(1) No grants shall be issued if the grantee fails to accept the conditions of the grant or fails to sign a contract stipulating the conditions of the grant.

(2) The grantee must agree that the funds granted shall be expended solely for the activities described in the approved proposal. Should the grant award not prove adequate for the administration of the project as originally submitted the grantee shall submit prior to the grant period modifications to the proposal and an operational budget supporting these modifications. Any funds granted must be committed within the grant period.

(3) The grantee shall maintain accounts, records, and other evidence pertaining to the costs incurred under this grant. The system of accounting employed by the grantee shall be in accordance with generally accepted accounting principles and will be applied in a consistent matter so that the project expenditures can be clearly identified. Records must be maintained for three years from the official termination date of the grant period or until an approved audit has been completed and any questions arising from it have been resolved, whichever is the less period.

(4) Grantees will submit semi-annual reports of expenditures during the course of the project, and such other financial reports and descriptive reports as the society may require. In all cases the grantee is required to submit, within 30 days after completion of the project a final financial report and a narrative report stating what was accomplished with the grant. Five percent of the total grant award will be held pending receipt of final reports by the society.

(5) During the time set out in the above paragraph the grantee agrees that the state government shall have access to and the right to examine any directly pertinent books, documents, papers and records of the grantee involving transactions related to this grant at the principal place of business of grantee during regular business hours.

(6) All grant recipients shall agree that no person shall, on the grounds of race, color or national origin, be excluded from participation in, denied the benefits of, or be subjected to discrimination under any program or activity which results from the expenditure of grant funds.

(7) The grantee must agree that it is the official and sole agency for the administration of the project described in this contract.