Common use of REPORTING AND AUDIT REQUIREMENTS/PAYMENT ADJUSTMENTS Clause in Contracts

REPORTING AND AUDIT REQUIREMENTS/PAYMENT ADJUSTMENTS. 5.1*1 LACMTA and/or its designee shall have the right to conduct audits of the Project, as it deems appropriate, such as financial and compliance audits; interim audits; pre- award audits; performance audits; and final audits. LACMTA will commence a final audit within six months of receipt of an acceptable final invoice, provided the Project is ready for final audit (meaning all costs and charges have been paid by Recipient and invoiced to LACMTA and such costs, charges, and invoices are properly documented and summarized in the accounting records to enable an audit without further explanation or summarization, including actual indirect rates for the period covered by the Agreement period under review). Recipient agrees to establish and maintain proper accounting procedures and cash management records and documents in accordance with Generally Accepted Accounting Principles (GAAP). Recipient shall reimburse LACMTA for any expenditure not in compliance with this Agreement and the Guidelines. Recipient’s eligible expenditures submitted to LACMTA for this Project shall be in compliance with the Reporting and Expense Guidelines (Attachment C) and Office of Management and Budget (“OMB”) Circular A-87. The allowability of costs for Recipient’s contractors, consultants and suppliers submitted to LACMTA through Recipient’s Quarterly Progress Reports/Expense Report (Attachment D) shall be in compliance with OMB Circular A-87 or Federal Acquisition Regulations, Subpart 31 (FAR), whichever is applicable. Any use of the Funds which is expressly prohibited under this Agreement shall be an ineligible use of the Funds and may be disallowed by LACMTA audit. Findings of the LACMTA audit are final. When LACMTA audit findings require Recipient to return monies to LACMTA, Recipient shall return such monies within thirty (30) days after the final audit is sent to Recipient.

REPORTING AND AUDIT REQUIREMENTS/PAYMENT ADJUSTMENTS. 5.1*1 LACMTA and/or its designee shall have the right to conduct audits of the Project, as it deems deem appropriate, such as financial and compliance audits; interim audits; pre- pre-award audits; performance audits; and final audits. LACMTA will commence a final audit within six months of receipt of an acceptable final invoice, provided the Project is ready for final audit (meaning all costs and charges have been paid by Recipient Grantee and invoiced to LACMTA and such costs, charges, and invoices are properly documented and summarized in the accounting records to enable an audit without further explanation or summarization, including actual indirect rates for the period covered by the Agreement period under review). Recipient Grantee agrees to establish and maintain proper accounting procedures and cash management records and documents in accordance with Generally Accepted Accounting Principles (GAAP). Recipient Grantee shall reimburse LACMTA for any expenditure not in compliance with this Agreement and the Guidelines. RecipientGrantee’s eligible expenditures submitted to LACMTA for this Project shall be in compliance with the Reporting and Expense Guidelines (Attachment C) and Office of Management and Budget (“OMB”) Circular A-87. The allowability of costs for RecipientGrantee’s contractors, consultants and suppliers submitted to LACMTA through Recipient’s Quarterly Progress Reports/Expense Report (Attachment D) shall be in compliance with OMB Circular A-87 or Federal Acquisition Regulations, Subpart 31 (FAR), whichever is applicable. Any use of the Funds which is expressly prohibited under this Agreement shall be an ineligible use of the Funds and may be disallowed by LACMTA audit. Findings of the LACMTA audit are final. When LACMTA audit findings require Recipient Grantee to return monies to LACMTA, Recipient Grantee shall return such monies within thirty (30) days after the final audit is sent to RecipientGrantee.

REPORTING AND AUDIT REQUIREMENTS/PAYMENT ADJUSTMENTS. 5.1*1 * LACMTA and/or its designee shall have the right to conduct audits of the Project, as it deems deem appropriate, such as financial and compliance audits; interim audits; pre- pre-award audits; performance audits; and final audits. LACMTA will commence a final audit within six months of receipt of an acceptable final invoice, provided the Project is ready for final audit (meaning all costs and charges have been paid by Recipient Grantee and invoiced to LACMTA and such costs, charges, and invoices are properly documented and summarized in the accounting records to enable an audit without further explanation or summarization, including actual indirect rates for the period covered by the Agreement period under review). Recipient Grantee agrees to establish and maintain proper accounting procedures and cash management records and documents in accordance with Generally Accepted Accounting Principles (GAAP). Recipient Grantee shall reimburse LACMTA for any expenditure not in compliance with this Agreement and the Guidelines. RecipientGrantee’s eligible expenditures submitted to LACMTA for this Project shall be in compliance with the Reporting and Expense Expenditure Guidelines (Attachment C) and Office of Management and Budget (“OMB”) Circular A-87. The allowability of costs for RecipientGrantee’s contractors, consultants and suppliers submitted to LACMTA through Recipient’s Quarterly Progress Reports/Expense Report (Attachment D) Expenditures shall be in compliance with OMB Circular A-87 or Federal Acquisition Regulations, Subpart 31 (FAR), whichever is applicable. Any use of the Funds which is expressly prohibited under this Agreement shall be an ineligible use of the Funds and may be disallowed by LACMTA audit. Findings of the LACMTA audit are final. When LACMTA audit findings require Recipient Grantee to return monies to LACMTA, Recipient Grantee shall return such monies within thirty (30) 30 days after the final audit is sent to RecipientGrantee.