Payments of funds are governed by the following:

(1) Incurred costs must be in conformity with all applicable federal and state laws, rules, regulations, and procedures.

(2) Agencies will submit requests for payment on forms prescribed by the board. Requests for payment will be submitted as the project progresses.

(3) The director may require a payment to be divided into installments if one of the following criteria is met:

(a) The agency has not billed for six months or longer;

(b) The agency has billed for an amount over the director determined level; or

(c) Cash balance of the account is below fifty percent of the minimum operating reserve.

(4) Costs incurred prior to phase approval are not eligible for reimbursement.