2025_Subrecipient_Handbook.pdf

SUBRECIPIENT HANDBOOK

Nancy Ward

Director

Lisa Ann L. Mangat Chief Deputy Director

Policy & Administration

The California Governor’s Office of Emergency Services’ (Cal OES) Victim Services Branch (VSB) is pleased to release this current, revised edition of the Subrecipient Handbook. This handbook outlines all requirements that apply to Grant Subawards administered by the VSB and replaces all previous editions.

This Subrecipient Handbook is applicable for all current Grant Subawards with a Grant Subaward performance period start date of October 1, 2024, or later.

Grant Subawards with Grant Subaward performance period start dates prior to October 1, 2024, may also utilize this handbook.

Subrecipients must administer their Grant Subawards in accordance with these administrative and fiscal requirements. Failure to comply may result in the withholding or disallowance of Grant Subaward payments, the reduction or termination of the Grant Subaward, and/or the denial of future Grant Subawards.

All Subrecipients must comply with guidelines contained in the applicable Competitive Funding Opportunity (CFO) and/or Non-Competitive Funding Opportunity (NCFO) Program Supplementals, relevant statutes, and/or written directives from Cal OES. In the event the guidelines are inconsistent with the provisions of this handbook, the CFO or NCFO supersedes the provisions of this handbook.

Cal OES may modify and/or impose additional conditions not outlined in this handbook. Modifications or exceptions to these provisions may be made in writing by the Grant Subaward Authorized Agent or designee.

HOW TO USE THIS HANDBOOK

This handbook is designed to be available and downloadable through the Cal OES website at https://www.caloes.ca.gov/cal-oes-divisions/grants-management/victim-services/handbooks-reports-publications. This handbook should be referenced frequently. Questions concerning this handbook may be addressed by contacting the assigned Cal OES Grants Analyst.

The top of each page includes a Table of Contents (TOC) button that will return to the TOC.

The PRINT button is located at the top of each page. This button allows the Subrecipient to print one page or the entire handbook.

This handbook is organized with a numbering system for easy reference. There are 16 “Parts” numbered 1-16, and multiple “Sections” for each. In some cases, it is necessary to provide lists of information within subparts, and this is done by using an alpha system.

This numbering system allows easy reference to Parts and Subparts in verbal, and/or written communications .

https://www.caloes.ca.gov/cal-oes-divisions/grants-management/victim-services/handbooks-reports-publications https://www.caloes.ca.gov/cal-oes-divisions/grants-management/victim-services/handbooks-reports-publications

TABLE OF CONTENTS

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PART 1 – GRANT SUBAWARD TERMINOLOGY AND GENERAL REQUIREMENTS 1

1.005 GRANT SUBAWARD 1

1.010 GRANT SUBAWARD COMPONENTS 1

1.015 SUBRECIPIENT 2

1.020 IMPLEMENTING AGENCY 2

1.025 PROGRAM 2

1.030 NON-COMPETITIVE FUNDING OPPORTUNITY (NCFO)/COMPETITIVE

FUNDING OPPORTUNITY (CFO) 2

1.035 CONTROLLING DOCUMENTS – ALL GRANT SUBAWARDS 2

1.040 CONTROLLING DOCUMENTS – FUND SPECIFIC 3

1.045 FUND AVAILABILITY 3

1.050 BUDGET COST CATEGORIES 3

1.055 PROOF OF AUTHORITY/RESOLUTION 4

1.060 SPECIAL CONDITIONS 4

1.065 SUPPLANTING PROHIBITED 5

1.070 WITHHOLDING, REDUCTION, OR TERMINATION OF GRANT

SUBAWARD FUNDS AND DISALLOWANCE OF COSTS 5

1.075 DENIAL OF FUTURE FUNDING 6

PART 2 – SUBRECIPIENT POLICY AND CERTIFICATION REQUIREMENTS 8

2.005 CONFLICT OF INTEREST 8

A. Conflict of Interest Policy 8

B. Exceptions 9

2.010 ASSURANCES OF COMPLIANCE 9

A. Standard Certification of Compliance 9

B. Program Standard Assurances Addendum 9

C. Fund Assurance 10

2.015 FIDELITY BOND/CERTIFICATE OF INSURANCE 10

A. Exemptions 11

B. Amount of Coverage 11

C. Type of Coverage 11

D. Coverage Period 12 ii

E. Beneficiary/Certificate Holder 12

2.020 CIVIL RIGHTS 12

A. State and Federal Civil Rights Laws 12

B. Civil Rights and Non-Discrimination Policies 13

C. Reporting Findings of Discrimination 14

D. Civil Rights Monitoring 14

E. Civil Rights Training 14

F. Faith-Based or Religious Organizations 14

G. Cal OES Civil Rights and Equal Employment Opportunity Office 15

2.025 EQUAL EMPLOYMENT OPPORTUNITY 15

A. State of California Policy 15

B. U.S. Department of Justice - Equal Employment Opportunity Program 15

2.030 DRUG-FREE WORKPLACE 16

A. Drug-Free Workplace Laws and Definitions 16

B. Drug-Free Workplace Certification 17

2.035 ENVIRONMENTAL IMPACT – CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA) COMPLIANCE AND CERTIFICATION 19

A. CEQA Compliance 19

B. CEQA Compliance Certification 20

2.040 LOBBYING 21

2.045 SUSPENSION AND DEBARMENT 21

A. Subrecipient Certification 21

B. Verification of Vendor/Contractor Eligibility 22

2.050 DETERMINATION OF SUITABILITY FOR INDIVIDUALS WHO MAY

INTERACT WITH PARTICIPATING MINORS [Applicable only to Programs supported by funds administered by the U.S. DOJ] 22

