Common use of Accounting and Financial Reporting Requirements Clause in Contracts

Accounting and Financial Reporting Requirements. The MCO’s accounting records and supporting information related to all aspects of the Contract must be accumulated in accordance with Federal Acquisition Regulations (“FAR”), Generally Accepted Accounting Principles (GAAP), Attachment A, "Uniform Managed Care Contract Terms and Conditions," and the cost principles contained in the Cost Principles Document in Uniform Managed Care Manual Chapter 6.1. HHSC will not recognize or pay services that cannot be properly substantiated by the MCO and verified by HHSC. The MCO must: 1. maintain accounting records for each applicable MCO Program separate and apart from other corporate accounting records; 2. maintain records for all claims payments, refunds and adjustment payments to providers, Capitation Payments, interest income and payments for administrative services or functions and must maintain separate records for medical and administrative fees, charges, and payments; 3. ensure and provide access to HHSC and/or its auditors or agents to the detailed records and supporting documentation for all costs incurred by the MCO. The MCO must ensure such access to its Subcontractors, including Affiliates, for any costs billed to or passed to the MCO with respect to an MCO Program; 4. maintain an accounting system that provides an audit trail containing sufficient financial documentation to allow for the reconciliation of xxxxxxxx, reports, and financial statements with all general ledger accounts; and The MCO agrees to pay for all reasonable costs incurred by HHSC to perform an examination, review or audit of the MCO’s books relating to this Contract.

Accounting and Financial Reporting Requirements. The MCO’s accounting records and supporting information related to all aspects of the Contract must be accumulated in accordance with Federal Acquisition Regulations (“FAR”), Generally Accepted Accounting Principles (GAAP), Attachment A, "Uniform Managed Care Contract Terms and Conditions," and the cost principles contained in the Cost Principles Document in Uniform Managed Care Manual Chapter 6.1. HHSC will not recognize or pay services that cannot be properly substantiated by the MCO and verified by HHSC. The MCO must: 1. maintain accounting records for each applicable MCO Program separate and apart from other corporate accounting records; 2. maintain records for all claims payments, refunds and adjustment payments to providers, Capitation Payments, interest income and payments for administrative services or functions and must maintain separate records for medical and administrative fees, charges, and payments; 3. ensure and provide access to HHSC and/or its auditors or agents to the detailed records and supporting documentation for all costs incurred by the MCO. The MCO must ensure such access to its Subcontractors, including Affiliates, for any costs billed to or passed to the MCO with respect to an MCO Program; 4. maintain an accounting system that provides an audit trail containing sufficient financial documentation to allow for the reconciliation of xxxxxxxx, reports, and financial statements with all general ledger accounts; and 5. within 60 days after Contract execution, submit an accounting policy manual that includes all proposed policies and procedures the MCO will follow during the duration of the Contract. Substantive modifications to the accounting policy manual must be approved by HHSC. The MCO agrees to pay for all reasonable costs incurred by HHSC to perform an examination, review or audit of the MCO’s books relating to this Contract.