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VI. <br /> <br />INDEPENDENT ENTITY <br /> The GKANTEE shall perform as an independent entiW under this agreement. The <br /> GKANTEE, its employees, agents or representatives are not employees of DJS. No part <br /> of this agreement shall be construed to represent the creation of aa employer/employee <br /> relationship. <br /> <br />VI1. AUDIT RESPONSIBILITY <br /> The GRANTEE agrees to keep such financial records as are required for sub-grants of <br /> OJJDP Formula Grant awards, as detailed in the Office of Justice Programs, Financial <br /> Guide and associated Federal Circulars. These records shall be made available to DJS, or <br /> its agents, upon request at any time during normal business hours. The GILadNTEE <br /> agrees to include these funds in the annual audit of its organization, and furlher agrees to <br /> allow DJS, or its agents, to conduct an audit at the expense of DJS, or its agents. <br /> <br />VIII. RETENTION/PRIVACY OF RECORDS <br /> The GKANTEE agrees to retain the financial records identified in paragraph VII above, <br /> for a period of three years or until an audit is completed and closed, whichever occurs <br /> later. The GRANTEE further agrees to assure the privacy of client records in <br /> conformance w/th all applicable State and federal laws and regulations. <br /> <br />IX. TERMINATION OF AGREEMENT <br /> If through good cause, the GRANTEE shall fail to fulfill in a timely and proper manner <br /> its obligations under this agreement, DJS shall thereupon have the right to terminate this <br /> agreement by giving written notice 30 days prior to termination to the GRANTEE of such <br /> termination. Notwithstanding a termination pursuant to this paragraph, the GRANTEE <br /> shall not be relieved of liability to DJS, and DJS may withhold any payment otherwise <br /> due to the GRANTEE. <br /> <br />X. INTERACTING AND MODIFICATION <br /> This agreement constitutes the entire agreement between the GRANTEE and DJS. No <br /> alteration or amendment shall be effective unless it is reduced to writing, signed by the <br /> parties and attached hereto. <br /> <br />XI. APPLICABLE LAW <br /> This agreement shall be governed by and construed in accordance with the laws of the <br /> state of North Dakota. <br /> <br />XII. CAPTIONS <br /> The captions or headings in this agreement are for convenience only and in no way <br /> define, limit or describe the scope or intent of any provisions of this agreement. <br /> <br />2 <br /> <br /> <br />