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City of La Porte <br />STEP- Sin le Year - 2013 Comprehensive <br />A. This agreement shall remain in effect until the Subgrantee has satisfactorily <br />completed all services and obligations described in this agreement and these <br />have been accepted by the Department, unless: <br />1. This agreement is terminated in writing with the mutual consent of both <br />parties, or <br />2. There is a written thirty (30) day notice by either party; or <br />3. The Department determines that the performance of the project is not in <br />the best interest of the Department and informs the Subgrantee that the <br />project is terminated immediately. <br />B. The Department shall compensate the Subgrantee for only those eligible <br />expenses incurred during the Grant Period specified in this Grant Agreement that <br />are directly attributable to the completed portion of the work covered by this <br />agreement, provided that the work has been completed in a manner satisfactory <br />and acceptable to the Department. The Subgrantee shall not incur nor be <br />reimbursed for any new obligations after the effective date of termination. <br />ARTICLE 12. INSPECTION OF WORK <br />A. The Department and, when federal funds are involved, the USDOT, or any of their <br />authorized representatives, have the right at all reasonable times to inspect or <br />otherwise evaluate the work performed or being performed under this agreement <br />and the premises in which it is being performed. <br />B. If any inspection or evaluation is made on the premises of the Subgrantee or its <br />subcontractor, the Subgrantee shall provide and require its subcontractor to provide <br />all reasonable facilities and assistance for the safety and convenience of the <br />inspectors in the performance of their duties. All inspections and evaluations shall be <br />performed in a manner that will not unduly delay the work. <br />ARTICLE 13. AUDIT <br />The state auditor may conduct an audit or investigation of any entity receiving funds <br />from the state directly under this agreement or indirectly through a subcontract under <br />this agreement. Acceptance of funds directly under this agreement or indirectly through <br />a subcontract under this agreement acts as acceptance of the authority of the State <br />Auditor, under the direction of the legislative audit committee, to conduct an audit or <br />investigation in connection with those funds. An entity that is the subject of an audit or <br />investigation must provide the state auditor with access to any information the state <br />auditor considers relevant to the investigation or audit. <br />ARTICLE 14. SUBCONTRACTS <br />A subcontract in excess of $25,000 may not be executed by the Subgrantee without <br />prior written concurrence by the Department. Subcontracts in excess of $25,000 shall <br />2013-LaPorte-S-1YG-0019 Printed On: 8/8/2012 Page 10 of 39 <br />