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2.09 Nonsupplanting <br />Grantee shall not use funds from this Contract to replace or substitute for existing funding from <br />other but shall use funds from this Contract to supplement existing state or local funds currently <br />available. Grantee shall make a good faith effort to maintain its current level of support. <br />Grantee may be required to submit documentation substantiating that a reduction in state or local <br />funding, if any, resulted for reasons other than receipt or expected receipt of funding under this <br />Contract. <br />ARTICLE 111. STATE AND FEDERAL FUNDING <br />3.41 Funding <br />This Contract is contingent upon the availability of sufficient and adequate funds. If funds <br />become unavailable through lack of appropriations, budget cuts, transfer of funds between <br />programs or agencies, amendment of the Texas General Appropriations Act, agency <br />consolidation, or any other disruptions of current funding for this Contract, the System Agency <br />may restrict, reduce, or terminate funding under this Contract. This Contract is also subject to <br />immediate cancellation or termination, without penalty to the System Agency, if sufficient and <br />adequate funds are not available. Grantee will have no right of action against the System Agency <br />if the System Agency cannot perform its obligations under this Contract as a result of lack of <br />funding for any activities or functions contained within the scope of this Contract. In the event of <br />cancellation or termination under this Section, the System Agency will not be required to give <br />notice and will not be liable for any damages or losses caused or associated with such <br />termination or cancellation. <br />3.42 No debt Against the State <br />The Contract will not be construed as creating any debt by or on behalf of the State of Texas. <br />3.03 Debt to State <br />If a payment law prohibits the Texas Comptroller of Public Accounts from making a payment, <br />the Grantee acknowledges the System Agency's payments under the Contract will be applied <br />toward eliminating the debt or delinquency. This requirement specifically applies to any debt or <br />delinquency, regardless of when it arises. <br />3.44 Recapture of Funds <br />The System Agency may withhold all or part of any payments to Grantee to offset overpayments <br />made to the Grantee. Overpayments as used in this Section include payments (i) made by the <br />System Agency that exceed the maximum allowable rates; (ii) that are not allowed under applicable <br />laws, rules, or regulations; or (iii) that are otherwise inconsistent with this Contract, including any <br />unapproved expenditures. Grantee understands and agrees that it will be liable to the System <br />Agency for any costs disallowed pursuant to financial and compliance audit(s) of funds received <br />under this Contract. Grantee further understands and agrees that reimbursement of such <br />disallowed costs will be paid by Grantee from funds which were not provided or otherwise made <br />available to Grantee under this Contract. <br />System Agency Contract No. 2017-049738-001 <br />Page 8 of 19 <br />v. 11.30.15 <br />