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3rd Party Agmt - Urban Henn. Cty. Community Development Block Grant Program .'~ " . . . ,\... ~ ~ THIRD PARTY AGREEMENT URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT made and entered into by and between the CITY OF SHOREWOOD hereinafter referred to as "City," 5755 COUNTRY CLUB ROAD, SHOREWOOD, MN 55331, and SENIOR COMMUNITY SERVICES, hereinafter referred to as "Provider," 1600 2ND STREET SOUTH, HOPKINS, MN 55343: WITNESSETH: WHEREAS, the City is a cooperating unit in the Urban Hennepin County Community Development Block Grant Program (CDBG) by virtue of a Joint Cooperation Agreement effective October 1, 1990 and executed between the City and Hennepin County pursuant to MSA 471.59; and WHEREAS, the City executed a Subrecipient Agreement with Hennepin County effective July 1, 1992 which allocates $7.703 from the Fiscal Year 1992 Urban Hennepin County CDBG program for the purpose of supporting the activities identified in Exhibit 1, as amended, attached and"made a part of this Agreement, hereinafter referred to as "Activities." NOW THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement, the parties hereto mutually agree to the following terms and conditions: 1. SCOPE OF SERVICES A. Provider agrees to carry out Activities for the City as described in the attached Exhibit 1, subject to the requirements of this Agreement and the stipulations and requirements set forth in Exhibit 1. B. Provider shall take all necessary actions required to implement Activities and to comply with any related requests by the City, it being understood that the City is responsible to Hennepin County for ensuring compliance with such requirements. Provider also will promptly notify the City of any changes in the scope or character of the Activities. 2. TERM "OF AGREEMENT The effective date of this Agreement is July 1, 1992. The termination date of this agreement is December 31, 1993, or at such time as the Activities are satisfactorily completed prior thereto. Upon expiration, Provider shall relinquish to the City all program funds unexpended or uncommitted for the Activities. 3. NON-ASSIGNMENT Provider shall not assign, subcontract, transfer, or pledge this Agreement and/or the Activities to be performed hereunder, whether whole or in part, without the prior consent of the City. " , . . . . 4. AMENDMENTS TO AGREEMENT Any material alterations, variations, modifications, or waivers of the provisions of this Agreement which are a substantial change shall only be valid when they have been reduced to writing as an Amendment to this Agreement. The request for an Amendment must be made by the City, approved by Hennepin County through its Office of Planning and Development, and properly executed by the authorized representatives of the parties to this Agreement. All Amendments to this Agreement shall be made a part of this Agreement by inclusion as a numbered Exhibit which shall be attached at the time of any Amendment. Substantial change is defined as a change in (1) beneficiary; (2) project location; (3) purpose; or (4) scope, resulting in more than a 50% increase or decrease in the original budget or $10,000, whichever is greater, in any authorized Activity. The total budget of multi-community activities will be used in determining substantial change. 5. PAYMENT OF CDBG FUNDS The City agrees to provide Provider with CDBG funds not to exceed $7.703 to enable Provider to carry out the Activities. It is understood that the City shall be held accountable to Hennepin County for the lawful expenditure of CDBG funds under this Agreement. The City shall therefore make no payment of funds to Provider and draw no funds from Hennepin County on behalf of Provider prior to having received from Provider a request for reimbursement including copies of all documents and records needed to ensure that Provider has complied with all appropriate regulations and requirements. 6. INDEMNITY AND INSURANCE A. Provider does hereby agree to release, indemnify, and hold harmless the City from and against all costs, expenses, claims, suits, or judgments arising from or growing out of any injuries, loss, or damage sustained by any person or corporation, including employees of Provider and property of Provider, which are caused by or sustained in connection with the tasks carried out by Provider under this Agreement. B. Provider does further agree that in order to protect itself as well as the City under the indemnity agreement provisions hereinabove set forth it will at all times during the term of this Agreement and any renewal thereof have and keep in force: a single limit or combined limit or excess umbrella commercial and general liability insurance policy of an amount of not less than $600,000 for property damage arising from one occurrence, $600,000 for damages arising from death and/or total bodily inj uries arising from one occurrence, and $600,000 for total personal injuries arising from one occurrence. Such policy shall also include contractual liability coverage protecting the City, its officers, agents, and employees by a certificate acknowledging this Agreement between ,Provider and the City. 2 . . . " , 7. CONFLICT OF INTEREST A. In the procurement of supplies, equipment, construction, and services by Provider, the conflict of interest provisions in 24 CFR 85.36 and OMB Circular A-110 shall apply. B. In all other cases, the provisions of 24 CFR 570.611 shall apply. 