Common use of Contractor's accounting records Clause in Contracts

Contractor's accounting records. Contractor shall maintain accurate and complete accounting records containing the underlying financial and operating data relating to, and showing the basis for computation of, all costs associated with providing services under this Agreement. The accounting records shall be prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied. Chief among these accounting records shall be the Contractor’s Annual Financial Statement. This report, prepared at Contractor’s cost by a Certified Public Accountant, shall: a. Clearly identify the methods used to allocate revenue and expense line items among the County franchise and the company’s other divisions. b. Illustrate the methodologies used to allocate revenues and expenses among related parties. c. Report any changes to the methodologies used to allocate revenues and expenses in the allocation percentages from the prior year. d. Track and report the costs associated with each expense item that has contractual limitation and provide an accounting of those expenses against their contractual limitation. e. Provide a rate-of-return calculation with any adjustments against contractual limitations. This rate-of-return calculation will be used in determining Contractor’s compensation for the following year. f. Provide a variance analysis between the current year and prior year revenues and expenses, along with an explanation for any significant variances.

Contractor's accounting records. Contractor shall maintain accurate and complete accounting records containing the underlying financial and operating data relating to, and showing the basis for computation of, all costs associated with providing services under this Agreement. The accounting records shall be prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied. Chief among these accounting records shall be the Contractor’s Annual Financial Statement. This report, prepared at Contractor’s cost by a Certified Public Accountant, shall: a. Clearly identify the methods used to allocate revenue and expense line items among the County franchise and the company’s other divisions. b. Illustrate the methodologies used to allocate revenues and expenses among related partiesRelated Party Entities. c. Report any changes to the methodologies used to allocate revenues and expenses in the allocation percentages from the prior year. d. Track and report the costs associated with each expense item that has contractual limitation and provide an accounting of those expenses against their contractual limitation. e. Provide a rate-of-return calculation with any adjustments against contractual limitations. This rate-of-return calculation will be used in determining Contractor’s compensation Compensation for the following year. f. Provide a variance analysis between the current year and prior year revenues and expenses, along with an explanation for any significant variances.