Okaloosa County BOCC — November 1, 2016 — EXHIBIT D Special Audit Requirement

EXHIBIT D Special Audit Requirement The administration of resources awarded by Okaloosa County or further referenced as “County” to the Okaloosa Community Development Corporation or further referenced as “Subrecipient” may be subject to audits and/or monitoring by Okaloosa County as described in this section. MONITORING In addition to reviews of audits conducted in accordance with OMB Circular A-133 and Section 215.97, F.S., as revised (see “AUDITS” below), monitoring procedures may include, but not be limited to, on-site visits by County staff, limited scope audits as defined by OMB Circular A-133, as revised, and/or other procedures. By entering into this agreement, the subrecipient agrees to comply and cooperate with any monitoring procedures/processes deemed appropriate by the County. In the event the County determines that a limited scope audit of the subrecipient is appropriate, the subrecipient agrees to comply with any additional instructions provided by the County staff to the subrecipient regarding such audit. The subrecipient further agrees to comply and cooperate with any inspections, reviews, investigations, or audits deemed necessary by the Chief Financial Officer (CFO) or Auditor General. AUDITS PART I: FEDERALLY FUNDED This part is applicable if the subrecipient is a State or local government or a non-profit organization as defined in OMB Circular A-133, as revised. 1. In the event that the subrecipient expends $500,000 or more in Federal awards in its fiscal year, the subrecipient must have a single or program-specific audit conducted in accordance with the provisions of OMB Circular A-133, as revised. EXHIBIT 1 to this agreement indicates Federal resources awarded through the County by this agreement. In determining the Federal awards expended in its fiscal year, the subrecipient shall consider all sources of Federal awards, including Federal resources received from the County. The determination of amounts of Federal awards expended should be in accordance with the guidelines established by OMB Circular A-133, as revised. An audit of the subrecipient conducted by the Auditor General in accordance with the provisions OMB Circular A-133, as revised, will meet the requirements of this part. 2. In connection with the audit requirements addressed in Part I, paragraph 1, the subrecipient shall fulfill the requirements relative to auditee responsibilities as provided in Subpart C of OMB Circular A-133, as revised. 3. If the subrecipient expends less than $500,000 in Federal awards in its fiscal year, an audit conducted in accordance with the provisions of OMB Circular A-133, as revised, is not required. In the event that the subrecipient expends less than $500,000 in Federal awards in its fiscal year and elects to have an audit conducted in accordance with the provisions of OMB Circular A-133, as revised, the cost of the audit must be paid from non-Federal resources (i.e., the cost of such an audit must be paid from subrecipient resources obtained from other than Federal entities). 4. The subrecipient may access information regarding the Catalog of Federal Domestic Assistance (CFDA) via the internet at http://12.46.245.173/cfda/cfda.html. PART II: STATE FUNDED This part is applicable if the subrecipient is a nonstate entity as defined by Section 215.97(2), Florida Statutes. 1. In the event that the subrecipient expends a total amount of state financial assistance equal to or in excess of $500,000 in any fiscal year of such subrecipient the subrecipient must have a State single or project-specific audit for such fiscal year in accordance with Section 215.97, Florida Statutes; applicable