(a) Contracts.

1. (1)

   1. (A) After award decisions are made, award letters, contracts, final budget forms, and instructions shall be mailed to recipients.
   2. (B) All documents are to be completed, signed, and returned to the Manager by the stated deadline.
   3. (C) Failure to return the completed forms by the deadline may result in a delay of funding or forfeiture of the loan.

2. (2)

   1. (A) Once the terms of the loan are finalized, no substantive changes which affect the scope or completion of the project may be made in the program or budget as described in the original loan application unless the agency submits a written request for a change in advance.
   2. (B) This request is to be submitted to the Manager who shall provide it to the Director of the Building Authority Division for approval or denial.
   3. (C) Nothing shall prohibit the director from requesting additional information from the agency.

3. (3)

   1. (A) Once fully executed, the loan contract is a legal document.
   2. (B)

(b) (b) Work with the loan recipient to make corrections.

1. (ii) However, repeated failure to abide by the terms of the loan contract will result in:

(b) (b) Recall of allocated funds.

1. (4) The forfeiture of a loan under such conditions:

   1. (A) Will be reported to the:

      1. (i) Governor;
      2. (ii) Legislative Task Force on Sustainable Building Design and Practices [abolished]; and
      3. (iii) Legislative Council; and
   2. (B) May result in the Building Authority Division no longer accepting loan applications from the forfeiting agency.

(b) Distribution/redistribution of loan payments.

1. (1)

   1. (A) When a loan award is made, the agency receiving the loan is given a new state appropriation and funding specific to the loan.
   2. (B) The Department of Finance and Administration will establish an appropriation code and a fund code for each loan.
2. (2) Monies are transferred to the agency's new fund account according to the schedule as established by the Manager.
3. (3) Reimbursement of the loan shall be in accordance with the schedule as established by the Manager.

4. (4) All expenditures are subject to the State of Arkansas accounting procedures and purchasing laws and rules and state public works laws, and the accounting and budgetary procedures for capital improvements.

   1. (c) Audit requirement.
5. (1) For accounting purposes, financial records shall reflect all obligations and disbursements of the loan and matching monies.
6. (2) The financial accounts shall be subjected to audit by the agencies of the Department of Finance and Administration, the division, State of Arkansas, and/or the federal government as applicable.
7. (3) The agency shall be responsible for the safekeeping and identification of records maintained to account for funds awarded.

8. (4) Said records must be kept in the agency's file pursuant to the State Record Retention Schedule, 25 CAR pt. 60.

   1. (d) Compliance with state and federal laws. Each loan project will comply with all applicable state and federal laws relating to the nature and purposes of the loan project (i.e., BADMSC, the Davis-Bacon Act, as Amended, 40 U.S.C. § 3141, American Recovery and Reinvestment Act, Pub. L. No. 111–5, Public Works, retention of records, the National Environmental Policy Act, 42 U.S.C. §§ 4321 et seq., and SHPO, 54 U.S.C. § 3023 et seq., etc.).

(e) Reports.

1. (1) Loan recipients are required to submit reports during the year to the Manager.
2. (2) For all loans, a final financial summary of the official state financial report for all expenses, final narrative/activity reports (final report), and photographs of the completed project as applicable are due no later than thirty (30) calendar days after the project's completion, or earlier as stated if ARRA funds are used as directed by the Manager.

3. (3)

   1. (A) Loan recipients shall submit complete monthly progress reports as directed by the Manager.

   2. (B) Reports shall include:

      1. (i) Detailed narratives identifying the accomplishments associated with each project element;
      2. (ii) Financial information for the specified time period with an outline of expenditures related to each project element and appropriate Arkansas Administrative Statewide Information System reports;
      3. (iii) Appropriate photographs or other documentation to give a clear impression of the project's progress through the specified date;
      4. (iv) Difficulties, as well as the ease, the project encountered with sustainable issues shall be discussed;
      5. (v) Copies of articles from newspapers, magazines, or other publications related to the project; and
      6. (vi) Agencies shall submit appropriate reports as outlined in the schedule provided by the Manager.
   3. (C) A deadline extension shall be requested in writing if the agency is unable to submit the reports on time.
   4. (D) Failure to submit reports as agreed shall be reported to the Chief Fiscal Officer of the State.

(f) Project directors’ meeting.

1. (1) After loan awards are made, a mandatory meeting will be held with loan recipient agency directors or their designees.
2. (2) Any agency who does not send appropriate personnel to review the procedures at this meeting shall not receive funds until the agency has made arrangements to meet with the Manager.

(g) Personnel.

1. (1)

   1. (A) Each loan recipient shall specify in writing:

      1. (i) One (1) project contact; and
      2. (ii) One (1) fiscal officer.
   2. (B) It is the responsibility of the loan recipient to keep the Manager informed of any changes in the designated contacts.
   3. (C) The project contact must be employed by the agency.

2. (2)

   1. (A) Loan funds cannot be used to pay for consultants to:

      1. (i) Write loan applications or loan reports; or
      2. (ii) Manage the loaned funds.

   2. (B) The agency applying for a loan shall be responsible for providing personnel to:

      1. (i) Write and manage the loan;
      2. (ii) Focus the project on the scope of the contract;
      3. (iii) Respond to questions;
      4. (iv) Submit reports in a timely manner;
      5. (v) Provide appropriate financial documents and reports; and
      6. (vi) Monitor the work of:

(b) (b) Contractors;

1. (c) (c) Consultants; and

   1. (d) (d) Extra help workers.

(h)

1. (1) The required forms shall be made available to the agencies by the Manager.

2. (2) Forms may include, but are not limited to, the:

   1. (A) Application:
   2. (B) Agreement;
   3. (C) Budget;
   4. (D) Agency progress report or reports; and
   5. (E) Final report.