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Pages 3 of 5 pages Participants served ~ Month Maximum Reimbursement First 500 participants served $ 8.90 per participant Next 1000 participants served $ 7.25 per participant Next 3500 participants served $ 5.10 per participant All additional participants served $ 3.00 per participant C. Project agrees that (1) not less than 20% of total, annual administrative costs will be separately identified and documented as expenditures directly related to nutrition education; and (2) that State will reimburse Project fok administrative expenses at a rate not greater than five times the amount of properly documented expenditures for nutrition education but not more than is earned based on actual participation not to exceed maximum caseload per Section II, paragraph B. Nutrition education expenditures must also be supported by documentation of participant attendance or nonattendance. D. For projects whose monthly participation falls below 500, the State has the option to compute the sliding scale allowable at a 500 participant level with the stipulation that the nutrition education funding requirement is met as outlined in Section II, paragraph C. E. All administrative obligations and expenditures must be incurred and documented in accordance with the Uniform Federal Assistance Regulations 7 CFR part 3015, Current Federal Regulations, and published State Policies. F. State reserves the right to exclude and/or recover any expenditures that have been claimed and/or paid that are not authorized by the regulations and/or directives pertaining to the program. G. The caseload quantity shall be assigned by State by giving written notice to Project and may be subject to change from time to time upon written notice to Project from State. Project assumes liability for all food costs resulting from Project exceeding assigned caseload maximum. H. State reserves the right to withhold a proportionate amount of earned administrative funds when evidence exists that nutrition education is not being provided by Project, or that Project is not complying with the provisions of USDA and/or State directives. 1. State reserves the right to grant exceptions to the above funding formula as described in Section II, paragraphs Band C above. J. Performance of Section II of this Agreement shall be contingent upon funds being made available by USDA. K. All program income shall be retained by the project and: 1. Used by the project for any purposes which further the objectives of legislation under which the grant was made, and be deducted from total project costs, or 2. Be deducted from total project costs, according to the Departmental eState) policy interpreting Uniform Grant and Contract Hanagement Standards Hanual (UGCHS) , a copy of which is included in the UGCHS Hanual. III For and in consideration of the mutual benefits accruing to both parties of this Agreement, it is further agreed and understood that: