(1) Any grant received by an applicant shall be subject to the grant conditions and other policies, regulations and rules issued by the U.S. Department of Justice, U.S. Department of Education or other federal grantor agency, for the administration of grant projects, including, but not limited to, the following:

(a) funds awarded are to be expended only for the purposes and activities covered by the applicant's approved plan and budget;

(b) all applications are subject to federal and state laws, regulations, and policies;

(c) appropriate grant records and accounts will be maintained and made available for audit as prescribed by the U.S. Department of Justice, U.S. Department of Education, or other federal grantor agency; and

(d) reports from subgrantees are due as prescribed by the board. The board may cancel any award to a subgrantee if such reports are twice delinquent.