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2.Payments: <br />a.Community Partners will issue one payment of $200,000 to Grantee upon receipt of a signed copy of this <br />agreement, but no earlier than August 1, 2023. <br />b.Community Partners will issue the second payment of $200,000 to Grantee upon receipt of a completed <br />milestones checklist, narrative and financial report which Community Partners in its sole discretion <br />determines is satisfactory, but no earlier than October 1, 2024. In the narrative report, Grantee must <br />demonstrate to Community Partners in its sole discretion, that significant progress along the <br />developmental pathway of an ACH through implementation of ACH goals and milestones and the work on <br />one state initiative at the local level has occurred. In the financial report, grantee must demonstrate <br />actuals on pace with the approved budget. If the above requirements are not met, Community Partners <br />will not be obligated to issue the second payment. <br />3.Use of Funds: Grantee shall spend the grant funds only for reasonable and necessary expenses related to <br />fulfilling the purposes described above, and in accordance with the Workplan (Appendix 2) and approved <br />budget (Appendix 3). Any significant changes in the purpose for which funds are spent or in the budget or <br />grant period must be approved in writing by Community Partners before funds are spent. Grantee agrees to <br />return to Community Partners any grant funds and any income earned thereon, not specifically committed <br />and/or actually expended in accordance with this Agreement. Return of such funds shall occur reasonably <br />promptly upon written request of Community Partners. <br />4.Prohibited Activities: Grantee shall not use any of the grant funds (i) to influence the outcome of any specific <br />public election or (ii) to undertake any activity for any purpose other than ones specified in Internal Revenue <br />Code Section 170(c)(2)(B). Grantee must not use funds towards the purchase of equipment, unless written <br />permission is granted by Community Partners. "Equipment" means an article of nonexpendable, tangible <br />property, including furniture, having a useful life of at least one (1) year and a unit cost of five thousand <br />dollars ($5,000) or more. Grantee may not use the grant funds to acquire, operate or maintain software in <br />violation of copyright laws and Grantee certifies it has appropriate systems and controls in place to ensure <br />that funds will not be used for any such purposes. <br />5.Reporting: Grantee shall submit the following reports to Community Partners in the form and fashion <br />provided by Community Partners describing the progress against the workplan and Milestones made in <br />accomplishing the purpose of the grant and how the grant funds have been spent. <br />a.By January 31, 2024, Grantee shall submit a narrative and financial report, covering activities and <br />expenditures from July 1, 2023 through December 31, 2023 (6 months), an interim milestones <br />checklist, and a revised work plan and budget for the following year. <br />b.By January 31, 2025, Grantee shall submit a narrative and financial report, covering activities and <br />expenditures from January 1, 2024 through December 31, 2024 (12 months), an interim milestones <br />checklist, and a revised work plan and budget for the following year. <br />c.By January 31, 2026, Grantee shall submit a final narrative and financial report, covering activities <br />from July 1, 2023 through December 31, 2025, and a final milestones checklist. <br />6.Records, Audits, Site Visits: Grantee agrees to show the grant funds separately on its books; however, <br />Grantee is not required to segregate these funds in separate bank accounts. Grantee shall be responsible for <br />maintaining adequate financial records of this grant program. Community Partners, or a designated <br />representative, reserves the right, upon written notice, to audit Grantee’s books and records relating to the <br />expenditure of any funds provided by Community Partners through this agreement. Grantee will make its <br />books and records relating to the grant available to Community Partners at reasonable times upon request <br />Grantee agrees to maintain and preserve, until three years after termination of the CDPH Agreement and <br />REV: 08-02-2023 RL <br />ATTY/AGR.2023.197/Community Partners (Redwood City-North Fair Oaks ACH) (Page 2 of 34) <br />DocuSign Envelope ID: EAA949E2-B24E-4424-8337-F0C148CD40C8