Common use of Accounting and Cash Management Clause in Contracts

Accounting and Cash Management. a. Contractor will comply with controls, record keeping and fund accounting procedure requirements of WIA, Federal and State regulations and directives to ensure the proper accounting for program funds paid under this agreement. b. Contractor shall maintain fiscal accounts in a manner sufficient to permit tracking of funds received and levels of expenditures. Records and books shall be audible and up to date at all times. c. Income (including interest income) generated as a result of the receipt of funds under this agreement will be utilized in accordance with the policy and procedure established by the County. Contractor will account for any such income generated separately. d. Contractor shall immediately advise County of any improper or fraudulent use of funds under this Agreement, any misinformation supplied to County, or any circumstances giving rise to possible or apparent misuse of funds. e. Contractor may be required to establish a separate bank or trust account for funds received, and shall maintain a separate fund accounting for these funds. f. Contractors that are public or non-profit entities with a fixed unit price agreement shall use revenues in excess of costs, or so called “profits” for the following purposes: 1. Add the “profit” to funds committed to the program and use it to further program objectives; or 2. Deduct the “profit” from the fixed unit price performance billing in determining the net amount on which WIA share of billing will be used; 3. Use the “profit” to satisfy the WIA matching requirements, if applicable. In addition, Contractor shall: 1. Submit the amount of excess revenue or “profit” to San Mateo County WIB within 45 days after the end of the fiscal year; and 2. Maintain the necessary financial records which account for the use of these funds, in anticipation of possible audit. 3. Remit immediately to the San Mateo County WIB any excess revenue which will not be utilized within one year after the end of the fiscal year in which it was earned. g. Costs incurred before and after the effective dates of the Agreement will not be allowed. h. Contractor shall report any additional or unexpected funds received in conjunction with the services provided under the terms of this Agreement to the County upon receipt of such funds or notification of award of such funds.