Common use of Audit and Inspection Rights of Government Clause in Contracts

Audit and Inspection Rights of Government. (a) Without prejudice to statutory rights, TPDC shall have the right to cause to audit the Contractor’s accounts and records maintained hereunder with respect to each Calendar year within two (2), years (or such longer period as may be required in exceptional circumstances) from the end of each such year. Notice of any exception to the accounts for any Calendar Year shall be submitted to the Contractor within ninety (90) days of receipt by TPDC of the report of its auditors. For purposes of auditing, TPDC may examine and verify, at reasonable times, all charges and credits relating to the Contractor’s activities under the Agreement and all books of account, accounting entries, material records and inventories, vouchers, payrolls, invoices and any other documents, correspondence and records necessary to audit and verify the charges and credits. Furthermore, the auditors shall have the right in connection with such audit to visit and inspect at reasonable times all sites, plants, facilities, warehouses and offices of the Contractor directly or indirectly serving its activities under the Agreement and to visit and inquire from personnel associated with those activities. Where TPDC requires verification of charges made by an Affiliated Company it shall have the right to obtain an audit certificate from a recognised firm of public accountants acceptable to both TPDC and the Contractor. (b) The Contractor shall answer any notice of exception under subsection 1.6 (a) within sixty (60) days of its receipt of such notice. Where the Contractor has after the said sixty days’ period failed to answer a notice of exception made by TPDC, TPDC’s exception shall be deemed as accepted by the Contractor and the accounts shall be adjusted accordingly.