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<br />5/05 <br /> <br />receipt and approval of a complete quarterly activity report from SUBRECIPIENT, with the final <br />payment subject to the satisfaction of the condition precedent of submittal of complete reporting <br />information due on or before July 15 of the applicable funding year, as hereinafter more fully set <br />forth. SUB RECIPIENT shall be obligated to perform such duties as would normally extend <br />beyond the term, including but not limited to obligations with respect to indemnification, audits, <br />reporting, data retention/reporting, and accounting. <br /> <br />C. Use of Funds. SUBRECIPIENT agrees to use all federal funds provided by CITY to <br />SUBRECIPIENT pursuant to this Agreement to operate said program, as set forth in "Exhibit A," <br />attached hereto and by this reference incorporated herein. SUB RECIPIENT'S failure to perform as <br />required may, in addition to other remedies set forth in this Agreement, result in readjustment of the <br />amount of funds CITY is otherwise obligated to pay to SUB RECIPIENT hereunder. <br /> <br />D. Allowable Costs. SUB RECIPIENT agrees to complete said program on or before <br />June 30, 2008 and to use said funds to pay for necessary and reasonable costs allowable under the <br />federal law and regulations to operate said program. Said amounts shall include, but not be limited <br />to, wages, administrative costs, and employee benefits comparable to other similarly situated <br />employees. Other allowable program costs are detailed in the Budget, as set forth in "Exhibit B," <br />attached hereto and by this reference incorporated herein. SUB RECIPIENT shall use all income <br />received from said funds only for the same purposes for which said funds may be expended <br />pursuant to the terms and conditions of this Agreement. <br /> <br />E. Licensing. SUB RECIPIENT agrees to obtain and maintain all required licenses, <br />registrations, accreditation and inspections from all agencies governing its operations. <br />SUBRECIPIENT shall ensure that its staff shall also obtain and maintain all required licenses, <br />registrations, accreditation and inspections from all agencies governing SUBRECIPIENT's <br />operations hereunder. Such licensing requirements include obtaining a City business license, as <br />applicable. <br /> <br />F. Zoning. SUBRECIPIENT agrees that any facility/property used in furtherance of <br />said program shall be specifically zoned and permitted for such use(s) and activity(ies). Should <br />SUBRECIPIENT fail to have the required land entitlement and/or permits, thus violating any local, <br />state or federal rules and regulations relating thereto, SUB RECIPIENT shall immediately make <br />good-faith efforts to gain compliance with local, state or federal rules and regulations following <br />written notification of said violation(s) from the CITY or other authorized citing agency. <br />SUBRECIPIENT shall notify CITY immediately of any pending violations. Failure to notify CITY <br />of pending violations, or to remedy such known violation(s) shall result in termination of grant <br />funding hereunder. SUB RECIPIENT must make all corrections required to bring the <br />facility/property into compliance with the law within sixty (60) days of notification of the <br />violation(s); failure to gain compliance within such time shall result in termination of grant funding <br />hereunder. <br /> <br />G. Separation of Accounts. All funds received by SUBRECIPIENT from CITY <br />pursuant to this Agreement shall be maintained in an account in a federally insured banking or <br />savings and loan institution with record keeping of such accounts maintained pursuant to applicable <br />OMB Circular A-110 requirements. SUBRECIPIENT is not required to maintain separate <br />3 <br />