HomeMy WebLinkAboutMEMORANDUM OF UNDERSTANDING PROMISE LAND COMMUNITY DEVELOPMENT CORPORATION HOME INVESTMENT PROGRAM
MEMORANDUM OF UNDERSTANDING
between
AUGUSTA, GEORGIA
And
PROMISE LAND COMMUNITY DEVELOPMENT CORPORATION
Under the
HOME INVESTMENT PARTNERSHIPS PROGRAM
"Transfer of 3115 Belle Drive"
TWS AGREEMENT ("Memorandum"), is made and entered into as of the ~?p!/.v day of
/JIL1~/, 2007 ("the effective date") by and between Augusta, Georgia, acting through the Housing
and C munity Development Department (hereinafter referred to as "HCD") - with principal offices
at 925 Laney Walker Blvd., 2nd Floor, Augusta, Georgia 30901, as party of the first part, hereinafter
called "Augusta", and Promise Land Community Development Corporation, a non-profit corporation,
organized pursuant to the Laws of the State of Georgia, hereinafter called "PLCDC" as party in the
second part.
WITNESSETH
WHEREAS, Augusta is qualified by the U. S. Department of Housing and Urban Development
(hereinafter called HUD) as a HOME Program Participating Jurisdiction, and has received HOME
Investment Partnerships Act (hereinafter called HOME or the HOME Program) funds from HUD for
the purpose of providing and retaining affordable housing for HOME Program eligible families; as
defined by HUD; and
WHEREAS, the grantee is a designated Community Housing and Development Organization
(CHDO)- hereinafter referred to as PLCDC - and will be involved in HOME eligible activities; and
WHEREAS, Augusta wishes to increase homeownership opportunities and preserve and increase the
supply of affordable housing for HOME Program eligible low and moderate income families through
eligible uses of its HOME Program grant funds, as described in the Augusta-Richmond County
Consolidated Plan 2005-2009, and the Year 2007 Annual Action Plan; and
WHEREAS, Augusta must reserve not less than fifteen percent (15%) of its allocated HOME
entitlement funds for investment in affordable housing to be developed, sponsored or owned by a
designated Community Housing Development Corporation (CHDO); and
WHEREAS, Augusta wishes to enter into a memorandum of agreement with Promise Land
Community Development Corporation for the administration of HOME eligible affordable housing
development activities; and
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WHEREAS, this activity has been determined to be eligible HOME activity according to 24 CFR
92.504(c)(13), and will meet one or more of the national objectives and criteria outlined in Title 24
Code of Federal Regulations, Part 92 of the Housing and Urban Development regulations.
WHEREAS, PLCDC has agreed to provide services funded through this contract free from political
activities, religious influences or requirements; and
NOW, THEREFORE, the parties of this agreement for the consideration set forth below, do here and
now agree to the following terms and conditions:
ARTICLE I. SCOPE OF SERVICES
A. Scope of Services
Project Description: PLCDC agrees to accept the transfer of the property located at 3115 Bell Drive.
PLCDC will rehabilitate the property and make it available for purchase by a first time low to
moderate income family. Under this agreement:
.. Rehabilitate the property according to Housing Quality Standards.
.. Perform all required and requested marketing and advertising activities; in accordance with
"HOME" program "Fair Housing" regulations
.. All projects are to posses the following required components:
· Evidence of Site Control
· Evidence of additional financing resources "Leveraging"
· Evidence that the programmatic "MATCH" requirement has been met
· Evidence that a qualified homebuyer has been identified, received and completed a
comprehensive home buying education course(s) and pre-purchase housing
counseling program; prior to the completion of the assigned home.
B. Disposition: AHCD will transfer title of said property to PLCDC upon signing of agreement.
A lien will be placed on property until sold. PLCDC must complete rehabilitation of property
within 120 days of signing of this agreement. PLCDC must sell the property by December 31,
2008. If the fore mention is not completed within the allotted time frame the property reverse
back to the City of Augusta.