PART 3 – PERSONNEL AND PERSONNEL COSTS REQUIREMENTS 24

3.005 KEY PERSONNEL 24

A. Grant Subaward Director 24

B. Grant Subaward Programmatic Point of Contact 24 iii

C. Grant Subaward Financial Officer 24

D. Grant Subaward Financial Point of Contact 25

E. Chair of the Governing Body 25

F. Grant Subaward Authorized Agent 25

3.010 GRANTS CENTRAL SYSTEM ROLES 25

A. Organization Authorized Agent 26

B. Organization Entity Representative 26

C. Organization Entity Viewer 26

3.015 CHANGES TO PERSONNEL 27

3.020 GRANT SUBAWARD-SPECIFIC JOB DESCRIPTIONS 27

3.025 PERSONNEL POLICIES 28

3.030 PERSONNEL FILES 28

3.035 STAFFING AND OPERATION 28

3.040 ALLOWABLE PERSONNEL COSTS 29

3.045 SALARIES 29

3.050 BENEFITS 29

A. Regular Compensation 30

B. Employee Reimbursement for Benefits 30

C. Administrative Leave 30

D. Earned Leave Time 31

3.055 OVERTIME 31

3.060 ALLOCATION OF TIME 32

3.065 FUNCTIONAL TIMESHEETS 32

PART 4 – OPERATING COSTS REQUIREMENTS 33

4.005 OPERATING COSTS 33

4.010 ALLOWABLE OPERATING COSTS 33

4.015 CONFIDENTIAL EXPENDITURES 35

4.020 INDEPENDENT CONTRACTOR/CONSULTANT SERVICES 35

4.025 FINANCIAL ASSISTANCE FOR CLIENTS 35

A. Petty Cash Victim Fund 35 iv

B. Other Financial Assistance 36

4.030 INDIRECT COSTS 36

A. Federally-Approved Indirect Cost Rate 37

B. Resources for Developing an Indirect Cost Rate Proposal

(ICRP) 37

C. Fifteen Percent De Minimis Indirect Cost Rate 38

D. Method of Calculation for Indirect Costs 38

4.035 MOVING COSTS 38

4.040 FACILITY RENTAL 38

A. Allowable Rental Rates 39

B. Employee Office Space 39

C. Additional Rental Space 39

D. Donated Space 40

E. Facility Rental Identification and Records 40

4.045 TRAVEL 40

A. Out-of-State Travel 40

B. Subrecipient Travel Policies 41

C. State Travel Policy 41

D. Travel Claims 41

4.050 COSTS THAT EXTEND BEYOND THE GRANT SUBAWARD

PERFORMANCE PERIOD 42

4.055 PROHIBITED OPERATING COSTS 42

4.060 BONUSES AND COMMISSIONS 42

4.065 DEPRECIATION 43

4.070 DUES, LICENSES, AND FEES 43

A. Membership Dues 43

B. Professional License 43

C. Professional Dues or Fees 43

4.075 FOOD AND BEVERAGES 43

4.080 FUNDRAISING 43

4.085 INTEREST, FINANCE CHARGES, FEES, AND PENALTIES 43

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A. Subrecipient Organization – Finance Charges, Fees, and Penalties 43

