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PAYMENT <br />The Local Government shall reimburse the Subrecipient in accordance with the payment procedures <br />outlined in the CDBG Management Handbook, Financial Management Section for all allowable expenses <br />agreed upon by the parties to complete the Scope of Service. <br />Reimbursement under this Agreement will be based on billings, supported by appropriate documentation of <br />costs actually incurred. It is expressly understood that claims for reimbursement will not be submitted in <br />excess of actual, immediate cash requirements necessary to carry out the purposes of the agreement. <br />Funds available under this Agreement will be utilized to supplement rather than supplant funds otherwise <br />available. <br />It is understood that this Agreement is funded in whole or in part with CDBG funds through the Washington <br />State CDBG Program as administered by Commerce and is subject to those regulations and restrictions <br />normally associated with federally -funded programs and any other requirements that the State may <br />prescribe. <br />PERFORMANCE MONITORING <br />The Local Government will monitor the performance of the Subrecipient by tracking project progress, <br />reviewing payment requests for applicable costs, managing the timely pass-through of CDBG funds, <br />overseeing compliance with CDBG requirements, and ensuring recordkeeping and audit requirements are <br />met. Substandard performance as determined by the Local Government will constitute noncompliance with <br />this Agreement. <br />If action to correct such substandard performance is not taken by the Subrecipient within a reasonable <br />period of time after being notified by the Local Government, contract suspension or termination procedures <br />will be initiated. <br />SPECIAL CONDITIONS -Optional <br />[This section of the Agreement can be used by the Local Government to include special conditions specific to <br />the particular activity or individual Subrecipient.] <br />8. GENERAL CONDITIONS <br />A. General Compliance <br />The Subrecipient agrees to comply with: <br />• The requirements of Title 24 of the Code of Federal regulations, 570 (HUD regulations <br />concerning CDBG); and <br />• All other applicable Federal, State and Local laws, regulations, and policies, governing the funds <br />provided under this Agreement. <br />B. CDBG National Obiective <br />The Subrecipient certifies the activities carried out under this Agreement meet a CDBG Program <br />National Objective defined in 24 CFR 570.208. <br />C. Independent Contractor <br />Nothing contained in this Agreement is intended to, or will be construed in any manner, as creating or <br />establishing the relationship of employer/employee between the parties. The Subrecipient will at all <br />times remain an "independent contractor" with respect to the services to be performed under this <br />Agreement. The Local Government will be exempt from payment of all Unemployment <br />Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation <br />Insurance, as the Subrecipient is an independent contractor. <br />[: <br />