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2. Grantee shall keep an up -to -date work status record for work <br />undertaken to complete the project. The records shall be made <br />available to the State and /or the Small Business Administration (SBA) <br />or its authorized agents at any time for review. <br />3. Grantee shall maintain complete, accurate, and separate financial <br />records for all work undertaken, which fully disclose the amount and <br />disposition of grant funds. A written narrative explanation shall <br />describe all variations from estimated cost. For account purposes, <br />project coats shall be subdivided into the following categories: <br />Labor, supervision, hired equipment, Grantee's equipment, travel and <br />subsistence, other components and supplies, contractual services and <br />volunteer or other in -kind services. <br />E. Costs: <br />1. Grantee shall use all grant funds disbursed to it under this <br />Agreement exclusively for the work outlined in the Project Proposal. <br />In the event that Grantee's machinery is used on a project, the <br />allowable coat shall be the actual cost of operating the equipment. <br />2. Grantor's liability shall not exceed the total amount of the grant <br />and is subject to the availability of funds. <br />3. In the event of a general unallotment or percentage reduction of <br />funds, unless directed by the Governor, Legislature, or other law, <br />the remaining grant funds available shall be reduced no more than the <br />percentage reduction applied to the Minnesota Department of Natural <br />Resources' Division of Forestry Budget. <br />F. Non - Discrimination: <br />1. Grantee agrees to comply with the anti - discrimination in employment <br />provisions of Minn. Stat. Sec. 363.03 and any amendments thereto <br />during the life of the Grant Agreement. <br />2. Grantee and its contractors shall conform with and agree to the <br />provisions of Minn. Stat. Sec. 181.59 which prohibits discrimination <br />in the hiring of labor by reason of race, creed or color. Therefore, <br />Grantee agrees and shall require its contractors to agree that every <br />contract for or on behalf of the State of Minnesota, or any county, <br />for materials, supplies or construction shall contain provisions by <br />which the contractor agrees: <br />(a) That, in the hiring of common or skilled labor for the <br />performance of any work under any contract, or any <br />subcontract, no contractor, material supplier, or vendor <br />shall, by reason of race, creed, or color, discriminate <br />against the person or persons who are citizens of the <br />United States or resident aliens who are qualified and <br />available to perform the work to which the employment <br />relates; <br />(b) That no contractor, material supplier, or vendor, shall, in <br />any manner, discriminate against, or intimidate, or prevent <br />the employment of any person or persons identified in <br />clause (1) of this section, or on being hired, prevent, or <br />conspire to prevent, the person or persons from the <br />performance of work under any contract on account of race, <br />creed, or color; <br />(c) That a violation of Minn. Stat. Sec. 181.59 is a <br />misdemeanor; and <br />(2) <br />Page 17 <br />