B. Victim Assistance – Finance Charges, Fees, and Penalties 44

C. Interest 44

4.090 LOBBYING 44

4.095 MANAGEMENT SERVICES AND STUDIES 46

4.100 REAL PROPERTY AND IMPROVEMENTS 46

4.105 RETAINER FEES 46

4.110 WEAPONS AND AMMUNITION 46

PART 5 – EQUIPMENT AND EQUIPMENT COSTS REQUIREMENTS 47

5.005 EQUIPMENT 47

5.010 ALLOWABLE EQUIPMENT COSTS 47

5.015 MOTORIZED VEHICLES 47

5.020 AUTOMOBILES 47

5.025 EQUIPMENT IDENTIFICATION AND RECORDS 48

5.030 LOSSES AND REPLACEMENTS 49

PART 6 – CONTRACT AND PROCUREMENT REQUIREMENTS 50

6.005 CONTRACTS 50

6.010 RESPONSIBLE ENTITY 50

6.015 INDEPENDENT CONTRACTOR/CONSULTANT 50

A. Independent Contractor/Consultant Rates 51

B. Exception to the Rates 51

C. Expert Witness Fees 51

D. Contract Limitations 52

E. Contract Provisions 52

6.020 ELEMENTS OF A CONTRACT OR PURCHASE ORDER/DOCUMENT 53

A. Contract or Purchase Order/Document Requirements 53

B. Construction Contracts 55

6.025 PROCUREMENTS 55

6.030 PROCUREMENT METHODS 55

vi

A. Informal Procurements 56

B. Formal Procurements 56

C. Non-Competitive Procurements 58

6.035 PRICE/COST ANALYSIS AND PROFIT NEGOTIATION 60

A. Price Analysis 60

B. Cost Analysis 61

C. Profit Negotiation 61

6.040 AFFIRMATIVE STEPS FOR FEDERALLY-FUNDED PROCUREMENTS 61

6.045 CONTRACT AND PROCUREMENT POLICIES 62

PART 7 – OPERATIONAL AGREEMENT AND SECOND-TIER SUBAWARD

REQUIREMENTS 64

7.005 OPERATIONAL AGREEMENTS 64

A. Required Operational Agreements 64

B. Elements of an Operational Agreement 64

7.010 SECOND-TIER SUBAWARD 65

A. Elements of a Second-Tier Subaward 65

B. Participating Agency Receiving Funds through a Second-Tier Subaward 66

PART 8 – INTELLECTUAL PROPERTY, COPYRIGHT, AND PATENT REQUIREMENTS 67

8.005 INTELLECTUAL PROPERTY 67

A. Ownership 67

B. Cal OES Review 67

C. Income from Intellectual Property 67

D. Credits and Disclaimers 68

E. Transfer of Ownership 68

8.010 COPYRIGHT 68

8.015 PATENT 69

PART 9 – FINANCIAL TRACKING AND REPORTING REQUIREMENTS 70

9.005 ENCUMBRANCE 70

9.010 LIQUIDATION PERIOD 70

vii

9.015 FINANCIAL INSTITUTION 71

9.020 ACCOUNTING PROCEDURES 71

9.025 REPORT OF EXPENDITURES & PAYMENT REQUEST 71

A. Submission and Frequency 71

B. Payment Mailing Address 72

C. Payment Requested 72

D. Advance Payment of Grant Subaward Funds 72

E. Final Report of Expenditures & Payment Request 73

9.030 ACCOUNTING SYSTEM AND STRUCTURE 73

9.035 ACCOUNTING SYSTEM BASIS 74

A. Cash Basis 74

B. Accrual Basis 74

C. Modified Accrual Basis 75

9.040 SEPARATION OF DUTIES 75

9.045 GENERAL LEDGER ACCOUNT STRUCTURE 76

9.050 PAYROLL RECORDS 76

9.055 ADDITIONAL REQUIRED ACCOUNTING PROCESSES 76

A. Bank Statements and Reconciliation 77

B. General Ledger Account Entries 77

C. Duplicate Deposit Receipts 77

D. Canceled Checks 77

E. Vouchers 77

9.060 MATCH 78

A. Cash Match 78

B. In-Kind Match 78

C. Changing the Type of Match 79

D. Allowable Match Sources 79

E. Over Match 79

F. Unmet Match 80

9.065 CALCULATING MATCH 80

A. Match – Total Project Cost 80 viii

B. Match – Percent of Funds Allocated 81

9.070 EXPENDING AND REPORTING OF MATCH 81

9.075 GRANT SUBAWARD AND OTHER INCOME 82

PART 10 – GRANT SUBAWARD AMENDMENT AND MODIFICATION

REQUIREMENTS 84

10.005 CHANGING A GRANT SUBAWARD 84

10.010 AMENDMENT 84

10.015 MODIFICATION 84

A. Modifying the Grant Subaward Budget 84

B. Modifying Grant Subaward Objectives, Goals, or Activities 84

C. Submission and Approval 85

PART 11 – REPORTING ACTIVITIES AND ACHIEVEMENTS REQUIREMENTS 86

11.005 ACTIVITY AND ACHIEVEMENT REPORTING 86

A. Purpose 86

B. Source Documentation 86

C. Review of Records 86

D. Submission of Reports and/or Data 86

E. Reports for Extended Grant Subawards 87

PART 12 – RECORDS REQUIREMENTS 88

12.005 RECORDS AND FILE MAINTENANCE 88

12.010 ACCESSIBILITY TO CAL OES 88

12.015 RETENTION OF RECORDS 88

PART 13 – MONITORING PROCESSES AND REQUIREMENTS 90

13.005 GRANT SUBAWARD MONITORING 90

13.010 COMMON GRANTS MONITORING TERMS 90

A. Findings 90

B. Questioned Costs 91

C. Disallowed Costs 91

D. Corrective Action 91 ix

E. Corrective Action Plan (CAP) 91

13.015 EVALUATING RISK – GRANT SUBAWARD RISK ASSESSMENT (GSRA) 91

13.020 EVALUATING RISK - LIMITED SCOPE REVIEW 91

A. Purpose 91

B. Subrecipient Selection 92

C. Process 92

13.025 REVIEW OF FINANCIAL AND PERFORMANCE ACTIVITIES –

PERFORMANCE ASSESSMENT 92

A. Purpose 92

B. Subrecipient Selection 92

C. Process 93

13.030 REVIEW OF FINANCIAL AND PERFORMANCE ACTIVITIES –

COMPLIANCE ASSESSMENT 94

A. Purpose 94

B. Subrecipient Selection 94

13.035 FINANCIAL AND ACTIVITY REVIEW – PAYMENT REVIEW 94

A. Purpose 94

B. Subrecipient Selection 94

C. Process 95

13.040 FINANCIAL AND ACTIVITY REVIEW – FEDERAL REPORTING DATA

REVIEW 95

A. Purpose 95

B. Process 95

13.045 FINANCIAL AND ACTIVITY REVIEW – CAL OES PROGRESS REPORT

REVIEW 95

A. Purpose 95

B. Process 96

13.050 SINGLE AUDIT REVIEW 96

A. Purpose 96

B. Process 96

13.055 INVOICE FOR DISALLOWED COSTS AS A RESULT OF MONITORING 96

13.060 SANCTIONS 97

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PART 14 – AUDIT REQUIREMENTS 98

14.005 REQUIRED AUDITS AND FINANCIAL STATEMENTS 98

A. Subrecipients Expending $1,000,000 or More in Federal Funds 98

B. Subrecipients Expending Less than $1,000,000 in Federal Funds 98

C. Subrecipients Expending $2,000,000 or More in State Funds 98

14.010 AUDITOR QUALIFICATIONS 98

14.015 SCOPE OF AUDIT 99

14.020 GRANT SUBAWARD-SPECIFIC AUDITS 99

14.025 ADDITIONAL AUDIT REQUIREMENTS 100

14.030 FREQUENCY OF AUDITS 100

14.035 AUDIT REPORTS 100

A. Financial Statements 101

B. Internal Controls 101

C. Compliance with Grant Subaward Requirements 101

D. Audit Report Package 101

14.040 AUDIT CORRECTIVE ACTION PLAN 102

14.045 AUDIT OR FINANCIAL STATEMENT REPORT SUBMISSION 102

A. Submission to Cal OES 102

B. Submission to Governing Boards 103

C. Submission to Federal Audit Clearinghouse (FAC) 103

14.050 CONFIDENTIAL OR PRIVILEGED INFORMATION 103

14.055 AUDIT COSTS 103

A. Federal Funds 103

B. State Funds 104

C. Estimated Audit Costs 104

D. Interim Audit Costs 104

14.060 FAILURE TO SUBMIT AN AUDIT REPORT 105

14.065 RECORDS AND CAL OES ACCESS 105

PART 15 – CLOSEOUT PROCESS AND REQUIREMENTS 106

15.005 CLOSEOUT PROCESS 106

xi

15.010 FINAL PROGRESS REPORT 106

15.015 FINAL REQUEST FOR REIMBURSEMENT 106

PART 16 – GLOSSARY 107

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PART 1 – GRANT SUBAWARD TERMINOLOGY AND GENERAL REQUIREMENTS

1.005 GRANT SUBAWARD

A Grant Subaward is a signed agreement between Cal OES and the Subrecipient. Grant Subaward may also be referred to as Project in Cal OES documents or forms (e.g., total project cost).

