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<br /> <br /> <br /> <br /> <br /> <br /> 2. It is covenanted and agreed by and between the <br /> <br /> parties hereto that, as to the portion of the obligation under this <br /> contract to be payable out of federal funds, this contract shall be <br /> <br /> construed to be an agreement to pay such portion to the contractor <br /> <br /> only out of federal funds to be received from the federal <br /> government when the federal funds are so received and shall not be <br /> <br /> construed as a general agreement to pay such portion at all events <br /> <br /> out of any funds other than those which are received from the <br /> <br /> federal government. <br /> <br /> <br /> H. METHOD OF PAYMENT. <br /> <br /> 1. All funds available for use under this Contract <br /> shall be subject to the allotment system as provided in Chapter 37, <br /> <br /> Hawaii Revised Statutes. <br /> <br /> 2. Payments to Grantee under this Contract shall <br /> <br /> be made in accordance with and subject to the following provisions: <br /> a. Payments shall be made monthly upon <br /> <br /> receipt of Grantee's completed request for funds. <br /> <br /> b. All payments shall be made in accordance <br /> <br /> with and subject to Chapter 40, Hawaii Revised Statutes, which <br /> specifies the accounting procedures and controls applicable to <br /> <br /> payments out of the Treasury of the State of Hawaii. <br /> <br /> C. If an amount of reported expenditures is <br /> preliminarily determined by Agency to be inappropriate and <br /> <br /> unallowable, Agency may deduct an equivalent amount from the next <br /> <br /> payable installment and may withhold payment of the amount of the <br /> <br /> 14 <br />