Common use of Fiscal Accountability Clause in Contracts

Fiscal Accountability. ‌ A. Subrecipient shall establish and maintain a sound financial management system, based upon generally accepted accounting principles. Subrecipient’s system shall provide fiscal control and accounting procedures that will include the following: 1) Information pertaining to sub-grant and Contract awards, obligations, unobligated balances, assets, expenditures, and income; 2) Effective internal controls to safeguard assets and assure their proper use; 3) A comparison of actual expenditures with budgeted amounts for each sub grant and Contract; 4) Source documentation to support accounting records; and 5) Proper charging of costs and cost allocation. B. Subrecipient’s Records. Subrecipient’s records shall be sufficient to: 1) Permit preparation of required reports; 2) Permit tracking of funds to a level of expenditure adequate to establish that funds have not been used in violation of the applicable restrictions on the use of such funds; and