By accepting the Grant Subaward, Subrecipients agree to:

• Implement the goals and objectives of the program using identified staff, locations, and activities,

• Adhere to all conditions of the Grant Subaward, this handbook, and any applicable laws, regulations, and guidelines set forth for the type of funding received,

• Provide all matching funds specified on the Grant Subaward Face Sheet, and

• Assume all liability related to the Grant Subaward (the State of California and Cal OES are not responsible).

Subrecipients may not transfer or assign the Grant Subaward to another agency, organization, or party.

1.010 GRANT SUBAWARD COMPONENTS

The components of a Grant Subaward are:

• Application Information,

• Contact Information,

• Grant Subaward Assurances,

• Program Narrative,

• Subrecipient Risk Assessment,

• Budget Forms,

• Service Area Forms,

• Application Signatures.

• Any other document required by the Non-Competitive Funding

Opportunity (NCFO) or Competitive Funding Opportunity (CFO).

The NCFO or CFO may specify if one or more of the above components is not required.

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1.015 SUBRECIPIENT

The Subrecipient is the agency/organization that receives the Grant Subaward funds and formally enters into Grant Subaward.

1.020 IMPLEMENTING AGENCY

The Implementing Agency is the agency/organization that is responsible for the day-to-day operation of the Grant Subaward. The Implementing Agency can be the same as the Subrecipient. If the Implementing Agency differs from the Subrecipient and funds are passed through to them, they must appear in the Budget as a Second-Tier Subaward.

1.025 PROGRAM

The program is the sum of the activities and objectives identified by Cal OES, to address a specific need. This is accomplished through the administration of funds to one or more Grant Subawards (e.g., the Child Abuse Treatment Program funds multiple Grant Subawards to provide services to child abuse victims statewide). Each Program has a Program Supplemental which outlines the goals and requirements.

1.030 NON-COMPETITIVE FUNDING OPPORTUNITY (NCFO)/COMPETITIVE FUNDING

OPPORTUNITY (CFO)

An NCFO is the process Cal OES uses to solicit applications for a non-competitive program (previously Request for Application process).

A CFO is the process Cal OES uses to solicit proposals for a competitive program (previously Request for Proposal process).

1.035 CONTROLLING DOCUMENTS – ALL GRANT SUBAWARDS

The requirements of the Grant Subaward are defined in the signed Grant Subaward, the applicable Program Supplemental, and this handbook.

The applicable NCFO or CFO Program Supplemental and this handbook must be accessible by Subrecipients on-site.

Subrecipients must comply with all provisions of the controlling documents. In the event the above referenced documents are inconsistent, the NCFO or CFO Program Supplemental supersedes the provisions of this handbook.

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1.040 CONTROLLING DOCUMENTS – FUND SPECIFIC

Subrecipients must comply with applicable laws, regulations, and guidelines set forth for the type of funding received.

For example, Subrecipients receiving federal funding must comply with the Code of Federal Regulations (CFR) and may be required to comply with additional federal guidelines such as the Department of Justice (DOJ) Grants Financial Guide.

For funding sources falling under multiple regulations and guidance, Subrecipients must follow those rules which are most stringent.

1.045 FUND AVAILABILITY

Allocation of funds is contingent on the passage of the State Budget Act for the applicable fiscal year. Cal OES does not have the authority to disburse any funds until the State Budget Act is passed, and the Grant Subaward is executed. Any expenditure incurred prior to authorization is made at the Subrecipient’s own risk and may be disallowed.

Cal OES employees cannot authorize an Applicant to incur costs or financial obligations prior to the execution of a Grant Subaward.

However, once the Grant Subaward is finalized, Subrecipients may claim reimbursement for costs incurred on, or after, the start of the Grant Subaward performance period.

The Grant Subaward is subject to any applicable restrictions, limitations, or conditions enacted by the California Legislature and/or the United States Government subsequent to execution of the Grant Subaward.

1.050 BUDGET COST CATEGORIES

Subrecipients are required to prepare a budget for allowable costs that avoids unnecessary expenditures. The budget must support the accomplishment of the objectives and activities. The Grant Subaward Budget Forms consist of the following categories:

• Personnel Costs,

• Volunteer Costs,

• Contractor/Consultant Costs,

• Rent Costs,

• Travel Costs,

• Equipment Costs,

• Financial Assistance for Clients Costs, 4 | P a g e

• Second-Tier Subaward Costs,

• Audit Costs,

• Indirect Costs, and

• Other Operating Costs.

Line-item detail must be included for each funding category including calculations and a brief description for the cost.

1.055 PROOF OF AUTHORITY/RESOLUTION

Subrecipients must certify they have written authority by the governing body (e.g., County Board of Supervisors, City Council, or Governing Board) granting authority to the Authorized Agent (see Section 3.030) to enter the Subrecipient into a specific Grant Subaward(s) with Cal OES.

The written authorization must:

• Include the name of the Cal OES Program(s) or state “All Cal OES Programs”,

• State the individual(s) (by Title) authorized to act as the Authorized Agent (as indicated on the applicable Grant Subaward Contact Information form in GCS),

• Include the signature of the governing body representative,

• Include the date signed,

• State the Authorized Agent has authority to enter into Grant Subaward (this includes subsequent amendments unless otherwise stated).

Examples of written authorization include signed a Board Resolution, approved Board Meeting minutes, or a letter signed by the Governing Board Chair.

State agencies are exempt.

1.060 SPECIAL CONDITIONS

Special Conditions may be included in a Grant Subaward Application or Grant Subaward Amendment before final Cal OES approval.

Special Conditions are added at Cal OES’s discretion to modify the requirements of the program or funding as defined in the NCFO or CFO.

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Special Conditions may include, but are not limited to:

• A change to the final expenditure date of a fund,

• Notification that required programmatic documents (i.e., Operational Agreements) are missing and must be submitted, and/or

• Instructing Subrecipients to not charge indirect costs until confirmation of an approved rate from the federal cognizant agency/organization has been received by Cal OES.

By signing the Grant Subaward, Subrecipients agree to the requirements of any Special Condition(s).

1.065 SUPPLANTING PROHIBITED

Supplanting is to deliberately reduce the amount of federal, state, or local funds currently being appropriated to an existing activity, because a Grant Subaward has also been awarded for the same purpose.

