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7 EXHIBIT "A" Contract # 346.11 GRANT AGREEMENT FOR PUBLIC LIBRARY SERVICES TO DISADVANTAGED POPULATIONS This Contract and Agreement is entered into by and between the Texas State Library and Archives Commission and the Local Governmental Unit pursuant to the authority granted and in compliance with the provisions of the "Library Systems Act," Article 5446a V.C.S.; the "Rules and Regulations for the Library Systems Act;" 1IThe Powers and Duties of the Commission, Director and Librarian," Article 5436, V.C.S., and the "Library Services and Construction Act," Public Law 98-480. 1. CONTRACTING PARTIES: The Receiving Agency: The Performing Agency: Texas State Library and Archives Commission City of San Marcos, San Marcos Public Library II. STATEMENT OF SERVICES TO BE PERFORMED: A. The Performing Agency agrees to provide public library services to disadvantaged populations in accordance with the grant application submitted by the Performing Agency entitled: The Lifelong Learning Project or if applicable, in accordance with the Performing Agency's proposal as modified by the Receiving Agency and attached to this contract in summary form. B. The Receiving Agency agrees to reimburse the Performing Agency for expenses incurred in conducting the above specialized library service program. The Performing Agency may charge expenditures against this grant only if they conform to the grant application, as approved by the Receiving Agency, and are for reimbursement of expenses incurred or obligated during the grant period. Grant funds may not be encumbered after August 31, 1988. By November 30, 1988, a final Financial Status Report will be submitted to the Receiving Agency and all unexpended funds will be returned or a final request for any funds due will be submitted. C. D. The Performing Agency agrees to audit all funds received under this contract. Such audit shall be conducted in accordance with Office of Management and Budget Circular A-128, "Audits of State and Local Governments." The audit will be provided to the Receiving Agency no than 180 days following the close of the city fiscal year. An audit report must be provided for each fiscal year in which funds from this grant are expended. For purposes of identification this grant must be designated in the audit report as Contract # 346.11. 1 ater