C. Program Location and Specific Goals to be Achieved
PLDC shall conduct project development activities and related services in its project area(also
known as the South Augusta Communities that incorporates the following boundaries:
Western Edge as Fort Gordon, the Southern edge as Deansbridge Road, Eastern edge -as
Bobby Jones Expressway and Milledgeville Road as the Northern edge. The project area
includes Barton Village, Meadowbrook, Old McDuffie and subdivisions located along Barton
Chapel Road.
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D. Proiect Eligibility Determination
It has been determined that the use of HOME funds by the PLCDC will be in compliance with
24 CFR Part 92. Notwithstanding any other provisions of this contract, PLCDC shall provide
activities and services as described in the description of the project, including use of funds, its
goals and objectives, tasks to be performed and a detailed schedule for completing the tasks
for this project as provided in Exhibit A of this contract.
ARTICLE II. BUDGET AND METHOD OF PAYMENT
PLCDC will be compensated in accordance with this Article II, Budget and Method of Payment, that
specifically identifies the use of HOME and other project funding as represented in Article II. C.2 of
this Agreement. PLCDC, its directors, officers and staff will carry out and oversee the implementation
of projects to be funded with HOME funds. PLCDC agrees to perform the required services under the
general coordination of the Augusta Housing and Community Development Department. In addition
and upon approval by Augusta, PLCDC may engage the services of outside professional services
consultants and contractors to help carry out the program and projects.
B. Timetable for Completion ofProiect Activities
1. PLCDC shall complete this project as outlined by December 31, 2008. If the project is not
completed by the date mentioned, the property will revert back to the City of Augusta for
disposition. If additional time is needed to complete the requirements of this agreement,
PLCDC must request an extension in writing to the Director of AHCD.
C. Proiect Budget: Limitations
1. Developer's Fee: PLCDC shall receive a 16% developer's fee for full performance of the
services specified under this Agreement. Any cost above this amount shall be the sole
responsibility of the PLCDC. It is also understood by both parties to this contract, that there is
no funding provided under this contract for this specific project. AHCD is only participating
as the property owner of said property until all legal actions are taken to transfer and sale of
the property.
ARTICLE III - RESALEIRECAPTURE PROVISIONS [24 CFR 92.254(5)]
1. The ResalelRecapture Provisions in this Article III shall ensure compliance with the HOME
Program "Period of Affordability" requirements pursuant to 24 CFR 92.254(a)(4). 24 CFR
92.254 requires that the City, its subrecipients, and CHDOs follow certain resale/recapture
restrictions with regard to its HOME-funded homebuyer program. Each property sold to a
homebuyer will remain affordable for the duration of the affordability period or the City will
use the resale option.
A. Resale Provisions r24 CFR 92.254(5)0)1
If the initial purchaser of the property sells the home during the 20-year loan period, AMI has
the "right of first refusal" to repurchase the property for subsequent resale to other HOME
Program-eligible purchasers. If AMI exercises its right of first refusal and then sells the
property to another HOME program-eligible purchaser, the new purchaser must agree to
accept the restrictions on the use of the property required by the HOME Program through the
execution of a new Promissory Note and a new Deed to Secure Debt.
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ARTICLE IV. TERM OF CONTRACT
The term of this agreement shall commence on the date when this agreement is executed by Augusta
and the PLCDC (whichever date is later) and shall end at the completion of all program activities,
within the time specified in Article I.D, or in accordance with ARTICLE IX: Suspension and
Termination.
ARTICLE V. DOCUMENTATION AND PAYMENT
A. PLCDC shall maintain a separate account and accounting process for HOME funding sources.
B. PLCDC shall not use these funds for any purpose other than the purpose set forth in this
Agreement.
C. Subject to PLCDC's compliance with the provisions of this Agreement, Augusta agrees to
reimburse all budgeted costs allowable under federal, state, and local guidelines.
D. All purchases of capital equipment, goods and services shall comply with the procurement
procedures of OMB Circular A-II0 "Uniform Administrative Requirements for Grant
Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit
Organizations" as well as the procurement policy of Augusta.