8. DATA PRIVACY Provider agrees to abide by the provisions of the Minnesota Government Data 'Practices Act and all other applicable state and federal laws, rules, and regulations relating to data privacy or confidentiality, and as any of the same may be amended. Provider agrees to defend and hold the City, its officers, agents, and employees harmless from any claims resulting from Provider's unlawful disclosure and/or use of such protected data. 9. SUSPENSION AND TERMINATION A. If Provider materially fails to comply with any term of this Agreement or so fails to administer the work as to endanger the performance of this Agreement, this shall constitute noncompliance and a default. Unless Provider's default is excused by the City, the City may take one or more of the actions prescribed in 24 CFR 85.43, including the option of immediately cancelling this Agreement in its entirety. B. The City's failure to insist upon strict performance of any provision or to exercise any right under this Agreement shall not be deemed a relinquishment or waiver of the same. Such consent shall not constitute a general waiver or relinquishment throughout the entire term of the Agreement. C. This Agreement may be cancelled with or without cause by either party upon thirty (30) days' written notice according to the provisions in 24 CFR 85.44. D. CDBG funds allocated to Provider under this Agreement may not be obligated or expended by Provider following such date of termination. Any funds allocated to Provider under this Agreement which remain unobligated or unspent following such date of termination shall automatically revert to the City. 10. REVERSION OF ASSETS Upon expiration or termination of this Agreement, Provider shall transfer to the City any CDBG funds on hand or in the accounts receivable attributable to the use of CDBG funds, including CDBG funds provided to Provider in the form of a loan. Any real property acquired or improved, in whole or in part, using CDBG funds in excess of $25,000 shall either be: A. Used to meet one of the national objeccives in 24 CFR 570.208 and not used for the general conduct of government until: 3 . . . " , , (1) For units of general local government, five years from the date that the unit of general local government is no longer considered by HUD to be a part of Urban Hennepin County; or (2) For any other Provider, five years after expiration of this Agreement; Or, B. Not used in accordance with A. above, in which event Provider shall pay to the City an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. The payment is program income to the City. No payment is required after the period of time specified in A. above. 11. PROCUREMENT Provider shall be responsible for procurement of all supplies, equipment, services, and construction necessary for implementation of the Activities. Procurement shall be carried out in accordance with the OMB Circular A-llO. Provider shall prepare, or cause to be prepared, all advertisements, negotiations, notices, and documents; enter into all contracts; and conduct all meetings, conferences, and interviews as necessary to ensure compliance with the above described procurement requirements. 12. ACOUISITION. RELOCATION. AND DISPLACEMENT A. Provider shall be responsible for carrying out all acquisitions of real property necessary for implementation of Activities. Provider shall conduct all such acquisitions in its name and shall hold title to all real property purchased. Provider shall be responsible for preparation of all notices, appraisals, and documentation required in conducting acquisition under the latest applicable regulations of the Uniform Relocation Assistance and Real Property Acquisition Act of 1970 and of the CDBG Program. Provider shall also be responsible for providing all relocation notices, counseling, and services required by said,regulations. B. Provider shall comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as required under 24 CFR 570.606(a) and HUD implementing regulations at 24 CFR Part 42; the requirements in 24 CFR 570.606(b) governing the residential anti-displacement and relocation assistance plan under section 104(d) of the Housing and Community Development Act of 1974 (the Act); the relocation requirements of 24 CFR 570.606(c) governing displacement subject to Section 104(k) of the Ac t; and the requirements of 24 CFR 570.606 (d) governing optional relocation assistance under Section 105(a)(11) of the Act, as pertaining to the Activities. 