Res 2017-062/approving an agreement with Deloitte & Touche, LLP for the provision of internal auditing services

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ARTICLE 9 FEDERALLY REQUIRED PROVISIONS 9.1 COPELAND ANTI -KICKBACK ACT COMPLIANCE The Internal Auditor will comply with the requirements of 29 CFR Part 3 (the Copeland Act). The "Anti -Kickback" section of the Act precludes a contractor or subcontractor from inducing an employee -- in any manner -- to give up any part of his/her compensation to which he/she is entitled under his/her contract of employment. 9.2 CONFLICTS OF INTEREST (24 CFR 570.611; 24 CFR 85.35; and 24 CFR 84.42) There are two sets of conflict of interest provisions applicable to activities carried out with CDBG funding. The first set, applicable to the procurement of goods and services by subrecipients (funded applicants), is the procurement regulations located at 24 CFR 84.42 and 85.36. The second set of provisions is located at 24 CFR 570.611(a)(2). These provisions cover situations not covered by parts 84 and 85. With respect to procurement activities, the Internal Auditor must maintain written standards of conduct governing the performance of its employees engaged in the award and administration of contracts. At a minimum, these standards must: (a) Require that no employee, officer, or agent may participate in the selection, award, or administration of a contract supported by federal funds if a real or apparent conflict would be involved. Such a conflict would arise when any of the following parties has a financial or other interest in the firm selected for a CDBG award: 1) An employee, officer, or agent of the Internal Auditor; 2) Any member of an employee's, officer's, or agent's immediate family; 3) An employee's, agent's, or officer's partner; or 4) An organization which employs or is about to employ any of the persons listed in the preceding sections. (b) Require that employees, agents, and officers of the Internal Auditor neither solicit nor accept gratuities, favors, or anything of value from contractors or parties to sub -agreements. However, Internal Auditors may set standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nominal value. (c) Provide for disciplinary actions to be applied for any violations of such standards by employees, agents or officers of the subrecipient. With respect to all other CDBG-assisted activities, the general standard is that no employee, agent or officer of the subrecipient, who exercises decision-making responsibility with respect to CDBG funds and activities is allowed to obtain a financial interest in or benefit from CDBG activities, or Deloitte & Touche, LLP Agreement for Internal Auditor Services 2017 13