Common use of Fiscal Responsibility Clause in Contracts

Fiscal Responsibility. 14.1. The Operator agrees to keep and maintain, at its office in the applicable Facility, separate and independent records, in accordance with generally accepted accounting principles, devoted exclusively to its Facilities management operations in the City of Overland Park, Kansas. Said books, ledgers, journals, accounts, and records shall contain all entries reflecting the business operations of the Operator under this Agreement. All of the foregoing records shall be open for examination and audit by the Contract Administrator or City designated and authorized agents or personnel during the Operator’s ordinary business hours. 14.2. The Operator agrees to render, within fifteen (15) days after the end of each month, financial reports for each Facility and for the combined Facilities including a balance sheet, aging report on accounts receivable, and statement of revenues and expenditures (budget to actual) for the current month and year to date in accordance with generally accepted accounting principles. In addition, the Operator will immediately upon request by the City provide information on the Facilities Operating Account and the Facilities Lockbox Account. 14.3. The Operator agrees to meet with the Contract Administrator to answer questions relating to the operation of the Facilities and the financial reports. In addition, Operator agrees within sixty (60) days following the end of each fiscal year to provide or cause to be provided to the City a certified audit report on the accounts and records as kept by the Operator for the Facilities. This certified audit report will be paid from appropriate funds set aside in the operating budget. The Operator shall utilize an external auditor approved by the City to conduct this audit of the accounts and records of the Facilities in accordance with generally accepted auditing standards. A letter from said accounting firm expressing its opinion as to the effectiveness of internal controls and a management letter will accompany the audit report. At the option of the City and at its expense, additional audits may be performed. 14.4. The Operator agrees to use forms, accounting methods, internal controls and procedures for its reports that are acceptable to the City. 14.5. The City may request additional financial or statistical reports with respect to the Facilities, and the Operator shall promptly provide same. It is agreed that such requests by the City will be reasonable with respect to timing and frequency. Any and all costs for such reports shall be included as an operating expense. 14.6. The City will make immediately available to the Operator for the operation, maintenance, supervision, and management of the Facilities, all funds necessary to pay all budgeted items of expense, subject to Section 10. To the extent the Operator is unable to perform under this Agreement due to the fact that required budgeted funds are not made available by the City, the Operator will not be considered in breach of this Agreement nor shall such failure to perform for lack of funds be considered an event of default. 14.7. The Operator shall conduct regular inventories of all expendable supplies in accordance with the Operations Manual. The Operator will also work with the Contract Administrator to conduct an annual inventory of equipment, fixed assets and controlled assets of the Facilities in accordance with procedures outlined in the Operations Manual. 14.8. Any data, equipment or materials furnished by the City to the Operator and any such data, equipment or materials that may be acquired for the City by the Operator to be used at the Facilities shall remain the property of the City, and when no longer needed for the performance of this Agreement, shall be returned to the City. 14.9. The City shall provide those goods and services customarily supplied or provided from the City. The costs of these services will be considered operating expenses as identified in Section 14.13. Such services shall not include those that are deemed to be the responsibility of the Operator as stated in this Agreement. 14.10. The parties agree that in the event the Operator requests a capital improvement, the City will give reasonable consideration to such request(s) in formulating its budget in light of competing financial considerations in accordance with Section 15. 14.11. All Operator employees shall be sufficiently bonded under the corporate crime policy as an Operating Expense to protect the Operator’s and the City’s interests. Such policy shall be in an amount as set forth in Exhibit B and shall name the City as loss payee as its interest may appear. 14.12. Revenues for the Facilities shall be defined to include, but are not limited to: (1) Rental income; (2) Greens fees; (3) Merchandise income; (4) Food and beverage sales income; (5) Advertising sales income; (6) Equipment rental fees; (7) Miscellaneous operating income; and (8) Sponsorship income. Revenues do not include applicable excise, sales, occupancy and use taxes, or similar government taxes, duties, levies or charges collected directly from patrons or guests, or as a part of the sales price of any goods, services, or displays, such as gross receipts, admission, cabaret, or similar or equivalent taxes, nor any gratuities collected (or to be collected) for the benefit of and paid to any of the Operator’s personnel. Further, Revenues do not include moneys collected (or to be collected) for the benefit of and paid to third parties such as event promoters. 14.13. Operating expenses will be paid from Facilities Operating Account based on the City approved budget, and shall include, but are not limited to: (1) Payroll, the employer’s share of payroll taxes, benefits, bonus (for non-Senior Executive Personnel), and related costs; (2) Operating supplies; (3) Advertising; (4) Cleaning; (5) Data processing; (6) Dues, subscriptions and membership; (7) The Fixed Fee and the Incentive Fee to be paid under this Agreement; (8) Printing and stationary costs; (9) Postage and freight costs; (10) Equipment and rental costs; (11) Minor repairs and maintenance, not inclusive of expenses relating to performing capital improvements, as further defined in Section 15; (12) Security expenses; (13) Cost of office supplies; (14) Telephone charges; (15) Travel and entertainment expenses; (16) Cost of employee uniforms; (17) Exterminator and trash removal costs; (18) Parking expenses; (19) Utility expenses; (20) Audit; and (21) Insurance costs. Operating expenses do not include Additional Benefits (as defined in Section 7.6) paid to Senior Executive Personnel (but do include bonuses paid to non-Senior Executive Personnel). 14.14. All travel and professional expenses of the Operator’s employees shall be paid when included in the approved annual budget of the Facilities. Such expenses shall be prorated if the Operator’s employees conduct business on behalf of the Operator or other facilities. All non-budgeted travel and professional expenses shall be paid only with the prior written approval of the City. 14.15. Operating expenses incurred by the Operator for which the Operator submits invoices to the City for reimbursement shall be forwarded to the Contract Administrator for payment. All such payments shall be operating expenses in accordance with the approved budget.

