AN AUDIT OF OCTAVIO F. VERDEJA, C.P.A. FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS To the Board of Directors of Boys and Girls Clubs of Miami-Dade, Inc. and Subsidiaries Miami, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States,the financial statements of Boys and Girls Clubs of Miami-Dade, Inc. and Subsidiaries (the "Organization"), which comprise the statement of financial position as of May 31, 2013, and the related consolidated statements of activities, and cash flows for the year then ended, and the related consolidated notes to financial statements, and have issued our report thereon dated October 9,2013. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Organization's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control. A deficiency in internal control exists when the design of operation of a control does not.allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. A LIMITED LIABILITY PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS 255 ALHAMBRA CIRCLE, SUITE 560, CORAL GABLES, FL 33134 19 OFFICE: 305.446.3177 FAx: 305.446.6370 WWW.V-DCPA.COM Compliance and Other Matters As part of obtaining reasonable assurance about whether the Organization's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are- required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing.of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Lighthouse's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing. Standards in considering the Lighthouse's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CERTIFIED PUBLIC ACCOUNTANTS Coral Gables,Florida October 9, 2013 20 EXHIBIT "C" "BUDGET" The attached budget reflects the scope of expenses that may be incurred through this Agreement. All expenses must comply with applicable rules and regulations including Procurement and Davis Bacon Act. 17 MIAMIBEACH I CDBG FY 2013/14 Project Budget _ Sub-Recipient: Boys&Girls Club of Miami Project: Miami Beach Juvenile Program Please list all items that will be reimbursed by the City of Miami Beach. Line 11ern Quantity, Unit Cost Lipe rdta[ Personnel (Employees Only)-List Position Title _ South Beach Club Director 1 9402 9402 0 0 Other Expenses General Liability Insurance 1 3598 3598 Office Supplies 1 1500 1500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ° • - 14500 EXHIBIT "D" "FINANCIAL MANAGEMENT" To comply with federal regulations, each program must have a financial management system that provides accurate, current and complete disclosure of the financial status of the activity. This means the financial system must be capable of generating regular financial status reports which indicate the dollar amount allocated for each activity (including any budget revisions), amount obligated (i.e., for which contract exists), and the amount expended for each activity. The system must permit the comparison of actual expenditures and revenues against budgeted amounts. The City must be able to isolate and to trace every CDBG dollar received and prove where it went and for what it was used. The City is responsible for- reviewing and certifying the financial management of any operating agency, which is not a City department or bureau, in order to determine whether or not it meets all of the above requirements. If the agency's system does not meet these requirements and modifications are not possible, the City must administer the CDBG funds for the operating agency. Support for Expenditures Sufficient support for expenses depends on the type of expenditure. They normally include the following items: • Salaries - Should be supported by proper documentation in personnel files of hire date, position, duties, compensation, and raises with effective date, termination date, and similar type information. Non-exempt employees are required by law to complete a timesheet showing number of hours they worked during the day. All employees paid in whole or in part from CDBG funds should prepare a time sheet indicating the hours worked on CDBG projects for each pay period. Based on these time sheets and the hourly payroll costs for each employee, a voucher statement indicating the distribution of payroll charges should be prepared and placed in the appropriate files.) • Employee Benefits - Should be supported by personnel policies and procedures manual, describing the types of benefits, eligibility and other relevant information.) • Professional Services - Should be supported by a complete and signed copy of the contract between the organization and the independent contractor, describing at the minimum, period of service, type of service and method for payments, in addition to the invoice from the private contractor.) • Purchases - At a minimum, purchases should be supported by a purchase order, packing list and vendor invoice. Credit card statements, travel itineraries, vendor statements and similar items do not represent support for an expense. Records Accounting records must be supported by source documentation. Invoices, bills of lading, purchase vouchers, payrolls and the like must be secured and retained for four years in order to show for what purpose funds were spent. Payments should not be made without invoices and vouchers physically in hand. All vouchers/invoices should be on vendor's letterhead. .18 Financial records are to be retained for a period of four years, with access guaranteed to the City, to HUD or Treasury officials or their representative. Audits For years beginning after June 30, 1996, all nonprofit organizations, state governments, and local governments that receive Federal funding fall under the revised OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations. Non-Federal entities that expend $500,000 or more in a year in Federal awards must have a single or program- specific audit. One