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i. In aEl cases in which equipment is sold,the praceeds shall be <br /> program income (prorated to reflect the extent to which CDBG <br /> funds were used ta acquire the equipment}; and <br /> ii. Equipment not needed by the SUBRECIPIENT for CDBG activities <br /> shal( be transferred to the CI7Y for the CDBG program or shall be <br /> retained after eompensating the recipient; <br /> 7. Section 84.51.(b), (c), (d), (e), (f), (g), and (h), "Monitaring the Reporting <br /> Frogram PerFormance"; <br /> 8. Section 84.52, "Financial Reparting"; <br /> 9. Sect'ron 84.53(b), "i2etention and Access Requirements for Records", <br /> applies with the fallowing exceptions: <br /> i. The retention period referenced in paragraph 84.53(b) pertaining <br /> to individua) CDBG activities sha11 be five years fallowing grant <br /> close aut; and <br /> ii. The retention period starts from the date of submission af the <br /> annual performance and evaluation report, as prescribed in 24 <br /> CFR 91.520 in which the specific activity is reported on far the <br /> fina!tirne rather than from the date af submission of the final <br /> expenditure report for award; <br /> 20. Section 84.61 "Terminatian". SUBRECIPIENT shall comply with <br /> 570.503(b)(7) "Suspension and Terminatian"; and <br /> • Subpart D-"After-the Award Requirements", except for paragraph 84.71, <br /> "Claseout Procedures:' <br /> XXIV. CONlPLIANCE WlTH FIRST AMENMENT CHURCH j5TATE PRtNCIPLES.SUBREClPIENT agrees <br /> to camply with the First Amendment Church/State Principles which state that CDBG funds <br /> may not Eae used for religious activities ar provided ta primarily religious entities for any <br /> activities, including secular activities.The following restrictians and limitations apply to the <br /> use af CDBG funds: <br /> • As a genera! rule, CDBG funds may be used for eligible public services ta be <br /> provided through a primarily religious entity, where the religiaus entity enters <br /> into an agreement with the CIiY that, in connectian with the provision of such <br /> services: <br /> 1. It v►ril) not discriminate against any emplayee ar applicant for <br /> employment an the basis of religion and wil! not (imit employment or <br /> give preference in emp(oyment to personas on the basis of religian; <br /> 2 !t wil! not discriminate against any person applying for such public <br /> services on the basis of religion and will nat limit such services or give <br /> preference to persons on the basis of religion; <br /> 17 <br /> EXFitBtT A <br />