Fiscal Responsibility. 14.1. 13.1 The Operator agrees to keep and maintain, at its office in the applicable Facility, separate and independent records, in accordance with generally accepted accounting principles, devoted exclusively to its Facilities Facility management operations in the City of Overland Park, Kansas. Said books, ledgers, journals, accounts, and records shall contain all entries reflecting the business operations of the Operator under this Agreement. All of the foregoing records shall be open for examination and audit by the Contract Administrator or City designated and authorized agents or personnel during the Operator’s ordinary business hours. 14.2. 13.2 The Operator agrees to render, within fifteen thirty (1530) days after the end of each month, financial reports for each the Facility and for the combined Facilities including a balance sheet, aging report on accounts receivable, and statement of revenues and expenditures (budget to actual) for the current month and year to date in accordance with generally accepted accounting principles. In addition, the Operator will immediately upon request by the City provide information on the Facilities Facility Operating Account and the Facilities Facility Lockbox Account. 14.3. 13.3 The Operator agrees to meet with the Contract Administrator to answer questions relating to the operation of the Facilities Facility and the financial reports. In addition, Operator agrees within sixty (60) days following the end of each fiscal year to provide or cause to be provided to the City a certified audit report on the accounts and records as kept by the Operator for the FacilitiesFacility. This certified audit report will be paid from appropriate funds set aside in the operating budget. The Operator shall utilize an external auditor approved by the City to conduct this audit of the accounts and records of the Facilities Facility in accordance with generally accepted auditing standards. A letter from said accounting firm expressing its opinion as to the effectiveness of internal controls and a management letter will accompany the audit report. At the option of the City and at its expense, additional audits may be performed. 14.4. 13.4 The Operator agrees to use forms, accounting methods, internal controls and procedures for its reports that are acceptable to the City.City and in particular report in conformance with the chart of accounts attached hereto as Exhibit B. 14.5. 13.5 The City may request additional financial or statistical reports with respect to the FacilitiesFacility, and the Operator shall promptly provide same. It is agreed that such requests by the City will be reasonable with respect to timing and frequency. Any and all costs for such reports shall be included as an operating expense. 14.6. 13.6 The City will make immediately available to the Operator for the operation, maintenance, supervision, and management of the FacilitiesFacility, all funds necessary to pay all budgeted items of expense, subject to Section 109. To the extent the Operator is unable to perform under this Agreement due to the fact that required budgeted funds are not made available by the City, the Operator will not be considered in breach of this Agreement nor shall such failure to perform for lack of funds be considered an event of default. 14.7. 13.7 The Operator shall conduct regular inventories of all expendable supplies in accordance with the Operations Manual. The Operator will also work with the Contract Administrator to conduct an annual inventory of equipment, fixed assets and controlled assets of the Facilities Facility in accordance with procedures outlined in the Operations Manual. 14.8. 13.8 Any data, equipment or materials furnished by the City to the Operator and any such data, equipment or materials that may be acquired for the City by the Operator to be used at the Facilities Facility shall remain the property of the City, and when no longer needed for the performance of this Agreement, shall be returned to the City. 14.9. 13.9 The City shall provide those goods and services customarily supplied or provided from the City. The costs of these services will be considered operating expenses as identified in Section 14.1313.13. Such services shall not include those that are deemed to be the responsibility of the Operator as stated in this Agreement. 14.10. 13.10 The parties agree that in the event the Operator requests a capital improvement, the City will give reasonable consideration to such request(s) in formulating its budget in light of competing financial considerations in accordance with Section 1514. 14.11. 13.11 All Operator employees shall be sufficiently bonded under the corporate crime policy as an Operating Expense to protect the Operator’s and the City’s interests. Such policy shall be in an amount as set forth in Exhibit B C and shall name the City as loss payee as its interest may appear. 14.12. 