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Grantee; c) if equipment is used for purposes other than this project, the appropriate <br />proration of costs to each activity involved will be effected; and d) the cost of equipment <br />purchased with Grantee funds will be reduced to the extent of resale/recovery value where <br />use of such equipment for carrying out the purposes of the grant project is discontinued <br />either during the life of the project or at the end of the grant period. Grant funds <br />exceeding $20,000 may not be expended or committed for the acquisition or lease of <br />automatic data processing equipment, whether by outright purchase, rental <br />purchase agreement, or by other method purchase without prior Grantor approval. <br />The Grantor shall not be obligated for any payments for equipment or other capital <br />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 <br />for this grant are disallowed, the Grantor may, in its sole discretion: a) reduce the amount <br />of the grant by the amount of the cost that is disallowed; or b) apply the amount of the <br />cost that is disallowed to some other cost of the program or project described in Condition <br />II C. The amount of any reduction in the grant award shall, in the discretion of the <br />Grantor, be immediately recoverable from the Grantee by the Grantor if the grant award is <br />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 <br />comply 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 <br />the 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 to <br />result in any benefit or remuneration, such as a royalty, commission, contract, contingent <br />fee, brokerage fee, dividend, or other benefits or income to him/her or any member of <br />his/her immediate family. <br />B. Partisan Political Activity Prohibited: None of the funds, materials, property, or <br />services provided directly or indirectly under this grant shall be used for any partisan <br />Page 10- - -July 1, 1998 to June 30, 1999 <br />