4 . . . " , 13, ENVIRONMENTAL REVIEW Provider shall provide all necessary information and relevant documents to the City to enable .the City and Hennepin County to maintain the environmental review record on all Activities. 14. LABOR STANDARDS. EMPLOYMENT. AND CONTRACTING The City shall be responsible for the preparation of all requests to Hennepin County for HUD wage rate determinations on Activities. The Provider shall notify the City prior to initiating Activity, including advertising for contractual services which will include costs likely to be subject to the provisions of Federal Labor Standards and Equal Employment Opportunity and related implementing regulations. 15. PROGRAM INCOME Any program income generated as a result of any Activities shall be forwarded immediately to the City upon receipt by Provider and the provisions of 24 CFR 570.504 shall apply. 16. USE OF REAL PROPERTY The following standards shall apply to real property acquired or improved through Activities, in whole or in part, using COBG funds: A. Provider shall inform the City at least thirty (30) days prior to any modification or change in the use of the real property from that planned at the time of acquisition or improvements, including disposition. B. Provider shall reimburse the City in an amount equal to the current fair market value (less any portion thereof attributable to expenditures of non-COBG funds) of property acquired or improved with COBG funds that is sold or transferred for a use which does not qualify under the COBG regulations. Said reimbursement shall be provided to the City at the time of sale or transfer of the property. Such reimbursement shall not be required if the conditions of 24 CFR 570.503(b)(8)(i) are met and satisfied. Fair market value shall be established by a current written appraisal by a qualified appraiser. The City will have the option of requiring a second appraisal after review of the initial appraisal. 17 . ADMINISTRATIVE REOUIREMENTS The uniform administrative requirements delineated in 24 CFR 570.502 and any and all administrative requirements or guidelines promulgated by Hennepin County shall apply to all Activities undertaken by Provider as provided in this Agreement and to any program income generated therefrom. 5 . . . ~.' . 18 . AFFIRMATIVE ACTION AND EOUAL OPPORTUNITY A. During the performance of this Agreement, Provider agrees to the following: In accordance with the Hennepin County Affirmative Action Policy and the County Commissioners' Policies Against Discrimination, no person shall be excluded from full employment rights or participation in, or the benefits of, any program, service or activity on the grounds of race, color, creed, religion, age, sex, disability, marital status, affectional/sexual preference, public assistance status, ex-offender status, or national origin; and no person protected by applicable federal or state laws against discrimination shall otherwise be subjected to discrimination. B. Provider will furnish all information and reports required to comply with the provisions of 24 CFR Part 570 and all applicable state and federal laws, rules, and regulations pertaining to discrimination and equal opportunity. 19. NON-DISCRIMINATION BASED ON DISABILITY A. Provider shall comply with Section 504 of the Rehabilitation Act of 1973, as amended, to ensure that no otherwise qualified individual with a handicap, as defined in Section 504, shall, solely by reason of his or her handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination by Provider receiving assistance from the City under Section 106 and/or Section 108 of the Housing and Community Development Act of 1974, as amended. B. When and where applicable, Provider shall comply with Public Law 101- 336 Americans With Disabilities Act of 1990, Title I "Employment," Title II "Public Services" Subtitle A, and Title III "Public Accomodations and Services Operated By Private Entities" and all ensuing federal regulations implementing said Act. 20. LEAD-BASED PAINT Provider shall comply with the Lead-Based Paint notification, inspection, testing and abatement procedures established in 24 CFR 570.608. 21. FAIR HOUSING Provider shall be prohibited from receiving CDBG funds for Activities subject to this Agreement if it impedes actions taken by the City to comply with the City's fair housing certification. 