Common use of Audit and Access to Premises and Records Clause in Contracts

Audit and Access to Premises and Records. The Contractor shall allow duly authorized and identified agents or representatives of the state and federal government access to the Contractor’s premises during normal business hours for the specific purpose of inspecting, auditing, monitoring, or otherwise evaluating the performance of the Contractor pursuant to the Contract. The Contractor agrees to produce records relevant to the performance of the Contract that may be requested as part of an audit or inspection during the term of the Contract and during the seven (7)-year period thereafter. Records involving matters that are the subject of litigation shall be retained for a period of not less than seven (7) years following the termination of litigation, if the litigation is not terminated within the normal retention period. In the event access to the Contractor’s premises or records is requested under this Subsection, the Contractor agrees to make staff available to assist in the audit or inspection effort and to provide adequate space on the premises to reasonably accommodate the state or federal representatives conducting the audit or inspection. The Contractor shall provide support for audit reviews conducted by the State Auditor’s Office, the Office of Inspector General, the Attorney General’s Office or other similar Department in responding to questions and findings, as requested and at no cost to the Department. The Contractor shall ensure the cooperation of any subcontractor with the requirements of this Subsection. If the Contractor is performing services that involve accounting functions such as paying claims, issuing checks, or computing reimbursements, at the Contractor’s expense, a biennial examination that conforms to American Institute of Certified Public Accounting’s (AICPA) Statements of Auditing Standards (SAS) 70—Processing of Transactions by Service Organizations—is required. The Department reserves the right to designate the organization that conducts the examination and the period to be covered by the examination. A copy of the report shall be provided to the Department and submitted in writing thirty (30) days after the examination is completed.

Audit and Access to Premises and Records. The Contractor shall allow duly authorized and identified agents or representatives of the state and federal government access to the Contractor’s premises during normal business hours for the specific purpose of inspecting, auditing, monitoring, or otherwise evaluating the performance of the Contractor pursuant to the Contract. The Contractor agrees to produce records relevant to the performance of the Contract that may be requested as part of an audit or inspection during the term of the Contract and during the seven (7)-year period thereafter. Records involving matters that are the subject of litigation shall be retained for a period of not less than seven (7) years following the termination of litigation, if the litigation is not terminated within the normal retention period. In the event access to the Contractor’s premises or records is requested under this Subsection, the Contractor agrees to make staff available to assist in the audit or inspection effort and to provide adequate space on the premises to reasonably accommodate the state or federal representatives conducting the audit or inspection. The Contractor shall provide support for audit reviews conducted by the State Auditor’s Office, the Office of Inspector General, the Attorney General’s Office or other similar Department in responding to questions and findings, as requested and at no cost to the Department. The Contractor shall ensure the cooperation of any subcontractor with the requirements of this Subsection. If the Contractor is performing services that involve accounting functions such as paying claims, issuing checks, or computing reimbursements, at the Contractor’s expense, a biennial examination that conforms to American Institute of Certified Public Accounting’s (AICPA) Statements of Auditing Standards (SAS) 70—Processing of Transactions by Service Organizations—is required. The Department reserves the right to designate the organization that conducts the examination and the period to be covered by the examination. A copy of the report shall be provided to the Department and submitted in writing thirty (30) days after the examination is completed.