1. 1. Not later than 30 days after the Interim Finance Committee approves a grantee to receive funding pursuant to NRS 439A.383, the Authority shall enter into a funding agreement with the grantee. Such a funding agreement must outline the terms and conditions of the grant and the responsibilities of the grantee in a manner that ensures that the grantee satisfies the requirements and objectives specified in subsection 3 of NRS 439A.374.

2. 2. A funding agreement entered into pursuant to subsection 1 must:

   1. (a) Provide for the disbursement of the grant in installments that are contingent on the achievement of specific milestones, goals and indicators of performance relating to increases in the number of providers of health care, improved access to health care and improvements to infrastructure;

   2. (b) Require the grantee to submit documentation that the grantee has achieved the milestones, goals and indicators of performance prescribed in the agreement pursuant to paragraph (a) before money may be disbursed, including, without limitation:

      1. (1) Financial reports detailing expenditures of money and allocations of any matching funds;
      2. (2) Operational progress reports that demonstrate measurable achievements in recruiting providers of health care, improving health care infrastructure or expanding the availability of health care or clinical services; and
      3. (3) Any additional information required by the Authority for the purposes specified in this paragraph;
   3. (c) Require the grantee to submit to the Authority an annual report that includes, without limitation, details regarding the financial status of the project, efforts to recruit providers of health care and the impact of the project;
   4. (d) Require the grantee to comply with any request made by the Authority or the Office of Finance as part of a site visit, audit or review conducted pursuant to NRS 439A.392;
   5. (e) Specify the date on which the portion of the project funded by the grant is scheduled to terminate; and
   6. (f) Require the grantee to meet any additional conditions imposed by the Authority to ensure accountability, the achievement of the objectives of the project and the sustainability of the project.

3. 3. A funding agreement entered into pursuant to subsection 1 may require that any matching funds be:

   1. (a) Held in escrow by an independent third party before the disbursement of money from the Account;
   2. (b) Secured through an irrevocable trust, letter of credit or surety bond; or
   3. (c) Verified through financial reporting to confirm the availability and appropriate use of the matching funds.

4. 4. A funding agreement entered into pursuant to subsection 1 may require that the matching funds and in-kind contributions, if required, be subject to an independent verification process that may include, without limitation:

   1. (a) Certification by a certified public accountant or other qualified third party;

   2. (b) Submission of documentation demonstrating the value and availability of matching funds or in-kind contributions, including, without limitation:

      1. (1) Financial statements;
      2. (2) Governance documents;
      3. (3) Appraisals or market valuations of in-kind contributions; and
      4. (4) Documentation of cost basis or fair market value, as appropriate;
   3. (c) Periodic reports concerning the valuation of in-kind contributions that are aligned with the disbursement schedule established pursuant to paragraph (a) of subsection 2; and
   4. (d) Adherence to generally accepted accounting principles for the valuation of in-kind contributions.

(Added to NRS by 2025, 36th Special Session, 171)