22. LOBBYING A. No Federal appropriated funds have been paid or will be paid, by or on behalf of Provider, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the 6 . . . \' . making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. B. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement Provider will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 23. OTHER CDBG POLICIES Provider shall comply with the general condition of 24 CFR 570.200, particularly sections: (b) Special policies governing facilities; (f) Means of carrying out eligible activities; and (j) Constitutional prohibitions concerning church/state activities. 24. TECHNICAL ASSISTANCE The City agrees to provide technical assistance to Provider in the form of oral and/or written guidance and on-site assistance regarding CDBG procedures and project management. This assistance will be provided as requested by Provider, and at other times at the initiative of the City when new or updated information concerning the CDBG Program is received by the City from Hennepin County and deemed necessary to be provided to Provider. 25. RECORDKEEPING AND ACCESS TO RECORDS Provider shall maintain records for the receipt and expenditure of all CDBG funds it receives, such records to be maintained in accordance with OMS Circular A-110 and A-122, as applicable. All records shall be made available upon request of the City for monitoring by the City. The City shall have authority to review any and all procedures and all materials, notices, documents, etc., prepared by Provider in implementation of the Activities and Provider agrees to provide all information required by any person authorized by the City to request such information from Provider for the purpose of reviewing the same. 26. AUDIT A. Provider agrees to provide City or Hennepin County with an annual audit report consistent with the provisions of OMS Circular A-l10 Uniform Requirements for Grants to Universities, Hospitals and Non- Profit Organizations, OMS Circular A-122 Cost Principles for Non- Profit Organizations, and OMS Circular A-133 Audits of Institutions of Higher Education and Other Non-Profit Institutions. 7 .' , , . (1) The audit report is to be provided to City or Hennepin County on July 1 of each year this Agreement is in effect and any findings of non-compliance affecting the use of CDBG funds shall be satisfied by Provider within six (6) months of the provision date. (2) The audit is not required, however, in those instances where less than $25,000 in assistance is received from all Federal sources in anyone fiscal year. (3) The cost of the audit is not reimburseable from CDBG funds. (4) City reserves the right to recover from Provider the full amount of any CDBG funds found to be improperly expended or otherwise disallowed. B. Provider's assurance and certification regarding its financial management system is attached hereto as Exhibit 2 and incorporated herein by reference. . . 8 . . . " , i Provider, having signed this Agreement, and the City of Shorewood having duly approved this Agreement on , 1992, pursuant to such approval the parties hereto agree to be bound by the provisions herein set forth. Upon proper execution, this Agreement will be legally valid and binding. Dated: ~X 1/ , 1992 CITY OF SHOREWOOD STATE OF MINNESOTA By ~~~ Its Mayor t . Itr~ And Dated: ,~ , 1992 PROVIDER: And Its STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) ~ . The foregoing instrument was acknowledged ...befor. e m~this. I ~2- day of 8>:YJ,-f- , 1992, by ~~ j~"" ~.~ and , the C:-~L__ and the . of 5~ C"""''''''-''''-~~7 '~'fk.e.;;;; , a Minnesota ~ - ,?"'~~ ~. on behalf of said ('..oJ'...q~ . . ~ r.p.tJ.-- Notary Public #~"'H"~?""$-:."'''''}~~.p,~YN1~#'''' NcAi3(y' Minnesota t .. BLOCH ~ '.F'." '"J' ~ RAin...:r.: C",0NTY I My Commission Expires Scpo 5, 1997 .. H~"~fi~HH~. 9 . . . ..~ ; THIRD PARTY AGREEMENT URBAN HENNEPIN COUNTY COMHUNITY DEVELOPMENT BLOCK GRANT PROGRAM EXHIBIT 1 The following activity shall be carried out by the Provider under the terms of this Agreement and the details and processes set forth below: 1. ACTIVITY: Southshore Senior Center-Operations 2. LOCATION: ADDRESS: Citywide CENSUS TRACT: 3. NUMBER: 116 4. BUDGET: $7,703 5. BENEFIT: L/M (Limited Clientele) 6. DESCRIPTION: Funds will be used for the salary of the center's coordinator and program staff for the period between July 1, 1992 to June 30, 1993. The project will allow for the continuation of the center's operation. 