E. Requests by the PLCDC for payment shall be accompanied by proper documentation and shall
be submitted to HCD, transmitted by a cover memo,' for approval no later than thirty (30)
calendar days after the last date covered by the request. For purposes of this section, proper
documentation includes: "Reimbursement Request" form supplied by HCD, copies of invoices,
receipts, other evidence of indebtedness, budget itemization and description of specific activities
undertaken. Where HOME funds are to be used to reimburse salary expenditures, proper
documentation to include: "Time Sheet" forms supplied by Augusta, photocopies of paychecks,
paycheck stubs and/or payroll documentation. Invoices shall not be honored if received by
Augusta later than sixty (60) calendar days after expiration date of this Agreement.
F. PLCDC shall maintain an adequate financial system and internal fiscal controls.
ARTICLE
VI.
RECORD KEEPING, REPORTING AND MONITORING
REQUIREMENTS .
A. PLCDC shall carry out its HOME assisted activities in compliance with all HOME Program
laws and regulations described in 24 CFR Part 92 Subpart E (Program Requirements), Subpart
F (Project Requirements), and Subpart H (Other Federal Requirements). These compliance
activities include, but are not limited to:
1. Maximum acquisition prices [24 CFR 92.205A.2]
2. Maximum per unit HOME Program subsidy amount [Section 221(d)(3)]
3. Combined affordability of assisted units
4. Income eligibility of home buyers
5. Inspection of the homebuyer units to comply with HUD required Property Standards
6. Acquisition, Displacement and Relocation Requirements [24 CFR 92.353]
7. Environmental Review
8. Lead-based Paint Abatement
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A. To document low and moderate-income benefits required in 24 CFR 570.200(a) (2). PLCDC
shall maintain records that document all clients served with HOME funds. In addition,
PLCDC shall document each client's race, family size, annual household income, and whether
or not the family is female-headed. Augusta shall supply "Income Verification" forms which,
when completed by those clients served by PLCDC shall provide the information and
verification described above.
B. PLCDC shall prepare and submit reports relative to this project to Augusta at Augusta's
request. Augusta shall supply PLCDC with the following report forms and require the same to
be completed as requested by Augusta: "Monthly Services", "Quarterly Progress", "Quarterly
Financial" and "Annual Report". Further explanation and report due dates are found in
APPENDIX B below.
A. PLCDC shall maintain books and records in accordance with generally accepted accounting
principles. Documents shall be maintained in accordance with practices that sufficiently and
properly reflect all expenditure of funds provided by Augusta under this Agreement.
B. PLCDC shall make all records for this project available to Augusta, the U.S. Department of
Housing and Urban Development, the Comptroller General of the United States, or any of
their duly authorized representatives for the purpose of making audits, examinations, excerpts
and transcriptions.
C. In compliance with OMB Circular A-II0 regarding retention and custodial requirements for
records, PLCDC shall maintain financial records, supporting documents, statistical records,
and all other records pertinent to this Agreement for a period of three years, with the following
qualifications:
1. If any litigation, claim or audit is started before the expiration of the 3-year period, the
records shall be retained until all litigation, claims, or audit findings involving the
records have been resolved.
2. Records for non-expendable personal property acquired with HOME grant funds shall
be retained for three years after its final disposition. Non-expendable personal
property means tangible personal property having a useful life of more than one year
and an acquisition cost of $300 or more per unit.
D. In connection with the expenditure of federal funds, PLCDC shall provide to Augusta an
organization -wide audited financial statement consisting of a balance sheet, income statement
and a statement of changes in its financial position. All documents shall be prepared by a
certified public accountant. Such financial disclosure information shall be filed with Augusta
within one hundred eighty (180) calendar days after the close of the PLCDC's fiscal year.
PLCDC is responsible for any cost associated with the audit. Failure to comply may result in
the reallocation of funding and termination of the contract. PLCDC shall supply, upon
request, documentation maintained in accordance with practices which sufficiently and
properly reflect all expenditures of funds provided by Augusta under this Agreement.