Grant Subaward funds must be used to supplement existing funds for activities and not replace funds that have been appropriated for the same purpose. Supplanting is strictly prohibited for all Grant Subaward funds.

If both state and federal funds are allocated for the same line item, state funds must be expended first.

1.070 WITHHOLDING, REDUCTION, OR TERMINATION OF GRANT SUBAWARD FUNDS

AND DISALLOWANCE OF COSTS

Cal OES may withhold, reduce, or terminate Grant Subaward funds or disallow specific expenditures, for reasons that include, but are not limited to, the following:

• Subrecipient’s failure to adhere to any requirement of the Grant Subaward, including, but not limited to:

o Submission of responsive documents for a Grant Subaward Monitoring Process by required due date(s) (see Sections 13.020- 13.035), o Submission of Corrective Action Plan in response to a Grant Subaward Monitoring Process finding(s) by due date (see Sections 13.020-13.035), 6 | P a g e o Satisfactory implementation of the approved Corrective Action Plan response to a Grant Subaward Monitoring Process finding(s) (see Sections 13.020-13.035), o Resolution of interim or final audit issues on past or current Grant Subawards by due date, o Cooperation with, and granting permission to, Cal OES staff or representatives to review Grant Subaward records, o Repayment of disallowed expenditures in a timely manner, according to payment terms agreed upon, o Submission of required Progress Reports and/or Federal Reporting Data in a timely manner, o Submission of final Progress Report by the due date for a previous Grant Subaward, o Submission of required Certificate of Insurance by due date, and/or o Change or lapse in funding eligibility status per the requirements of the CFO/NCFO.

• The state and/or federal funds appropriated for the purposes of the Grant Subaward are reduced or eliminated by the California Legislature or by the United States Government, or, in the event revenues are not collected at the level appropriated, and/or

• The Subrecipient has made a false certification, or violates the certification by failing to carry out, all of the requirements under California Government Code Section 8355.

Should Cal OES deem it necessary to reduce or terminate Grant Subaward funds, Subrecipients shall be notified in writing. No such termination or reduction shall apply to allowable expenditures already incurred by Subrecipients to the extent that state or federal funds are available for payment of such expenditures.

1.075 DENIAL OF FUTURE FUNDING

Cal OES reserves the right to deny future funding to any Subrecipient based on failure to comply with any term, condition, or corrective action for current or previous Grant Subaward(s), poor past performance in https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=1.&title=2.&part=&chapter=5.5.&article=2.

7 | P a g e previous Grant Subaward(s), or failure to cooperate with state or federal representatives.

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PART 2 – SUBRECIPIENT POLICY AND CERTIFICATION REQUIREMENTS

2.005 CONFLICT OF INTEREST

A. Conflict of Interest Policy

Subrecipients, including their Governing Boards, must have a policy governing the performance of their employees and officials, including conflicts of interest, and governing of employees and officials engaged in the selection, awarding, and administration of contracts.

The policy must indicate employees and officials must:

• Not participate in activities involving the use of Grant Subaward funds where there is an actual or perceived financial interest or benefit:

o To the individual or the individual’s immediate family, partners, organization (other than a public agency/organization in which he or she is serving as an officer, director, trustee, partner, or employee), or o To any person or organization with whom the individual is negotiating or has any arrangement concerning prospective employment.

• Avoid actions that result in, or create the appearance of:

o Using an official or Grant Subaward-funded position for personal gain, o Giving preferential treatment to a particular person, agency/organization, or business, o Conceding independence or impartiality, o Deciding outside official channels, and o Adversely affecting the confidence of the public in the integrity of the government or the program.

• Not engage a Cal OES employee in any activity or enterprise, whether formal or informal, for pay or not for pay, which might result in a conflict of interest or the appearance of a conflict of interest.

• Governing Board members cannot:

9 | P a g e o Be employees of the Subrecipient or Implementing agency/organization, and o Cannot be members of the same family or household (e.g., spouse, partner, parent, sibling, child, etc.) of any employee of the Subrecipient or Implementing agency/organization.

B. Exceptions

Subrecipients may use funds for operating costs (e.g., rent, supplies, insurance, etc.) from a party in which an employee or board member has a financial interest if all the following criteria are met:

• The employee or board member, who has a financial interest, does not take part in the bidding or awarding process,

• The Subrecipient is receiving the item at a lesser rate or there are additional benefits that would not have been available through an independent party,

• The purchase or transaction is approved by a quorum of the Board and documented in the Board Minutes (if a Board Member has a financial interest they must abstain from voting), and

• The Subrecipient retains records of the above.

2.010 ASSURANCES OF COMPLIANCE

A. Standard Certification of Compliance

The Standard Certification of Compliance is a binding affirmation that the Subrecipient will comply with the requirements outlined in the Subrecipient Handbook, including but not limited to:

• Civil Rights Compliance,

• Equal Employment Opportunity,

• Drug-Free Workplace Act of 1990, and

• Lobbying.

The Authorized Agent (see SRH Section 3.005) certifies the Subrecipient will comply with these requirements at the time of application.

B. Program Standard Assurances Addendum

The Program Standard Assurances Addendum is a binding affirmation that the Subrecipient, and any of its second-tier subrecipients, will

10 | P a g e comply with all applicable local, state, and federal statutes, including but not limited to the following state and federal statutes prohibiting hate-based conduct:

• California Penal Code section 422.6(a),

• California Penal Code section 404.6,

• California Penal Code section 422(a),

• California Civil Code section 52.1,

• 18 U.S.C § 249,

• 42 U.S.C. § 3631,

• 18 U.S.C. § 247, and

• 18 U.S.C. § 241, 245.

Additionally, Applicant/Subrecipient will not engage, and certifies that it will take steps to ensure that its second-tier subrecipients and representatives do not engage, in conduct contrary to the purposes of the grant program and/or that threatens the safety and security of Californians, including, but not limited to, acts of violence or unlawful intimidation on the basis of race, gender, religion, national origin, sexual orientation, or other protected classifications. Prohibited conduct includes, but is not limited to, violation of the federal and state laws identified herein.