7. GENERAL REQUIREMENTS: Requirements with an "X" are applicable to this activity and are to be included in this section and made a part of this agreement. [l Supplemental Agreement Type: Non-Profit Agency Public Agency Other An agreement must be executed between subrecipient and any other agency providing a service or implementing an activity on behalf of subrecipient. Said agreement must contain all pertinent sections contained in Subrecipient Agreement and such other requirements as are identified herein. [Xl Schedule Activity must be implemented in a timely manner and completed by December 31, 1993. [X] Environmental Review Record Per 24 CFR Part 58 Subpart E the environmental review status for this activity has been determined as follows: [l Exempt (EX) [l Categorically Excluded (CE) [Xl Categorically Excluded/Exempt (CE/EX) . . . [ ] Assessment Required (AR) [] Funds Released (FR) Date: [] Labor Standards/Eaual EmDloyment ODDortunity All construction projects of $2,000 or more and financed in whole or part with federal funds shall comply with the provisions of the Davis-Bacon Act (prevailing wage), the Contract Work Hours and Safety Standards Act and the Copeland (Anti-Kickback) Act. All federally funded or assisted construction contracts or subcontracts of $10,000 or more shall comply with Executive Order 11246, Equal Employment Opportunity, as amended by Executive Order 12086, and the regulations issued pursuant thereto in 41 CFR Part 60. [] Procurement Standards and guidelines are established in 24 CFR Part 85.36 for the procurement of supplies, equipment, construction and services for federally assisted programs. All procurement shall be made by one of the following methods. The method used shall be adequately documented and contracts shall contain standard conditions as appropriate. Small Purchase. (Informal Method) To be followed for the purchase of services, supplies or other property costing in the aggregate not more than $25,000. If small purchase procurement is used, written price or rate quotations must be obtained from an adequate number of qualified sources. Competitive Sealed Bids. (Formal Advertising) To be followed when the purchase/s, costing in the aggregate, exceeds $25,000. Sealed bids shall be publicly solicited and a firm fixed-price contract is to be awarded to the lowest responsible bidder. This method is preferred for soliciting construction bids. Competitive Proposals. This method is normally used when more than one source submits an offer, and either a fixed-price or cost- reimbursement type contract is awarded. This method is typically used for procuring professional services. [] Section 3 of the Housing and Urban DeveloDment Act of 1968 In connection with the planning and implementation of any project assisted under the Act, to the greatest extent feasible, opportunities for training and employment be given to low and moderate income persons residing within the unit of local government or the metropolitan area in which the project is located, and that contracts for work in connection with the project be awarded to eligible business concerns which are located in, or owned in substantial part by persons residing in the same metropolitan area as the project. Contracts for work may include, but are not limited to, contracts for supply of goods and/or services. . . . ... .. . [ ] Uniform Relocation Assistance and Real Prooerty Acauisition The standards described in 24 CFR 570.606 shall apply to activity that involves the acquisition of real property or the displacement of persons, including displacement caused by rehabilitation and demolition. [ ] Residential Antidisolacement and Relocation Assistance All occupied and vacant occupiable low-moderate income dwelling units demolished or converted to another use as a direct result of activity shall be replaced and relocation assistance shall be provided to each displaced low-moderate income household in accordance with the Urban Hennepin County CDBG Program Anti-displacement and Relocation Assistance Policy pursuant to Section 104(d) of the Housing and Community Development Act of 1974, as amended, and the provisions in 24 CFR 570.606. [] prooerty Management The standards described in 24 CFR Part 570.505 Subpart J shall apply to all real property which was acquired or improved in whole or in part using CDBG funds in excess of $25,000. These standards apply for a period of five (5) years after the termination of this agreement. [ ] Land Disoosition Agreement This agreement, executed between Hennepin County and the subrecipient community, contains the terms under which the community can acquire and hold land/for a specified use and time period. [X] Low and Moderate Income Using the applicable Section 8 income limits established by HUD, it shall be demonstrated that a low- and moderate-income activity so indicated in 5. Benefit, above, meets one of the four criteria of 24 CFR Part 570.208, relating to: [ ] Area Benefit [X] Limited Clientele [] Hous ing [] Job Creation or Retention [] Prevention or Elimination of Slums and Blight It shall be demonstrated that a slum and blight activity so indicated in 5. Benefit, above, meets one of the following criteria: [ ] Area Determination. The boundaries of the slum or blighted area must be defined and meet the requirements of 24 CFR Part 570.208(b)(1). [] Spot Basis. The specific conditions of blight or physical decay not located in a slum or blighted area must be described. . . . . . . [ ] Ur~ent Community Need It shall be demonstrated that an urgent need activity, so indicated in 5. Benefit. above, is designed to alleviate a recent (within 18 months) condition which poses a serious and immediate threat to the health or welfare of the community. . . . THIRD PARTY AGREEMENT URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM EXHIBIT 2 ASSURANCE & CERTIFICATION BY SENIOR COMMUNITY SERVICES In connection with our responsibilities to manage the Fiscal Year 1992 Community Development Block Grant program funds that have been provided to our organization we certify and assure that we are in compliance with the financial standards set forth in Federal Office of Management and Budget (OMB) Circular A-IIO (Attachments F and G). Specifically, our organization's financial management system provides for the following: 1. Accurate, current, and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in OMB Circular A-IIO, Attachment G (Financial Reporting Requirements). 2. Records that identify adequately the source and application of funds for federally sponsored activities. These records contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, outlays, and income. 3. Effective control over and accountability for all funds, property, and other assets. These assets are adequately safeguarded and are used solely for authorized purposes. 4. Comparison of actual outlays with budget amounts for each grant or other agreement and, whenever appropriate or required, comparisons of financial information with performance and unit cost data. 5. Procedures to minimize the elapsed time between the transfer of funds from the County to our organization and the disbursement of funds by our organization. 6. Procedures for determining the reasonableness, allowability, and allocability of costs in accordance with the provisions of the applicable federal cost principles and the terms of the grant or other agreement. 7. Accounting records that are supported by source documentation. 8. Annual audits by a firm of independent Certified Public Accountants to ascertain the effectiveness of the financial management systems and internal procedures that we have established to meet the terms and conditions of the federal grants and other agreements. The audits are conducted on an organization-wide basis and include an appropriate sampling of Federal agreements. . . . .- , . 9. A systematic method to assure timely and app~opriate resolution of audit findings and recommendations. 10. Organizations (subrecipients) that receive COBG funds from us are required to comply with the financial management standards set forth in this certification. This assurance and certification is given in connection with any and all COBG funds received from Hennepin County after the date this form is signed. This includes payments after such date for financial assistance approved before such date. The undersigned recognizes and agrees that any such assistance will be extended in reliance on the representations and agreements made in this assurance. This assurance and certification is binding on this organization, its subrecipients, and on the authorized official whose signature appears below. Dated: iJ'0 / ~ ~^-';D rGmm v../J ~~I'~(,\J ~ es / ,1992 Organization Name Financial Officer . , , ~ 32018 . tons trom non-F~deral third parties are 51! r rth ~lc>v. Valloetloll Of l'olll1l~rrr S("rrlcrs.-Volu - t~ r ~~r\'lc~s may b~ rurnl~h~d by prore.slo an techrllc.: p~rsonll~l. consultana. a d oth r sklll~d and unskilled labor \'olunt er 5~r\' ces ma" ~ counted a5 C05t '..sharln or mat hln!; Ii the SU\'lC~ 15 an InIP!;ra! nd nece ary part or an a ppro,'ed proj:ra (I) Relrs for t'oluntter u'n'ices.-Ra vo!un ecr~ ~hO:lld be conslst~nt v"J~h p'ald or similar work In th~ reCI organl tlon. In thou tnstances ~n ",,1'1 requlr skills are not round In th~ re Iplent organl tlon. rates should be cons!l.te t with those pa d ror similar ",'ork In the la r mar- ket In .. leh the nclplent compete ror the ltlnd of s nlces Invoh'ed. (2) Vol nle~S ~m1l10!led bV oth l' organi- zations- en an emplol'er othet: than the nclplent rnlShes the ser\'lces f an em- ployee. th services shall pe va ed at th~ employee's egular rate of pal' ( xcluslve of fringe ~ne sand overhud cos st prO\'lded these senlc are In the s&m~ s 11 for ....hlch the employ~ Is normalll' paid b. Va/uiltt Of donaud, tr ('ndable p,r- .anlll Fo~t .