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SCHEDULE D <br /> Agreement of Understanding & Compliance <br /> <br /> Project Number: <br /> THIS AGREEMENT made and entered into by and between the STATE OF HAWAII by and <br /> through its Director of Transportation, hereinafter referred to as "State," and the Governmental <br /> Unit named in this application, hereinafter referred to as "Applicant." <br /> WHEREAS, the National Highway Safety Act of 1966 (Public Law 89-564) provides Federal <br /> funds to the STATE for approved highway safety projects, and <br /> WHEREAS, STATE may make said funds available to various state, county or municipal <br /> agencies or govemments or political subdivisions upon application and approval by STATE and . <br /> the iJNITED STATES DEPARTMENT OF TRANSPORTATION, and <br /> WHEREAS, STATE is obligated to reimburse the UNITED STATES DEPARTMENT OF <br /> TRANSPORTATION out of its funds for any ineligible or unauthorized expenditures for which <br /> Federal funds have been claimed and payment received, and <br /> WHEREAS, the above name APPLICANT has submitted an application for Federal funds for <br /> highway safety projects. <br /> NOW, THEREFORE, IN CONSIDERATION OF MUTUAL PROMISES AND OTHER GOOD <br /> AND VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS: <br /> I. Reimbursement of Eligible Expenditures <br /> A. It is mutually agreed and promised that upon written application by APPLICANT and <br /> approval by STATE and the UNITED STATES DEPARTMENT OF <br /> TRANSPORTATION, STATE shall obligate said Federal funds to APPLICANT'S <br /> account for reimbursement of eligible expenditures as set forth in the application. <br /> B. It is mutually agreed and promised that APPLICANT shall reimburse STATE for any <br /> ineligible or unauthorized expenditures for which Federal funds have been claimed and <br /> payment received as determined by a State or Federal audit. Costs are not allowable for <br /> construction, rehabilitation, remodeling, or for office furnishings and fixtures -for State, <br /> local or private buildings or structures. The following aze examples of items considered <br /> as furnishings or fixtures, for which reimbursement is not eligible: <br /> Desks Credenzas Storage Cabinets <br /> Chairs Bookcases Portable Partitions <br /> Tables Filing Cabinets Pictures, Wall Clocks <br /> Shelving Floor Coverings Draperies <br /> Coat Racks Office Planters Fixed Lighting/Lamps <br /> <br />