DEP AGREEMENT NO. SP499
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DEP AGREEMENT NO, SP499
STATE OF FLORIDA GRANT ASSISTANCE
PURSUANT TO LINE ITEM 1395A OF THE 1998 - 99 APPROPRIATIONS ACT
THIS AGREEMENT is entered into between the STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL
PROTECTION, whose address is 3900 Commonwealth Boulevard, Tallahassee, Florida 32399 (hereinafter referred to as the
"Department") and the CITY OF CLEARWATER, whose address is P, O. Box 4748, Clearwater, Florida 33758 (hereinafter
referred to as "Grantee"), a governmental entity, to provide funding for the purposes of brownfields redevelopment in the
Clearwater Brownfields Area (CBA) designated in the City of Cleanvater's Resolution No. 97-57. The funding will be
utilized to remediate contaminated sites in communities which currently lack remedial funding and have a disproportionate
number of contaminated sites. Specifically, the funding will be used at three sites, An abandoned gas station on North
Greenwood Avenue, an abandonded gas station on South Greenwood Avenue, and a former automotive salvage area on
Pennsylvannia Avenue. The general scope is for assessment and remediation of orphaned and abandonded sites in the
Greenwood Communities. Tasks include payment of environmental liens, tank removal, performance of phase I and phase II
assessment audits, initial source removal, remedial action plans, and remedial actions including appropriate actions to acquire
and make sites suitable for the highest and best use for the communities.
In consideration of the mutual benefits to be derived herefrom, the Department and the Grantee do hereby agree as
follows:
1. The Grantee does hereby agree to perform in accordance with the terms and conditions set forth in this Agreement,
Attachment A (Scope of Work), and all attachments and exhibits named herein which are attached hereto and
incorporated by reference.
2, This Agreement shall begin upon execution by both parties and end no later than December 31, 1999, inclusive, In
accordance with Section 287.058(2), Florida Statutes, the Grantee shall not be eligible for reimbursement for
services rendered prior to the execution date of this Agreement. This Agreement may be amended to provide for
additional services if additional funding is made available by the Legislature,
3, As consideration for the services rendered by the Grantee under the terms of this Agreement, the Department shall
pay the Grantee on a cost reimbursement basis in an amount not to exceed $225,000, The Grantee shall be
reimbursed on a cost reimbursement basis in accordance with the Comptroller's Contract Payment Requirements,
attached hereto and made a part hereof as Attachment B. All bills for amounts due under this Agreement shall be
submitted in detail sufficient for a proper pre-audit and post-audit thereof. All requests for reimbursement of travel
expenses shall be submitted in accordance with Section 112.061, Florida Statutes.
4. The State of Florida's performance and obligation to pay under this Agreement is contingent upon an annual
appropriation by the Legislature.
5, The Grantee shall submit quarterly invoices in conjunction with quarterly progress reports describing the work
performed, problems encountered, problem resolution, schedule updates and proposed work for the next reporting
period, If advance payment is authorized, the Grantee shall report (and document) the amount of funds expended
during the reporting period, the Agreement expenditures to date, interest earned during the quarter and clearly
indicate the method for repayment of the interest to the Department (see paragraph 19). Quarterly reports shall be
submitted to the Department's Project Manager no later than twenty (20) days following the completion of the
quarterly reporting period. It is hereby understood and agreed by the parties that the term "quarterly" shall reflect
the calendar quarters ending March 31, June 30, September 30 and December 31.
