Page 7 - _ 180314 Special Yucaipa GSA Packet

Grant Agreement No. 46000XXXX
Page 5 of 38

c. State Project Manager will notify Grantee, in a timely manner, when, upon review of an Advance
Payment Form Invoice, the State determines that any portion or portions of the costs claimed are
not eligible costs. Grantee may, within thirty (30) calendar days of the date of receipt of such notice,
submit additional documentation to cure such deficiency(ies). After the distribution requirements in
Paragraph 5, “Basic Conditions” are met, State will disburse the whole or portions of State funding
to Grantee, following receipt from Grantee via US mail or Express mail delivery of a “wet signature”
nvoice for costs incurred, including Cost Share, and timely Progress Reports as required by
Paragraph 16, “Submission of Reports.”

4. On a quarterly basis, the Grantee will submit an Accountability Report to State that demonstrates how
actual expenditures compare with the scheduled budget. The Accountability Report shall include the
following information:
a. An itemization of how advanced funds have been expended to-date (Expenditure Summary),
including documentation that supports the expenditures (e.g., contractor invoices, receipts,
personnel hours, etc.). Invoices must be itemized based on the budget categories (i.e., tasks)
specified in Exhibit B.
b. A funding plan which shows how the remaining advanced funds will be expended.

c. Documentation that the funds were placed in a non-interest bearing account, including the dates of
deposits and withdrawals from that account.

d. State Project Manager will notify Grantee, in a timely manner, when, upon review of the Expenditure
Summary, the State determines that any portion of the expenditures claimed are not eligible costs.
Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional
documentation to cure such deficiency(ies). If costs are not consistent with the tasks in Exhibit B,
the State will reject the claim and remove them from the Expenditure Summary.
5. Once Grantee has expended all advanced funds, then the method of payment will revert to the
reimbursement process specified in Paragraph 8, “Method of Payment for Reimbursement.”, and any
remaining requirements of Paragraph 5, “Basic Conditions.”

10) REPAYMENT OF ADVANCES. State may demand repayment from Grantee of all or any portion of the
advanced State funding along with interest at the California general obligation bond interest rate at the time
the State notifies the Grantee, as directed by State, and take any other action that it deems necessary to
protect its interests for the following conditions:

1. A project is not being implemented in accordance with the provisions of the Grant Agreement.
2. Grantee has failed in any other respect to comply with the provisions of this Grant Agreement, and if
Grantee does not remedy any such failure to State’s satisfaction.
3. Repayment amounts may also include:
a. Advance funds which have not been expended within 18 months of the Grant Agreement’s
execution by the Local Project Sponsor.
b. Actual costs incurred are not consistent with the activities presented in Exhibit A, not supported, or
are ineligible.
c. At the completion of the project, the funds have not been expended.

For conditions 10) 3.a. and 10) 3.b., repayment may consist of deducting the amount from future
reimbursement invoices. State may consider Grantee’s refusal to repay the requested advanced amount a
substantial breach of this Grant Agreement subject to the default provisions in Paragraph 12, “Default
Provisions.” If State notifies Grantee of its decision to demand repayment or withhold the entire funding
amount from Grantee pursuant to this paragraph, this Grant Agreement shall terminate upon receipt of

Yucaipa Groundwater Sustainability Agency - March 14, 2018 - Page 7 of 226