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<br />C. Contractor understands and agrees that it shall be liable to ATCOG for any <br />costs disallowed pursuant to financial and compliance audit/s) of funds received under <br />this contract. Contractor further understands and agrees that reimbursement to <br />ATCOG of such disallowed costs shall be paid by Contractor from funds which were <br />not provided or otherwise made available to Contractor under this contract. <br /> <br />D. Contractor shall take action to facilitate the performance of such audit or audits <br />conducted pursuant to this Section 19 as A TCOG may require of Contractor. <br /> <br />SECTION 20. ENVIRONMENTAL CLEARANCE REQUIREMENTS <br /> <br />A. Contractor understands and agrees that by the execution of this contract <br />Contractor shall assume the responsibilities for environmental review, decision making, <br />and other action which would otherwise apply to ATCOG under Section 5304(fl of <br />the Act, in accordance with and to the extent specified in 24 C.F.R. Part 58. In <br />accordance with Section 58. 77(bl of such regulations, Contractor further understands <br />and agrees that Contractor shall handle inquiries and complaints from persons and <br />agencies seeking redress in relation to environmental reviews covered by approved <br />certifications. <br />B. Funds provided under this contract may be obligated and expended before the <br />actions specified in this Section occur only for the following eligible activities: <br /> <br />1. The payment of reasonable planning and administrative costs related to <br />the project; <br /> <br />2. Environmental studies, including environmental clearance activities <br />required by this Section; and <br /> <br />3. The payment or reimbursement of reasonable project engineering and <br />design costs incurred for this project. <br /> <br />C. Contractor shall prepare a written Environmental Assessment of its activities <br />in accordance with 24 C.F.R. Part 58, Subpart F. In performing this assessment, <br />Contractor shall utilize appropriate review forms provided by ATCOG. Contractor <br />must then follow the steps specified in this subsection to ensure compliance with the <br />National Environmental Policy Act (NEPAl. When the Environmental Assessment is <br />completed, Contractor must follow one of the following two (2) procedures. The first <br />is a Finding of significant Impact, in which the Request for Release of Funds for the <br />project is an action which may significantly affect the quality of the human <br />environment. If this is the case, Contractor must then prepare an Environmental <br />Impact Statement in accordance with Subpart H or Subpart I or 24 C.F.R. Part 58. <br />The second and more common procedure must be followed for all projects not <br />requiring an Environmental Impact Statement. Contractor in this instance must <br />publish, in the manner prescribed in 24 C.R.F. Sections 58.43 and 58,44, a combined <br /> <br />Page 11 <br />