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<br />Page 2 of 3 7Sb <br /> <br />II. <br /> <br />State agrees to reimburse Project for the services provided <br />under "I" above in accordance with the following tenns and conditions: <br /> <br />I <br /> <br />A. State will reimburse Project for administrative costs <br />which include costs for referral, operation monitoring, <br />nutrition education, general administration, start-up <br />and clinic. <br /> <br />B. Administrative costs will be reimbursed based on actual <br />costs, but not to exceed the "maximum reimbursements" <br />set out below, based on the number of participants who <br />actually receive food vouchers each month. Surplus ftmds <br />(amount by which maximum reimbursements exceed actual cost) <br />will be accumulated and carried forward on an individual <br />project basis. The time period during which such surpluses <br />may be recovered will be determined by the State based on <br />funding restrictions imposed by USDA and shall not exceed <br />the term of this contract. <br /> <br />Participants served <br /> <br />per month <br /> <br />First 500 participants served <br />Next 1000 participants served <br />Next 3500 participants served <br />All additional participants served <br /> <br />Maximum <br /> <br />reimbursement <br /> <br />$5.90 per participant <br />$4.70 per participant <br />$3.50 per participant <br />$1.75 per participant <br /> <br />C. All administrative obligations and expenditures must be <br />incurred and documented in accordance with OASC 10 and <br />FMC A-l02 revised. <br /> <br />I <br /> <br />D. State reserves the right to exclude and/or recover any <br />expenditures that have been claimed and/or paid that <br />are not authorized by the regulations and/or directives <br />pertaining to the program. I <br /> <br />E. The caseload shall be assigned by the Receiving Agency <br />by giving written notice of same and may be subject to <br />change from time to time upon written notice from the <br />Receiving Agency. <br /> <br />F. State reserves the right to impose sanctions when evidence <br />exists that nutrition education and proper documentation of <br />eiligibilty conditions are not provided by the local agency. <br /> <br />III. <br /> <br />For and in consideration of the mutual benefits accruing to both <br />parties of this agreement, it is further agreed and understood that: <br /> <br />'I <br /> <br />A. State and/or USDA shall have the right through their re- <br />presentatives to inspect, examine, investigate and evaluate <br />the program described in "I" above and the facilities pro- <br />vided by Project under this agreement at any time. <br /> <br />B. Performance of Part II of this agreement shall be contingent <br />upon funds being made available by USDA. <br /> <br />C. It is further agreed and understood that in the event State <br />and federal laws on the part of either Project or State <br />should be amended so as to render fulfillment of this agree- <br />ment on the part of either Project or State unfeasible or <br />