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C. The Grantor hereby gives prior approval for the items specified under the cost categories outlined <br /> below. Before the Grantee obligates or expends grant funds for additional items in the following <br /> cost categories, the Grantor must give written prior approval. Written prior approval is to be <br /> requested on the Program Revision form. Written prior approval is also required if an item's cost <br /> or features are substantially different from what the grant specifies, or fxom a previous Program <br /> Revision. All Program Revision forms must be received by Grantor on or before August 1, 2003. <br /> <br /> COST CATEGORIES <br /> <br /> 1. Preaward Costs <br /> None <br /> <br /> 2. Insurance (if not required by the grant) <br /> None <br /> <br /> 3. Rearrangements and Alterations of Facilities <br /> None <br /> <br /> 4. Equipment/Property <br /> None <br /> <br /> Subject to the obligations and conditions set forth in Uniform Grant l~anagement Standards <br /> (UGMS) Section III, Subpart C.32 (a), title to equipment acquired under a grant will vest upon <br /> acquisition in the Grantee. <br /> <br /> Each piece of equipment/property is an article of nonexpendable, tangible personal property <br /> having a useful life of more than one year and an acquisition cost that exceeds the capitalization <br /> amount established by Grantee's governing entity. Equipment/property includes furniture, library <br /> materials, etc., purchased wholly or in part with grant funds. The prior approval amount is the <br /> capital expenditure, which means the cost of the equipment/property including the cost to put it in <br /> place. Capital expenditure for equipment/property means the net invoice price of the <br /> equipment/property, including the cost of any modifications, attachments, accessories, or auxiliary <br /> apparatus necessary to make it usable for the purpose for which it is acquired. Ancillary charges, <br /> such as taxes, duty, protective in transit insurance, freight, and installation may be included in, or <br /> excluded from, capital expenditure cost in accordance with the Grantee's regular accounting <br /> practices. <br /> <br />VI. STATEMENT OF SERVICES TO BE PERFORMED <br /> <br /> The Grantee will comply during the period of this contract and provide services outlined within the <br /> grant application (Loan Star Libraries Grants Plan of Action for SFY 2003) as approved by the <br /> Grantor. <br /> <br />Fiscal Year 2003 Page 3 of 8 <br />City of Paris Loan Star Libraries Grant <br /> <br /> <br />