13.12 Revenues for the Facilities Facility shall be defined to include, but are not limited to: (1) Rental income; (2) Greens fees; (3) Merchandise income; (4) Food and beverage sales income; (53) Advertising sales Audio-visual services income; (64) Equipment rental fees; (75) Ticket Office income; 6) Miscellaneous operating income; 7) Parking income; and (8) Sponsorship and/or advertising sales income. Revenues do not include applicable excise, sales, occupancy and use taxes, or similar government taxes, duties, levies or charges collected directly from patrons or guests, or as a part of the sales price of any goods, services, or displays, such as gross receipts, admission, cabaret, or similar or equivalent taxes, nor any gratuities collected (or to be collected) for the benefit of and paid to any of the Operator’s personnel. Further, Revenues do not include moneys collected (or to be collected) for the benefit of and paid to third parties such as event promoters. 14.13. 13.13 Operating expenses will be paid from Facilities Facility Operating Account based on the City approved budget, and shall include, but are not limited to: (1) Payroll, the employer’s share of payroll taxesOn-site payroll, benefits, relocation costs, bonus (for non-Senior Executive Personnel), and related costs; (2) Operating suppliessupplies for the Facility; (3) AdvertisingAdvertising for the Facility, which shall be subject to City approval; (4) CleaningCleaning of the Facility; (5) Data processingprocessing that occurs at the Facility; (6) Dues, subscriptions and membershipmemberships for Operator’s employees at the Facility; (7) The Fixed Fee and the Incentive Fee to be paid under this Agreement; (8) Printing and stationary costscosts for activities at the Facility; (9) Postage and freight costscosts for activities at the Facility; (10) Equipment and rental costscosts for activities at the Facility; (11) Minor repairs and maintenancemaintenance at the Facility, not inclusive of expenses relating to performing capital improvements, as further defined in Section 15; (14; 12) Security expensesexpenses at the Facility; (13) Cost of office supplies; (14) Telephone charges; (15) Travel and entertainment expenses; (16) Cost of employee uniforms; (17) Exterminator and trash removal costs; (18) Parking expenses; (19) Utility expenses; (20) Audit; and (21) Insurance costs. Operating expenses do not include Additional Benefits (as defined in Section 7.6) paid to Senior Executive Personnel (but do include bonuses paid to non-Senior Executive Personnel). 14.14. All travel and professional expenses of the Operator’s employees shall be paid when included in the approved annual budget of the Facilities. Such expenses shall be prorated if the Operator’s employees conduct business on behalf of the Operator or other facilities. All non-budgeted travel and professional expenses shall be paid only with the prior written approval of the City. 14.15. Operating expenses incurred by the Operator for which the Operator submits invoices to the City for reimbursement shall be forwarded to the Contract Administrator for payment. All such payments shall be operating expenses in accordance with the approved budget.

Fiscal Responsibility. 14.1. 13.1 The Operator agrees to keep and maintain, at its office in the applicable Facility, separate and independent records, in accordance with generally accepted accounting principles, devoted exclusively to its Facilities Facility management operations in the City of Overland Park, Kansas. Said books, ledgers, journals, accounts, and records shall contain all entries reflecting the business operations of the Operator under this Agreement. All of the foregoing records shall be open for examination and audit by the Contract Administrator or City designated and authorized agents or personnel during the Operator’s ordinary business hours. 14.2. 13.2 The Operator agrees to render, within fifteen thirty (1530) days after the end of each month, financial reports for each the Facility and for the combined Facilities including a balance sheet, aging report on accounts receivable, and statement of revenues and expenditures (budget to actual) for the current month and year to date in accordance with generally accepted accounting principles. In addition, the Operator will immediately upon request by the City provide information on the Facilities Facility Operating Account and the Facilities Facility Lockbox Account. 14.3. 13.3 The Operator agrees to meet with the Contract Administrator to answer questions relating to the operation of the Facilities Facility and the financial reports. In addition, Operator agrees within sixty (60) days following the end of each fiscal year to provide or cause to be provided to the City a certified audit report on the accounts and records as kept by the Operator for the FacilitiesFacility. This certified audit report will be paid from appropriate funds set aside in the operating budget. The Operator shall utilize an external auditor approved by the City to conduct this audit of the accounts and records of the Facilities Facility in accordance with generally accepted auditing standards. A letter from said accounting firm expressing its opinion as to the effectiveness of internal controls and a management letter will accompany the audit report. At the option of the City and at its expense, additional audits may be performed. 14.4. 13.4 The Operator agrees to use forms, accounting methods, internal controls and procedures for its reports that are acceptable to the City.City and in particular report in conformance with the chart of accounts attached hereto as Exhibit B. 14.5. 