(a) The Intermediary must monitor the Project to ensure that:
- (1) Funds are used only for the approved purposes as specified in the legal documents;
- (2) Disbursements and expenditures of funds are properly supported with certifications, invoices, contracts, bills of sale, or other forms of evidence, which are maintained on the premises of the Intermediary;
- (3) Project time schedules are being met, projected work by time periods is being accomplished, and other performance objectives are being achieved; and
- (4) The Project is in compliance with all applicable regulations.
- (b) Rural Development may inspect and copy records and documents that pertain to the Project. The Intermediary must retain these records for the term of the Project loan plus 2 years. In addition, Rural Development may also perform Project site visits and reviews of the use of loan or Grant proceeds.
- (c) Rural Development will review and monitor Grants in accordance with 2 CFR part 200, as adopted by USDA in 2 CFR parts 400, 415, 417, 418, and 421 as applicable.
[72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014]