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! Required information [ The following information applies to the questions displayed below. ] Evergreen County acts as the disbursing agent for a state grant

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[The following information applies to the questions displayed below.]
Evergreen County acts as the disbursing agent for a state grant for the performing arts. The state is
responsible for determining which local governments are eligible for the grant money and for
following up to ensure that the recipients comply with the requirements of the grant. The county
receives the grant funds and disburses them according to the schedule provided by the state. When
the county was asked to participate, the county's attorney was concerned that the county might be
held responsible for any disallowed costs. The state agreed to accept responsibility for any disallowed
costs, so the county decided to act as the custodian for the state for this grant.
The schedule for the grant funds to be awarded in the current fiscal year is shown below:
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