-Donated, ex endable per- sonal property Includes suc Items as U- pendable equl ent, otllce s ppJles.labora- \Ory supplies r workshop and classroom .upplles. Value eased \0 xpendableper- sonal property In luded In t e cost or match- Ing share sllould be reuo able and should not exceed the m Uet val e of the property at the time of th donat 1'1, c. Valulltion Of donat d, non,zpend4bl, persanal prop~t/l. build ngs, and land or "", th~eol. (I) The method use tor charging cost sharing or matchl or donated nonn- pendable penonal p 0 erty, buildings and land may dllfer accor ng \0 the purpose of the grant or oth., a eement as follows: (a, U the purpose f the grant or other agTeement Is to usl the recipient In the acquISition of equip e t, buildings or land, the total \"Slue of t d nated propertl' ma}' be claimed u co.t har ng or matching. (b) If the purpo of he agreement Is to lupport activities that qUire the use of equipment, bulldl is or and, depreciatiOn or use chuges ro equlpm nt and buildings may ~ made Th rull valu or equloment o.r other capItal ts Slid ra r renal charges for land may b allowed p o\'lded that th~ Federal acency has appro\' d H.e charges (2) The valor donated ropertl' wlll be determined I accordance Ith the usual accounting po lcles ot the reel lent with the rollowlng qua ItlcaUons: (a) Lllnd nd bUtllh"g~- donat~ Ian and buildings m Ii not exceed It.& ralr mar et value, at thl! tlm of donation to the rl!cl lent as establlshl!d y an Ind~. pendent a pralSl!r It' g. Certl~ed real prop- l!rty appr ser or OSA repre!l!nt tI\'es I and certl~ed 'j & responsible otllcl I ot the recipient, (b I H e:~"d.abll! 1I,rS01l41 o-pert/l - The \'&1 of donated nonexpl!ndable p~r~onftl propl!rt shall not exc~ed the ralr markl!t value 0 equipment and property or t l! same age an condltlon at the tlml! or d nation. . (CI 51! of spGoC'c.-The value or nRted space hall not !!XC'eed the ralr r~nt~1 or c parable space as establlsh.ed Inde tndent appraIsal or companble pace and aCllltles In a prl\'ately-o""ned bUI ding In t t SlIme loc:allW: ( I L.oallt'd I!quIJlment.-The value 10 ed equipment shall not uc~~d Its re tal val ue The rOllo""lng requirements pertain t e rrclpl~nt's supporting reC'ore~ for I Ind contrlbutlolU rrom non-Federal thlr ~rtll!s. . . NOTICES ATTACHMI:NT F.~DlC'l1t..U No. A-110 STANDAJUlS rOIl nNANClAL """"CEMENT llTllTI:MS I. ThIS attachment prescrlbea standards tor ftnanclal managem~nt systems of reclplenta. Federal sponsorIng ageneles shall 120\ lmpoae additional standards on reclpleDt.s unless spe- cifically prOVided for In the applicable sta- tutes (e.g.. th,. Joint Funding Simplification Act, P.L. gJ-.5101 or other attachmenta to tbls circular. Ho",",,'er. hderal sponlOl'lnr ageD- eles are encouraged to make sugresttons and assist reclplent.s In estball5hlng or Improvlnr ftnanclal managl!ment systems when luch M- IlltanC,. IS needed or requl'lted, 2. Reclplent.s' ftnanclal manacemeDt sy.- terns shall provide for: a, Accurate. current and complete disclo- sure or the ftnancla! resuU. of _cb f~erally spon",ored project or procram In accordance With the reportlnr requirements Nt forth 10 Attachment 0 to thls circular. WheD a hd- nal sponsorIng agency nqulrea report.lng on an ac.:rual basis. the recipient shan not be required \0 establish an accrual accounting sl'Stem but shall develop such accrua! data ror It.& reporu on the basla of a.n analy"la at the dO('umentatlon on hand. b. Records that Identify adequatl!ly the source and application at runds ror f~erallY' sponsored activities. ThKe recorda shan con.- taln Information pertalnlnr to P'ederaJ a"'&Tds, authorizations, obllratloD.ll, unobll- gated balances. a.sset.&, outlays, a.nd Income, c. Elfectlve :ontrol over and accountabUlty ror all funds. property aDd other aueloS. Re- clplena shall adequatel)" safeguard an such assets and shall a.saur,. that they are used lolely for authorized purposea. 4. Compar\5Oa at actual outlays with bud- eet amounts ror each gTant or other acree- m~nt Whenever appropriate or nqulred by th,. Pederal sponsoring acency, nnanclal In- tormatlon should be related \0 performance and unIt cost data. e PrO('edurrs to mlnlmlae the tune elapslDg bet""een the transfer or funCls from the 0 S. Treasury and th,. dlsbur..ment by the recip- Ient, vol'lenever rund.s are advanced by the Feder&! Oo\'ernment. When advances are m~de by a letter-or-cr~lt m~thod, the recip- Ient shall mallr dra1lido"ns as c1~ M poa- "ble to the time or making disbursements, r. PrO('rdures for determJ~lng the reuon- able ness, allo....abllIW and aUocablllty of coat.s In accordance ",.lth the provtslOn5 at the ap- plicable Frd~ral COAt prlnClpl" and the terms or the grant or other acreemen\, g AO::ountlng record.s that are support.ed bl' sourc~ dO('umentatlon. I\l Examlnatlonl In the tormor audita or UTternal audIts SUch audlt.s shall ~ made bv quallflrd lndl\'lduals ..1'10 are sutllclently Indf'p~ndrnt of those who auth?rlze the ell- pendllure ot Federal runds. to prOduce un- biased oplnlonl, conclualons or Judgmenta. They sl'lallmeet the Indtpendence criteria .Iong tne lines at Chapter 3, Part 3 or the U S Of'neral Accounting OtIIce publication, Sta:'ldard~ for Audit or Oovernmen~1 OrRan- Izatlon~. Pro~rnrns. Actl\'ltl" and P'unctlons, The~e rltAmmatlpns are Int.l!nded to ascer. taln tl'lt rtl'~ctlvene55 or tnI.' financIal man- agement systems and Internal prOl'edures' that l'Ia\'r ~en establl,;hf'd to lnel!t the terms and condltlon~ or th~ agTeements It IS not lntendrd lhat tach :\grtement a""aTdrd to the reclplrnt ~ ~xamlned Oenerally, namlna- tlon.