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GRANT NUMBER 8GA21442 City of San Leandro Tree Resilient San Leandro 6 items such as the inability to pay for staff, supplies, administration expenses, and to secure contractors for Project work. The following guidelines will be applied to advance payments: • Multiple advance payments may be made to a GRANTEE over the life of a project. • No single advance payment shall exceed 25% of the total grant amount and must be spent on eligible costs within six months of the advance payment request. GRANTEE may request additional time to spend advance funds but must be approved in writing by the STATE. The balance of unspent advance payment funds not liquidated within the six month spending period will be billed for the return of the advanced funds to the STATE. The amount will be returned to the grant balance. • A request for advance payment must include the same level of expenditure detail and justification as a regular invoice. • All work under a previous advance payment must be fully liquidated via an invoice and supporting documentation and completed to the STATE’s satisfaction before another advance payment will be made. • Any advance payment received by a GRANTEE and not used for project eligible costs shall be returned to CAL FIRE. • Advance payments must be deposited into an interest-bearing account. Any interest earned on advance payment funds must be accounted for and reported as program income used toward offsetting the project cost or returned to the STATE. 5. Budget Contingency Clause a. If STATE funding for any fiscal year is reduced or deleted for purposes of the Urban and Community Forestry Grant Program, the STATE shall have the option to either cancel this Agreement with no liability occurring to the STATE, or if possible and desirable, offer an Agreement amendment to GRANTEE to reflect the reduced amount available for the Project. 6. Project Administration a. GRANTEE shall provide the STATE a written report showing total final Project expenditures and matching funds upon Project completion or grant expiration, whichever occurs first. GRANTEE must report to the STATE