Annual Requirements. For a period of 30 years following the completion of conversion, acquisition, renovation, capital equipping, or construction of an adult day care center involving the State grant funds in this chapter, a grantee shall file a written statement annually with the Department, containing the following material: The number of personnel employed at the facility, by occupation, and all remunerations, retainers, perquisites, and expenses currently paid; Fees or retainers paid directly or under contract to consultants and other persons rendering services at the facility; A current, certified, audited profit-and-loss statement and balance sheet for the facility; Rates and fees charged for services provided at the facility; Gifts or endowments received during the current year; Volume of service at the adult day care center, such as days of service rendered to clients; and Other supplemental information required by the Secretary. For a period of 30 years following the completion of a project that receives poverty funding under Regulation .06F of this chapter, the grantee shall submit annually a quantitative statement of its performance in serving poverty-designated clients, as described in Regulation .06F of this chapter. Insurance Requirements. The grantee shall provide builders' risk insurance during the entire period of project construction or renovation as follows: The policy shall name the State as a loss payee; The policy shall be endorsed to protect the State's interest in the building; The coverage shall be for an amount at least equal to the replacement cost of the facility; and The grantee shall submit evidence of this insurance to the Office of Capital Planning, Budgeting, and Engineering Services. Upon acquisition of a building or part of a building, the grantee shall provide all-risk insurance coverage as follows: The coverage shall be for an amount at least equal to the replacement cost of the facility; The policy shall name the State as a loss payee; The policy shall be endorsed to protect the State's interest in the project; The policy shall be endorsed to notify the Office of Capital Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201 of any: Notification of cancellation of the policy, Material loss covered by the policy, and Material changes in the policy; and The grantee shall: Maintain this insurance for a period of 30 years, and Submit evidence of this insurance annually to the Office of Capital Planning, Budgeting, and Engineering Services and to the State Treasurer’s Office, Insurance Division. Upon completion of a project, the grantee shall maintain, for a period of 30 years, all-risk insurance coverage as follows: The coverage shall be for an amount at least equal to the replacement cost of the facility; The policy shall name the State as a loss payee; The policy shall be endorsed to protect the State's interest in the project; The policy shall be endorsed to notify the Office of Capital Planning, Budgeting, and Engineering Services, 201 West Preston Street, Baltimore, Maryland 21201 of any: Notification of cancellation of the policy, Material loss covered by the policy, and Material changes in the policy; and The grantee shall submit evidence of this insurance annually to the Office of Capital Planning, Budgeting, and Engineering Services and to the State Treasurer’s Office, Insurance Division. During the entire period of work on the project and for a period of 30 years after the project has been completed or acquired, the grantee shall make available business records of the adult day care center for verification by representatives of the Department or its designated agent. Extension of Time for Completion, and Other Changes. The applicant shall promptly notify the Secretary if the applicant is unable to encumber funds: In the manner approved by the Secretary; or Within 2 years of the appropriation by the Maryland legislature. The Secretary may grant a request by the applicant for a change in the manner or time for encumbrance of funds, including an extension of time, for good cause. Expenditures. State funds may not be expended until the grantee is in compliance with §B(1) and (2)(a)—(d) of this regulation, and a notice of the right of recovery is recorded in the land records of the county or Baltimore City in which the property is located. Penalties. If the grantee does not comply with §§A, B(2) and (3), and C of this regulation, the Secretary may: Refuse to consider the grantee for any future funding under the Act; and Require an audit of the grantee.