6, Pursuant to Section 215.422, Florida Statutes, the Department's Project Manager shall have five (5) working days,
unless othenvise specified herein, to inspect and approve the services for payment; the Department must submit a
request for payment to the Florida Department of Banking and Finance within twenty (20) days; and the Department
of Banking and Finance is given ten (10) days to issue a warrant. Days are calculated from the latter date the invoice
is received or services received, inspected, and approved, Invoice payment requirements do not start until a proper
and correct invoice has been received, Invoices which have to be returned to a grantee for correction(s) will result in
DEP Agreement No, SP499, Page 1 of 5
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a delay in the payment. A Vendor Ombudsman has been established within the Florida Department of Banking and
Finance who may be contacted if a contractor is experiencing problems in obtaining timely payment(s) from a State
of Florida agency. The Vendor Ombudsman may be contacted at 850/488-2924 or 1-800-848-3792,
7. In accordance with Section 215.422, Florida Statutes, the Department shall pay the Grantee, interest at a rate as
established by Section 55.03(1), Florida Statutes on the unpaid balance, if a warrant in payment of an invoice is not
issued within forty (40) days after receipt of a correct invoice and receipt, inspection, and approval of the goods and
seIVices. Interest payments of less than $1 will not be enforced unless a grantee requests payment. The interest rate
established pursuant to Section 55.03(1), by Comptroller's Memorandum No.3 (1997-98) dated December 3, 1997,
has been set at 10% per annum or .02740% per day. The revised interest rate for each calendar year beyond 1998 for
which the term of this Agreement is in effect can be obtained by calling the Department of Banking and Finance,
Vendor Ombudsman at the telephone number provided above or the Department's Contracts Section at
850/922-5942.
8. Each party hereto agrees that it shall be solely responsible for the negligent or wrongful acts of its employees and
agents. However, nothing contained herein shall constitute a waiver by either party of its sovereign immunity or the
provisions of Section 768,28, Florida Statutes.
9, The Department may terminate this Agreement at any time in the event of the failure of the Grantee to fulfill any of
its obligations under this Agreement. Prior to termination, the Department shall provide thirty (30) calendar days
written notice of its intent to terminate and shall provide the Grantee an opportunity to consult with the Department
regarding the reason(s) for termination.
10. This Agreement may be unilaterally canceled by the Department for refusal by the Grantee to allow public access to
all documents, papers, letters, or other material subject to the provisions of Chapter 119, Florida Statutes, and made
or received by the Grantee in conjunction with this Agreement.
11, The Grantee shall maintain books, records and documents directly pertinent to performance under this Agreement in
accordance with generally accepted accounting principles consistently applied. The Department, the State, or their
authorized representatives shall have access to such records for audit purposes during the term of this Agreement
and for three years following Agreement completion. In the event any work is subcontracted, the Grantee shall
similarly require each subcontractor to maintain and allow access to such records for audit purposes.
12, In accordance with Section 216,349, Florida Statutes (financial review of grants and aids appropriations), the
Grantee shall provide to the Department one of the following: (a) if the amounts received exceed $100,000, an audit
of this Agreement in accordance with the rules of the Auditor General promulgated pursuant to Section 11.45,
Florida Statutes; or (b) if the amounts received are greater than $25,000 but do not exceed $100,000, a statement
prepared by an independent certified public accountant which attests that the Grantee has complied with the
provisions of this Agreement or an audit as described under (a) above, or (c) if expenditures are less than $25,000,
an attestation by the head of the entity or organization, under penalty of perjury, that the entity or organization has
complied with the provisions of this Agreement. The Department reserves the right to recover costs for failure to
comply with Section 216.349, Florida Statutes.
Copies of the required statement or audit, as applicable, shall be sent to each of the following within six (6) months
after the completion of each of the Grantee's fiscal years' in which the Agreement is in effect.
- Roger B. Register (MS 4505)
Department of Environmental Protection
2600 Blair Stone Road
Tallahassee, Florida 32399-2400
-Audit Director (MS 40)
Department of Environmental Protection
2600 Blair Stone Road
Tallahassee, Florida 32399-2400
DEP Agreement No. SP499, Page 2 of 5
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-Audit Manager
Office of the Auditor General
P.O. Box 1735
Tallahassee, Florida 32302
To ensure compliance with Section 216,349, Florida Statutes, Chapter 10.600, Rules of the Auditor General is
provided as Attachment C. Although this document is provided as an attachment to this Agreement, the Grantee
acknowledges that this rule is subject to periodic revision by the Auditor General, and as such, the Grantee agrees to
comply with the effective version of the rule at the time of satisfying the audit requirements of this Agreement.