copy of the sub-recipient or vendors' audited financial statement shall be submitted to the City immediately following the end of the fiscal year(s) during which CDBG funds are received. All auditees must submit to the Federal Audit Clearinghouse (FAC) a data collection form (Form SF-SAC) and reporting package upon completion of the annual audit in accordance with OMB Circular A-133. The deadline for this submission is the earlier of the 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for the audit. Address for submission is: The Federal Audit Clearinghouse 1201 E. 10th Street Jeffersonville, IN 47132 Phone (301) 457-1551 or(800) 253-0696 Email: gov.fac(a).census.gov Web: http://harvester.census.gov/sac 19 i EXHIBIT "C" "BUDGET" The attached budget reflects the scope of expenses that may be incurred through this Agreement. All expenses must comply with applicable rules and regulations including Procurement and Davis Bacon Act. 17 MIAMI BEACH F_ CDBG FY 2013/141 Project Budget Sub-Recipient: Boys&Girls Club of Miami Project: Miami Beach Juvenile Program Please list all items that will be reimbursed by the City of Miami Beach. Line Item Quantity U nit Cost Line Total Personnel (Employees Only)-List Position Title South Beach Club Director 1 9402 9402 0 0 Other Expenses ........................ ............. General Liability Insurance 1 3598 3598 Office Supplies 1 1500 1500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 , Project Totai - i EXHIBIT "D" "FINANCIAL MANAGEMENT" To comply with federal regulations, each program must have a financial management system that provides accurate, current and complete disclosure of the financial status of the activity. This means the financial system must be capable of generating regular financial status reports which indicate the dollar amount allocated for each activity (including any budget revisions), amount obligated (i.e., for which contract exists), and the amount expended for each activity. The system must permit the comparison of actual expenditures and revenues against budgeted amounts. The City must be able to isolate and to trace every CDBG dollar received and prove where it went and for what it was used. The City is responsible for reviewing and certifying the financial management of any operating agency, which is not a City department or bureau, in order to determine whether or not it meets all of the above requirements. If the agency's system does not meet these requirements and modifications are not possible, the City must administer the CDBG funds for the operating agency. Support for Expenditures Sufficient support for expenses depends on the type of expenditure. They normally include the following items: • Salaries - Should be supported by proper documentation in personnel files of hire date, position, duties, compensation, and raises with effective date, termination date, and similar type information. Non-exempt employees are required by law to complete a timesheet showing number of hours they worked during the day. All employees paid in whole or in part from CDBG funds should prepare a time sheet indicating the hours worked on CDBG projects for each pay period. Based on these time sheets and the hourly payroll costs for each employee, a voucher statement indicating the distribution of payroll charges should be prepared and placed in the appropriate files.) • Employee Benefits - Should be supported by personnel policies and procedures manual, describing the types of benefits, eligibility and other relevant information.) • Professional Services - Should be supported by a complete and signed copy of the contract between the organization and the independent contractor, describing at the minimum, period of service, type of service and method for payments, in addition to the invoice from the private contractor.) • Purchases - At a minimum, purchases should be supported by a purchase order, packing list and vendor invoice. Credit card statements, travel itineraries, vendor statements and similar items do not represent support for an expense. Records Accounting records must be supported by source documentation. Invoices, bills of lading, purchase vouchers, payrolls and the like must be secured and retained for four years in order to show for what purpose funds were spent. Payments should not be made without invoices and vouchers physically in hand. All vouchers/invoices should be on vendor's letterhead. 18 i Financial records are to be retained for a period of four years, with access guaranteed to the City, to HUD or Treasury officials or their representative. Audits For years beginning after June 30, 1996, all nonprofit organizations, state governments, and local governments that receive Federal funding fall under the revised OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations. Non-Federal entities that expend $500,000 or more in a year in Federal awards must have a single or program- specific audit. One copy of the sub-recipient or vendors' audited financial statement shall be submitted to the City immediately following the end of the fiscal year(s) during which CDBG funds are received. All auditees must submit to the Federal Audit Clearinghouse (FAC) a data collection form (Form SF-SAC) and reporting packageon completion of the annual audit in accordance with OMB Circular A-133. The deadline for this submission is the earlier of the 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for the audit. Address for submission is: The Federal Audit Clearinghouse 1201 E. 10th Street Jeffersonville, IN 47132 Phone (301) 457-1551 or (800) 253-0696 Email: gov.fac _census.gov Web: http://harvester.census.gov/sac F:IRHCDI$ALLIHSG-CDICDBGICDBG 2013 2014 Public Services\Boys&Girls FY 13141Boys Girls Club CDBG Scope of Service rev 91313.docx 19