The Authorized Agent (see SRH Section 3.005) certifies the Subrecipient will comply with these requirements at the time of application.

C. Fund Assurance

The Fund Assurance is a binding affirmation that Subrecipients will comply with assurances required by the federal program/fund source.

The Authorized Agent (see SRH Section 3.005) certifies the Subrecipient will comply with these requirements at the time of application and/or with an Amendment if a new fund source is being added to the Grant Subaward, or if the assurances are received by Cal OES after the execution of the applicable Grant Subaward.

2.015 FIDELITY BOND/CERTIFICATE OF INSURANCE

A Fidelity Bond is a form of insurance that indemnifies the Subrecipient against losses arising from acts of fraud or dishonesty. Fraud or dishonesty includes, but is not limited to, larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion, willful misapplication, and other acts. The purpose of the bond is to protect public funds by assuring reimbursement to Cal OES if Grant Subaward

11 | P a g e funds are stolen, or otherwise misappropriated, by Subrecipient officials and/or employees.

NGOs are required to obtain a Fidelity Bond. A Certificate of Insurance for the Fidelity Bond must be obtained within 60 days from the date of the executed Grant Subaward and made available upon request from Cal OES.

The following must be included on the Certificate of Insurance:

• Insurance company name,

• Insurance policy number,

• Description of coverage,

• Amount of coverage,

• Coverage period,

• Certificate holder,

• Cal OES Program(s) covered by the policy, and

• Employee Dishonesty and/or Theft and Forgery Coverages.

A. Exemptions

State, city, or county units of government and federally recognized tribes are exempt.

B. Amount of Coverage

The Certificate of Insurance for Employee Dishonesty and/or Theft and Forgery coverage must be issued in an amount equal to 50 percent of the total amount of Grant Subawards, including any augmentations, but not including match. The Certificate of Insurance may have a deductible in an amount not to exceed one percent of the insurance amount.

In the event of a Grant Subaward augmentation, Employee Dishonesty and/or Theft and Forgery coverage must be increased to cover 50 percent of the new Grant Subaward amount (not including match).

Subrecipients must increase their coverage within 30 calendar days of the augmentation approval.

C. Type of Coverage

The Certificate of Insurance must include Employee Dishonesty and/or Theft and Forgery coverage. Subrecipients may determine the percentage of each coverage as long as the total is a minimum of 50 percent of the total of all Grant Subawards (not including match). The

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Certificate of Insurance must provide blanket coverage of all employees. A Schedule Bond is not acceptable.

D. Coverage Period

The coverage period must be at least one year, which includes either the start date or end date of the Grant Subaward performance period. If the Certificate of Insurance expires prior to the end date of the Grant Subaward performance period, including any extension, a new Certificate of Insurance must be obtained prior to the expiration date.

E. Beneficiary/Certificate Holder

The certificate holder or first loss payee must be “California Governor’s Office of Emergency Services.”

2.020 CIVIL RIGHTS

Subrecipients must acknowledge awareness of, and the responsibility to comply with, all Equal Employment Opportunity (EEO) and Civil Rights requirements by certifying compliance with the Standard Grant Subaward Assurance when signing the Grant Subaward Application. Failure to comply with these requirements may result in the delay or possible discontinuance of Grant Subaward funds.

A. State and Federal Civil Rights Laws

Comprehensive state and federal civil rights regulations include the following directives:

• Prohibit discrimination or denial of benefits to persons who are under programs or activities receiving financial assistance from the State of California or the federal government,

• Mandate that qualified persons with disabilities will not be excluded from, denied benefits, or discriminated against solely on the basis of their physical disability, mental disability, or medical condition,

• Mandate that all facilities used by Grant Subawards shall be made reasonably accessible and usable by disabled persons,

• Provide that employers shall make reasonable accommodation for an employee or for a client with a known physical or mental

13 | P a g e disability, unless the employer can demonstrate that such accommodation would impose an undue hardship,

• Guarantee equal opportunity for individuals with disabilities in public and private sector services and employment,

• Mandate that all employers shall ensure a workplace free of sexual harassment, and

• Provide Family Care and Medical Leave and Pregnancy Disability Leave under the California Family Rights Act.

B. Civil Rights and Non-Discrimination Policies

Subrecipients must have the following written policies:

1. EEO Policy Statement

The policy, job advertisement, and employment application must state the Subrecipient does not discriminate in employment practices against any individuals based on current protected characteristics referenced in Section 2.025.

Funded American Indian tribes are exempt from prohibitions against employment discrimination. Title VII of the Civil Rights Act of 1964 expressly exempts Indian tribes from the law (42 U.S.C.

§2000e(b)(1)). Thus, funded Indian tribes do not violate any federal civil rights law in exercising a tribal preference in their employment practices.

2. Anti-Discrimination Policy

The policy, statement, brochure, or posting must notify clients, participants, and beneficiaries that the Subrecipient does not discriminate in the delivery of services or benefits based on all current protected classes listed in Section 2.025.

3. Complaints & Grievances Policy

The policy must notify employees, clients, participants, and beneficiaries on how to file complaints and/or grievances alleging discrimination based on all current protected characteristics listed in Section 2.025. These policies and procedures should incorporate due process standards and provide for the prompt and equitable resolution of complaints. Additionally, the Subrecipient must https://www.eeoc.gov/statutes/title-vii-civil-rights-act-1964

14 | P a g e designate an employee responsible to coordinate compliance with the prohibitions against discrimination.

4. Limited English Proficiency (LEP) Policy

The policy must state the Subrecipient will provide meaningful access to its services and activities to persons who have LEP, including but not limited to, a written language access policy, bilingual staff, telephone interpreter, etc.

C. Reporting Findings of Discrimination

Subrecipients are required to submit to the Department of Justice (DOJ) Office of Civil Rights (OCR) any adverse findings of discrimination against the Subrecipient based on any of the protected classes listed in Section 2.025 that are the result of a due process hearing conducted by a federal or state court or a federal or state administrative agency.

D. Civil Rights Monitoring

During a Performance Assessment, Cal OES staff will review the Subrecipient’s policies and ask questions to ensure Subrecipients complies with state and federal civil rights requirements.

