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SCHEDULE FOR ADVANCEMENT OF FUNDS <br />7. Prior to initiation of said services, the Cooperating <br />Partners shall advance to Reclamation funds in aggregate the <br />amount of $91,000, as provided in Subsection 4 b. Upon receipt <br />of these funds, Reclamation shall, prior to initiating work, <br />supplement such funds by $90,000 and make the combined funds <br />available for expenditure for development of the Program Plan. <br />ACCOUNTING OF FUNDS <br />8. a. A separate account shall be maintained by Reclamation for <br />all work items financed with funds received from the Cooperating <br />Partners. These accounts and records shall be available for <br />inspection, audit, and reproduction by the Basin States without <br />charge during normal business hours. <br />b. Reclamation shall submit monthly to the Cooperating <br />Partners and Steering Committee members an itemized statement of <br />services rendered during the previous month. The statement shall <br />include an itemized record of staff hours spent and corresponding <br />fees for performing the tasks as found in Attachment B. <br />CHANGES AND DISPUTES <br />9. a. Should the Steering Committee fail to resolve a dispute, <br />representatives from the Basin States and the Parties shall <br />attempt to resolve the situation in good faith. <br />b. Changes to this MOU shall be in writing and executed by <br />all Basin States and Reclamation. <br />LIABILITY <br />10. a. Reclamation shall perform its obligations under this MOU <br />in the capacity of a federal agency. It is neither a co- <br />venturer, agent, employee, nor representative of the Basin States <br />or Cooperating Partners. The Basin States assume no liability <br />for claims or actions arising solely out of the performance of <br />such work by Reclamation's employees or agents. <br />b. Liability of the United States resulting from the <br />negligence of its employees shall be governed by the Federal Tort <br />Claims Act (28 U.S.C. 2671, et se q.). The Basin States recognize <br />that the Federal Tort Claims Act operates to provide liability <br />coverage for the United States Government and its employees in <br />lieu of ordinary insurance coverage. <br />15 <br />