The following items are eligible for repayment with ACEDP grant funds:

1. (1) Construction costs.

   1. (A) Grantees may submit invoices for construction activities specified in the grant agreement after the work has been performed.
   2. (B) The project engineer must certify that each construction invoice is accurate as to the work that has been performed;

2. (2) Equipment.

   1. (A) Grantees may submit invoices for equipment after installation of the equipment.
   2. (B) Grantees may also request partial payments for uninstalled equipment as long as the amount requested is for the material cost of the equipment and not for any labor that is to be performed;

3. (3) Design services and engineering fees.

   1. (A) Grantees may submit invoices for design services and engineering fees on a pro rata basis, according to fee payment schedules established in the individual professional services contracts.
   2. (B) Grantees may seek to increase design services and engineering fees only for additional services provided and subject to prior approval by the Arkansas Natural Resources Commission;
4. (4) Acquisition. Grantees may submit invoices for activities related to acquisition (such as appraisals, surveys, legal condemnation costs, abstractor fees, filing/recording fees, and associated postage and publication costs);
5. (5) Permits, fees, and testing. Grantees may submit invoices for the cost of any permit, regulatory fee, or laboratory testing required by the project;
6. (6) Hook-up fees. The commission will determine the eligibility of hook-up fees on a project-by-project basis, according to the scope of work defined in the grant agreement;

7. (7) Contract administration.

   1. (A) Grantees may submit invoices for contract administration services on a pro rata basis, according to fee payment schedules established in the individual contract for administrative services.
   2. (B) Grantees cannot increase contract administration fees;

8. (8) General administration. Grantees may submit invoices for general administration fees for reasonable expenditures directly attributable to grant expenses such as:

   1. (A) Check printing costs;
   2. (B) Advertisement fees;
   3. (C) Costs for files;
   4. (D) Postage;
   5. (E) Printing; and
   6. (F) Other grant-related activities;

9. (9) Audit administration.

   1. (A) Grantees may submit invoices for the pro rata share of audit costs attributable to an audit of ACEDP funds if the commission has approved conducting the audit.
   2. (B) Grantees are not limited by a maximum individual audit cost, but the total amount of audit expenditures cannot exceed the amount specified in the audit line item of the grant agreement;
10. (10) Force account work. Grantees may submit invoices for force account labor, materials, and supply costs only if these items are specified in the grant agreement;
11. (11) Connection fees. Grantees may submit invoices for costs incurred modifying existing utility systems as needed to serve the project after the grantee enters into a signed agreement with the entity charging the connection fee and construction has begun; and

12. (12) Other costs. Grantees may submit invoices for an unbudgeted cost only if the:

    1. (A) Grantee provides written justification for the expense;
    2. (B) Commission agrees that the expense is eligible; and
    3. (C) Commission and the grantee amend the grant agreement.