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regulations, the statutes of the State of North Carolina, and written directives and instructions relevant to Workforce Investment Area operation from the Governor of North Carolina or his/her designee. ARTICLE VI. FINANCING/LIABILITY In accordance with N.C.G.S. Section 160A-464(5), it is anticipated that funding necessary to implement this agreement shall be derived from federal grant and/or state funds received through the Governor. In the event it is necessary to appropriate non-federal funds for the purpose of implementing this agreement, the parties agree, as between themselves, that the state fair share allocation formula shall be used. The undersigned units of local government hereby acknowledge that they are jointly and severally accountable for liabilities arising out of activities under the Workforce Investment Act, the Welfare-to-Work Grant, and the North Carolina Employment and Training Grant, and for all funds received by the Workforce Investment Area grant recipient pursuant to WlA, the Welfare- to-Work Grant, and the North Carolina Employment and Training Grant. Liability includes, but is not limited to, responsibility for prompt repayment from nonprogram funds of any misexpenditures by the administrative entity of the Local Workforce Investment Area, or any of its subrecipients or contractors, or the Workforce Development Board. As between the consortium members themselves, liability shall be apportioned in the following manner: (a) to the extent that a particular county benefits from costs disallowed (e.g. an ineligible participant from a particular county received training, the cost of which is subsequently disallowed) that county may be liable for those disallowed costs; (b) any disallowed cost for which the benefiting county cannot be determined shall be divided equally among the undersigned units of local government. Any entity or joint agency created or designated by this Local Workforce Investment Area, including the Workforce Development Board (WDB), and Administrative Entity shall be considered a public agency for the purposes of the Local Government Budget and Fiscal Control Act. ARTICLE VII. ESTABLISHMENT OF CENTRALINA WORKFORCE DEVELOPMENT BOARD OVDB) A. Upon designation by the Governor of North Carolina of the Centralina area as a local workforce investment area, the Chairmen of the Boards of County Commissioners of each &the undersigned units of local government shall certify that the current Centralina Workf'orce Development Board (hereinafter Centralina WDB) as such entity is defined in Section 117 of the WlA and Sections 102 and 103 of the Job Training Partnership Act (II?A) and accompanying regulations and in accordance with the State of North Carolina Executive Order 90 (December, 1995) will serve as the region's workforce investment board. The members of the Centralina WDB are to be selected in accordance with the nominating process and representative scheme set forth in Section 117 of the WlA and Section 102 of the JTPA.