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Conductingasingleorprogram-specificauditincompliancewith2CFRPart200SubpadFisamaterialrequirementofthisAgreement.Intheabsenceofavalidclaimofexemptionfromtheauditrequirementsof2CFRPart200SubpartF,theSubrecipient'sfailuretocomplywithsaidauditrequirementsmayresultinoneormoreofthefollowingactionsintheDepartment'ssolediscretion:apercentageoffederalawardsbeingwithhelduntiltheauditiscompletedinaccordancewith2CFRPart200SubpartF;thewithholdingordisallowingofoverheadcosts;thesuspensionoffederalawardsuntiltheauditisconductedandsubmitted;orterminationofthefederalaward.A.29SUBRECIPIENTNOTEMPLOYEEThepartiesintendthatanindependentcontractorrelationshipwillbecreatedbythisAgreement.TheSubrecipient,and/oremployeesoragentsperformingunderthisAgreementarenotemployeesoragentsoftheDepartmentinanymannerwhatsoever.TheSubrecipientwillnotbepresentedas,norclaimtobe,anofficeroremployeeoftheDepartmentbyreasonofthisAgreement,norwilltheSubrecipientmakeanyclaim,demand,orapplicationtoorforanyrightorprivilegeapplicabletoanofficeroremployeeoftheDepartmentoroftheStateofWashingtonbyreasonofthisAgreement,including,butnotlimitedto,Workmen'sCompensationcoverage,unemploymentinsurancebenefits,socialsecuritybenefits,retirementmembershiporcredit,orprivilegeorbenefitwhichwouldaccruetoacivilserviceemployeeunderChapter41.06RCW.ItisunderstoodthatiftheSubrecipientisanotherstatedepartment,stateagency,stateuniversity,statecollege,statecommunitycollege,stateboard,orstatecommission,thattheofficersandemployeesareemployedbytheStateofWashingtonintheirownrightandnotbyreasonofthisAgreement.A.30TAXES,FEESANDLICENSESUnlessotherwiseprovidedinthisAgreement,theSubrecipientshallberesponsiblefor,payandmaintainincurrentstatusalltaxes,unemploymentcontributions,fees,licenses,assessments,permitchargesandexpensesofanyotherkindfortheSubrecipientoritsstaffrequiredbystatuteorregulationthatareapplicabletoAgreementpedormance.A.31TERMINATIONFORCONVENIENCENotwithstandinganyprovisionsofthisAgreement,theSubrecipientmayterminatethisAgreementbyprovidingwrittennoticeofsuchterminationtotheDepartmentKeyPersonnelidentifiedintheAgreement,specifyingtheeffectivedatethereof,atleastthidy(30)dayspriortosuchdate.ExceptasotherwiseprovidedinthisAgreement,theDepadment,initssolediscretionandinthebestinterestsoftheStateofWashington,mayterminatethisAgreementinwholeorinpartbyprovidingten(10)calendardayswrittennotice,beginningontheseconddayaftermailingtotheSubrecipient.Uponnoticeofterminationforconvenience,theDepartmentreservestherighttosuspendallorpartoftheAgreement,withholdfurtherpayments,orprohibittheSubrecipientfromincurringadditionalobligationsoffunds.Intheeventoftermination,theSubrecipientshallbeliableforalldamagesasauthorizedbylaw.TherightsandremediesoftheDepartmentprovidedforinthissectionshallnotbeexclusiveandareinadditiontoanyotherrightsandremediesprovidedbylaw.A.32TERMINATIONORSUSPENSIONFORCAUSEintheeventtheDepadment,initssolediscretion,determinestheSubrecipienthasfailedtofulfillinatimelyandpropermanneritsobligationsunderthisAgreement,isinanunsoundfinancialconditionsoastoendangerperformancehereunder,isinviolationofanylawsorregulationsthatrendertheSubrecipientunabletoperformanyaspectoftheAgreement,orhasviolatedanyofthecovenants,agreementsorstipulationsofthisAgreement,theDepartmenthastherighttoimmediatelysuspendorterminatethisAgreementinwholeorinpart.TheDepartmentmaynotifytheSubrecipientinwritingoftheneedtotakecorrectiveactionandprovideaperiodoftimeinwhichtocure.TheDepartmentisnotrequiredtoallowtheSubrecipientanopportunitytocureifitisnotfeasibleasdeterminedsolelywithintheDepadment'sdiscretion.AnytimeallowedforcureshallnotdiminishoreliminatetheSubrecipient'sliabilityfordamagesorotherwiseaffectanyotherremediesavailabletotheDepartment.IftheDepartmentallowstheSubrecipientanoppodunitytocure,theDepartmentshallnotifytheSubrecipientinwritingoftheneedtotakecorrectiveaction.Ifthecorrectiveactionisnottakenwithinten(10)calendardaysorasotherwisespecifiedbytheDepadment,orifsuchcorrectiveactionisdeemedbytheDepartmenttobeinsufficient,theAgreementmaybeterminatedinwholeorinpad.DHS-FEMA-HSGP-SHSP-FFY18Page18of38KittitasCountySherifPsOffice,E21-187
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