Common use of Examination of Records and Audit Clause in Contracts

Examination of Records and Audit. Contractor shall prepare, maintain and preserve all records related to the Goods and/or Services, which shall be open to inspection and subject to audit by University, its authorized representatives, and/or the State Auditors of Public Accounts for evaluation and verification of any invoices, payments, or claims submitted by Contractor or any of its payees, as required by governmental authorities, as necessary to ensure compliance with the Contract or applicable law, or as desirable for any other valid business purpose. University or its authorized representatives shall give Contractor reasonable advanced notice of intent to audit. Contractor shall make available all relevant records so as to enable University, its authorized representatives, and/or the State Auditors of Public Accounts to audit Contractor’s performance hereunder, including identifying all reimbursable items excluding the make-up of any agreed upon lump sum amounts, fixed rates, or unit prices. Contractor shall preserve the records and University or its authorized representatives shall have access to the records for a period of five (5) years after the satisfaction of Contractor's obligations under this Contract, or for such longer period as may be required by law. If an audit conducted in accordance with this section discloses overpricing or overcharges (of any nature) by Contractor, applicable adjustments and/or payments to University shall be made by Contractor, with interest, within a reasonable amount of time not to exceed ninety (90) days from presentation of University’s findings to Contractor. If any such audit discloses overpricing or overcharging (of any nature) in an amount equal to or greater than 5%, Contractor shall, in addition to applicable adjustments and/or payments, reimburse University for all costs incurred in connection with such audit. Contractor may also be required to provide for an annual financial audit acceptable to University for any expenditure of State or federal awarded funds made by Contractor. Such audit shall include audit recommendations. Such audit shall include management letters and audit recommendations. The State Auditors of Public Accounts shall have access to all records and accounts for the fiscal year(s) in which the award was made. Contractor will comply with federal and State single audit standards as applicable.