A. The Commission shall disburse grant funds to grantees in accordance with the following formula:
(1) Unless the Commission finds that special circumstances apply and the grant award so specifies, the Commission shall make an initial payment to a grantee of up to 20 percent of the total grant award;
(2) The Commission shall make progress payments to a grantee in accordance with a schedule of milestones:
(a) To which the Commission and the grantee have agreed; and
(b) That provides that, by the time the grant period expires, the total disbursement of grant funds shall equal 100 percent of the amount awarded under this subtitle; and
(3) Unless the Commission finds that special circumstances apply and the grant award so specifies, a single progress payment may not exceed 50 percent of the total funds awarded the grantee under this subtitle.
B. If the grantee fails to achieve any milestone, or fails to abide by the terms of the grant, the Commission may cancel the grant and withhold any or all funds not yet disbursed.
C. The Commission may:
(1) By written agreement entered into with a grantee after the award of a grant under this subtitle, modify any milestone or schedule of milestones;
(2) Conduct audits or otherwise inspect the records, premises, and operations of the grantee to determine whether grant funds are being administered:
(a) In a financially responsible manner;
(b) In accordance with the terms of the grant award; and
(c) In accordance with the requirements of Regulation .04 of this chapter; and
(3) Establish in the grant documents such other terms and conditions relating to grant funds as the Commission considers reasonable and necessary.