2016-517 OPT - NCDOT FY2017 Public Transportation Section 5339 Capital Program Grant Agreement

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f. Excluded Costs. The Contractor understands and agrees that, except to the extent the Department determines otherwise in writing, ineligible costs will be treated as follows: (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 cost ineligible for FTA/Department 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. g. Federal /State Claims, Excess Payments, Disallowed Costs. including Interest. (1) Contractor's Resgonsibility to Pay. Upon notification to the Contractor that specific amounts are owed to the Federal /State Government, whether for excess payments of Federal /State assistance, disallowed costs, or funds recovered from third parties or elsewhere, the Contractor agrees to remit to the Department promptly the amounts owed, including applicable interest and any penalties and administrative charges. (2) Amount of Interest. The Contractor agrees to remit to the Department interest owed as determined in accordance with N.C.G.S. 147 - 86.23. Upon notification to the Contractor that specific amounts are owed to the Federal Updated 04/15/16