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the Consortium, and the Consortium shall indemnify and hold harmless the SCWDC for the Consortium's negligent acts or omissions after the effective date of withdrawal. 2. Local .g.rant sub recipient The Consortium retains the right in its sole discretion to withdraw the designation of the SCWDC as local grant sub recipient if the Consortium determines that a breach of this designation has occurred and the Consortium has exercised due process to resolve the matter formally by following the Corrective Action producers set forth below in section VIII, below, before withdrawing the designation as local grant sub recipient. Upon withdrawal of designation of the SCWDC as local grant sub recipient, the Consortium shall assume all duties of the SCWDC as local grant sub recipient, including but not limited to all contractual obligations that the SCWDC has undertaken as local grant sub recipient, until such time as it designates another entity to act on behalf of the Consortium, and the Consortium shall indemnify and hold harmless the SCWDC for the Consortium's negligent acts or omissions after the effective date of withdrawal. C. Adoption Qf the MOA Local and Regional Plan The SCWDC shall provide the Consortium a copy of the draft annual plan when it is sent out for public comment, and a copy of all proposed or adopted changes to the annual plan. The SCWDC shall also provide the Consortium a copy of the final, proposed annual plan no later than 15 days before the date of the required submittal to the State. D. Adoption and Acilllini u"ation of the WIOA Budget 1. At the beginning of the SCWDC's fiscal year, the SCWDC shall provide the Consortium a proposed WIOA annual budget for comment. The SCWDC shall apply the funds received under the WIOA in accordance with the approved budget, together with any changes requested by the Consortium and adopted by the SCWDC. 2. The SCWDC shall notify the Consortium prior to filing any application for a grant that is available to the SCWDC as the Consortium's designee under the WIOA. This notification may be provided verbally or in writing. E. Internal Review Until July 1,2015 the SCWDC shall maintain the internal review process set forth in the Interim Agreement in effect since July 3, 2000. After July 1,2016, the SCWDC will arrange for an independent audit at least annually, and will provide copies of the results of each audit to the Consortium. 51Page