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<br /> Article 9. Reporting <br /> The Local Government shall promptly advise the State in writing of events which have <br /> a significant impact upon the contract, including: <br /> . Problems, delays, or adverse conditions which will materially affect the ability to <br /> attain program objectives, prevent the meeting of time schedules or objectives, or pre- <br /> clude the attainment of project work units by established time periods. This disclosure <br /> shall be accompanied by a statement of the action taken, or contemplated, and any <br /> State assistance needed to resolve the situation. <br /> . Favorable developments or events that enable meeting time schedules and objec- <br /> tives sooner than anticipated or producing more work units than originally projected. <br /> Article 10. Audit <br /> This contract shall be subject to audit for a three-year period from the date of the final <br /> financial report. <br /> Article 11. Subcontracts <br /> Any subcontract for professional service rendered by individuals or organizations not <br /> a part of the Local Government's organization shall not be executed without prior <br /> authorization by the State. Subcontracts shall contain all required provisions of this <br /> contract. No subcontract will relieve the Local Government of its responsibility under <br /> this contract. <br /> Article 12. Termination <br /> . For Cause: Insufficient Funding <br /> The State may terminate this contract at any time before the date of completion when- <br /> ever it is determined that sufficient funds are not available to reimburse its share of the <br /> cost of the project. The State shall give written notice to the Local Government at least <br /> seven days prior to the effective date of termination, specifying the date of termination. <br /> The State shall compensate the Local Government for those eligible costs incurred <br /> during the contract period up through the time of termination. The Local Government <br /> shall not incur new obligations for the terminated portion after the effective date of <br /> termination, <br /> - For Cause: Nonperformance <br /> The State may terminate this contract at any time before the date of completion ifit <br /> determines that the Local Government has failed to comply with the conditions of the <br /> contract. The State shall give written notice to the Local Government at least seven <br /> days prior to the effective date of termination and specify the effective date oftermi- <br /> nation and the reason for termination, <br /> The State shall compensate the Local Government for those eligible costs incurred <br /> during the contract period which are directly attributable to the completed portion <br /> of the project covered by this contract, provided that the work has been completed in <br /> a manner satisfactory to the State. The Local Government shall not incur new obliga- <br /> tions for the terminated portion after the effective date of termination. <br /> Page 4 of7 <br />