13. The Grantee shall not subcontract, assign, or transfer any work under this Agreement without the prior written
consent of the Department's Project Manager. The Grantee agrees to be responsible for the fulfillment of all work
elements included in any subcontract consented to by the Department and agrees to be responsible for the payment of
all monies due under any subcontract. It is understood and agreed by the Grantee that the Department shall not be
liable to any subcontractor for any expenses or liabilities incurred under the subcontract and that the Grantee shall be
solely liable to the subcontractor for all expenses and liabilities incurred under the subcontract.
14. In accordance with Section 216.347, Florida Statutes, the Grantee is hereby prohibited from using funds provided by
this Agreement for the purpose of lobbying the Legislature, the judicial branch or a state agency.
15, A person or affiliate who has been placed on the convicted vendor list following a c()nviction for a public entity
crime may not perform work as a grantee, contractor, supplier, subcontractor, or consultant under a contract with
any public entity, and may not transact business with any public entity in excess of the threshold amount provided in
Section 287.017, F.S., for Category Two, for a period of 36 months from the date of being placed on the convicted
vendor list.
16. The Grantee shall comply with all applicable federal, state and local rules and regulations in providing services to
the Department under this Agreement. The Grantee acknowledges that this requirement includes compliance with
all applicable federal, state and local health and safety rules and regulations. The Grantee further agrees to include
this provision in all subcontracts issued as a result of this Agreement.
17, The Department's Project Manager for this Agreement is identified below,
Roger B, Register
Brownfields Liaison
Bureau of Waste Cleanup
2600 Blair Stone Road, MS 4505
Tallahassee, Florida 32399-2400
Phone: (850) 413-0062
Fax: (850) 922-4368
18, The Grantee's Project Manager for this Agreement is identified below,
Miles Ballogg
Brownfield Coordinator
Economic Development Team
City of Clearwater
P. O. Box 4748
Clearwater, Florida 33758-4748
Phone: (813) 562-4023
Fax: (813) 562-4037
19, In accordance with Section 216, 181(l5)(b), Florida Statutes the Department, upon written request from the Grantee
and written approval from the Comptroller, may provide an advance to the Grantee. The Grantee may temporarily
invest the advanced funds, provided that any interest income shall either be returned to the Department, within thirty
(30) days of each calendar quarter or be applied against the Department's obligation to pay, if applicable, under this
DEP Agreement No. SP499, Page 3 of 5
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Agreement. Interest earned must be returned to the Department within the timeframe identified above or invoices
must be received within the same timeframe that shows the offset of the interest earned.
Unused funds, and interest accrued on any unused portion of advanced funds which has not been remitted to the
Department, shall be returned to the Department within sixty (60) days of Agreement completion.
The parties hereto acknowledge that the State Comptroller may identify additional requirements which must be met
in order for advance payment to be authorized. If additional requirements are imposed by the State Comptroller, the
Grantee shall be notified, in writing, by the Department's Project Manager regarding the additional requirements.
Prior to releasing any advanced funds, the Grantee shall be required to provide a written acknowledgement to the
Department's Project Manager of the Grantee's acceptance of the terms imposed by the State Comptroller for release
of the funds,
20, To the extent required by law, the Grantee will be self-insured against, or will secure and maintain during the life of
this Agreement, Workers' Compensation Insurance for all of his employees connected with the work of this project
and, in case any work is subcontracted. the Grantee shall require the subcontractor similarly to provide Workers'
Compensation Insurance for all of the latter's employees unless such employees are covered by the protection
afforded by the Grantee. Such self-insurance program or insurance coverage shall comply fully with the Florida
Workers' Compensation law. In case any class of employees engaged in hazardous work under this Agreement is not
protected under Workers' Compensation statutes, the Grantee shall provide, and cause each subcontractor to provide,
adequate insurance satisfactory to the Department, for the protection of his employees not othenvise protected.
21. The Grantee, as an independent contractor and not an agent, representative, or employee of the Department, agrees
to carry adequate liability and other appropriate fonDS of insurance, The Department shall have no liability except
as specifically provided in this Agreement.
22. The Grantee covenants that it presently has no interest and shall not acquire any interest which would conflict in any
manner or degree with the performance of services required,
23, The purchase of non-expendable equipment costing $500 or more is not authorized under the terms of this
Agreement.
