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and shall not be construed as a general agreement to pay such portion at all events out of any <br /> funds other than those which are received from the federal government. <br /> H. METHOD OF PAYMENT. <br /> 1. All funds available for use under this Contract shall be subject to <br /> the allotment system as provided in Chapter 37, Hawaii Revised Statutes. <br /> 2. Payments to Grantee under this Contract shall be made in <br /> accordance with and subject to the following provisions: <br /> a. Payments shall be made monthly upon receipt of Grantee's <br /> completed request for funds. <br /> b. All payments shall be made in accordance with and subject <br /> to Chapter 40, Hawaii Revised Statutes, which specifies the accounting procedures and controls <br /> applicable to payments out of the fireasury of the State of Hawaii. <br /> c. If an amount of reported expenditures is preliminarily <br /> determined by Agency to be inappropriate and unallowable, Agency may deduct an equivalent <br /> amount from the next payable installment and may withhold payment of the amount of the <br /> moneys equivalent to the questioned e ipenditures until later resolution of the discrepancy by <br /> audit or other means. If, after payment of the last installment, investigation and examination <br /> reveal additional expenditures that arc determined by Agency to be inappropriate and <br /> unallowable, Agency may require that an equivalent amount of moneys be refunded to Agency <br /> notwithstanding Agency's preliminary deterrnination of appropriateness and allowability. <br /> <br /> i <br /> d. Failure to submit required reports by the applicable <br /> deadline will result in the withholding of payments until such time as the reports are received by <br /> Rev. 07; 00 1 ~ <br /> <br />