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Program costs are detailed in the Budget, as set forth in Exhibit B, attached hereto. The <br />SUBRECIPIENT'S failure to perform as required may, in addition to other remedies set forth in this <br />AGREEMENT, result in readjustment of the amount of funds the CITY is otherwise obligated to pay <br />to the SUBRECIPIENT pursuant to the terms hereof. <br />E. Condition of Funding <br />(1) The CITY advises the SUBRECIPIENT that a significant change in entitlement funding <br />may result in a change in the current process utilized by the CITY to determine funding <br />allocations. The SUBRECIPIENT acknowledges that the obligation of the CITY is contingent <br />upon the availability of Federal, State or Local government funds, which are appropriated or <br />allocated for the payment of such an obligation. If funding levels are significantly affected by <br />Federal budgeting or if funds are not allocated and available for the continuance of the function <br />performed by the SUBRECIPIENT, this AGREEMENT may be terminated by the CITY at the <br />end of the period for which funds are available. At the earliest opportunity, the CITY shall notify <br />the SUBRECIPIENT of any service which may be affected by a shortage of funds. No penalty <br />shall accrue to the CITY in the event this provision is exercised and the CITY shall not be liable <br />for any damages as a result of termination under this provision of this AGREEMENT. Nothing <br />.herein shall be construed as obligating the CITY to expend funds in excess of appropriations <br />authorized by law. <br />(2) The SUBRECIPIENT shall allow representatives of the CITY or HUD to inspect <br />facilities which are used in connection with the AGREEMENT or which implement programs <br />funded under this AGREEMENT. <br />F. Matching <br />The ESG-CV funds are exempt from the ESG match requirements, including 24 CFR § 576.201. <br />G. Program Income <br />(1) Definition. Program income means, as provided by 2 CFR 200.80, gross income <br />received by the SUBRECIPIENT directly generated by a grant supported activity, or earned only <br />as a result of the grant agreement during the grant period. For purposes of ESG-CV, Program <br />income will also include any amount of a security or utility deposit returned to the <br />SUBRECIPIENT. <br />(2) Use. The SUBRECIPIENT shall use all income received from said funds only for the same <br />purposes for which said funds may be expended pursuant to the terms and conditions of this <br />AGREEMENT. <br />H. Separation of Accounts <br />All funds received by the SUBRECIPIENT from the CITY pursuant to this AGREEMENT shall be <br />maintained separate and apart from any other funds of the SUBRECIPIENT, or of any principal or <br />member of the SUBRECIPIENT, in an account (the "Account") at a federally insured banking or <br />savings and loan institution with record keeping of such Accounts maintained pursuant to applicable <br />legal requirements. The SUBRECIPIENT shall keep all records of the Account in a manner that is <br />consistent with generally accepted accounting principles. No monies shall be withdrawn from the <br />Account except for expenditures relating to essential services, homeless prevention, and/or <br />