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H. Equipment and Other Capital Expenditures: The Grantee hereby certifies that a) no other <br />equipment owned by the Grantee is available for the project; b) grant funds will not be used <br />to provide reimbursement for the purchase price of equipment owned by the Grantee; c) if <br />equipment is used for purposes other than this project, the appropriate proration of costs to <br />each activity involved will be effected; and d) the cost of equipment purchased with Grantee <br />funds will be reduced to the extent of resale /recovery value where use of such equipment for <br />carrying out the purposes of the grant project is discontinued either during the life of the <br />project or at the end of the grant period. Grant funds exceeding $20,000 may not be <br />expended or committed for the acquisition or lease of automatic data processing <br />equipment, whether by outright purchase, rental purchase agreement, or by other <br />method purchase without prior Grantor approval. The Grantor shall not be obligated <br />for any payments for equipment or other capital expenditures beyond the grant period. <br />VI. Grant Reduction/Termination of Grant <br />A. Grant Reduction: In the event that any costs to be financed in whole or in part by funds for <br />this grant are disallowed, the Grantor may, in its sole discretion: a) reduce the amount of the <br />grant by the amount of the cost that is disallowed; or b) apply the amount of the cost that is <br />disallowed to some other cost of the program or project. The amount of any reduction in the <br />grant award shall, in the discretion of the Grantor, be immediately recoverable from the <br />Grantee by the Grantor if the grant award is reduced due to disallowance of costs. <br />B. Grant Termination: This grant may be terminated or fund payments suspended by the <br />Secretary of the North Carolina Department of Correction where there is a failure to comply <br />with the terms and conditions of the following: <br />a. the approved plan and application and attachments; <br />b. the grant award contract and specific conditions or requirements; <br />C. any state or federal law to which compliance is required; <br />d. any policies of the State of North Carolina or the NCDOCCJPP; or <br />e. an audit report which includes audit exceptions not answered to the satisfaction of the <br />NCDOCCJPP. <br />Upon finding of failure to comply, the Director of the Division of Community Corrections <br />shall follow the procedure outlined in the statute governing the program (NC G.S. § 143B- <br />273.8). <br />VII. Employee Activities <br />A. Conflict of Interest: No individual, public official, or employee of a state or unit of local <br />government to which a NCDOCCJPP funded project is awarded may participate in an <br />administrative decision with respect to the project if such a decision can be expected <br />to result in any benefit or remuneration, such as a royalty, commission, contract, <br />contingent fee, brokerage fee, dividend, or other benefits or income to him/her or any <br />member of his/her immediate family. <br />Page 9- - -July 1, 1999 to June 30, 2000 <br />