Common use of Unexpended Funds Clause in Contracts

Unexpended Funds. a. Whenever the Department determines from its review of the Contractor’s audited annual financial statements and program operations that the total paid under this Contract, together with applicable program income from other sources, exceeds the total expenses of the program, such excess income shall be deemed by the Department to be unexpended funds. If the Contractor is not required to submit audited annual financial statements, the Department may utilize the final annual financial report to determine the existence and amount of unexpended funds. b. Unexpended funds shall be identified by and returned to the Department in the following manner: Funds paid to the Contractor shall be identified by the Department’s “Special Identification Number” (SID). The payments made by the Department shall be compared to the expenses reported by the Contractor, by XXX as noted on the audited financial statement, or Uniform Chart of Accounts or other similar schedule(s) as required by the Federal and State Single Audit acts. If the Contractor is not required to file Single Audit Reports, the Department may utilize the Contractor’s Annual Financial Report/Year End Uniform Chart of Accounts to determine any unexpended funds. If payments made by the Department exceed the expenses reported, the Department may recoup such payments by requesting payment from the Contractor by check or other means as determined by the Department. If requested to return unexpended funds by check, the Contractor shall return to the Department the amount of unexpended funds subject to recoupment not later than thirty (30) days after receipt of written notice from the Department that such amount is due. The Department may recoup from future Contract payments an amount equal to such unexpended funds subject to recoupment that remain unpaid more than sixty (60) days after receipt of said written notice. c. The Contractor may request permission from the Department to carry forward unexpended federal funds from one fiscal year to a subsequent fiscal year provided that such request: (1) is made to the Department in writing no later than September 30; (2) specifies the amount of unexpended federal funds requested and identifies the fiscal year from which and to which the Contractor is seeking permission to carry forward; (3) clearly explains why the Contractor has not fully expended payments made by the Department under this Contract; (4) details the purposes for which the Contractor proposes to use the requested unexpended federal funds; and (5) is accompanied by written documentation that the request to carry forward such funds is authorized by the Contractor’s governing authority. The Department may request an opinion letter from an independent Certified Public Accountant acknowledging the reasonableness of the requested amount. Upon determination by the Department that the Contractor has performed in accordance with the terms and conditions of the Contract, and that the amount and proposed use of the unexpended funds for which a carry forward is being requested are appropriate, the Department may approve a request to carry forward unexpended federal funds and will notify the Contractor in writing of such approval. Unexpended federal funds thus approved for carry forward shall not be subject to section a. of this provision provided that the Contractor expends such funds by the end of the fiscal year immediately following the fiscal year in which the unexpended federal funds were originally accrued. Contractor shall not use unexpended federal funds approved for carry forward for any purpose other than one for which the Department has granted specific prior written approval. d. The Contractor may request that a portion of unrestricted operating income which is in excess of funds paid under this Contract be designated for a special or future use provided that such request: (1) is made to the Department in writing in advance of such use; (2) specifies the amount being requested and substantiates that said portion is not required to meet current operating expenses; (3) is accompanied by written documentation that the request for such designation is authorized by the Contractor’s governing authority; and (4) details the purposes for which the Contractor proposes to use the requested amount. At the sole discretion of, and only upon specific prior written approval from, the Department, funds so designated shall not be deemed unexpended funds and shall not be subject to section a. of this provision. e. Absent specific prior written approval from the Department under section b. or section c. of this provision, the Contractor shall not expend, transfer or otherwise use funds deemed by the Department to be unexpended funds and all such funds shall be subject to section a. of this provision.

Unexpended Funds. a. Whenever the Department determines from its review of the Contractor’s audited annual financial statements and program operations that the total paid under this Contract, together with applicable program income from other sources, exceeds the total expenses of the program, such excess income shall be deemed by the Department to be unexpended funds. If the Contractor is not required to submit audited annual financial statements, the Department may utilize the final annual financial report to determine the existence and amount of unexpended funds. b. Unexpended funds shall be identified by and returned to the Department in the following manner: Funds paid to the Contractor shall be identified by the Department’s “Special Identification Number” (SID). The payments made by the Department shall be compared to the expenses reported by the Contractor, by XXX SID as noted on the audited financial statement, or Uniform Chart of Accounts or other similar schedule(s) as required by the Federal and State Single Audit acts. If the Contractor is not required to file Single Audit Reports, the Department may utilize the Contractor’s Annual Financial Report/Year End Uniform Chart of Accounts to determine any unexpended funds. If payments made by the Department exceed the expenses reported, the Department may recoup such payments by requesting payment from the Contractor by check or other means as determined by the Department. If requested to return unexpended funds by check, the Contractor shall return to the Department the amount of unexpended funds subject to recoupment not later than thirty (30) days after receipt of written notice from the Department that such amount is due. The Department may recoup from future Contract payments an amount equal to such unexpended funds subject to recoupment that remain unpaid more than sixty (60) days after receipt of said written notice. c. The Contractor may request permission from the Department to carry forward unexpended federal funds from one fiscal year to a subsequent fiscal year provided that such request: (1) is made to the Department in writing no later than September 30; (2) specifies the amount of unexpended federal funds requested and identifies the fiscal year from which and to which the Contractor is seeking permission to carry forward; (3) clearly explains why the Contractor has not fully expended payments made by the Department under this Contract; (4) details the purposes for which the Contractor proposes to use the requested unexpended federal funds; and (5) is accompanied by written documentation that the request to carry forward such funds is authorized by the Contractor’s governing authority. The Department may request an opinion letter from an independent Certified Public Accountant acknowledging the reasonableness of the requested amount. Upon determination by the Department that the Contractor has performed in accordance with the terms and conditions of the Contract, and that the amount and proposed use of the unexpended funds for which a carry forward is being requested are appropriate, the Department may approve a request to carry forward unexpended federal funds and will notify the Contractor in writing of such approval. Unexpended federal funds thus approved for carry forward shall not be subject to section a. of this provision provided that the Contractor expends such funds by the end of the fiscal year immediately following the fiscal year in which the unexpended federal funds were originally accrued. Contractor shall not use unexpended federal funds approved for carry forward for any purpose other than one for which the Department has granted specific prior written approval. d. The Contractor may request that a portion of unrestricted operating income which is in excess of funds paid under this Contract be designated for a special or future use provided that such request: (1) is made to the Department in writing in advance of such use; (2) specifies the amount being requested and substantiates that said portion is not required to meet current operating expenses; (3) is accompanied by written documentation that the request for such designation is authorized by the Contractor’s governing authority; and (4) details the purposes for which the Contractor proposes to use the requested amount. At the sole discretion of, and only upon specific prior written approval from, the Department, funds so designated shall not be deemed unexpended funds and shall not be subject to section a. of this provision. e. Absent specific prior written approval from the Department under section b. or section c. of this provision, the Contractor shall not expend, transfer or otherwise use funds deemed by the Department to be unexpended funds and all such funds shall be subject to section a. of this provision.

