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6 4 4 <br />\J <br />with the requirements of Federal or State <br />awards. <br />(15) "Special Appropriation" means a legislative <br />act authorizing the expenditure ofa designated <br />amount of public funds for a specific purpose. <br />(16) "State Funds" means any funds appropriated <br />by the North Carolina General Assembly or <br />collected by the State of North Carolina. State <br />funds include federal financial assistance <br />received by the State and transferred or <br />disbursed to non-State entities. Both Federal <br />and State funds maintain their identity as they <br />are subgranted to other organizations. <br />Pursuant to N.C.G.S. 143C-6-23(a)(1), the <br />terms "State grant funds" and "State grants" do <br />not include any payment made by the <br />Medicaid program, the Teachers' and State <br />Employees' Comprehensive Major Medical <br />Plan, or other similar medical programs. <br />(17) " Subgrantee" has the meaning in G.S. 143C-6- <br />23(a)(3): a non-State entity that receives a <br />grant of State funds from a grantee or from <br />another subgrantee but does not include any <br />non-State entity subject to the audit and other <br />reporting requirements of the Local <br />Government Commission. <br />(18) "Unit of Local Government has the meaning <br />in G.S. 143C-1-1(d)(29): A municipal <br />corporation that has the power to levy taxes, <br />including a consolidated city-county as <br />defined by G.S. 16013-2(1), and all boards, <br />agencies, commissions, authorities, and <br />institutions thereof that are not municipal <br />corporations. <br />Relationships of the Parties <br />Independent Contractor: The Grantee is and shall be <br />deemed to be an independent contractor in the <br />performance of this Contract and as such shall be wholly <br />responsible for the work to be performed and for the <br />supervision of its employees. The Grantee represents <br />that it has, or shall secure at its own expense, all <br />personnel required in performing the services under this <br />agreement. Such employees shall not be employees of, <br />or have any individual contractual relationship with, the <br />Agency. <br />Subcontracting: The Grantee shall not subcontract any <br />of the work contemplated under this Contract without <br />prior written approval from the Agency. Any approved <br />subcontract shall be subject to all conditions of this <br />•Contract. Only the subcontractors or subgrantees <br />pecified in the contract documents are to be considered <br />approved upon award of the contract. The Agency shall <br />not be obligated to pay for any work performed by any <br />unapproved subcontractor or subgrantee. The Grantee <br />shal4 be responsible for the performance of all of its <br />subgrantees and shall not be relieved of any of the duties <br />and responsibilities of this Contract. <br />Subgrantees: The Grantee has the responsibility to <br />ensure that all subgrantees, if any, provide all <br />information necessary to permit the Grantee to comply <br />with the standards set forth in this Contract. <br />Assignment: No assignment of the Grantee's <br />obligations or the Grantee's right to receive payment <br />hereunder shall be permitted. However, upon written <br />request approved by the issuing purchasing authority, the <br />State may: <br />(a) Forward the Grantee's payment check(s) directly <br />to any person or entity designated by the <br />Grantee, or <br />(b) Include any person or entity designated by <br />Grantee as a joint payee on the Grantee's <br />payment check(s)- <br />In no event shall such approval and action obligate the <br />State to anyone other than the Grantee and the Grantee <br />shall remain responsible for fulfillment of all contract <br />obligations. <br />Beneficiaries: Except as herein specifically provided <br />otherwise, this Contract shall inure to the benefit of and <br />be binding upon the parties hereto and their respective <br />successors. It is expressly understood and agreed that the <br />enforcement of the terns and conditions of this Contract, <br />and all rights of action relating to such enforcement, <br />shall be strictly reserved to the Agency and the named <br />Grantee. Nothing contained in this document shall give <br />or allow any claim or right of action whatsoever by any <br />other third person. It is the express intention of the <br />Agency and Grantee that any such person or entity, other <br />than the Agency or the Grantee, receiving services or <br />benefits under this Contract shall be deemed an <br />incidental beneficiary only. <br />Indemnity and Insurance <br />Indemnification: The Grantee agrees to indemnify and <br />hold harmless the Agency, the State of North Carolina, <br />and any of their officers, agents and employees, from <br />any claims of third parties arising out of any act or <br />omission of the Grantee in connection with the <br />performance of this Contract. <br />Insurance: During the term of the contract, the Grantee <br />at its sole cost and expense shall provide commercial <br />insurance of such type and with such terms and limits as <br />may be reasonably associated with the contract. As a <br />minimum, the Grantee shall provide and maintain the <br />following coverage and limits: <br />Page 4 of 12 <br />