| (a) If an application is approved, the board may authorize the executive administrator to enter into a contract with the applicant on behalf of the board. The contract shall include: scope of work; schedule of work; budget; any other terms or conditions required by the executive administrator. (b) An approved applicant may subcontract any or all of the scope of work. The board will not be party to any subcontract, and the political subdivision will be solely responsible for monitoring, administering, and requiring subcontractor compliance with the terms of the board's contract with the political subdivision. (c) Applicants, contractors, and subcontractors shall maintain financial accounts, documents, and records that are acceptable to the board. All records shall be made available for examination and audit by the staff of the board and the state. Accounting by applicants, contractors, and subcontractors shall be in a manner consistent with generally accepted accounting procedures. All records will be retained for a minimum period of three years, and records shall be retained beyond the three years if litigation, a claim, or an audit is in process or if audit findings are not resolved. The three-year period will begin upon final payment of the funds retained by the board. (d) Capital equipment shall not be purchased with facility planning assistance. (e) If the board determines that planning activities undertaken by an applicant under this subchapter have been inadequate or not completed in a timely manner, the board may terminate the contract and on behalf of and in consultation with the applicant may perform or contract for facility engineering in the economically distressed area. |