24, The Department may at any time, by written order designated to be a change order, make any change in the work
within the general scope of this Agreement (e,g" specifications, time, method or manner of performance,
requirements, etc.), All change orders are subject to the mutual agreement of both parties as evidenced in writing,
Any change order which causes an increase or decrease in the Grantee's cost or time shall require formal amendment
to this Agreement.
25, This Agreement represents the entire agreement of the parties, Any alterations, variations, changes, modifications
or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing, duly signed
by each of the parties hereto, and attached to the original of this Agreement, unless otherwise provided herein,
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DEP Agreement No, SP499, Page 4 of5
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below,
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed, the day and year last written
CITY OF CLEARWATER
STATE OF FLORIDA DEPARTMENT OF
ENVIRONMENTAL PROTECTION
By:
Title*: Rita Garvey
Mayor-Commissioner
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Secre r designee
Date:
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DEP oject Manager ;
By:
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Approved aitd'L6~m:'
Approved as to form and legality:
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By: .e--~~ ---
John Carassas
Assistant City Attorney
FEll No, 596-00-0239
*For Agreements with governmental boards/commissions: If someone other than the Chairman signs this Agreement, a
resolution, statement or other document authorizing that person to sign the Agreement on behalf of the Grantee must
accompany the Agreement.
List of attachments/exhibits included as part of this Agreement:
Specify
Type
Letter/
Number
Description (include number of pages)
Attachment
Attachment
Attachment
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Scope of Work (4 Pages)
Comptroller Contract Payment ReQuirements (I Page)
Chapter 10.600. Rules of the Auditor General (5 Pages)
DEP Agreement No. SP499, Page 5 of 5
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ATTACHMENT "A"
SCOPE OF WORK
ASSESSMENT IREMEDIATION OF ORPHANED AND ABANDONED SITES
CLEARWATER BROWNFIELDS AREA
(Pursuant to Line Item 1395A of the 1998-99 Appropriations Act )
PURPOSE
This document will describe the intended uses of funding provided through Line Item 1395A of
the 1998-99 Appropriations Act for the purposes of Brownfields redevelopment in the
Clearwater Brownfields Area (CBA) as designated in the City of Clearwater's Resolution 97-57.
This scope of work is required by the attached Florida Department of Environmental Protection
Agreement.
INTRODUCTION AND GENERAL PROJECT DESCRIPTION
Asa result of the 1998- 1999 State Appropriations Act the City is eligible for $225,000 of State
funding to remediate and redevelop orphaned and abandoned sites within the Clearwater
Brownfields Area (CBA). The remediation of these sites will augment the activities specified in
existing State and EPA Brownfields work plans and will provide much needed remedial funding
for sites in the Greenwood communities of the CBA.
The primary focus of the funding will be to return orphaned and abandoned environmentally
impaired sites within the CBA to productive economic development or community development
uses. This funding provided under this agreement will provide services necessary to remove all
environmental impediments from these sites. Further, activities funded through this
appropriation will serve as a catalyst to economic and community development activities in the
area. The remediation and redevelopment of these contaminated and blighted sites aid in the
implementation of environmental justice within the CBA.
SPECIFIC USES
The funding provided under this agreement may be utilized to perform the following activities on
orphaned and abandoned sites within the CBA:
· Phase I Environmental Assessments
· Phase II Environmental Assessments
· Payment of Liens Imposed due to Environmental Responses to Property
· Site preparation
· Site stabilization
· Removal of Pollutant Storage Tanks
· Performance of Pollutant Storage Tank Closure Reports
· Performance of Initial Remedial Actions
DEP Contract No. SP499, Attachment A, Page 1 of 4
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· Preparation of Contamination Assessment Reports
· Preparation of Remedial Action Plans
· Remedial Activities
· Legal Representation and fees for (Environmental/Property Acquisition Issues)
· All Other Activities Required to remove Environmental impediments to redevelopment
including but not limited to negotiating Brownfield Site Rehabilitation Agreements and
Risked Based Corrective Action remedies
This list is not to be considered all inclusive of the activities required to be funded. However,
required activities not listed will be presented to the FDEP project manger for approval prior to
implementation.