Unexpended Funds. a. Whenever the Department determines from its review of the Contractor’s Contractor s audited annual financial nficniaal statements and program operations that the total paid under this Contract, together with applicable program income from other sources, exceeds the total expenses of the otfhe program, such excess income shall be deemed by the Department to be unexpended funds. If the Contractor is Contractoris not required to submit audited annual financial statements, the Department may utilize the final annual failnannual financial report to determine the existence and amount of unexpended funds. b. Unexpended funds shall be identified by and returned to the Department Depamrt ent in the following manner: Funds paid to the Contractor shall be identified by the Department’s “Departmenst Special Identification Number” Number (SID). The payments made by the Department shall be compared to the tohte expenses reported by the Contractor, by XXX as noted on the audited financial statement, or Uniform Uinform Chart of Accounts or other similar schedule(s) as required by the Federal and State Single Audit acts. If the a.cItfsthe Contractor is not required to file Single Audit Reports, the Department may utilize the Contractor’s Contraocrt s Annual Financial Report/Year End Uniform Chart of Accounts to determine any unexpended funds. If payments made by the Department exceed the expenses reported, the Department may recoup reocup such payments by requesting payment from the Contractor by check or other means as determined by the bythe Department. If requested to return unexpended funds by check, the Contractor shall return to returnto the Department the amount of unexpended funds subject to recoupment not later than thirty (30) days dyas after receipt of written notice from the Department that such amount is due. The Department may recoup ercoup from future Contract payments an amount equal to such unexpended funds subject to recoupment recoump ent that remain unpaid more than sixty (60) days after receipt of said written notice. c. The Contractor may request permission from the Department to carry acrry forward unexpended federal funds from one fiscal year to a subsequent fiscal year provided that such csuh request: (1) is made to the Department in writing no later than September 30; (2) specifies the amount of unexpended unpexended federal funds requested and identifies the fiscal year from which and to which the Contractor is Contractoisr seeking permission to carry forward; (3) clearly explains why the Contractor has not fully expended fullypeexnded payments made by the Department under this Contract; (4) details the purposes for which wihch the Contractor proposes to use the requested unexpended federal funds; and (5) is accompanied by written documentation writtednocumentation that the request to carry forward such funds is authorized by the Contractor’s governing Contractor s geronving authority. The Department may request an opinion letter from an independent Certified Public Accountant Accoutnant acknowledging the reasonableness of the requested amount. Upon determination by the Department theDepartment that the Contractor has performed in accordance with the terms and conditions of the Contract, and Contrac,tand that the amount and proposed use of the unexpended funds for which a carry forward is being ibseing requested are appropriate, the Department may approve a request to carry forward unexpended federal funds and unexpendedefderal fundsand will notify the Contractor in writing of such approval. Unexpended federal funds fnuds thus approved for carry forward shall not be subject to section a. of this provision provided that the Contractor Conrtactor expends such funds by the end of the fiscal year immediately following the fiscal year in which the unexpended upnenxded federal funds were originally accrued. Contractor shall not use unexpended federal funds approved funs dapproved for carry forward for any purpose other than one for which the Department has granted specific prior written approval. d. The Contractor may request that a portion of unrestricted operating opreating income which is in excess of funds paid under this Contract be designated for a special or future use provided prvoided that such request: (1) is made to the Department in writing in advance of such use; (2) specifies the specifietshe amount being requested and substantiates that said portion is not required to meet current operating expenses; (3) is accompanied by written documentation that the request for such designation is authorized atuhorized by the Contractor’s Contractor s governing authority; and (4) details the purposes for which the Contractor Contratocr proposes to use the requested amount. At the sole discretion of, and only upon specific prior written approval apprvoal from, the Department, funds so designated shall not be deemed unexpended funds and shall not be subject to section subjecot tsection a. of this provision. e. Absent specific prior written approval from the Department Departmnet under section b. or section c. of this provision, the Contractor shall not expend, transfer or otherwise orotherwise use funds deemed by the Department to be unexpended funds and all such funds shall be subject to section a. of ao.f this provision.