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may not use grant funds to pay for the portion that exceeds the budgeted amount by more than <br />10%. <br />Grantee may use grant and matching funds for direct staff costs for Work Plan activities. <br />Grantee may use Grant and matching funds to purchase or lease equipment, machinery, supplies, <br />or other personal property necessary for the grant project. The Grantee will comply with the <br />personal property management requirements in Section 3.04 of this agreement. <br />If Council determines that Grantee made an unauthorized or undocumented use of grant <br />proceeds, the Council may make a demand for repayment and Grantee must promptly repay such <br />amounts to the Council. <br />3.03 Administration, Supervision and Contractors. Grantee is responsible for the <br />administration, supervision, management, and oversight of the Project. Grantee may employ any <br />professional services and contractors it deems reasonable and necessary to complete the Project. <br />In employing professional services and contractors, the Council encourages Grantee to <br />solicit and include businesses that participate in the Metropolitan Council Underutilized Business <br />Program ("MCUB"). A list of these firms is available on the Council's website. <br />3.04 Personal Property Management. Title to all personal property acquired with <br />grant and matching funds remains with Grantee. Grantee must take reasonable measures to <br />protect and defend its title interest and shall keep the personal property free and clear of any <br />liens, encumbrances, or other claims. Grantee must maintain property records that include, at a <br />minimum, a description of the property, a serial or other identification number, the acquisition <br />date and cost, and the location, use, and condition of the property. In the! final report required by <br />section 5.02, Grantee must include a list of all personal property acquired with grant and <br />matching funds that was not used in performance of the Project. At the end of the Grant Period, <br />Grantee agrees to transfer title to all personal property that is not incorporated into the Project <br />and was acquired in whole or in part with grant funds to the Council, at the Council's option, at <br />no charge. The Council reserves the right to direct appropriate disposition of all personal <br />property, acquired in whole or in part with grant funds, which has not been expended in <br />performance of the grant project. <br />During the Grant Period, Grantee bears the risk of loss of, damage to, or destruction of <br />any personal property acquired with grant or matching funds. No such loss, damage, or <br />destruction will relieve Grantee of its obligations under this agreement. Grantee will maintain <br />personal property acquired with grant or matching funds in good operating order. If, during the <br />Grant Period, any project personal property is not used in performing the project, whether by <br />planned withdrawal, misuse, or casualty loss, Grantee must immediately inotify the Council's <br />Authorized Representative. Unless otherwise approved by the Council's Authorized <br />Representative, Grantee must remit to the Council a proportional amount of the fair market value <br />of any items that are not used, calculated on the basis of the proportion of Council grant funds <br />used to acquire the items. <br />Section 4. Accounting, Record, and Audit Requirements <br />3 <br />