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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 />