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VIL TERMS AND CONDITIONS <br />A. The Grantee will comply with the Loan Star Libraries Administrative Rules for SFY 2002. Note <br />that per 2.165(c) of the Rules, assurances relating to non-resident fees or TexShare Library Card <br />Program are in effect for entire term of grant contract. <br />B. The Grantee acknowledges that the intent of the grant is to provide funds to maintain, improve, <br />and enhance local library services, and to provide Texans who are not residents of a particular <br />local community access to and services from the many participating public libraries. <br />C. The Grantee will comply with the Rules for Administering the Library Systems Act. Note that <br />Grantee must continue to meet system membership requirements to be eligible for future grants, <br />per Texas Government Code 441.138(c). <br />D. The Grantee will comply with the following three parts of the Governor's Office of Budget and <br />Planning Uniform Grant Management Standards (UGMS), revised January 2001, located at <br />http://www.governor.state.t,r.ushFie office/gts_tracs/Grants/guidelines.htm. <br />1. Cost Principles for state and Local Govemments and Other Affected Entities <br />(adapted from OMB Circular A-87) <br />2. State Uniform Administrative Requirement for Grants and Cooperative Agreements <br />(adapted from OMB Circular A-102) <br />3. State of Texas Single Audit Circular <br />E. The Grantee will send the Grantor a copy of any management letters issued by the auditor with <br />the reporting package (or written notification, as applicable). The audit's Schedule of <br />Expenciitures of Federal and State Awards will list the amount of awards expended for each <br />award year separately. <br />F. The Grantee may not obligate grant funds after August 31, 2002. By October 31, 2002, all <br />obligations must be liquidated. Any interest accrued above $100 must be retumed to Grantor, <br />per requirements in UGMS. All unexpended funds must be returned to the Grantor. <br />G. The Grantee will add any program income to the funds committed to the grant, using such <br />program income for the purposes and under the conditions of the grant. The source and amount <br />of the program income must be explained in box 12 of the Financial Status Report. <br />H. All publicity relating to the grant award must include aclrnowledgement of the Texas State <br />Library and Archives Commission whenever possible and practical. Publicity includes but is not <br />limited to press releases, media events, public events, displays in the library, announcements on <br />the library's website, and materials distributed through the grant project. <br />Fiscal Year 2002 Page 4 0£ 8 <br />City of Paris Loan Star Lihraries Grant <br />