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accounting system. All costs charged to the program shall be in accordance with most current
<br />approved Annual Budget and shall be reported to the Department in accordance with UPTAS.
<br />b. Documentation of Project Costs. All costs charged to the Project, including any approved services
<br />performed by the Grantee or others, shall be supported by properly executed payrolls, time records,
<br />invoices, contracts, or vouchers evidencing in detail the nature and propriety of the charges, as
<br />referenced in 2 C.F.R. 200, "Uniform Administrative Requirements, Cost Principles, and Audit
<br />Requirements for Federal Awards"
<br />C. Allowable Costs. Expenditures made by the Grantee shall be reimbursed as allowable costs to the
<br />extent they meet all of the requirements set forth below. They must be:
<br />(1) Consistent with the Project Description, plans, specifications, and Project Budget and all
<br />other provisions of this Agreement;
<br />(2) Necessary in order to accomplish the Project;
<br />(3) Reasonable in amount for the goods or services purchased;
<br />(4) Actual net costs to the Grantee, i.e., the price paid minus any refunds (e.g., refundable sales
<br />and use taxes pursuant to N.C.G.S. 105 - 164.14), rebates, or other items of value received
<br />by the Grantee that have the effect of reducing the cost actually incurred;
<br />(5) Incurred (and be for work performed) within the period of performance and period covered
<br />of this Agreement unless specific authorization from the Department to the contrary is
<br />received;
<br />(6) Satisfactorily documented;
<br />(7) Treated uniformly and consistently under accounting principles and procedures approved or
<br />prescribed by the Department; and
<br />(8) In compliance with U.S. DOT regulations pertaining to allowable costs in 2 C.F.R. 200,
<br />Subpart E, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements
<br />for Federal Awards ", and FAR, at 48 C.F.R., Subpart 31.2, "Contracts with Commercial
<br />organizations" applies to Project costs incurred by a Recipient that is a for - profit organization.
<br />Section 9. Reporting, Record Retention, and Access.
<br />a. Reports. The Grantee shall advise the Department regarding the progress of the Project at a
<br />minimum quarterly, and at such time and in such a manner as the Department may require. Such
<br />reporting and documentation may include, but not be limited to: operating statistics, equipment
<br />usage, meetings, progress reports, and monthly performance reports. The Grantee shall collect
<br />and submit to the Department such financial statements, data, records, contracts, and other
<br />documents related to the Project as may be deemed necessary by the Department. Reports shall
<br />include narrative and financial statements of sufficient substance to be in conformance with the
<br />reporting requirements of the Department. Progress reports throughout the useful life of the project
<br />equipment shall be used, in part, to document utilization of the project equipment. Failure to fully
<br />utilize the project equipment in the manner directed by the Department shall constitute a breach of
<br />contract, and after written notification by the Department, may result in termination of the
<br />Agreement or any such remedy as the Department deems appropriate.
<br />Non - Governmental Grantees:
<br />(1) In accordance with 2 C.F.R. Part 200.500 Subpart F — Audit Requirements (Formerly
<br />OMB Circular A -133), N.C.G.S. 143C -6, "Non -State Entities Receiving State Funds ",
<br />and Title 9 North Carolina Administrative Code (N.C.A.C.) Subchapter 3M (09 FICAC
<br />03M .0.0205), Non - Governmental Grantees shall comply with all rules and reporting
<br />requirements established by statute or administrative rules. Financial reporting and
<br />audit requirements are based on the level of State financial assistance from all
<br />funding sources. The three (3) reporting levels are:
<br />• Level I — A recipient or subrecipient that receives, holds, uses, or expends State
<br />financial assistance in an amount less than twenty -five thousand dollars
<br />($25,000) within its fiscal year.
<br />• Level II — A recipient or subrecipient that receives, holds, uses, or expends State
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