Rule 413-5-1-.11. Statement of Conditions

In addition to the certifications made on the face of the award statement, the recipient of funds must further certify that:

1. (1) No applicable state laws, rules, regulations or applicable local ordinances shall be violated in carrying out this project and expending One Georgia Authority Loan Fund monies.
2. (2) Recipient's internally adopted procurement procedures meet applicable state requirements and will be adhered to and documentation shall be maintained to document such adherence.
3. (3) Recipient's accounting records shall be maintained in a manner consistent with generally accepted government accounting standards and the Uniform Chart of Accounts established by the Department of Community Affairs (O.C.G.A. 36-81-3).
4. (4) If the Recipient is a development authority, then the project financed in part by Loan Fund monies shall only be leased or sold or administered as provided by Section 36-62-7 of the Official Code of Georgia Annotated, local constitutional amendment, local law passed by the legislature, or other general enabling legislation, as applicable.
5. (5) The recipient (in accordance with state law) shall undergo an annual financial audit conducted in accordance with government auditing standards established by the comptroller general of the United States. The recipient shall submit copies of all audits that cover all or part of the award period to the agency.

6. (6) No real or apparent conflict of interest shall be engaged in by any person or party (or any person or party with whom they have family or business ties) who is involved in any aspect of the Loan Fund project. In general, no person who is an elected or appointed official, employee, agent, consultant, officer or any person serving in a similar capacity with any participating public agency that exercises or has exercised any functions or responsibilities with respect to any Loan Fund activities can benefit from a Loan Fund project. Those persons who are in a position to participate in a decision-making process or gain inside information regarding Loan Fund proposed or related activities, who may obtain a personal, financial interest, or benefit from the project, or have any interest in any contract, subcontract or agreement with respect to any Loan Fund project are also prohibited from benefiting from the project. The prohibitions against benefiting from a Loan Fund project would apply to the covered individuals or those with whom they have family or business ties, for one year following their tenure in the covered position.

   Exceptions -Upon written request, the agent may grant an exception to the provisions of the above paragraph, on a case-by-case basis, before funds are expended. Exceptions can only be granted when the agent determines that the exception will serve to further the purposes of the Loan Fund Program. To seek an exception, a written request for an exception must be submitted by the applicant to the agent which:

   1. 1) Fully discloses the conflict or potential conflict of interest, prior to the applicant undertaking any action which results or may result in a conflict of interest, real or apparent; and
   2. 2) Describes how the conflict of interest was publicly disclosed; and
   3. 3) Includes a written opinion of the applicant's attorney that the interest for which the exception is sought would not violate state or local law.

Authority: O.C.G.A. Sec. 50-34-1et seq.

History. Original grant description entitled "Statement of Conditions" submitted June 27, 2005.