Common use of Accounting System Requirements Clause in Contracts

Accounting System Requirements. A. Contractor must maintain an appropriate fund accounting system that accurately accumulates and segregates reasonable, allocable, and allowable costs in compliance with state and federal regulations, and generally accepted accounting principles. The Contractor’s financial management system shall provide: • Accurate, current, and complete disclosure of the financial results of each federally sponsored project. • Records that identify adequately the source and application of funds for federally sponsored activities. • Written procedures for determining the reasonableness, allocable, and allowable costs in accordance with the provisions of the applicable federal cost principles and the terms and conditions of the Agreement. • Accurate fund accounting records that track the revenues received from funders/sources and the expenditures paid to vendors for goods and services, and that are supported by adequate source documentation.