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10. ll. 12. 13. subcontractors will not conduct business with ineligible firms or individuals who are considered debarred, suspended or disqualified. The Subgrantee agrees to comply with the minium wage and maximum hours provision of the Federal Fair Labor Standards Act and the New Jersey Prevailing Wage Act, N.J.S.A, 34:11-56.26 et seq. The Subgrantee agrees to maintain an adequate financial management system in accordance with generally accepted principles of accounting. The Subgrantee shall maintain accurate and current financial reports, accounting records, internal controls, budget controls, and cash management procedures for receiving, holding, and expending grant funds. The Subgrantee shall maintain accurate and complete disclosure of financial results of each subgrant in the Detailed Cost Statements (DCS), have procedures to determine allowable costs, and provide source documentation for financial records. As required under the federal Single Audit Act of 1984, Pub. L. 98-502, as amended, the Subgrantee agrees to comply with the organizational audit requirements of Federal OMB Circular, A-133, Audits of States, Local Governments and Non-Profit Organizations, as further described in the OJP's Financial Guide, Part III, Chapter 19 (2005) (available on the web at: http://www.ojp.usdoj.gov/FinGuide/), Government Accountability Office's Government Auditing Standards (Yellow Book), and the State of New Jersey, Department of Treasury, Circular Letter (State Circular Letter) 04-04-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid Payments. The Subgrantee agrees to submit to DCJ any copies of any exceptions and/or findings regarding this project as a result ofa single audit. The Subgrantee immediately will report to DCJ any changes ‘in its fiscal year. : The Subgrantee agrees that grant funds will be used only for allowable costs as determined "according to applicable Federal cost principles specific to the Subgrantee (e.g. Federal OMB Circular A-87, A-122, A-21, etc.), according to the OJP’s Financial Guide, Part III, Chapter 7, Allowable Costs (2005), and State Circular Letter 07-05-OMB, Standard Grant Agreement Form, X. Allowable Costs. The Subgrantee agrees that it will maintain data and information and submit timely reports, including programmatic and financial reports, as L&PS may require. If reports are

Form, X. Allowable Costs. The Subgrantee agrees that it will maintain data and information and submit timely reports, including programmatic and financial reports, as L&PS may require. If reports are not submitted as required, L&PS may, at its discretion, suspend payments on this subgrant. The State of New Jersey may, at its discretion, take such.action to withhold payments to the Subgrantee on this or any grant with other State agencies until the required reports have been submitted. The Subgrantee agrees to provide information required for any evaluation conducted by L&PS, DCJ and the State of New Jersey. The Subgrantee agrees to report any Budget Revisions or Grant Extensions as follows: a. Any deviations from the approved budget or extensions in the grant period require prior approval via DCJ Form 108, Grant Adjustment Request Form. Subgrantee -2-