PROPOSED PROJECTS
The following are the proposed projects for the use of the funding under this agreement. These
projects may be substituted with other viable remediation projects within the (CBA). In the
event that funding is available at the completion of the proposed projects additional projects will
be sought for assessment, remediation and redevelopment within the CBA.
1. Tank Removal/Remediation and Redevelopment of property located at 1108 N.
Greenwood Avenue - This project will involve the acquisition (foreclosure/deed in lieu of
foreclosure) of an abandoned gas station in the North Greenwood Community. The City will
remove an estimated five (5) below ground storage tanks at this location and will perform an
initial remedial action by removing excessively contaminated soils at the site discovered
during the tank removal activities. A Closure Report, Contamination Assessment Report,
Remedial Action Plan and Brownfield Site Rehabilitation Agreement will be funded as
required.
Preliminary Estimate Costs - $125,000.00
Projected Time Line - Completion between 6-8 months (dependent on property
acquisition).
2. Brownfields Infill Housing Project at 904 Pennsylvania Ave. - The City will coordinate
the acquisition of this property located with Clearwater Neighborhood Housing Services for
the construction of 2 Infill houses in the North Greenwood Community. This site was
formerly used as an automotive salvage yard. The site was recently demolished and 14
drums of waste were collected from this location during the demolition. The funding will be
utilized to perform assessment and remediation activities on the site to prepare it for
construction. The funding will also be used to pay for environmental liens on the property
resulting from the waste disposal activities associated with the demolition.
Preliminary Estimate Costs- $70,000.00
Timeline - 6 to 12 months (dependent on property acquisition)
3. Neighborhood Family Center/ Police Sub Station - Tank Removal at 1498 S,
Greenwood Ave. This is a joint project between the Community Service Foundation and
the City of Clearwater for the South Greenwood Community. Phase I and Phase II
assessments of this property have been performed utilizing funds from Clearwater Housing
DEP Contract No, SP499, Attachment A, Page 2 of 4
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and Urban Development. No contamination was discovered over regulatory levels for this
site. Their are up to six tanks located on the property that require removal. The funding will
be utilized to for tank removal and closure report costs. No remedial costs are anticipated
due to assessments performed to date.
Preliminary Estimate Costs - $30,000.
Projected Timeline - 6 to 8 months
Reports
Quarterly progress reports will be provided to the FDEP project manager describing the work
performed, problems encountered, problem resolution, schedule updates and proposed work
for the next reporting period. Quarterly invoices for work accomplished will also be provided to
the FDEP project manager. Updates and modifications of the Scope of Work will be provided
to FDEP for review and comment.
Scope of Work Policy
The proposed projects described in this document may be modified as the redevelopment of
the Clearwater Brownfields Area evolves. It is to be expected that this scope of work may
require modification to remain an effective document. The Clearwater Brownfields Area is
subject to change in accordance with the adoption or modification of a resolution as required by
Chapter 376.80 of the Florida Statutes. The Clearwater City Commission has final authority
over the use of grant funding. The proposed budget in this document is pending approval of
the City Commission. Any modifications of this Scope of Work, Clearwater Brownfields Area
and use of State Funding under the attached agreement Grant funding will be submitted to
FDEP project manager for review and approval.
Points of Contact
Miles Ballogg, Clearwater Brownfields Coordinator Project Manager for the City of Clearwater
and is the Project Administrator for this project. Any significant conversations or comments
regarding this grant funding shall be channeled through Mr. Ballogg. All correspondence to the
State from the City regarding activities outlined in this work plan will be directed to Mr. Roger
