Misuse of Funds

If the grantee changes their activity without first informing R2AC and submitting a Granted Activity Change Form, or uses granted funds to pay for any of the above unallowable expenses, or does not submit a complete final report or does not return funds when requested, they will be investigated for misuse of funds. Misuse of granted funds will result in severe consequences, which may include termination of contract, return of all or a portion of granted funds, and ineligibility to receive State funds from R2AC, the Minnesota State Arts Board, or any other regional arts council for a period of 1-3 years from date of notification. Consequences depend on the amount of funds that have been misused and on whether the reason for the misuse of funds is deemed unintentional.