(1) All grant payments to the grantee are subject to the availability of funds.

(2) The department will reimburse the grantee only for necessary expenditures incurred in compliance with the grant contract.

(3) Expenses incurred by the grantee before the effective date of the contract will not be reimbursed by the department.

(4) Any balance of a grant that remains unused at the conclusion of the grant contract period shall revert to the reclamation and development grants special revenue account.