Common use of ALLOWABLE COSTS AND AUDIT REQUIREMENTS Clause in Contracts

ALLOWABLE COSTS AND AUDIT REQUIREMENTS. 11 4.1 Allowable Costs 11 4.2 Audits and Financial Statements 11 4.3 Submission of Audits and Financial Statements 12 ARTICLE V. WARRANTY, AFFIRMATIONS, ASSURANCES AND CERTIFICATIONS 12 5.1 Warranty 12 5.2 General Affirmations 13 5.3 Federal Assurances 13 5.4 Federal Certifications 13 5.5 State Assurances 13 ARTICLE VI. INTELLECTUAL PROPERTY 13 6.1 Ownership of Work Product 13 6.2 Grantee’s Pre-Existing Works 14 6.4 Agreements with Employees and Subcontractors 14 6.5 Delivery upon Termination or Expiration 14 6.6 Survival 15 6.7 System Agency Data 15 ARTICLE VII. PROPERTY 15 7.1 Use of State Property 15 7.2 Damage to State Property 16 7.3 Property Rights upon Termination or Expiration of Contract 16 7.4 Equipment and Property 16 ARTICLE VIII. RECORD RETENTION, AUDIT, AND CONFIDENTIALITY 17 8.1 Record Maintenance and Retention 17 8.2 Agency’s Right to Audit 17 8.3 Response/Compliance with Audit or Inspection Findings 18 8.4 State Auditor’s Right to Audit 18 8.5 Confidentiality 18 ARTICLE IX. GRANT REMEDIES, TERMINATION AND PROHIBITED ACTIVITIES 18 9.2 Termination for Convenience 19 9.3 Termination for Cause 19 9.4 Grantee Responsibility for System Agency’s Termination Costs 20 9.5 Inherently Religious Activities 20 9.6 Political Activities 20 ARTICLE X. INDEMNITY 21 10.1 General Indemnity 21 10.2 Intellectual Property 21 10.3 Additional Indemnity Provisions 21 ARTICLE XI. GENERAL PROVISIONS 22 11.2 No Quantity Guarantees 22 11.3 Child Abuse Reporting Requirements 22 11.4 Certification of Meeting or Exceeding Tobacco-Free Workplace Policy Minimum Standards 22 11.5 Insurance and Bonds 23 11.6 Limitation on Authority 23 11.7 Change in Laws and Compliance with Laws 24 11.8 Subcontractors 24 11.9 Permitting and Licensure 24 11.10 Independent Contractor 24 11.11 Governing Law and Venue 25 11.13 Survivability 25 11.14 Force Majeure 25 11.15 No Implied Waiver of Provisions 25 11.16 Funding Disclaimers and Labeling 25 11.17 Media Releases 26 11.18 Prohibition on Non-Compete Restrictions 26 11.19 Sovereign Immunity 26 11.20 Entire Contract and Modification 27 11.21 Counterparts 27 11.22 Proper Authority 27 11.23 E-Verify Program 27 11.24 Civil Rights 27 11.25 Enterprise Information Management Standards 28 11.26 Disclosure of Litigation 28 11.27 No Third Party Beneficiaries 29 11.28 Binding Effect 29

