Fort Walton Beach Council agenda — 01-08-13--regular — reading text

14.2. b State Florida' s website at httl)-// www .leg. state.fl. us/ Welcome/ index. cfm, of htt1x// www.Myf1ofida.com/, Department of Financial Services' Website at http,// www .fldfs.com/ and the Auditor General' s Website at httT)// wwvi.state. fI. us/ audggn. 3) Report Submission. a) Copies of financial reporting packages shall be submitted by or on behalf of the N Local Borrower directly to each of the following: a i) The Department at the following address: a` Valerie Peacock, Audit Director 6 Office of the Inspector General o Florida Department of Environmental Protection 3900 Commonwealth Boulevard, MS 41 a n Tallahassee, Florida 32399 -3123 ii) The Auditor General' s Office at the following address: State of Florida Auditor General Room 401, Claude Pepper Building 111 West Madison Street Tallahassee, Florida 32399 -1450 iii) Copies of reports or management letters shall be submitted by or on behalf of the Local Borrower directly to the Department of Environmental Protection at the following address: Valerie Peacock, Audit Director Office of the Inspector General Florida Department of Environmental Protection 3900 Commonwealth Boulevard, MS 41 Tallahassee, Florida 32399 -3123 b) Any reports, management letters, or other information required to be submitted to the Department pursuant to this Agreement shall be submitted timely in accordance with OMB Circular A -133, Florida Statutes, or Chapters 10. 550 ( local govemmental entities) or 10. 650 nonprofit and for-profit organizations), Rules of the Auditor General, as applicable. c) Local Borrowers, when submitting financial reporting packages to the Department for audits done in accordance with Chapters 10. 550 ( local governmental entities) or 10. 650 nonprofit and for-profit organizations), Rules of the Auditor General, should indicate the date that the reporting package was delivered to the Local Borrower in correspondence accompanying the reporting package. 4) Project -Specific Audit. Within 12 months after the amendment establishing final Project costs, the Local Borrower shall submit to the Department a Project -specific audit report for the Loan related 15 Packet Pg. 107  14. 2 .6 revenues and expenditures. The audit shall address Loan disbursements received, Project expenditures, and compliance with Loan Agreement covenants. The Local Borrower shall cause the auditor to notify the Department immediately if anything comes to the auditor's attention during the examination of records that would constitute a default under the Loan Agreement. The audit findings shall set aside or question any costs that we unallowable under Chapter 62- 503, Florida Administrative Code. A final determination of whether such costs are allowed shall be made by the Department. ' umv 5) Record Retention. ' o a` The Local Borrower shall retain sufficient records demonstrating its compliance with the z° terms of this Agreement for a period of five years from the date the audit report is issued, and shall allow the Department, or its designee, Chief Financial Officer, or Auditor General access to c such records upon request. The Local Borrower shall ensure that audit working papers are made . q available to the Department, or its designee, Chief Financial Officer, or Auditor General upon n request for a period of five years from the date the audit report is issued, unless extended in E a writing by the Department. The Local Borrower is hereby advised that the Florida Single Audit Act Requirements may further apply to lower tier transactions that may be a result of this Agreement. The Local Borrower should confer with its chief financial officer, audit director or contact the Department for assistance with questions pertaining to the applicability of these requirements. In addition, the Local Borrower agrees to complete and submit the Certification of in Applicability to Single Audit Act Reporting, Attachment A, attached hereto and made a part hereof, within four ( 4) months following the end of the Local Borrower' s fiscal year. H Attachment A should be submitted to the Department' s Grants Development and Review Manager at 3900 Commonwealth Boulevard, Mail Station 93, Tallahassee, Florida 32399 -3000. n The Grants Development and Review Manager is available to answer any questions at ' 850) 245 -2361. 6) Monitoring. In addition to reviews of audits conducted in accordance with Section 215. 