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Page 10 of 51 <br />7.3 Pre -Award Incurrence of Costs <br />The Recipient is not authorized to incur costs prior to the award of this Agreement. Costs <br />incurred prior to the award of this Agreement are not allowable. <br />7.4 Allowable Costs <br />Costs incurred for the performance of this Agreement must be allowable, allocable to the project, <br />and reasonable. The following regulations, codified within the Code of Federal Regulations <br />(CFR), governs the allowability of costs for Federal financial assistance: <br />2 CFR 200 Subpart E, "Cost Principles" <br />Expenditures for the performance of this Agreement must conform to the requirements within <br />this CFR. The Recipient must maintain sufficient documentation to support these expenditures. <br />Questions on the allowability of costs should be directed to the GO responsible for this <br />Agreement. <br />The Recipient shall not incur costs or obligate funds for any purpose pertaining to operation of <br />the program or activities beyond the expiration date stated in the Agreement. The only costs <br />which are authorized for a period of up to 120 days following the project period are those strictly <br />associated with closeout activities for preparation of the final reports. <br />7.5 Revision of Budget and Program Plans <br />In accordance with 2 CFR 200.308(h) the recipient must request prior written approval for any of <br />the following changes: <br />(a) A change in the approved scope of work or associated tasks, even if there is no associated <br />budget revisions. <br />(b) Revisions which require additional Federal funds to complete the project. <br />(c) Revisions which involve specific costs for which prior written approval requirements <br />may be imposed consistent with OMB cost principles listed in 2 CFR 200 Subpart E <br />"Cost Principles". <br />7.6 Amendments <br />Any changes to this Agreement shall be made by means of a written amendment. Reclamation <br />may make changes to the Agreement by means of a unilateral amendment to address changes in <br />address, no -cost time extensions, changes to Key Personnel, the addition of previously agreed <br />upon funding, or administrative corrections which do not impact the terms and conditions of this <br />agreement. Additionally, a unilateral amendment may be utilized by Reclamation if it should <br />become necessary to suspend or terminate the Agreement in accordance with 2 CFR 200.340. <br />All other changes shall be made by means of a bilateral amendment to the Agreement. No oral <br />statement made by any person, or written statement by any person other than the GO, shall be <br />R22AP00055 Agreement Template <br />City of Santa Ana (0112021) <br />