13.5 The City may request additional financial or statistical reports with respect to the FacilitiesFacility, and the Operator shall promptly provide same. It is agreed that such requests by the City will be reasonable with respect to timing and frequency. Any and all costs for such reports shall be included as an operating expense. 14.6. 13.6 The City will make immediately available to the Operator for the operation, maintenance, supervision, and management of the FacilitiesFacility, all funds necessary to pay all budgeted items of expense, subject to Section 109. To the extent the Operator is unable to perform under this Agreement due to the fact that required budgeted funds are not made available by the City, the Operator will not be considered in breach of this Agreement nor shall such failure to perform for lack of funds be considered an event of default. 14.7. 13.7 The Operator shall conduct regular inventories of all expendable supplies in accordance with the Operations Manual. The Operator will also work with the Contract Administrator to conduct an annual inventory of equipment, fixed assets and controlled assets of the Facilities Facility in accordance with procedures outlined in the Operations Manual. 14.8. 13.8 Any data, equipment or materials furnished by the City to the Operator and any such data, equipment or materials that may be acquired for the City by the Operator to be used at the Facilities Facility shall remain the property of the City, and when no longer needed for the performance of this Agreement, shall be returned to the City. 14.9. 13.9 The City shall provide those goods and services customarily supplied or provided from the City. The costs of these services will be considered operating expenses as identified in Section 14.1313.13. Such services shall not include those that are deemed to be the responsibility of the Operator as stated in this Agreement. 14.10. 13.10 The parties agree that in the event the Operator requests a capital improvement, the City will give reasonable consideration to such request(s) in formulating its budget in light of competing financial considerations in accordance with Section 1514. 14.11. 13.11 All Operator employees shall be sufficiently bonded under the corporate crime policy as an Operating Expense to protect the Operator’s and the City’s interests. Such policy shall be in an amount as set forth in Exhibit B C and shall name the City as loss payee as its interest may appear. 14.12. 13.12 Revenues for the Facilities Facility shall be defined to include, but are not limited to: (1) Rental income; (2) Greens fees; (3) Merchandise income; (43) Food and beverage sales income; (4) Audio-visual services income; 5) Advertising sales income; (6) Equipment rental fees; (7) Ticket Office income; 8) Miscellaneous operating income; 9) Parking income; and (8) 10) Sponsorship income. Revenues do not include applicable excise, sales, occupancy and use taxes, or similar government taxes, duties, levies or charges collected directly from patrons or guests, or as a part of the sales price of any goods, services, or displays, such as gross receipts, admission, cabaret, or similar or equivalent taxes, nor any gratuities collected (or to be collected) for the benefit of and paid to any of the Operator’s personnel. Further, Revenues do not include moneys collected (or to be collected) for the benefit of and paid to third parties such as event promoters. 14.13. 13.13 Operating expenses will be paid from Facilities Facility Operating Account based on the City approved budget, and shall include, but are not limited to: (1) Payroll, the employer’s share of payroll taxesbenefits, benefitsrelocation costs, bonus (for non-Senior Executive Personnel), and related costs; (2) Operating supplies; (3) Advertising; (4) Cleaning; (5) Data processing; (6) Dues, subscriptions and membership; (7) The Fixed Fee and the Incentive Fee to be paid under this Agreement; (8) Printing and stationary costs; (9) Postage and freight costs; (10) Equipment and rental costs; (11) Minor repairs and maintenance, not inclusive of expenses relating to performing capital improvements, as further defined in Section 15; (14; 12) Security expenses; (13) Cost of office supplies; (14) Telephone charges; (15) Travel and entertainment expenses; (16) Cost of employee uniforms; (17) Exterminator and trash removal costs; (18) Parking expenses; (19) Utility expenses; (20) Audit; and (21) Insurance costs. Operating expenses do not include Additional Benefits (as defined in Section 7.6) paid to Senior Executive Personnel (but do include bonuses paid to non-Senior Executive Personnel). 14.14. All travel and professional expenses of the Operator’s employees shall be paid when included in the approved annual budget of the Facilities. Such expenses shall be prorated if the Operator’s employees conduct business on behalf of the Operator or other facilities. All non-budgeted travel and professional expenses shall be paid only with the prior written approval of the City. 14.15. Operating expenses incurred by the Operator for which the Operator submits invoices to the City for reimbursement shall be forwarded to the Contract Administrator for payment. All such payments shall be operating expenses in accordance with the approved budget.