261—404.6(15) Administration.
	404.6(1) Notice of approval and agreement execution. The authority will notify successful applicants in writing of an approved request for funding. After notifying the recipient of an award, the authority will prepare an agreement that reflects the terms of the award. The recipient must execute and return the agreement to the authority within 60 days of the transmittal of the final agreement from the authority. Failure to do so may be cause for the board to terminate the award.
	404.6(2) Disbursement of funds. Recipients shall submit requests for grant funds in the manner prescribed by the authority. Disbursements shall be made on a reimbursement basis. No advance disbursements shall be allowed. Disbursements may be withheld if applicable performance reports have not been received and approved. Individual requests for funds shall be made in an amount equal to or greater than $1,000 per request, except for the final draw of funds.
	404.6(3) Recordkeeping and retention. Recipients shall retain all financial records, supporting documents and all other records pertinent to the grant for five years after agreement closeout.
	404.6(4) Performance reports and reviews. Recipients shall submit performance reports to the authority as described in the agreement executed pursuant to subrule 404.6(1). The authority may perform project reviews and site inspections as necessary to ensure program compliance.
	404.6(5) Agreement amendments.
	a. 	Any substantive change to a funded IEC project, including time extensions, budget revisions, and alterations to proposed activities, will be considered an agreement amendment. The recipient shall request an amendment in writing. No amendment shall be valid until approved by the board, except as provided in paragraph 404.6(7)“b” and confirmed in writing by the authority.
	b. 	Staff approvals.
	(1)	Staff may approve one no-cost extension provided that the extension complies with subrule 404.3(5). Additional no-cost extensions shall be presented to the board for approval.
	(2)	Budget modifications. Any substantial modification of a project budget shall require board approval. Staff may approve budget modifications that are not substantial. For purposes of this subparagraph, “substantial modification” means a budget modification of either $10,000 or 10 percent of the total grant award, whichever is less.
	404.6(6) Agreement closeout. Upon agreement expiration or project completion, the authority will initiate project closeout procedures.
	404.6(7) Compliance with state and local laws and rules. Recipients shall comply with these rules, with any applicable provisions of the Iowa Code, and with any applicable local rules.
	404.6(8) Noncompliance. At any time during a project, the IEC may, for cause, find that a recipient is not in compliance with the requirements of this program. At the board’s discretion, remedies may include penalties up to and including the return of grant funds to the IEC. Findings of noncompliance may include the use of Iowa energy center funds for activities not described in the application; failure to complete approved activities in a timely manner; failure to comply with any applicable state or federal rules, regulations, or laws; or the lack of a continuing capacity of the recipient to carry out the approved project in a timely manner.
[ARC 8072C, IAB 6/26/24, effective 7/31/24]