2012-358 Planning - NC Department of Transportation Grant Agreement (not final)

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(1) In determining the amount of Federal/State assistance the Department will provide, the Department will exclude: (a) Any Project cost incurred by the Contractor before the effective date of the grant; (b) Any cost that is not included in the latest Approved Project Budget; (c) Any cost for Project property or services received in connection with a third party contract, sub-agreement, lease, or other arrangement that is required to be, but has not been, concurred in or approved in writing by FTA; (d) Any non-project cost consistent with the prohibitions of 49 U.S.C. § 5323(h); and (e) Any profit or fee sought by the recipient for its services under the Grant Agreement, except to the extent determined by applicable. (f) Any cost ineligible for FTA participation as provided by applicable Federal/State laws, regulations, or directives. (2) The Contractor shall limit reimbursement for meals, lodging and travel to the rates established by the State of North Carolina Travel Policy. Costs incurred by the Contractor in excess of these rates shall be borne by the contractor. (3) The Contractor understands and agrees that payment to the Contractor for any Project cost does not constitute the Federal/State Government's final decision about whether that cost is allowable and eligible for payment and does not constitute a waiver of any violation by the Contractor of the terms of this Agreement. The Contractor acknowledges that the Federal/State Government will not make a final determination about the allowability and eligibility of any cost until an audit of the Project has been completed. If the Federal/State Government determines that the Contractor is not entitled to receive any portion of the Federal/State assistance the Contractor has requested or provided, the Department will notify the Contractor in writing, stating its reasons. The Contractor agrees that Project closeout will not alter the Contractor's responsibility to return any funds due the Federal/State Government as a result of later refunds, corrections, or other transactions; nor will Project closeout alter the Federal/State Government's right to disallow costs and recover funds on the basis of a later audit or other review. Unless prohibited by Federal/State law or regulation, the Federal/State Government may recover any Federal/State assistance funds made available for the Project as necessary to satisfy any outstanding monetary claims that the Federal/State Government may have against the Contractor. f. Program Income 1. State, Local, or Indian Tribal Governments. In addition to uses of program income authorized under 49 C.F. R Section 18.25, FTA reserves the right to permit the Department to add program income to the funds FTA and the recipient have committed to that Grant agreement and use that program income for the purposes of and under the conditions of the grant agreement. 2. Institutions of Higher Education, private Non-Profit Organizations, and Private For Profit Organizations. In addition to uses of program income permitted under 49 C.F.R. Section 19.24, FTA reserves the right to permit a recipient to add the program income to the funds FTA and the recipient have committed to that Grant agreement and use that program income to further eligible project or program objectives. 3. Cost Associated With Program Income. Except to the extent FTA determines otherwise in writing, the cost incident to the earning program income may be deducted from the Recipient's gross income to determine program income, provided these costs have not been charged to the Grant Agreement. g. Federal/State Claims, Excess Payments, Disallowed Costs, including Interest. Updated 3/07/12 Page 8 of 37