B. Register, State Brownfields Liaison at the Florida Department of Environmental Protection.
DEP Contract No. SP499, Attachment A, Page 3 of 4
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Table 1-1
Clearwater Brownfields Redevelopment Work Plan
Points of Contact
Miles G. Ballogg
Clearwater Brownfields Coordinator
Project Manager
City of Clearwater
P.O. Box 4748
Clearwater, Florida 33758-4748
TEL: (727) 562-4023
FAX: (727) 562-4073
EMAIL
mballogg@public.lib.ci.clearwater.fl.us
Roger B. Register
Brownfields Liaison
Bureau of Waste Cleanup
2600 Blair Stone Road MS 4505
Tallahassee, Florida 32399-2400
Phone: (850) 413-0062
Fax: (850) 922-4368
register _r@dep.state.fl.us
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DEP Contract No, SP499, Attachment A, Page 4 of 4
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ATTACHMENT B
Comptroller Contract Payment Requirements
Department of Banking and Finance, Bureau of Auditing Manual (10/07/97)
Cost Reimbursement Contracts
Invoices for cost reimbursement contracts must be supported by an itemized listing of expenditures by category
(salary, travel, expenses, etc.) Supporting documentation must be provided for each amount for which
reimbursement is being claimed indicating that the item has been paid. Check numbers may be provided in lieu of
copies of actual checks. Each piece of documentation should clearly reflect the dates of service, Only
expenditures for categories in the approved contract budget should be reimbursed.
Listed below are examples of types of documentation representing the minimum requirements:
(1) Salaries:
A payroll register or similar documentation should be submitted. The payroll register
should show gross salary charges, fringe benefits, other deductions and net pay, If an
individual for whom reimbursement is being claimed is paid by the hour, a document
reflecting the hours worked times the rate of pay will be acceptable.
(2) Fringe Benefits:
Fringe Benefits should be supported by invoices showing the amount paid on behalf of
the employee (e.g., insurance premiums paid). If the contract specifically states that
fringe benefits will be based on a specified percentage rather than the actual cost of
fringe benefits, then the calculation for the fringe benefits amount must be shown.
Exception: Governmental entities are not required to provide check numbers or copies
of checks for fringe benefits.
(3) Travel: Reimbursement for travel must be in accordance with Section 112.061, Florida Statutes,
which includes submission of the claim on the approved State travel voucher or
electronic means.
(4) Other direct costs: Reimbursement will be made based on paid invoices/receipts, Ifnonexpendable property
is purchased using State funds, the contract should include a provision for the transfer of
the property to the State when services are terminated, Documentation must be provided
to show compliance with Department of Management Services Rule 60A-I,OI7, Florida
Administrative Code, regarding the requirements for contracts which include services and
that provide for the contractor to purchase tangible personal property as defined in
Section 273,02, Florida Statutes, for subsequent transfer to the State,
(5) In-house charges: Charges which may be of an internal nature (e.g., postage, copies, etc,) may be
reimbursed on a usage log which shows the units times the rate being charged, The rates
must be reasonable.
(6) Indirect costs: If the contract specifies that indirect costs will be paid based on a specified rate, then the
calculation should be shown.
Pursuant to 216.346, Florida Statutes, a contract between state agencies including any
contract involving the State University system or the State Community College system,
the agency receiving the contract or grant moneys shall charge no more than 5 percent ofathe total cost of the contract or grant for overhead or indirect cost or any other cost not
required for the payment of direct costs,
DEP Contract No. SP499, Attachment B, Page I of I
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ATTACHMENT C
RULES OF THE AUDITOR GENERAL
CHAPTER 10.600
AUDITS OF STATE GRANTS AND AIDS APPROPRIATIONS
UNDER SECTION 216.349, FLORIDA STATUTES
EFFECTIVE 9-30-97
DEP Contract No. SP499, Attachment C, Page 1 of 5
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RULES OF THE AUDITOR GENERAL
CHAPTER 10.600
TABLE OF CONTENTS
Rule
Section No.
Description
PaQe
10.610
10.620
10.630
PREFACE TO RULES ........................................ 2
DEFINITIONS..................................................... 3
AUDIT REQUIREMENTS ................................... 4
EFFECTIVE DATE............................................. 4
APPENDiX......................................................... 5
PREFACE TO RULES
Section 216.349, Florida Statutes, imposes audit requirements on recipients of grants
and aids appropriations from State agencies. The grants and aids appropriations referred to in
Section 216.349, Florida Statutes, are those designated as "grants and aids" in a Florida
appropriations act. The beginning point of any audit required by this section of law should be a
determination of which State moneys received by the auditee are grants and aids appropriations
as described above.
