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SCHEDULE D <br /> Agreement of Understanding & Compliance <br /> Project Number: ALOS-02(09-H-Ol) <br /> THIS AGREEMENT' made and entered into by and between the STATE OF HAWAII by and through its <br /> Director of Transportation, hereinafter referred to as "State," and the Governmental Unit named in this <br /> application, hereinafter referred [o as "Applicant." <br /> WHEREAS, the National Highway Safety Act of 1966 (Public Law 89-564) provides Federal funds to the <br /> STATE for approved highway safety projects, and <br /> WHEREAS, STATE may make said funds available to various state, county or municipal agencies or <br /> governments or political subdivisions upon application and approval by STA"fE and the UNITED STATES <br /> 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 Federal <br /> funds have been claimed and payment received, and <br /> WHEREAS, [he above name APPLICANT has submitted an application for Federal funds for highway <br /> safety projects. <br /> <br /> NOW, THEREFORE, IN CONSIDERATION OF MUTUAL PROMISES AND OTHER GOOD AND <br /> 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 <br /> and approval by STATE and the UNITED STATES DEPARTMENT OF <br /> TRANSPORTATION, STATE shall obligate said Federal funds to <br /> APPLICANT'S account for reimbursement of eligible expenditures as set forth in <br /> the application. <br /> B. [t is mutually agreed and promised that APPLICANT shall reimburse STATE for any <br /> ineligible or unauthorized expenditures for which Federal funds have been <br /> claimed and payment received as determined by a State or Federal audit. Costs <br /> are not allowable for construction, rehabilitation, remodeling, or for office <br /> furnishings and fixtures -for State, local or private buildings or structures. The <br /> following are examples of items considered as furnishings or fixtures, for which <br /> reimbursement is not eligible: <br /> Desks Credenzas Storage Cabinets <br /> Chaos Bookcases Portable Partitions <br /> Tables Filing Cabinets Pictures, Wall Clocks <br /> Shelving Floor Coverings Draperies <br /> Coat Racks Office Planters Fixed Lighting/Lamps <br /> C. It is further agreed and promised that where reimbursement is made to APPLICANT in <br /> installments, STATE shall have the right to withhold any installments to make up <br /> reimbursement received for any ineligible or unauthorized expenditures until such time as <br /> the ineligible claim is made up or corrected by APPLICANT. <br /> <br />