(1) Grant funds will be disbursed as follows:

(a) Projects that are to receive more than $10,000 may receive an amount not exceeding 25% of the grant award in the first six months of the biennium, 50% in the first year of the biennium, 75% in the first 18 months of the biennium and the balance in the remainder of the biennium.

(b) Projects that are to receive $10,000 or less may receive the total grant in any fiscal quarter if the Montana arts council determines that the cultural and aesthetic project account has funds available and that after an examination of the costs incurred by the project, total payment is appropriate.

(c) Proper allowable costs will be determined from the budget accompanying the application, contingencies specified by the legislature or the revised budget provided when the grant award was less than the request.

(d) Decisions on fund disbursements will be determined by the amount of unexpended prior cultural and aesthetic grant balances and justification of future project costs.

(e) Five-percent of the total grant award must be withheld pending receipt of final reports by the Montana arts council. With regard to benefitting organizations who in the past have submitted late reports, 30% of the grant award may be held pending receipt of final reports by the council.

(f) For recipients of challenge grants, grant payments will be deposited directly in the grant recipient's endowment trust account as matching requirements are met and in accordance with stipulations ARM 10.111.708(1) (a) -(1) (e) .