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15 <br />26. EXTENSION OF CONTRACT: <br />The LA will not extend this contract for an additional year. <br />27. SEVERABILITY: DISCRETION OF CONSORTIUM: OPEN MEETINGS LAW: <br />In the event any provision of this Contract shall be <br />considered unlawful or without effect, it shall be considered <br />severable and shall not affect the remainder of the Contract. <br />The LA shall have the power and discretion to enforce any <br />provision of this Contract and to select from among its many <br />remedies under this Contract and at law. The failure of the <br />LA to enforce a provision shall not constitute waiver of the <br />provision of the Contract. <br />No action taken by the WIA Contractor or its subrecipients in <br />violation of any applicable provision of the state open <br />meetings law shall be valid. <br />28. SANCTIONS: FINANCIAL LIABILITY: <br />The WIA Contractor is responsible for all funds received <br />under this Contract. Funds generated from activities funded <br />under this Contract are program income. Program income and <br />interest on funds received under this Contract must be used <br />under this Contract for all purposes. (refer to page 5) <br />In the case of WIA Contractor not being in compliance as to <br />over or under expenditure of cost categories, participant <br />ineligibility, and when adjustments to the WIA Plan can be <br />made to correct noncompliance (i.e., cost category <br />expenditures, participant ineligibility, plan versus <br />performance) the LA will adhere to corrective actions and <br />follow up as per OMB Circular No. A -122 and as per the <br />Workforce Investment Act. The WIA Contractor will be allowed <br />fourteen (14) days to enforce corrective actions and submit <br />said copy of corrective action to the LA. <br />The WIA Contractor shall repay the LA from nonfederal funds <br />any amounts expended under this Contract by it or by its <br />subcontracts; WIA Contractors that are determined to be <br />unallowable by the LA, the State or the USDOL. This <br />liability exists without regard to the fault of the WIA <br />Contractor in incurring disallowed costs. The WIA Contractor <br />shall be responsible for establishing that expenditures were <br />made for allowable costs. <br />Endorsements on negotiable instruments repaying a portion of <br />questioned costs will not constitute release from repayment <br />of additional disallowed costs. <br />If permitted by the USDOL or the State, the LA may also, in <br />its discretion, effect recovery of disallowed costs or <br />wrongful retained funds by withholding payments and /or <br />reimbursement due, under this Contract or under any contract <br />Local Workforce Area Contract Agreement Page 14 of 29 <br />Amended 7/14 <br />