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money from the first year of the Project shall be carved forward to the final term of the <br />Grant Agreement, such carry-over to be used to extend the length of that final term <br />should the Grant Agreement be renewed for a final term. <br />The budget for Year 2 of the Project is attached and is hereby incorporated by <br />reference into this Renewal Agreement. The Parties agree that this budget for Year 2 <br />shall be the budget to which they shall both adhere for the second year of the Project. <br />Additionally for good and valuable consideration the parties agree that the <br />original agreement shall be amended to include the following underlined new subsection <br />F in Section II. Scope of the Grant: <br />F Each community/school grantee must develop an annual action plan based on <br />the pr~ram of work in their approved grant application that is aligned with their <br />approved annual budget The annual action plan must be developed under the <br />guidance of the Tobacco Prevention and Control Branch and approved by the <br />Health and Wellness Trust Fund Commission. Any changes in the action plan <br />must be approved by the Health and Wellness Trust Fund Commission in <br />consultation with the Tobacco Prevention and Control Branch. <br />Additionally for good and valuable consideration the parties agree Section IV <br />Funding, subsection C, of the original Agreement shall be amended to reflect a total <br />award of $5000 for capital expenditures or equipment expenses. <br />And the Parties agree that for good and valuable consideration Section VII. <br />Reports of the original Agreement shall be amended by adding the following underlined <br />language in a new subsection G: <br />G The Grantee shall also provide annual reports pursuant to N.C. Gen. Stat. 143-6.1. <br />Pursuant to that statute if the Grantee is a non-state entity and receives $300,000 or more <br />of combined state funds annually it agrees that it shall file an audited financial statement <br />with the Commission and the State Auditor in a format and at a time as prescribed by the <br />State Auditor along with any other reports the State Auditor may require. Also pursuant <br />to that statute if the Grantee is a non-state entity and receives more than $15,000 but less <br />than $300 000 of combined state funds annually. it agrees that it shall file annual <br />accountinc with the Commission in a format prescribed by the State Auditor. The <br />2 <br />