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CAP-14-1034-ILL, Contract No. 4464 <br /> The Department will make a final determination as to allowability only after a final audit of the <br /> Project has been concluded. <br /> In the event the Department determines that the Grantee is not currently eligible to receive any <br /> or all of the funds requested, it shall promptly notify the Grantee stating the reasons for such <br /> determination. <br /> C. Disallowed Costs - In determining the amount of the Grant, the Department will exclude: (i) all <br /> Project costs incurred by the Grantee prior to the date of this Agreement, or other date <br /> specifically authorized by the Department, whichever is earlier; (ii) costs incurred by the <br /> Grantee which are not provided for in the latest Approved Project Budget for the Project; and <br /> (iii)except as otherwise provided in Department guidelines, costs attributable to goods or <br /> services received under a contract or other arrangement which has not been concurred in or <br /> approved in writing by the Department. Costs of construction performed by employees of the <br /> Grantee will also be disallowed as eligible Project costs unless the use of such employees is <br /> specifically approved in advance by the Department. <br /> ITEM 13 - RIGHT OF DEPARTMENT TO TERMINATE <br /> Upon written notice to the Grantee, the Department reserves the right to suspend or terminate all or <br /> any part of the financial assistance herein provided for(i)when the Grantee is, or has been in <br /> violation of the terms of this Agreement or any other grant between the Grantee and the Department, <br /> (ii) for just cause as deemed by the Department, or(iii)when the Department determines, in its sole <br /> judgment, that the purpose of the Acts would not be adequately served by continuation of <br /> Department financial assistance to the Project. Termination of any part of the Grant will not <br /> invalidate obligations properly incurred by the Grantee and concurred in by the Department prior to <br /> the date of termination, to the extent they are non-cancelable. Neither the acceptance of a <br /> remittance by the Department of any or all Project Funds from the Grantee or the closing out of State <br /> financial participation in the Project shall not constitute a waiver of any claim which the State may <br /> otherwise have arising out of this Agreement. <br /> Upon the occurrence of any condition or conditions listed in this ITEM for termination or suspension, <br /> the Parties agree that the Department may elect, by written notice to the Department, to withhold or <br /> delay payment as provided in the Approved Project Budget, or any portion thereof; or, if payment or <br /> payments have already been made pursuant hereto, to recall such payment or payments or any <br /> portion thereof. The Grantee agrees that upon receipt of such notice of recall the Grantee shall <br /> immediately return such Grant payment or payments, or any portion thereof, which the Grantee has <br /> received pursuant hereto. <br /> The foregoing remedies shall become available to the Department if the Grantee violates the terms <br /> of this Agreement and/or if one or more of the following occurs: <br /> a. There is any misrepresentation of a material nature in the Grantee's Application, or <br /> amendment thereof, or otherwise in respect to this Agreement, or in any document or data <br /> furnished pursuant hereto, or in any other submission of the Grantee required by the Department <br /> in connection with the Grant; <br /> b. There is pending litigation which, in the opinion of the Secretary of the Department, may <br /> jeopardize the Grant or the carrying out of this Agreement; <br /> State Capital Grant <br /> Page 15 <br />