COST REPORT SETTLEMENT Clause Samples
The Cost Report Settlement clause establishes the process for reconciling and finalizing costs incurred under a contract or agreement. Typically, this clause outlines how parties will review, verify, and agree upon the actual costs reported, often after the completion of a project or at specified intervals. For example, it may require submission of detailed cost reports, allow for audits, and set timelines for resolving discrepancies. Its core function is to ensure that all parties have a clear, agreed-upon understanding of the final financial obligations, thereby preventing disputes over payments and ensuring accurate compensation for work performed.
COST REPORT SETTLEMENT. A. CONTRACTOR shall submit the CONTRACTOR’S Year-End Cost Report Settlement with the COUNTY based on the Annual Report(s) submitted pursuant to this Exhibit I of this Agreement, for the fiscal year(s) for which the CONTRACTOR’S Year-End Cost Report Settlement is (are) outstanding.
1. Failure to submit the CONTRACTOR’S Year-End Cost Report Settlement within thirty (30) calendar days after the due date specified by written notice of the COUNTY is a breach of this Agreement. In addition to, and without limiting, any other remedy available to the COUNTY for such breach, COUNTY may undertake any or all of the following to remedy such breach:
a. COUNTY, in its sole and absolute discretion, may disallow claim(s) for payment for services/activities rendered during the fiscal year(s) for which the CONTRACTOR’S Year-End Cost Report Settlement is outstanding or withhold payment(s) for reimbursements payable pursuant to Section III (A) to CONTRACTOR for the current fiscal year by COUNTY to CONTRACTOR until the CONTRACTOR’S Year-End Cost Report Settlement is submitted. If COUNTY exercises its discretion to disallow claim(s) or withhold payment(s), COUNTY shall give CONTRACTOR written notice, during the thirty (30) calendar days after the due date specified by the COUNTY, of its intention to disallow claim(s) or withhold payment(s) as of the date specified in the notice, including the reason(s) for its intended action. Thereafter, CONTRACTOR, within the time specified in the notice, shall submit the CONTRACTOR’S Year-End Cost Report Settlement to avoid disallowance of claim(s) or withholding of payment(s).
b. In such instance that CONTRACTOR does not submit the CONTRACTOR’S Year-End Cost Report Settlement by thirty (30) calendar days after the applicable due date specified by written notice of the COUNTY, COUNTY, in its sole and absolute discretion, may deem as due and owing to COUNTY by CONTRACTOR all amounts paid pursuant to Section III (A) by COUNTY to CONTRACTOR for services/activities for the fiscal year(s) for which the CONTRACTOR’S Year-End Cost Report Settlement is outstanding. CONTRACTOR shall pay COUNTY according to the method described in this Exhibit I, Section IV (Method of Payments for Amounts Due to COUNTY). Such payments shall be submitted to the persons at the address identified in the COUNTY invoice.
B. All payments made to the CONTRACTOR and the actual Federal Financial Participation (FFP) revenue generated by the CONTRACTOR shall be reconciled with C...
COST REPORT SETTLEMENT. A. Section 14124.24 (g) of the Welfare and Institutions Code (WIC) and Section 11852.5
COST REPORT SETTLEMENT. The annual cost report establishes state and federal liability to the Department for services represented in the cost report. The settlement process begins with the submission of the Department’s cost report to the state, following the close of the fiscal year.
COST REPORT SETTLEMENT. A. Section 14124.24 (g) of the Health and Safety Code (HSC) requires contractors to submit accurate and complete cost reports for the previous fiscal year. Contractor shall provide DBH with a complete and correct statement of annual costs in order for the County to complete State Cost Report not later than forty-five (45) days at the end of each fiscal year and not later than forty-five (45) days after the expiration date or termination of this Contract, unless otherwise notified by the County.
B. The Cost Report is a multiyear process consisting of a preliminary, interim, and final settlement, and is subject to audit by DHCS.
C. These cost reports shall be the basis upon which the County reports to the State costs for all services provided.
1. Contractor is required to identify where the cost was incurred by expenditure for the fiscal year.
2. The total costs reported must match the total of all the claims submitted to DBH by Contractor as of the end of the fiscal year which includes final claim.
D. Notwithstanding Final Settlement: Audit Article, Paragraph F, the County shall have the option:
1. To withhold payment, or any portion thereof, pending outcome of a termination audit to be conducted by the County;
2. To withhold any sums due Contractor as a result of a termination audit or similar determination regarding Contractor's indebtedness to the County and to offset such withholdings as to any indebtedness to the County.
COST REPORT SETTLEMENT. Paragraph A is hereby amended and Paragraph J hereby added to read as follows:
A. Section 14124.24 (g) of the Welfare and Institutions Code (WIC) and Section 11852.5(e) of the Health and Safety Code (HSC) requires contractors to submit accurate and complete cost reports for the previous fiscal year. Contractor shall provide DBH with a complete and correct statement of annual costs in order for the County to complete State Cost Report not later than forty-five (45) days at the end of each fiscal year and not later than forty-five (45) days after the expiration date or termination of this Contract, unless otherwise notified by the County. Accurate and complete annual cost report shall be defined as a cost report which is completed on forms or in such formats as specified by the County and consistent with such instructions as the County may issue and based on the best available data provided by the County.