ALLOWABLE COSTS AND AUDIT REQUIREMENTS. 11 4.1 Allowable Costs 11 4.2 Audits and Financial Statements 11 4.3 Submission of Audits and Financial Statements 12 ARTICLE V. WARRANTY, AFFIRMATIONS, ASSURANCES AND CERTIFICATIONS 12 5.1 Warranty 12 5.2 General Affirmations 13 5.3 Federal Assurances 13 5.4 Federal Certifications 13 5.5 State Assurances 13 ARTICLE VI. INTELLECTUAL PROPERTY 13 6.1 Ownership of Work Product 13 6.2 Grantee’s Pre-Existing Works 14 6.4 Agreements with Employees and Subcontractors 14 6.5 Delivery upon Termination or Expiration 14 6.6 Survival 15 6.7 System Agency Data 15 ARTICLE VII. PROPERTY 15 15 7.1 Use of State Property USE OF STATE PROPERTY 15 7.2 Damage to State Property 16 DAMAGE TO STATE PROPERTY 16 7.3 Property Rights upon Termination or Expiration of Contract PROPERTY RIGHTS UPON TERMINATION OR EXPIRATION OF CONTRACT 16 7.4 Equipment and Property EQUIPMENT AND PROPERTY 16 ARTICLE VIII. 8.1 RECORD RETENTION, AUDIT, MAINTENANCE AND CONFIDENTIALITY 17 8.1 Record Maintenance and Retention RETENTION 17 8.2 Agency’s Right to Audit AGENCY’S RIGHT TO AUDIT 17 8.3 ResponseRESPONSE/Compliance with Audit or Inspection Findings COMPLIANCE WITH AUDIT OR INSPECTION FINDINGS 18 8.4 State Auditor’s Right to Audit STATE AUDITOR’S RIGHT TO AUDIT 18 8.5 Confidentiality CONFIDENTIALITY 18 ARTICLE IX. GRANT REMEDIES, TERMINATION AND PROHIBITED ACTIVITIES 9.1 REMEDIES 18 9.2 Termination for Convenience TERMINATION FOR CONVENIENCE 19 9.3 Termination for Cause 19 TERMINATION FOR CAUSE 19 9.4 Grantee Responsibility for System Agency’s Termination Costs GRANTEE RESPONSIBILITY FOR SYSTEM AGENCY’S TERMINATION COSTS 20 9.5 Inherently Religious Activities INHERENTLY RELIGIOUS ACTIVITIES 20 9.6 Political Activities POLITICAL ACTIVITIES 20 ARTICLE X. 10.1 GENERAL INDEMNITY 21 10.1 General Indemnity 21 10.2 Intellectual Property INTELLECTUAL PROPERTY 21 10.3 Additional Indemnity Provisions ADDITIONAL INDEMNITY PROVISIONS 21 ARTICLE XI. GENERAL PROVISIONS 11.1 AMENDMENTS 22 11.2 No Quantity Guarantees NO QUANTITY GUARANTEES 22 11.3 Child Abuse Reporting Requirements CHILD ABUSE REPORTING REQUIREMENTS 22 11.4 Certification of Meeting or Exceeding TobaccoCERTIFICATION OF MEETING OR EXCEEDING TOBACCO-Free Workplace Policy Minimum Standards FREE WORKPLACE POLICY MINIMUM STANDARDS 22 11.5 Insurance and Bonds INSURANCE AND BONDS 23 11.6 Limitation on Authority LIMITATION ON AUTHORITY 23 11.7 Change in Laws and Compliance with Laws CHANGE IN LAWS AND COMPLIANCE WITH LAWS 24 11.8 Subcontractors SUBCONTRACTORS 24 11.9 Permitting and Licensure PERMITTING AND LICENSURE 24 11.10 Independent Contractor INDEPENDENT CONTRACTOR 24 11.11 Governing Law and Venue GOVERNING LAW AND VENUE 25 11.12 SEVERABILITY 25 11.13 Survivability SURVIVABILITY 25 11.14 Force Majeure FORCE MAJEURE 25 11.15 No Implied Waiver of Provisions NO IMPLIED WAIVER OF PROVISIONS 25 11.16 Funding Disclaimers and Labeling FUNDING DISCLAIMERS AND LABELING 25 11.17 Media Releases MEDIA RELEASES 26 11.18 Prohibition on NonPROHIBITION ON NON-Compete Restrictions COMPETE RESTRICTIONS 26 11.19 Sovereign Immunity SOVEREIGN IMMUNITY 26 11.20 Entire Contract and Modification ENTIRE CONTRACT AND MODIFICATION 27 11.21 Counterparts COUNTERPARTS 27 11.22 Proper Authority PROPER AUTHORITY 27 11.23 E-Verify Program VERIFY PROGRAM 27 11.24 Civil Rights CIVIL RIGHTS 27 11.25 Enterprise Information Management Standards ENTERPRISE INFORMATION MANAGEMENT STANDARDS 28 11.26 Disclosure of Litigation DISCLOSURE OF LITIGATION 28 11.27 No Third Party Beneficiaries NO THIRD PARTY BENEFICIARIES 29 11.28 Binding Effect BINDING EFFECT 29

