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6.5 The RCVCET Board, through the Fiscal Agent, may apply for grants, approve contracts, including agreements for the rental of real property, incur expenses and make expenditures necessary and incidental to the effectuation of the purpose for which the RCVCET is organized as described in Section 1 of this Agreement and consistent with the powers of the RCVCET Board. 6.6 The RCVCET Board will develop and approve RCVCET priorities, a RCVCET budget, and RCVCET operational policies and procedures. 6.7 The RCVCET Board shall cooperate with other federal, state, and local law enforcement agencies when appropriate and necessary to accomplish the purpose for which the RCVCET is organized. 6.8 The RCVCET Board, through the Fiscal Agent, shall make the RCVCET books, reports, and records open to inspection by the Agencies at all reasonable times. 6.9 The RCVCET Board has sole authority to incur obligations and approve contracts and take final action on behalf of the RCVCET. 6.10 The RCVCET Board may not incur obligations or approve contracts that extend beyond the Initial Term or any Renewal Term of this Agreement or which will require the expenditure of funds in excess of RCVCET Funds available. 6.11 The RCVCET Board shall make a quarterly statistical report and a financial report to the Parties on all activities conducted by the RCVCET. 6.12 The RCVCET Board shall arrange an audit annually of all of the RCVCET's financial accounts, the cost of which will be paid out of state funds. 7. Insurance and Indemnification 7.1 The RCVCET shall purchase a policy of municipal liability insurance, and may purchase such other insurance as it deems appropriate and necessary, covering the acts and omissions of the RCVCET, its Board of Directors and its employees, and the Parties to this Agreement and their employees, officials, and agents, in an amount not less than the statutory maximum set forth in Minn. Stat. §466.04. The cost of the municipal liability insurance policy shall be paid from the RCVCET Funds. The cost of any other insurance shall be paid in a manner to be determined by the RCVCET Board 7.2 The RCVCET shall defend, indemnify and hold harmless the Parties, their officers, employees, and volunteers, from and against any and all claims, damages, losses, suits, judgments, costs, and expenses, including attorney's fees, arising out of or related to the acts or omissions of any person acting on behalf of the RCVCET Board in carrying out the terms of this Agreement. 7.3 For liability not covered by insurance, the Parties and the RCVCET agree to share the costs of such liability, including the costs of defense, using the formula 186028 v11 RCVCET JPA 2013 Page 4 of 14