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<br />bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities <br />contemplated under this Agreement, including the use of owned and non-owned automobiles. <br /> <br />b. Minimum scope of coveraae. Commercial general coverage shall be at least as broad as <br />Insurance Services Office Commercial General Liability occurrence form CG 0001 (ed. 11/88) or Insurance Services <br />Office form number GL 0002 (ed. 1/73) covering comprehensive General Liability and Insurance Services Office <br />form number GL 0404 covering Broad Form Comprehensive General Liability. Automobile coverage shall be at <br />least as broad as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90) Code 1 ("any auto"). No <br />endorsement shall be attached limiting the coverage. <br /> <br />c. Additional reauirements. Each of the following shall be included in the insurance coverage <br />or added as an endorsement to the policy: <br /> <br />(1) City and its officers, employees, agents, and volunteers shall be covered as insureds <br />with respect to each of the following: liability arising out of activities performed by or on behalf of Subrecipient, <br />including the insured's general supervision of Subrecipient; products and completed operations of Subrecipient; <br />premises owned, occupied, or used by Subrecipient; and automobiles owned, leased, or used by the Subrecipient. <br />The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, <br />employees, agents, or volunteers. <br /> <br />(2) The insurance shall cover on an occurrence or an accident basis, and not on a <br /> <br />claims-made basis. <br /> <br />(3) An endorsement must state that coverage is primary insurance with respect to the <br />City and its officers, officials, employees and volunteers, and that no insurance or self-insurance maintained by the <br />City shall be called upon to contribute to a loss under the coverage. <br /> <br />(4) Any failure of SUBRECIPIENT to comply with reporting provisions of the policy shall <br />not affect coverage provided to CITY and its officers, employees, agents, and volunteers. <br /> <br />(5) An endorsement shall state that coverage shall not be suspended, voided, canceled <br />by either party, reduced in coverage or in limits, except after thirty (30) days' prior written notice by certified mail, <br />return receipt requested, has been given to the City. <br /> <br />7.0 ADMINISTRATIVE REQUIREMENTS <br /> <br />7.1 Financial Management. <br /> <br />a. Accountina Standards. The Subrecipient agrees to comply with 24 CFR Part 84 and agrees <br />to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and <br />maintain necessary source documentation for all costs incurred. <br /> <br />b. Cost Principles. The Subrecipient shall administer its program in conformance with OMB <br />Circulars A-122, "Cost Principles for Non-Profit Organizations," or A-21 , "Cost Principles for Educational <br />Institutions," as applicable for all costs incurred whether charged on a direct or indirect basis. <br /> <br />7.2 Documentation and Record-Keeping <br /> <br />a. Records to be Maintained. The Subrecipient shall maintain all records required by the <br />Federal regulations specific in 24 CFR Part 570.506, and that are pertinent to the activities to be funded under this <br />Agreement. Such records shall include but not be limited to: <br /> <br />-8- <br /> <br />CDBG Agreement with Project Literacy FY06-07 <br />G:ICOMMUNlTY DEVELOPMENTlHOUSING SERVICES DIVISIONlCDBGI5UBRECIPIENTSIProject LiteracyIFY2006-07\06-07 Proj. Literacy CDBG <br />Subrecipient Agreement. doc <br />