E. Civil Rights Training

Subrecipients receiving federal funds administered through DOJ must have at least one employee review the online DOJ, Office of Justice Programs (OJP), OCR training located at https://ojp.gov/about/ocr/ocr-training-videos/video-ocr-training.htm.

Additionally, Subrecipients must train all employees about applicable federal civil rights laws.

F. Faith-Based or Religious Organizations

Clients, participants, or beneficiaries are not required to participate in religious activities to receive services under federally-funded programs.

Subrecipients that are faith-based or religious organizations are required to ensure that its religious beliefs, practices, and activities are separate from its federally-funded services and benefits.

Subrecipients must make a reasonable effort to locate and refer to an alternate organization that offers comparable services and benefits when requested.

https://ojp.gov/about/ocr/ocr-training-videos/video-ocr-training.htm

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G. Cal OES Civil Rights and Equal Employment Opportunity Office

For questions relating to the Cal OES Civil Rights and Equal Employment Opportunity (EEO) office, please visit their website at https://www.caloes.ca.gov/office-of-the-director/policy-administration/civil-rights-eeo/, or send an email to Grantee Compliance at eeo@caloes.ca.gov.

Subrecipients should contact their Personnel/Human Resources/EEO Office for additional civil rights/EEO assistance and compliance information.

2.025 EQUAL EMPLOYMENT OPPORTUNITY

A. State of California Policy

It is the public policy of the State of California to promote EEO by prohibiting discrimination or harassment in employment. Please refer to the State of California Civil Rights Department website (https://calcivilrights.ca.gov/employment/#whoBody) for the current list of protected characteristics.

B. U.S. Department of Justice - Equal Employment Opportunity Program

An Equal Employment Opportunity Program (EEOP) is an all-encompassing program with several components which address the ways an organization ensures equal employment opportunities are available to all groups of people.

The EEOP is required by the provision prohibiting employment discrimination in the Omnibus Crime Control and Safe Streets Act of 1968 (Safe Streets Act). These requirements apply to any organization that receives financial assistance from the Department of Justice (Office of Justice Programs (OJP)), Office on Violence Against Women (OVW), or sources otherwise subject to the civil rights provisions of the Safe Streets Act. More information about the requirement can be found on the U.S. DOJ, Office for Civil Rights (OCR) website.

The U.S. DOJ, OCR website has an EEO Report Builder, which is designed to assist U.S. DOJ Subrecipients in developing EEO workforce analysis and related strategies. As a condition for receiving U.S. DOJ funding Subrecipients must complete the following:

https://www.caloes.ca.gov/office-of-the-director/policy-administration/civil-rights-eeo/ https://www.caloes.ca.gov/office-of-the-director/policy-administration/civil-rights-eeo/ mailto:eeo@caloes.ca.gov https://calcivilrights.ca.gov/employment/#whoBody https://www.ojp.gov/program/civil-rights-office/equal-employment-opportunity-plans

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1. Verification of EEO Reporting Requirements Status

The Verification Form is the process in which Subrecipients acknowledge EEO reporting requirements. This must be completed annually and verifies whether the Subrecipient is exempt from completing a Utilization Report or if the Subrecipient is required to prepare and complete a Utilization Report. Please refer to the EEOP Report Builder (OCR-EEOP (ojp.gov)). For details on accessing the EEO Report Builder, refer to the EEO Subrecipient Report Tool Job Aid (ojp.gov).

2. Determination of EEO Reporting Requirements

The data collected in the Determination of EEO Reporting Requirements module of the EEOP Report Builder will identify the type of Verification Form that is required.

The EEO Reporting Requirement module will identify one of the following:

a. Non-Exempt Verification

Subrecipients who are not exempt from completing a Utilization Report are required to prepare and complete the Verification Form and Utilization Report. Subrecipients must use the EEOP Report Builder to complete the Verification Form. Using the EEOP Report Builder may also be used to complete the Utilization Report. The Verification Form and Utilization Report must be made available to Cal OES upon request.

b. Exempt Verification

Subrecipients who are exempt from completing a Utilization Report are required to maintain the Verification Form, indicating their exempt status, for Cal OES to review upon request.

2.030 DRUG-FREE WORKPLACE

A. Drug-Free Workplace Laws and Definitions

Through the enactment of Senate Bill 1120 (Chapter 1170, Statutes of 1990), the Drug-Free Workplace Act of 1990 was established requiring Subrecipients to comply with the requirements of Government Code Sections 8350-8351 and Government Code Sections 8355-8357.

https://eeop.ocr.ojp.gov/certsub/homepage https://eeop.ocr.ojp.gov/certsub/homepage https://www.ojp.gov/EEOSubrecipientReportTool_JobAid https://www.ojp.gov/EEOSubrecipientReportTool_JobAid https://eeop.ocr.ojp.gov/certsub/homepage https://eeop.ocr.ojp.gov/certsub/homepage https://eeop.ocr.ojp.gov/certsub/homepage https://eeop.ocr.ojp.gov/certsub/homepage https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=1.&title=2.&part=&chapter=5.5.&article=1.

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=1.&title=2.&part=&chapter=5.5.&article=1.

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=1.&title=2.&part=&chapter=5.5.&article=2.

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The Federal Drug-Free Workplace Act of 1988 (41 USC 701) was established requiring Subrecipients to assure Cal OES that they will comply with the requirements of federal law as implemented in 28 CFR Part 67, Subpart F, Sections 615 and 620.

For the purposes of Drug-Free Workplace requirements, the following definitions apply:

• Employee

The employee of a Subrecipient or Contractor directly engaged in the performance of work pursuant to the grant or contract described in Government Code Section 8355.

• Contractor

The person or organization responsible for the performance under the contract.

• Drug-Free Workplace

A site for the performance of work done in connection with a specific grant or contract described in Government Code Section 8355 of an entity at which employees of the entity are prohibited from engaging in the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance in accordance with the requirements of this chapter.

• Controlled substance

A controlled substance in Schedules I through V of Section 202 of the Controlled Substances Act (21 USC §812).

B. Drug-Free Workplace Certification

Subrecipients must certify they will provide a drug-free workplace by doing all the following:

• Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required in Government Code Section 8355 Subdivision (a).