E. Open Records Disclosure: PLCDC's records related to this Agreement and the services to be
provided under the grant may be a public record subject to Georgia's Open Records Act
(O.c.G.A. 9 50-18-70). PLCDC agrees to comply with the Open Records Act should a
request be submitted to it. Further, PLCDC agrees to comply with the provisions of the Open
Meetings Law and the following compliance measures will be taken: PLCDC will provide
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notice to the Augusta Chronicle and the Augusta Focus or the Metro Courier of its regular
board meeting schedule and of any special called meetings except emergency meetings; it will
post notices of its meetings in a public place at the meeting sites and it will keep a written
agenda, minutes, attendance, and voting record for each meeting and make the same available
for inspections by the press, the public and the Grantee, subject to the provisions of the Open
Meetings Law. he press, public and the Grantee shall not be denied admittance to the
PLCDC's board meetings, except for such portions of the meeting as may be closed pursuant
to the Open Meetings Law. PLCDC shall provide to the Grantee a tentative annual schedule
of the Board of Directors' meetings. Publications and minutes of each meeting shall be
submitted to Grantee within 30 days after each meeting.
ARTICLE
VIII ADMINISTRATIVE REQUIREMENTS
A. Conflict of Interest
PLCDC agrees to comply with the conflict of interest provisions contained in 24 CFR 85.36,
570.611, OMB Circular A-II0 and OMB Circular A-I02 as appropriate.
This conflict of interest provision applies to any person who is an employee, agent, consultant,
officer, or elected official or appointed official of PLCDC. No person described above who
exercises, may exercise or has exercised any functions or responsibilities with respect to the
HOME activities supported under this contract; or who are in a position to participate in a
decision-making process or gain inside information with regard to such activities, may obtain
any financial interest or benefit from the activities, or have a financial interest in any contract,
sub-contract, or agreement with respect to the contract activities, either for themselves or those
with whom they have business or family ties, during their tenure or for one year thereafter.
For the purpose of this provision, "family ties", as defined in the above cited volume and
provisions of the Code of Federal Regulations, include those related as Spouse, Father,
Mother, Father-in-law, Mother-in-law, Step-parent, Children, Step-children, Brother, Sister,
Brother-in-law, Sister-in-law, Grandparent, Grandchildren of the individual holding any
interest in the subject matter of this Agreement. PLCDC in the persons of Directors, Officers,
Employees, Staff, Volunteers and Associates such as Contractors, Sub-contractors and
Consultants shall sign and submit a Conflict of Interest Affidavit. (Affidavit form attached as
part in parcel to this Agreement)
B. PLCDC shall comply with the requirements and standards of OMB Circular A-I22 "Cost
Principles for Non-Profit Organizations" and 24 CFR part 570.502(b), "Applicability of
Uniform Administrative Requirements."
C. Augusta may, from time to time, request changes to the scope of this agreement and
obligations to be performed hereunder by PLCDC. In such instances, PLCDC shall consult
with HCD/ Augusta on any changes that will result in substantive changes to this Agreement.
All such changes shall be made via written amendments to this Agreement and shall be
approved by the governing bodies of both Augusta and PLCDC.
D. Statutes, regulations, guidelines and forms referenced throughout this Agreement are listed in
Appendix A and are attached and included as part in parcel to this Agreement.
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, .
ARTICLE
IX. OTHER REQUIREMENTS
A. Fair Housing
PLCDC agrees that it will conduct and administer HOME activities in conformity with Pub. L.
88-352, "Title VI of the Civil Rights Act of 1964", and with Pub. L. 90-284 "Fair Housing
Act", and that it will affirmatively further fair housing. One suggested activity is to use the fair
housing symbol and language in PLCDCs publications and/or advertisements. (24 CFR
570.601).
B. Non-Discrimination
PLCDC agrees to comply with 24 CFR Part I, which provides that no person shall be excluded
from participation in this project on the grounds of race, color, national origin, or sex; or be
subject to discrimination under any program or activity funded in whole or in part with federal
funds made available pursuant to the Act.
C. Non-Discrimination and Residential Property
PLCDC agrees, in accordance with Executive Order 11063 and 12259 that it will not
discriminate because of race, color, religion, sex, or national origin in the sale, leasing, rental
or other disposition of residential property and related facilities, or in the use of occupancy
thereof, if such property and related facilities are, among other things, provided in whole or in
part with the aid of loans, advances, grants, or contributions agreed to be made by the Federal
Government.
