(1) (a) An administering agency shall disburse grant funds in accordance with this Subsection (1). (b) Before an administering agency disburses a grant's grant funds, the administering agency shall ensure that the grant recipient provides a detailed budget demonstrating how the grant recipient will use the grant funds. (c) An administering agency shall establish a distribution schedule that ensures accountability and responsible oversight of the use of the grant funds. (d) An administering agency may not: (i) disburse all grant funds in a single payment, unless the administering agency makes the single payment after the grant recipient satisfies the grant recipient's performance obligations under the agreement described in Subsection (4); or (ii) make a grant recipient's final disbursement before the grant recipient delivers the report described in Subsection (3). (2) For a multi-year grant: (a) the grant period may not exceed five years; and (b) in the final quarter of each year of the grant period, excluding the final year, the grant recipient shall deliver to the administering agency a report that details the grant recipient's progress towards fulfilling the grant's purpose, including the annual deliverables and performance metrics described in the agreement made in accordance with Subsection (4). (3) An administering agency may not make the final grant funds disbursement until: (a) the grant recipient delivers to the administering agency a final report that details the extent to which the grant recipient fulfilled the grant's purpose, including the deliverables and performance metrics described in the agreement made in accordance with Subsection (4); and (b) the administering agency determines that the grant recipient satisfactorily produced each deliverable provided in the agreement described in Subsection (4). (4) Except as otherwise provided in the grant appropriation and consistent with the other provisions of this section, an administering agency may not disburse grant funds to a grant recipient before the administering agency and the grant recipient execute an agreement that contains: (a) the disbursement schedule for the grant funds; (b) the deliverables, reporting, and performance metrics the grant recipient will produce and use to demonstrate that the grant recipient used the grant funds to fulfill the grant's purpose; (c) if the grant is a multi-year grant, annual deliverables and performance metrics the grant recipient will produce and use to demonstrate sufficient progress towards fulfilling the grant's purpose; (d) a provision informing the grant recipient that disbursement of grant funds is subject to legislative appropriation; and (e) the grant recipient's consent to follow-up audit and clawback of the grant funds if an audit shows that the grant funds were inappropriately used. (5) In accordance with Utah Constitution, Article VI, Section 33, the legislative auditor general may audit the use of any grant funds.
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