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Exhibit B <br />C. Project Costs <br />1. GRANTEE agrees to abide by the GUIDES, as they maybe updated by the State from <br />time to time. <br />2. GRANTEE acknowledges that the STATE may make reasonable changes to its <br />procedures as set forth in the GUIDES. If the STATE makes any changes to its <br />procedures and guidelines, STATE agrees to notify GRANTEE within a reasonable <br />time of such update. <br />D. Project Administration <br />1. If GRANT MONIES are advanced, the advanced funds shall be placed in an interest <br />bearing account until expended. Advanced funds must be spent within six months from <br />the date of receipt, unless the STATE waives this requirement in writing. Interest <br />earned on the advanced funds shall be used on the project as approved by the STATE. <br />If GRANT MONIES are advanced and not expended, the unused portion of the grant <br />and any interest earned shall be returned to the STATE within 60 days after project <br />completion or end of the GRANT PERFORMANCE PERIOD whichever is earlier. <br />2. The GRANTEE shall submit written project status reports within 30 calendar days after <br />the STATE has made a request for a project status report. The GRANTEE shall also <br />provide the STATE a report showing total final project expenditures within 60 days of <br />project completion or the end of the GRANT PERFORMANCE PERIOD, whichever is. <br />earlier. The GRANT PERFORMANCE PERIOD is identified in the contract face sheet. <br />3. The STATE shall have the right to inspect all property or facilities acquired and/or <br />developed pursuant to this contract and the GRANTEE shall make said property <br />available for inspection upon 24 hours' notice from the STATE <br />4. The GRANTEE and the STATE agree that if the GRANT SCOPE includes <br />DEVELOPMENT, final payment to Grantee may not be made until the work described <br />in the GRANT SCOPE is complete. <br />5. Any grant funds that have not been expended by the GRANTEE under the terms of <br />this contract shall revert to the STATE. <br />E. Project Termination <br />1. In the event of non -completion of a GRANT SCOPE, the STATE may request the <br />return of any grant funds advanced or reimbursed to the Grantee. Any grant funds <br />that have not been expended by the GRANTEE shall revert or be returned to the <br />STATE. <br />2. Unless the provisions of this AGREEMENT provide otherwise, after encumbrance, this <br />contract may be rescinded, modified or amended only by mutual written agreement <br />between the GRANTEE and the STATE, unless the provisions of this AGREEMENT <br />provide that mutual agreement is not required. <br />3. Failure by the GRANTEE to comply with any of the terms of this AGREEMENT as well <br />as any other grant contracts, specified or general, that GRANTEE has entered into with <br />STATE, may be cause for suspension of all obligations of the STATE unless the <br />STATE determines that such failure was due to no fault of the GRANTEE. In such <br />case, STATE may reimburse GRANTEE for eligible costs properly incurred in <br />3 <br />