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d. Office of Management and Budget Circular A-110 entitled, "Uniform <br /> e. Office of Management and Budget Circular A-122 entitled, "Cost <br /> Principles for Non-profit Organizations"; <br />(C) Financial assistance provided under this agreement shall not be Used directly <br /> or indirectly: <br /> 1. for construction, such as construction of mass transit systems, and <br /> exclusive bus lanes; <br /> 2. to subsidize fares for public transportation; or <br /> 3. for subsidies for utility rate demonstrations or State insulation tax <br /> credits. <br />(D) Materials and supplies purchased with f~nds received as a result of this <br /> agreement shall be accounted for separately ~'~om ail other materials and suppties <br /> obtained from any other source. Materials and supplies on hand from pdor <br /> .w,eathedzation programs may be purchased at-cost, with funds received through this <br /> agreement. All such purchases shall be accounted for by the Subcontractor in <br /> inventory records maintained to account for funds expended, under this agreement. <br /> <br />Section 7: Audit and Inspection. The Subcontractor shall permit, and shall require its <br />subcontractors in wdting as part of any subcontract agreement, to permit the Subgrantee, the <br />Comptroller General of the United Slates and the Department of Energy, or their authorized <br />representative to audit and/or inspect all work, materials, payrolls, and other data and records <br />with regard to this contract and to audit the books, records, and accounts of the <br />Subcontractor pertaining to this contract. <br /> <br />Section 8: Contract Changes. Any proposed changes in this contract shall be in <br />writing, submitted to and approved and executed by the Subgrantee before performance of <br />any work involved in the proposed change. <br /> <br />Section 9: This agreement is subject to and incorporates the attached Parts II and III, as <br />if wdtten word for word herein. <br /> <br />Section 10: The Subcontractor agrees to assist the Subgrantee in complying with all of the <br />Conditions Governing Grants under the National Energy Conservation Policy ACt. <br /> <br />Section 11: The continued performance of this contract by the Subgrantee is <br />dependent upon the availability of funds for this purpose and the Subcontmctora <br />ability to carry out the purpose of the Weatheri'zation Assistance Program as <br />prescribed in the .North Carolina WAP State Plan (Including all program guidance, <br />manuals, laws, roles and regulations), as well as, consistent with Part II Section I of <br />this agreement. Should funds for this purpose cease to be available, this contract <br />shall automatically terminate. <br /> <br />Section 12: Honesty and Fidelity Bonds. The Subcontractor shall maintain throughout the <br />duration of this Contract a Honesty and Fidelity bond that protects the program against theft, <br />damages, or other abuses that may occur while this contract is in force. Such Honesty and <br />Fidetity bonds should be at least 15% of the total funds awarded under this Contract. The <br />Subgrantee recommends that the Subcontractor also maintain liability insurance to protect <br />against personal injury and property damage sustained during weatherization activities. <br /> <br /> <br />