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30e VII. TERMS AND CONDITIONS A. The Grantee will comply with the Loan Star Libraries Administrative Rules for SFY 2003. Note that per 2.165(c) of the Rules, assurances relating to non - resident fees or TexShare Library Card Program are in effect for entire term of grant contract. B. The Grantee acknowledges that the intent of the grant is to provide funds to maintain, improve, and enhance local library services, and to provide Texans who are not residents of a particular local community access to and services from the many participating public libraries. C. The Grantee will comply with the Rules for Administering the Library Systems Act. Note that Grantee must continue to meet system membership requirements to be eligible for future grants, per Texas Government Code 441.138(c). D. The Grantee will comply with the following three parts of the Governor's Office of Budget and Planning Uniform Grant Management Standards (UGMS), revised January 2001, located at http://wwtiv.governor.state. tx. us 1stategrants 1UGMS012001. doc. 1. Cost Principles for state and Local Governments and Other Affected Entities (adapted from OMB Circular A -87) 2. State Uniform Administrative Requirement for Grants and Cooperative Agreements (adapted from OMB Circular A -102) 3. State of Texas Single Audit Circular E. The Grantee will send the Grantor a copy of any management letters issued by the auditor with the reporting package (or written notification, as applicable). The audit's Schedule of Expenditures of Federal and State Awards will list the amount of awards expended for each award year separately. F. The Grantee may not obligate grant funds after August 31, 2003. By October 31, 2003, all obligations must be liquidated. Any interest accrued above $100 must be returned to Grantor, per requirements in UGMS. All unexpended funds must be returned to the Grantor. G. The Grantee will add any program income to the funds committed to the grant, using such program income for the purposes and under the conditions of the grant. The source and amount of the program income must be explained in box 12 of the Financial Status Report. H . All publicity relating to the grant award must include acknowledgement of the Texas State Library and Archives Commission whenever possible and practical. Publicity includes but is not limited to press releases, media events, public events, displays in the library, announcements on the library's website, and materials distributed through the grant project. Fiscal Year 2003 Page 4 of 8 City of Paris Loan Star Libraries Grant