Common use of Record Keeping and Audit Clause in Contracts

Record Keeping and Audit. 6.1 SMWD shall establish and maintain accounting records of all costs incurred for the construction, operation and maintenance, and replacement parts of the Project as described in Exhibits B and C. Accounting for the Project shall utilize generally accepted accounting practices and be consistent with the terms of this Agreement. SMWD’s Project accounting records must clearly distinguish all costs for the Project from SMWD’s other water production, treatment, and distribution costs. SMWD’s records shall also be adequate to determine Allowable Yield and Recovered Water to accomplish all cost calculations contemplated in this Agreement.