~ should ~ cond\l~l.#d en ion orsanlza- tlon-v.'lde basis to test the fiscal Inte~lty ot ftnanclal transactions. &6 well as compliance ....Itb the terms and conditions of the Pederal lP'ants and other agTeemena Such testa would Include an appropriate sampling ot Pederal' agTeemeDts Examinations W111 be conducted with reasonablf' rrequency. on .. contlnulng basis or at sC'heduled IntervaJa, usually anDually, but not les& rrequently than ever}' two yean. The rrequenc)" or these ell- amlnatlons shall depend upon the nature, .Ize and th,. complexity of tt.e actvllty. These e\lamlnatlons do not relle\'e Pederal agencies at their audit respolUlblllUes. tlut lZI&y afl'ect the rrequency Ind lICope ot such audits, 1. A Iystematlc methOd to assure timely and appropriate resolution of audit ~dlngs and recommendations. 3. Primary recIpients shall require aubre- clplents (aa deflDed In paragTapb 6 of the basIc circular I \0 adopt \be ltandard.s 10 paragTaph 2, above except ror the require- ment 11'1 subparagTaph 2e. regarding the UM/ ot. the letter-or -credit methOd and that part of .ubparagTaph 2&. regarding reportlDg forms and tnquencles prescribed In Attach- ment, 0 \0 thIS circular. ATTACBKE'NT 0.~DlCtT1.Aa No. A-ll0 Pl1"""C1A1. &a'oa~ aEQUlI.EIIEN"nI 1. ThIS attachment prescrlbel unl!orm re- portlng procedur. ror reclpleDa to: aum- lZI&rUe ellpendltures lZI&de and Pederal tUDeSa un"xpend~ ror _ch award, report. the It&tua of P~eral c&sh advanced, request ad\"Snces and reimbursement when the le\t.er-ot-crMlt method Is not ~; a.nd promulgates ltand- ard tOI"tn5 Incldent thereto. 2. The rollowlng deOnltlon.a apply for put- poses ot thIS attachment: . a. ACC7'uref upenditure.s.-Accru~ u- pendltures are tbe cbarges lnCW'T~ by the recipIent durll18 a liveD periOd requiring the pro.vlSlon ot rund.s for: (1) goocls aDd other tangible property received: (2) aervtc. per- form~ by employees. conlractol"ll. lubreclpl- enu. and other payee&. and (3) other amount.& becoming owed under pr~ma tor wblch no CW'Tent services or performance 1& req ulred. b, ACC7'uref i1\COJ1Ie.";"Accru~ Income Ia the sum of (I) earnings during a given period from (I) lenlces performed by tbe recipi- ent; and (11) 100c1.s aDd other tangIble ~ property dellvl!r~ to purchuen; and (2) amounta becoming owed to tbe recipient tor ....h~h no current serviCes or perrormance I.s required by the recipient. c. Fed~/IJ lun43 lIuth01'\Zed.-P~eral tunds authorized are the total amount at Federal rund.s obligated by the Federal O<ly- ernmtnt ror use by the recIpIent. Thls amount may Include any authorued c:a.rry- over a! unobligated fUDCIS rrom prior d5c&! l'un When permitted by law or agency reiul~tlon. d. 1ft. kind contrlbuticl'U-In-ltlnd con- trlbutlons are deOned In Attachment E to this circular. e. Obligafiol'U.-obllgatlons are the amounu of orden placed. coDtracts and cr:onts a,,'arded. sl!rvlces received. and simi- lar transactions during a gl\'l!n period tb.at will require payment by the recipient dW'U1g the same or a future period. f. Ourla!l$.-outla)'s or upendltures repre- aent charges made to the project or progrlUD. Thel' may bl! reported on a c&sh or accrual bulS For reporu. prrpared on a ca.sh buts. outlays are the sum or actual cash dlsbune- ments ror direct cbargrs ror goocLs and lIe"- Ices. the. amount of Indirect expense charg~. the value or In-kind contrlbutlon5 applied, llnd the amount or cuh advance~ and p&y- menu m~de to subreoclplenu.. For rtports pre- par~d on an aC'crual basis. outlays are the sum or actual cash dlsbuncmrnu lor direct charges ror good.~ snd ser\'lces. the amount at Indirect expense Incurred, the ..alue of In- FEDERAL REGISTER, VOL. 41, NO. 14a...-..FIIDAY, JULY 20. 1976 fl6l 'or .l,nr '.YOIIt-I.L 'ON 'Lt "O^ 'n1Sl~n ,YUQU e 'lal1png p09 10awa5\:u9S'C JO It:)WO .lfl IDOJJ p;l019:qo ~ UV:> S'asodJnd aon.:mpoJdaJ JOJ SULlO; aIU 'SULlO; ~;It:n .;,npoJdaJ 01 Pnl -JOtnn9 .n lapuah 3UIJOnJodw 19J.p.. '8 'Jan~od..l JO A~m.:Y.l9 atn 01 ~nql.llao:l .10 a11P.dn ilIA 11 taqa nuatdp,ll 01 nndlno JalndloaO:l .PJA -OJd A9loa tal;,uah 3uIJosuods t..:apa. 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