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E. COOPERATING UNIT shall return all program income derived from <br /> activities funded in total or part from the basic grant amount to •, <br /> COUNTY upon its generation, except as derived from activities <br /> with approved reolving accounts. <br /> 1. COUNTY will retain ten percent (10%) of all program income to <br /> defray administration expenses. <br /> 2. The remaining 90 percent (90%) of the program income shall be <br /> credited to the grant authority of the COOPERATING UNIT whose <br /> activity generated the income and be used for fundable and eli- <br /> gible Community Development Block Grant activities consistent <br /> with this Agreement. <br /> F. Should an approved activity be determined to represent an ineligible <br /> expenditure of grant funds, the COOPERATING UNIT responsible shall <br /> reimburse the COUNTY for such ineligible expense. <br /> 1. All reimbursements for ineligible expenditures shall be placed <br /> in the Countywide Discretionary Account, except as provided for, <br /> in Section VII.F.2. of this 'Agreement. <br /> 2. When it is determined by the COUNTY that grant funds have been <br /> expended on an eligible activity and through no fault of the <br /> COOPERATING UNIT the project fails or is no longer eligible, the <br /> program reimbursement shall be treated as program income in <br /> Section VII.E. of this Agreement. • <br />