97, F. S., as revised monitoring procedures may include, but not be limited to, on -site visits by Department staff and /or other procedures. By entering into this Agreement, the Local Borrower agrees to comply and cooperate with any monitoring procedures /processes deemed appropriate by the Department of Environmental Protection. In the event the Department of Environmental Protection determines that a limited scope audit of the Local Borrower is appropriate, the Local Borrower agrees to comply with any additional instructions provided by the Department to the Local Borrower regarding such audit. The Local Borrower further agrees to comply and cooperate with any inspections, reviews, investigations, or audits deemed necessary by the Chief Financial Officer or Auditor General. 16 Packet Pg. 108  14. 2. b ARTICLE III - LOAN REPAYMENT ACCOUNT 3. 01. LOAN DEBT SERVICE ACCOUNT. The Local Borrower shall establish a Loan Debt Service Account with a Depository and begin making Monthly Loan Deposits no later than the date set forth for such action in Section 10. 07 of this Agreement. Beginning six months prior to each Semiannual Loan Payment, the Local Borrower shall make six Monthly Loan Deposits. The first five deposits each shall be at least equal to one -sixth of the Semiannual Loan Payment. The sixth Monthly Loan Deposit shall be at least equal to the amount required to make the total on deposit in the Loan Debt Service Account equal to the Semiannual Loan Payment amount, taking into consideration investment earnings credited to the account pursuant to Section 3. 02. Any month in which the Local Borrower fails to make a required Monthly Loan Deposit, the Local Borrower' s chief financial officer shall notify the Department of such failure. In addition, the Local Borrower agrees to budget, by amendment if necessary, from other legally available non -ad valorem funds all sums becoming due before the same become delinquent. This requirement shall not be construed to give the Corporation a superior claim on any revenues over prior claims of general creditors of the Local Borrower, nor shall it be construed to give the Corporation or the Department the power to require the Local Borrower to levy and collect any revenues other than Pledged Revenues. 3. 02. INVESTMENT OF LOAN DEBT SERVICE ACCOUNT MONEYS. Moneys on deposit in the Loan Debt Service Account shall be invested pursuant to the laws of the State. Such moneys may be pooled for investment purposes. The maturity or ry redemption date of investments shall be not later than the date upon which such moneys may be needed to make Semiannual Loan Payments. The investment earnings shall be credited to the i Loan Debt Service Account and applied toward the Monthly Loan Deposit requirements. 3. 03. LOAN DEBT SERVICE ACCOUNT WITHDRAWALS. The withdrawal of moneys from the Loan Debt Service Account shall be for the sole purpose of making the Semiannual Loan Payment or for discharging the Local Borrower' s obligations pursuant to Section 8. 01. 3. 04, ASSETS HELD IN TRUST. The assets in the Loan Debt Service Account shall be held in trust for the purposes provided herein and used only for the purposes and in the manner prescribed in this Agreement; and, pending such use, said assets shall be subject to a lien and charge in favor of the Corporation. 17 Packet Pg. 109'.  74. 2. 6 ARTICLE IV - PROJECT INFORMATION 4. 01. PROJECT CHANGES. Project changes prior to bid opening shall be made by addendum to plans and specifications. Changes after bid opening shall be made by change order. The Local Borrower shall submit all addenda and all change orders to the Department for an eligibility determination. After execution of all construction, equipment and materials contracts, the Project contingency G v may be reduced. oL 4. 02. TITLE TO PROJECT SITE. _ The Local Borrower shall have an interest in real property sufficient for the construction and location of the Project free and clear of liens and encumbrances which would impair the usefulness of such sites for the intended use. The Authorized Representative shall submit a clear site title certification by the date set forth in Section 10. 07 of this Agreement. 4. 03. PERMITS AND APPROVALS. The Local Borrower shall have obtained, prior to the Department' s authorization to award construction contracts, all permits and approvals required for construction of the Project or portion of the Project funded under this Agreement. 4. 04. ENGINEERING SERVICES. A professional engineer,