D. Labor Standards
I. General: PLCDC agrees that in instances in which there is construction work over
$2,000 financed in whole or in part with HOME funds under this Agreement, PLCDC
will adhere to the Davis-Bacon Act (40 USC 276), as amended, which requires all
laborers and mechanics working on the project to be paid not less than prevailing
wage-rates as determined by the Secretary of Labor. By reason of the foregoing
requirement, the Contract Work Hours and Safety Standards Act (40 USC 327 et seq.)
also applies. These requirements apply to the rehabilitation of residential property
only if such property contains eight or more units. (24 CFR 570.603)
2. Labor Matters: No person employed in the work covered by this contract shall be
discharged or in any way discriminated against because he or she has filed any
complaint or instituted or caused to be instituted any proceeding or has testified or is
about to testify in any proceeding under or relating to the labor standards applicable
hereunder to his or her employer. (24 CFR 570.603)
E. Environmental Standards
PLCDC agrees that in accordance with the National Environmental Policy Act of 1969 and 24
CFR part 58, it will cooperate with Augusta/HCD in complying with the Act and regulations,
and that no activities will be undertaken until notified by Augusta/HCD that the activity is in
compliance with the Act and regulations. Prior to beginning any project development activity,
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L. Drug Free Workplace
In accordance with 24 CFR part 24, subpart F, PLCDC agrees to administer a policy to
provide a drug-free workplace that is free from illegal use, possession or distribution of drugs
or alcohol by its beneficiaries as required by the Drug Free Workplace Act of 1988.
M. Publicity
Any publicity generated by PLCDC for the project funded pursuant to this Agreement, during
the term of this Agreement or for one year thereafter, will make reference to the contribution
of Augusta-Richmond County in making the project possible. The words "Augusta-Richmond
County Department of Housing and Community Development" will be explicitly stated in any
and all pieces of publicity; including but not limited to flyers, press releases, posters,
brochures, public service announcements, interviews, and newspaper articles.
N. Timelv Expenditure of Funds
In accordance with 24 CFR 85.43, if PLCDC fails to expend its grant funds in a timely
manner, such failure shall constitute a material failure to comply with this Agreement and
invoke the suspension and termination provisions of ARTICLE X. For purposes of this
Agreement, timely expenditure of funds means PLCDC shall obligate and expend its funds as
designated under ARTICLE II. (B).
O. Compliance with Laws and Permits
PLCDC shall comply with all applicable laws, ordinances and codes of the federal, state, and
local governments and shall commit no trespass on any public or private property in
performing any of the work embraced by this contract. PLCDC agrees to obtain all necessary
permits for intended improvements or activities.
P. Assignment of Contract
PLCDC shall not assign any interest in this contract or transfer any interest in the same
without the prior written approval of Augusta.
Q. Equal Employment Opportunity
PLCDC agrees to comply with the prohibitions against discrimination on the basis of age
under the Age Discrimination Act of 1975 (42 U.S.c. 6101-07) and implementing regulations
at 24 CFR part 146 and the prohibitions against otherwise qualified individuals with handicaps
under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing
regulations at 24, CFR part 8. For purposes of the emergency shelter grants program, the term
dwelling units in 24 CFR part 8 shall include sleeping accommodations.
R. Affirmative Action
PLCDC will not discriminate against any employee or applicant for employment because of
race, color, religion, sex, national origin, or familial status. PLCDC will take affirmative
action to insure that applicants are employed, and that employees are treated during
employment, without regard to their race, color, religion, sex, national origin, or PLCDC
social status. Such action shall include, but not be limited to the following: employment,
upgrading, demotion or transfer; recruitment or advertising; lay-off or termination, rates of
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ARTICLE XVI.
COUNTERPARTS
This agreement is executed in two (2) counterparts - each of which shall be deemed an original and
together shall constitute one and the same Agreement with one counterpart being delivered to each
party hereto.
