SPEND-DOWN PLAN Clause Samples

SPEND-DOWN PLAN. Partner’s “spend-down plan” should describe the nature and timing of planned spending of Program Funds it expects to receive in the Fiscal Year based on the FRT’s forecast. In addition, the description will document existing and contemplated reserves, any program reserves, funds anticipated to be carried over for SHS programming into the following Fiscal Year(s) with the anticipated timeline for spending of those funds, and such other information as the Parties agree to in writing. Partner will report on, and explain any material deviations from, the plan reflected in its Budgeted Program Funds as part of its Quarterly Progress Report. A “material deviation” from a spend- down plan described under this section, or a CAP, arises where the Program Funds spent in a given Fiscal Year cannot be reconciled against the spend-down plan or CAP in the relevant Annual Program Budget to the degree that no reasonable person would conclude that Partner’s spending was guided by or in conformance with the applicable spend-down plan or CAP.