CFR > Title 7 - Agriculture > SUBTITLE B—Regulations of the Department of Agriculture > CHAPTER XLII—RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE (parts 4274 to 4290) > PART 4280—LOANS AND GRANTS > SUBPART A—Rural Economic Development Loan and Grant Programs (§4280.1 to §4280.100) > 4280.55—Monitoring responsibilities.

4280.55—Monitoring responsibilities.

(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 7 CFR parts 3015, 3017, 3018, 3019, 3021, and 3052.