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<br />the work specified in the Statement of Work, it will not receive grant funding for any work <br />that is found to be improperly performed or incomplete. <br /> <br />ARTICLE 2 <br />STATEMENT OF WORK <br /> <br />2.1 Subrecipient agrees to utilize the grant funds it receives under this Agreement to <br />perform the services identified in the Statement of Work for the entire term of the <br />Agreement and in compliance with all the terms and conditions specified in this Agreement. <br />Subrecipient, in providing the services hereunder, will be an independent contractor, and <br />not an agent, of the City. In consideration of the continued performance of the <br />Subrecipient's services, the City will make payments to the Subrecipient as provided in <br />Article 10. <br /> <br />2.2 Subrecipient agrees to notify the City of any changes in its Statement of Work, <br />Organization and Project Budget and Project Timetable. Subrecipient will obtain approval <br />from the City prior to commencing work on any modifications made to the Statement of <br />Work. <br /> <br />2.3 Subrecipient agrees to follow the schedule outlined in Exhibit B, Project Timetable <br />of this Agreement and will promptly notify the City of any changes, delays or departure <br />from its schedule. If the Subrecipient demonstrates that a delay or departure from the <br />schedule is due to circumstances beyond its control, the City and the Subrecipient may <br />amend the Project Timetable. <br /> <br />ARTICLE 3 <br />RECORDS AND REPORTS <br /> <br />3.1 Prior to its receipt of funds, Subrecipient will furnish the City with a detailed estimate <br />of all anticipated expenditures in compliance with the Statement of Work. <br /> <br />3.2 The Subrecipient will provide the City with written reports detailing the actual project <br />expenditures and project accomplishments. Dates the reports are due to the City are as <br />follows: <br /> <br />June 15th <br />September 15th <br /> <br />3.3 The receipt of program income under this Agreement is not anticipated. However, <br />if the Subrecipient receives program income for any activity it performs under this <br />Agreement it will comply with all applicable regulations specified in 24 C.F.R. Section <br />570.504. <br /> <br />3.4 The Subrecipient will maintain all records of its services as outlined in Exhibit C, <br /> <br />3 <br />