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• Establishing a Drug-Free Awareness Program as required by Government Code Section 8355, Subdivision (b), to inform employees about all the following:

o The dangers of drug abuse in the workplace, o The organization’s policy of maintaining a drug-free workplace, o Any available counseling, rehabilitation, and employee assistance programs, and o Penalties that may be imposed upon employees for drug abuse violations.

• Ensuring that every employee who works on the Grant Subaward:

o Receives a copy of the company’s drug-free policy statement, and o Agrees to abide by the terms of the company’s statement as a condition of employment on the contract or Grant Subaward.

o Notifies the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction.

• Notifying Cal OES and the U.S. DOJ in writing, within ten (10) calendar days after receiving notice as required above from an employee or otherwise receiving actual notice of such conviction.

Employers of convicted employees must provide written notice, including the position and title of the employee and identification numbers of all Grant Subawards affected, to both Cal OES and to the DOJ at:

U.S. Department of Justice Office of Justice Programs

ATTN: Control Desk 810 7th Street, NW

Washington, D.C. 20531

• Taking one of the following actions, within 30 calendar days of receiving notice, with respect to any employee who is convicted:

19 | P a g e o Take appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended, or o Require employee to participate in a drug abuse assistance or rehabilitation program approved for such purposes by a federal, state, or local health, law enforcement, or other appropriate agency.

• Making a good faith effort to continue to maintain a drug-free workplace through implementation of the above requirement.

2.035 ENVIRONMENTAL IMPACT – CALIFORNIA ENVIRONMENTAL QUALITY

ACT (CEQA) COMPLIANCE AND CERTIFICATION

A. CEQA Compliance

The purpose of CEQA includes disclosure to the public any significant environmental effects of a proposed project. This applies to all discretionary projects proposed to be conducted or approved by a California public agency.

CEQA defines project as, “an activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and which is any of the following: CEQA Statute Association of Environmental Professionals 2021 Section 21065 (a) An activity directly undertaken by any public agency. (b) An activity undertaken by a person which is supported, in whole or in part, through contracts, grants, subsidies, loans, or other forms of assistance from one or more public agencies. (c) An activity that involves the issuance to a person of a lease, permit, license, certificate, or other entitlement for use by one or more public agencies.”

If the activities of the Grant Subaward meet the definition of a “project” per CEQA, Section 20165, the Subrecipient must comply with the requirements of CEQA. This may require the preparation of an environmental document by the Subrecipient prior to commencing the Grant Subaward. Subrecipients should contact their legal counsel and/or the department or agency within their jurisdiction responsible for CEQA compliance for further information about the applicability of CEQA to their Grant Subaward.

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B. CEQA Compliance Certification

If the activities of the Grant Subaward meet the definition of “project” as outlined above (per CEQA), Subrecipients must complete, and make available upon request, the certification requirements as follows:

1. State Governmental Agencies

State Government Agencies must certify that:

• They have adopted or certified the completion of an environmental impact report that complies with the requirements of CEQA, or

• They have filed a Notice of Exemption with the State of California - Office of Planning & Research. The Notice of Exemption includes:

o A brief description of the activities of the Grant Subaward, and o A statement that the activities of the Grant Subaward are exempt from CEQA, including a citation to the relevant statute or guidelines section (i.e., Categorical Exemption pursuant to 14 CCR Section 15300).

The Notice of Exemption can be found at:

https://opr.ca.gov/docs/NOE.pdf

2. Local Governmental Agencies

Local Governmental Agencies must certify that:

• They have adopted or certified the completion of an environmental impact report that complies with the requirements of CEQA, or

• They have filed a Notice of Exemption with the County Clerk for the county in which the Grant Subaward is implemented. The Notice of Exemption must include:

o A brief description of the activities of the Grant Subaward, and https://opr.ca.gov/docs/NOE.pdf

21 | P a g e o A statement that the activities of the Grant Subaward are exempt from CEQA, including a citation to the relevant statute or guidelines section (i.e., Categorical Exemption pursuant to 14 CCR Section 15300).

3. NGOs

NGOs must certify that:

• They have adopted or certified an environmental document for the Grant Subaward that complies with the requirements of CEQA, or

• They have prepared a Negative Declaration letter.

2.040 LOBBYING

Grant Subaward funds must not be used for the purposes of lobbying. This prohibition applies to both federal and state-funded Grant Subawards.

Grant Subaward funds, property, and funded positions must not be used for any lobbying activities. By certifying compliance with the Standard Grant Subaward Assurance, Subrecipients ensure adherence with this requirement. See Section 4.105 for more information on the description of lobbying activities.

2.045 SUSPENSION AND DEBARMENT

It is the policy of the federal government to conduct business only with responsible persons. A system for debarment and suspension from programs and activities involving federal financial and non-financial assistance and benefits exists to assist agencies in carrying out this policy.

A. Subrecipient Certification

Subrecipients receiving federal funds must certify that they will adhere to Federal Executive Order 12549, Debarment and Suspension. By certifying compliance with the Standard Grant Subaward Assurance, Subrecipients ensure that neither the Subrecipient nor its principals have been suspended or debarred from participation in federal grants.

The Subrecipient must not make any Second-Tier Subaward, or enter into any contract for $25,000 or more, with parties that are debarred, suspended, or otherwise excluded or ineligible for participation in federal programs or activities.

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B. Verification of Vendor/Contractor Eligibility

Prior to entering into contracts or procurements greater than $25,000, Subrecipients must either obtain a self-certification statement from the Vendor/Contractor indicating they or their principals are eligible to participate in federal awards via the federal System for Award Management (SAM).

1. Self-Certification

The self-certification statement should contain language certifying that neither the organization nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in the transaction by any federal department or agency.

2. System for Award Management Verification

Verification of eligibility of prospective Vendors/Contractors may be obtained via the federal System for Award Management (SAM) website at https://www.sam.gov/SAM/. It is suggested that a screen shot of the negative results page be kept with the procurement/contract records to support eligibility verification occurred prior to entering into the transaction.

2.050 DETERMINATION OF SUITABILITY…