Common use of FINANCIAL TERMS AND CONDITIONS Clause in Contracts

FINANCIAL TERMS AND CONDITIONS. ‌ 2 5.1 GENERAL FISCAL ASSURANCES‌ 3 Provider shall comply with all applicable laws and standards, including Generally Accepted 4 Accounting Principles and maintain, at a minimum, a financial management system that is a 5 viable, single, integrated system with sufficient sophistication and capability to effectively and 6 efficiently process, track and manage all fiscal matters and transactions. The parties’ 7 respective fiscal obligations and rights set forth in this section shall continue after termination 8 of this Contract until such time as the financial matters between the parties resulting from this 9 Contract are completed. 10 11 5.2 FINANCIAL ACCOUNTING REQUIREMENTS‌ 12 Provider shall: 14 5.2.1 Limit Administration costs to no more than 10% of the annual revenue supporting the 15 public behavioral health system operated by Provider. Administration costs shall be 16 measured on a fiscal year basis and based on the information reported in the Revenue 17 and Expenditure Reports and reviewed by North Sound BH-ASO. 18 5.2.2 The Provider shall establish and maintain a system of accounting and internal controls 19 which complies with generally accepted accounting principles promulgated by the 20 Financial Accounting Standards Board (FASB), the Governmental Accounting Standards 21 Board (GASB), or both as is applicable to the Provider’s form of incorporation. 22 5.2.3 Ensure all North Sound BH-ASO funds, including interest earned, provided pursuant to 23 this Contract, are used to support the public behavioral health system within the 24 Service Area; 25 5.2.4 Produce annual, audited financial statements upon completion and make such reports 26 available to North Sound BH-ASO upon request.

FINANCIAL TERMS AND CONDITIONS. ‌ 2 5.1 GENERAL FISCAL ASSURANCES‌ 3 Provider shall comply with all applicable laws and standards, including Generally Accepted 4 Accounting Principles and maintain, at a minimum, a financial management system that is a 5 viable, single, integrated system with sufficient sophistication and capability to effectively and 6 efficiently process, track and manage all fiscal matters and transactions. The parties’ 7 respective fiscal obligations and rights set forth in this section shall continue after termination 8 of this Contract until such time as the financial matters between the parties resulting from this 9 Contract are completed. 10 10 11 5.2 FINANCIAL ACCOUNTING REQUIREMENTS‌ 12 Provider shall: 14 5.2.1 : 15 16 17 18 5.2.2 19 20 21 22 23 5.2.3 24 25 26 5.2.4 27 28 5.2.5 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Limit Administration costs to no more than 1015% of the annual revenue supporting the 15 public behavioral health system operated by Provider. Administration costs shall be 16 measured on a fiscal year basis and based on the information reported in the Revenue 17 and Expenditure Reports and reviewed by North Sound BH-ASO. 18 5.2.2 . The Provider shall establish and maintain a system of accounting and internal controls 19 which complies with generally accepted accounting principles promulgated by the 20 Financial Accounting Standards Board (FASB), the Governmental Accounting Standards 21 Board (GASB), or both as is applicable to the Provider’s form of incorporation. 22 5.2.3 . Ensure all North Sound BH-ASO funds, including interest earned, provided pursuant to 23 this Contract, are used to support the public behavioral health system within the 24 Service Area; 25 5.2.4 ; Ensure under no circumstances are individuals charged for any covered services, including those out-of-network services purchased on their behalf; Produce annual, audited financial statements upon completion and make such reports 26 available to North Sound BH-ASO upon request.