The Auditor General has no authority or responsibility to determine which grants and aids
are covered by this section of the Florida Statutes. Because of responsibilities assigned to the
administering State agency and the Comptroller of the State of Florida, either or both should be
able to assist the auditee in detennining which grants and aids come under Section 216.349,
Florida Statutes. The administering State agency should also be consulted regarding any specific
form requirements for the required report and schedule.
These rules apply only to grants made by State agencies from appropriations designated
as "grants and aids" in a Florida appropriations act. These rules do not apply to grants made
from sources of money other than those designated as "grants and aids" in a Florida
appropriations act.
There may be occasions when State grants and aids appropriations moneys received
from a State agency include Federal moneys. Certain changes to these rules have been made to
assist State agency Federal award pass-through recipients in their effort to implement new
Federal requirements (Le., Single Audit Amendments of 1996 and revised OMS Circular A-133)
while still complying with the Section 216.349, Florida Statutes, requirements. The most
significant change to these rules is the requirement that the auditor conduct an examination in
accordance with AICPA attestation standards and issue an examination attestation report
addressing compliance with the grant requirements.
Since the primary objective of a Section 216.349, Florida Statutes, audit is to determine
the recipient' s compliance with the grant provisions (including a determination of whether the
grant funds were used for authorized purposes), an examination conducted in accordance with
AICPA attestation standards should be sufficient to meet this objective. AICPA attestation
standards are not significantly different from AICPA auditing standards and the level of audit
work necessary to meet this objective would not vary significantly whether done as part of an
audit or as part of an attestation engagement. An examination done in accordance with AICPA
DEP Contract No. SP499, Attachment C, Page 2 of 5
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attestation standards provides a high level of assurance (Le., an opinion) and should satisfy the
monitoring needs of pass-through Federal award recipients. Examinations intended to satisfy
such monitoring needs would be limited to the five types of compliance requirements specified in
OMB Circular A-133 for limited scope audits.
Another advantage of an examination conducted in accordance with AICPA attestation
standards is that the auditor's examination attestation report is essentially the same regardless
of whether or not the grants and aids recipient is a local government, not-for-profit or for-profit
organization, or had a financial statement audit. The use of the same report to satisfy applicable
Federal subrecipient monitoring requirements and/or State grants and aids appropriations audit
requirements should ease administrative burdens
imposed on State agencies.
The basis for determining which Federal award recipients are required to have a Federal
single audit (Le., amount of Federal awards expended) differs from the basis for determining
which grants and aids recipients are required to provide for an audit pursuant to Section 216.349,
Florida Statutes (Le., the amount of grants and aids moneys received). Accordingly, Federal
award recipients required to provide for an audit pursuant to the Federal Single Audit Act must
prepare a schedule of expenditures of Federal awards whereas State grants and aids recipients
required to provide for an audit pursuant to Section 216.349, Florida Statutes, must prepare a
schedule of State financial assistance. Because information required for a schedule of
expenditures of Federal awards differs from that required for a schedule of State financial
assistance, State grants and aids moneys that involve Federal awards will have to be included
on the schedule of expenditures of Federal awards (when that schedule is required pursuant to
the Federal Single Audit Act) and on the schedule of State financial assistance. The schedule of
State financial assistance should be footnoted to indicate the extent of duplication of moneys on
the two schedules.
The auditor must determine from the grant agreement and/or inquiries with the granting
agency the level or amount of testing necessary to report on whether or not the expenditures of
the grants were in accordance with all legal and regulatory requirements and that the funds were
not used for the purpose of lobbying the Legislature, the judicial branch, or a State agency.
Nothing in these rules precludes the auditor from testing grant moneys for both Federal and
State requirements at the same time. However, as stated earlier, these rules do require a
schedule of State financial assistance and the auditor' s examination attestation report should
refer specifically to the schedule of State financial assistance. The schedule of State financial
assistance should clearly distinguish State grants and aids moneys from other State financial
assistance. Nothing contained in these rules precludes a State granting agency from imposing
requirements that are in addition to those specified in these rules.
