Common use of Internal Financial Controls Clause in Contracts

Internal Financial Controls. ‌ The fiscal controls, accounting procedures and financial reporting shall be performed in accordance with Generally Accepted Accounting Principles (GAAP) and Contractor shall be responsible for implementing and maintaining procedures and internal financial controls governing the management and utilization of funds provided in this Contract. Contractor shall understand and use applicable federal Office of Management and Budget (OMB) cost and administrative circulars, and applicable federal and state laws and regulations in budgeting and expending the public funds under this contract. Contractors must maintain cost allocation plans that properly allocate costs between management/administrative functions and operations, as well as among the various service modules funded by BWDB. Contractors’ cost allocation plans must meet BWDB requirements and will be reviewed by Board staff. Costs shall be tracked in sufficient detail to determine compliance with prescribed cost categories and Contract requirements to the extent that they are expended on the program covered by this Contract and to ensure funds have not been unlawfully spent. All expenditures must be necessary and reasonable for proper and efficient administration of the program and allowable under the appropriate funding source. Contractor represents and warrants that it has implemented administrative controls to identify customer costs that are supported by other Federal, State, or local programs to ensure costs are not being duplicated or comingled. The commingling of funds with other funding sources is prohibited. Contractor costs or earnings claimed under one contract or grant may not be claimed under any other contract or grant and Contractor shall maintain fiscal capacity in accordance with the proposal submitted resulting in the award of this Contract.

Internal Financial Controls. ‌ The fiscal controls, accounting procedures and financial reporting shall be performed in accordance with Generally Accepted Accounting Principles (GAAP) and Contractor shall be responsible for implementing and maintaining procedures and internal financial controls governing the management and utilization of funds provided in this Contract. Contractor shall understand and use applicable federal Office of Management and Budget (OMB) cost and administrative circulars, and applicable federal and state laws and regulations in budgeting and expending the public funds under this contract. Contractors must maintain cost allocation plans that properly allocate costs between management/administrative functions and operations, as well as among the various service modules funded by BWDB. Contractors’ cost allocation plans must meet BWDB requirements and will be reviewed by Board staff. Costs shall be tracked in sufficient detail to determine compliance with prescribed cost categories and Contract requirements to the extent that they are expended on the program covered by this Contract and to ensure funds have not been unlawfully spent. All expenditures must be necessary and reasonable for proper and efficient administration of the program and allowable under the appropriate funding source. Contractor represents and warrants that it has implemented administrative controls to identify customer costs that are supported by other Federal, State, or local programs to ensure costs are not being duplicated or comingled. The commingling of funds with other funding sources is prohibited. Contractor costs or earnings claimed under one contract or grant may not be claimed under any other contract or grant and Contractor shall maintain fiscal capacity in accordance with the proposal submitted resulting in the award of this Contract.