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• • <br />19. ADMINISTERING AGENCY agrees, and will assure that its contractors and subcontractors wil <br />be obligated to agree that (a) Contract Cost Principles and Procedures, 48 CFR, Federa <br />Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine thE: <br />allowability of individual PROJECT cost items and (b} those parties shall comply with federal <br />administrative procedures in accordance with 49 CFR, Part 18, Uniform AdministrativE: <br />Requirements for Grants and Cooperative Agreements to State and Local Governments. Ever) <br />sub-recipient receiving PROJECT funds as a contractor or sub-contractor under this <br />AGREEMENT shall comply with Federal administrative procedures in accordance with 49 CFR; <br />Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to StatE: <br />and Local Governments. <br />20. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit <br />that are determined by subsequent audit to be unallowable under OMB Circular A-87, 48 CFR, <br />Chapter 1, Part 31 or 49 CFR, Part 18, are subject to repayment by ADMINISTERING AGENC~~ <br />to STATE. Should ADMINISTERING AGENCY fail to reimburse moneys due STATE within thirt, <br />30 days of demand, or within such other period as may be agreed in writing between thE: <br />PARTIES hereto, STATE is authorized to intercept and withhold future payments duE; <br />ADMINISTERING AGENCY from STATE or any third-party source, including but not limited to, <br />the State Treasurer, the State Controller and the CTC. <br />21. Upon written demand by STATE, any overpayment to ADMINISTERING AGENCY of amount:: <br />invoiced to STATE shall be returned to STATE. <br />22. Should ADMINISTERING AGENCY fail to refund any moneys due STATE as provides <br />hereunder or should ADMINISTERING AGENCY breach this AGREEMENT by failing to completE: <br />PROJECT without adequate justification and approval by STATE, then, within thirty 30 days o1 <br />demand, or within such other period as may be agreed to in writing between the PARTIES <br />STATE, acting through the State Controller, the State Treasurer, or any other public entity of <br />agency, may withhold or demand a transfer of an amount equal to the amount paid by or owed tc; <br />STATE from future apportionments, or any other funds due ADMINISTERING AGENCY from thE: <br />Highway Users Tax Fund or any other sources of funds, and/or may withhold approval of futurE: <br />ADMINISTERING AGENCY federal-aid projects. <br />23. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT o~ <br />otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a join <br />powers authority, special district, or any other public entity not directly receiving funds through thE; <br />State Controller, STATE is authorized to obtain reimbursement from whatever sources of fundinc; <br />are available, including the withholding or transfer of funds, pursuant to Article IV - 22, from those <br />constituent entities comprising a joint powers authority or by bringing of an action against <br />ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided b~~ <br />STATE hereunder. <br />24. ADMINISTERING AGENCY acknowledges that the signatory party represents thE; <br />ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Power;: <br />Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict o~ <br />otherwise limit STATE's ability to recover State funds improperly spent by ADMINISTERING; <br />AGENCY in contravention of the terms of this AGREEMENT. <br />Page 10 of 26 <br />