History: New 06-30-93 Amended 06-30-94, 06-30-95, 09-30-97
10,610 DEFINITIONS
(1) As used in these Rules, the term:
(a) "Local governmental entity" means a county agency, municipality, or special district or
any other entity (other than a district school board or community college), however
styled, that independently exercises any type of governmental function.
(b) "Nonprofit organization" means any organization which meets the definition of a not-for-
profit organization provided in Financial Accounting Standards Board Statement 116,
Appendix D.
(c) "For-profit organization" means any organization which is not a governmental entity or a
nonprofit organization.
General Authority and Law Implemented - Section 11,45, Florida Statutes, and Section 216,349, Florida Statutes,
History: New 06-30-92 Amended 06-30-93, 06-30-94, 06-30-95, 09-30-97
DEP Contract No. SP499, Attachment C, Page 3 of 5
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10,620 AUDIT REQUIREMENTS
(1) When an audit is required pursuant to Section 216.349, Florida Statutes, the audit shall be
an examination conducted in accordance with attestation standards promulgated by the
American Institute of Certified Public Accountants. Grantor State agencies may also impose
additional requirements.
(2) The report produced in compliance with Section 216.349, Florida Statutes, shall contain a
schedule of State financial assistance which meets the requirements of the granting
agency(s) and a written report which includes an opinion on management's assertion about
the entity's compliance with grant requirements. Additionally, the report should refer to the
schedule of State financial assistance and should indicate whether, in the auditor's opinion,
the applicable management assertions are fairly stated in all material respects.
General Authority and Law Implemented - Section 11,45, Florida Statutes, and Section 216,349, Florida Statutes,
History: New 06-30-92 Amended 06-30-93, 06-30-94, 06-30-95, 09-30-97
10,630 EFFECTIVE DATE
These Rules, as amended, shall take effect September 30,1997, and are applicable to audits for
fiscal years ending September 3D, 1997, and thereafter.
General Authority and Law Implemented - Section 11.45, Florida Statutes, and Section 216.349, Florida Statutes,
History: New 06-30-92 Amended 06-30-93, 06-30-94, 06-30-95, 09-30-96, 09-30-97,
Renumbered 09-30-97 (formerly 10,640)
DEP Contract No. SP499, Attachment C, Page 4 of 5
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APPENDIX
EXCERPT FROM FLORIDA STATUTES, 1997
216.349 Financial review of grants and aids appropriations; audit or attestation statement.--
(1) Before disbursing any funds from a grants and aids appropriation pursuant to a grant or
contract, the state agency, or the judicial branch, authorized by the appropriations act to
administer the funds and the Comptroller must independently ensure that the proposed
expenditure is in accordance with all legal and regulatory requirements and find that the
terms of the grant or contract specifically prohibits the use of funds for the purpose of
lobbying the Legislature, the judicial branch, or a state agency.
(2) Any local governmental entity, nonprofit organization, or for-profit organization that is
awarded funds from a grants and aids appropriation by a state agency shall:
(a) If the amounts received exceed $100,000, have an audit performed in accordance with
the rules of the Auditor General promulgated pursuant to s. 11.45;
(b) If the amounts received exceed $25,000 but do not exceed $100,000, have an audit
performed in accordance with the rules of the Auditor General promulgated pursuant to
s. 11.45 or have a statement prepared by an independent certified public accountant
which attests that the receiving entity or organization has complied with the provisions of
the grant; or
(c) If the amounts received do not exceed $25,000, have the head of the entity or
organization attest, under penalties of pe~ury, that the entity or organization has
complied with the provisions of the grant.
All audits performed or attestation statements prepared under this subsection shall be filed with
the granting agency and with the Auditor General.
History. -- s, 29. ch, 91-109; s, 78, ch, 92-142.
Note: The above excerpt from the Florida Statutes is based on Section 216.349, Florida Statutes
(1996 Supplement), which was not amended during the 1997 legislative session. The codified
1997 Florida Statutes were not available at the time theses Rules were updated.
DEP Contract No. SP499, Attacmnent C, Page 5 of 5
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