IN WITNESS WHEREOF, the parties have set their hands and seals as of the date first written
above:
ATTEST:
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Lena nner(, ;:{ /"::~'.~: :,. :'8.:::, :
Clerk of Corj:UiiiSSlOW"!":"': c\
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AUGUSTA. GEORGIA
(Augusta)
By: C9--.::{ -xf /A-
David S. Cop~ver
As Its Mayor
-; :\vJ
G\\'
ATTEST:
" <) SEAL .'~
(-f~~ /::J. JJtj~
I As Its Corporate Secretary
~ "1/1 ~"I.1/
'< '.d.{A_.{i'::t') ~-cOF--
(Plain Witness)
PMENT CORPORATION
(Grantee)
1
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APPENDIX A
Statutes:
24 CFR Part 92, HOME Investment Partnerships Program ("HOME")
OMB Circular A-IIO - Uniform Administrative Requirements for Grants and Agreement with
Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations
OMB Circular A- 122 - Cost Principles for Non-Profit Organizations
OMB Circular A-133 - Audits of Institutions of Higher Education & other Non-Profit Institutions
40 USC 276 Davis-Bacon Act
40 USC 327 Contract Work Hours and Safety Standard Act
Uniform Relocation Assistance and Real Property Acquisition Policies Act
Lead Based Paint Poisoning Prevention Act
24 CFR 35 - HUD Requirements for Notification, Evaluation and Reduction of Lead-Based Paint
Hazards in Housing Receiving Federal Assistance and Federally-Owned Residential Property being
sold, Final Rule
Augusta-Richmond County Procurement Policy
Forms:
Income Verification and Income Limits Table
Inventory
Time Sheet
Reimbursement Request
Monthly Statistical Reports
Quarterly Program Progress
Quarterly Financial Report
Annual Program Report
Travel Log
Conflict of Interest Affidavit
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APPENDIX B
REPORTING REQUIREMENTS
PLCDC shall submit to the Grantee the following reports for the term of this agreement.
I. Monthly Statistical Reports
Due each month by the 10th for the previous month.
2. Quarterly Progress & Financial Reports
3. Annual Progress Report (January 16,2008)
4. Audit/Financial Report
5. Grantee shall maintain files on each person assisted. Each file shall contain, but is not
restricted to, income data and verification for each person assisted; application for
services; record of services provided; amount of services provided; documentation of
costs for which assistance is provided; transportation log; documentation of medical
need regarding prescriptions; and any other document that will provide proof of
needed service(s) and subsequent provision of such service(s) as allowed under this
contract.
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APPENDIX A
Statutes:
24 CFR Part 92, HOME Investment Partnerships Program ("HOME")
OMB Circular A-IlO - Uniform Administrative Requirements for Grants and Agreernent with
Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations
OMB Circular A- 122 - Cost Principles for Non-Profit Organizations
OMB Circular A-133 - Audits of Institutions of Higher Education & other Non-Profit Institutions
40 USC 276 Davis-Bacon Act
40 USC 327 Contract Work Hours and Safety Standard Act
Uniform Relocation Assistance and Real Property Acquisition Policies Act
Lead Based Paint Poisoning Prevention Act
24 CFR 35 - HUD Requirements for Notification, Evaluation and Reduction of Lead-Based Paint
Hazards in Housing Receiving Federal Assistance and Federally-Owned Residential Property being
sold, Final Rule
Augusta-Richmond County Procurement Policy
Forms:
Income Verification and Income Limits Table
Inventory
Time Sheet
Reimbursement Request
Monthly Statistical Reports
Quarterly Program Progress
Quarterly Financial Report
Annual Program Report
Travel Log
Conflict of Interest Affidavit
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APPENDIX B
REPORTING REQUIREMENTS
PLCDC shall submit to the Grantee the following reports for the term of this agreement.
I. Monthly Statistical Reports
Due each month by the 10th for the previous month.
2. Quarterly Progress & Financial Reports
3. Annual Progress Report (January 16,2008)
4. Audit/Financial Report
5. Grantee shall maintain files on each person assisted. Each file shall contain, but is not
restricted to, income data and verification for each person assisted; application for
services; record of services provided; amount of services provided; documentation of
costs for which assistance is provided; transportation log; documentation of medical
need regarding prescriptions; and any other document that will provide proof of
needed service( s) and subsequent provision of such service( s) as allowed under this
contract.
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