ALLOWABLE COSTS AND AUDIT REQUIREMENTS. 11 4.1 Allowable Costs 11 4.2 Audits and Financial Statements 11 4.3 Submission of Audits and Financial Statements 12 ARTICLE V. WARRANTY, AFFIRMATIONS, ASSURANCES AND CERTIFICATIONS 12 5.1 Warranty WARRANTY 12 5.2 General Affirmations 13 5.3 Federal Assurances 13 5.4 Federal Certifications 13 5.5 State Assurances 13 ARTICLE VI. INTELLECTUAL PROPERTY 13 6.1 Ownership of Work Product 13 6.2 Grantee’s Grantee s Pre-Existing Works 14 6.3 THIRD PARTY IP 14 6.4 Agreements with Employees and Subcontractors 14 6.5 Delivery upon Termination or Expiration 14 15 6.6 Survival SURVIVAL 15 6.7 System Agency Data 15 ARTICLE VII. PROPERTY 15 15 7.1 Use of State Property 15 7.2 Damage to State Property 16 7.3 Property Rights upon Termination or Expiration of Contract 16 7.4 Equipment and Property 16 ARTICLE VIII. RECORD RETENTION, AUDIT, AND CONFIDENTIALITY 17 8.1 Record Maintenance and Retention 17 8.2 Agency’s Agency s Right to Audit 17 8.3 Response/Compliance with Audit or Inspection Findings 18 8.4 State Auditor’s Auditor s Right to Audit 18 8.5 Confidentiality 18 ARTICLE IX. GRANT XXXXX REMEDIES, TERMINATION AND PROHIBITED ACTIVITIES 18 19 9.1 REMEDIES 19 9.2 Termination for Convenience 19 9.3 Termination for Cause 19 9.4 Grantee Responsibility for System Agency’s Agency s Termination Costs 20 9.5 Inherently Religious Activities 20 9.6 Political Activities 20 ARTICLE X. INDEMNITY 21 10.1 General Indemnity 21 10.2 Intellectual Property 21 10.3 Additional Indemnity Provisions 21 22 ARTICLE XI. GENERAL PROVISIONS 22 11.1 Amendments 22 11.2 No Quantity Guarantees 22 11.3 Child Abuse Reporting Requirements 22 11.4 Certification of Meeting or Exceeding Tobacco-Free Workplace Policy Minimum Standards 22 23 11.5 Insurance and Bonds 23 11.6 Limitation on Authority 23 11.7 Change in Laws and Compliance with Laws 24 11.8 Subcontractors 24 11.9 Permitting and Licensure 24 11.10 Independent Contractor 24 11.11 Governing Law and Venue 25 11.12 Severability 25 11.13 Survivability 25 11.14 Force Majeure 25 11.15 No Implied Waiver of Provisions 25 26 11.16 Funding Disclaimers and Labeling 25 26 11.17 Media Releases 26 11.18 Prohibition on Non-Compete Restrictions 26 11.19 Sovereign Immunity 26 11.20 Entire Contract and Modification 27 11.21 Counterparts 27 11.22 Proper Authority 27 11.23 E-Verify Program 27 11.24 Civil Rights 27 11.25 Enterprise Information Management Standards 28 11.26 Disclosure of Litigation 28 11.27 No Third Party Beneficiaries 29 11.28 Binding Effect 29