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725-030-06 <br /> PUBLIC TRANSPORTATION <br /> OGC-12114 <br /> Page6 of 14 <br /> 7.22 Litigation:There is then pending litigation with respect to the performance by the Agency of any of its duties <br /> or obligations which may jeopardize or adversely affect the project,the Agreement, or payments to the project; <br /> 7.23 Approval by Department: The Agency shall have taken any action pertaining to the project which, under <br /> this agreement, requires the approval of the Department or has made related expenditures or incurred related <br /> obligations without having been advised by the Department that same are approved; <br /> 7.24 Conflict of Interests:There has been any violation of the conflict of interest provisions contained herein; <br /> 7.25 Default:The Agency has been determined by the Department to be in default under any of the <br /> provisions of the Agreement; or <br /> 7.26 Federal Participation(If Applicable):Any federal agency providing federal financial assistance to the <br /> project suspends or terminates federal financial assistance to the project. In the event of suspension or termination of <br /> federal financial assistance, the Agency will reimburse the Department for all disallowed costs, including any and all <br /> federal financial assistance as detailed in Exhibit"B." <br /> 7.30 Disallowed Costs: In determining the amount of the payment, the Department will exclude all projects costs <br /> incurred by the Agency prior to the effective date of this Agreement, after the expiration date of this Agreement, costs <br /> which are not provided for in the latest approved scope and budget for the project, and costs attributable to goods or <br /> services received under a contract or other arrangements which have not been approved by the Department <br /> and costs invoiced prior to receipt of annual notification of fund availability. <br /> 7.40 Payment Offset: If, after project completion, any claim is made by the Department resulting from an audit <br /> or for work or services performed pursuant to this agreement,the Department may offset such amount from payments <br /> due for work or services done under any public transportation joint participation agreement which it has with the Agency <br /> owing such amount if, upon demand, payment of the amount is not made within sixty(60)days to the Department. <br /> Offsetting amounts shall not be considered a breach of contract by the Department. <br /> 8.00 Termination or Suspension of Project: <br /> 8.10 Termination or Suspension Generally: If the Agency abandons or, before completion, finally discontinues <br /> the project; or if, by reason of any of the events or conditions set forth in Sections 7.21 to 7.26 inclusive, or for any other <br /> reason, the commencement, prosecution, or timely completion of the project by the Agency is rendered improbable, <br /> infeasible, impossible, or illegal, the Department will, by written notice to the Agency, suspend any or all of its <br /> obligations under this Agreement until such time as the event or condition resulting in such suspension has ceased or <br /> been corrected, or the Department may terminate any or all of its obligations under this Agreement. <br /> 8.11 Action Subsequent to Notice of Termination or Suspension. Upon receipt of any final termination or <br /> suspension notice under this paragraph, the Agency shall proceed promptly to carry out the actions required therein <br /> which may include any or all of the following: (1) necessary action to terminate or suspend, as the case may be, project <br /> activities and contracts and such other action as may be required or desirable to keep to the minimum the costs upon the <br /> basis of which the financing is to be computed; (2)furnish a statement of the project activities and contracts, and other <br /> undertakings the cost of which are otherwise includable as project costs; and(3)remit to the Department such portion of <br /> the financing and any advance payment previously received as is determined by the Department to be due under the <br /> provisions of the Agreement. The termination or suspension shall be carried out in conformity with the latest schedule, <br /> plan, and budget as approved by the Department or upon the basis of terms and conditions imposed by the Department <br /> upon the failure of the Agency to furnish the schedule, plan, and budget within a reasonable time. The approval of a <br /> remittance by the Agency or the closing out of federal financial participation in the project shall not constitute a waiver of <br /> any claim which the Department may otherwise have arising out of this Agreement. <br /> 8.12 The Department reserves the right to unilaterally cancel this Agreement for refusal by the contractor <br /> or Agency to allow public access to all documents, papers, letters, or other material subject to the provisions of Chapter <br /> 119, F.S. and made or received in conjunction with this Agreement. <br /> 9.00 Audit and Inspection: The Agency shall permit, and shall require its contractors to permit, the <br /> Department's authorized representatives to inspect all work, materials, payrolls, records; and to audit the books, records <br /> and accounts pertaining to the financing and development of the project. <br /> Page of 14 52 <br />