Common use of Audit of Records Clause in Contracts

Audit of Records. The Contractor agrees to maintain the financial books and records (including supporting documentation) pertaining to the performance of this Contract according to standard accounting principles and procedures. The books and records shall be maintained for a period of three (3) years after completion of this Contract, except that books and records which are the subject of an audit finding shall be retained for three (3) years after such finding has been resolved. If the Contractor goes out of business, the Contractor shall forward the books and records to the Owner to be retained by the Owner for the period of time required herein. The Owner, or its designated representative(s), shall have the right to inspect and audit (including the right to copy and/or transcribe) the books and records of the Contractor pertaining to the performance this Contract during normal business hours. The Owner will provide prior written notice to the Contractor of the audit and inspection. If the books and records are not located within Xxxxx County, the Contractor agrees to deliver them to the Owner, or to the address, designated by the Owner, within Xxxxx County. In lieu of such delivery, the Contractor may elect to reimburse the Owner for the cost of travel (including transportation, lodging, meals and other related expenses) to inspect and audit the books and records at the Contractor’s office. If the books and records provided to the Owner are incomplete, the Contractor agrees to remedy the deficiency after written notice thereof from the Owner, and to reimburse the Owner for any additional costs associated therewith including, without limitation, having to revisit the Contractor's office. The Contractor's failure to remedy the deficiency shall constitute a material breach of this Agreement. The Owner shall be entitled to its costs and reasonable attorney fees in enforcing the provisions of this Paragraph. If, at any time during the term of this Contract, or at any time after the expiration or termination of the Contract, the Owner or the Owner’s designated representative(s) finds the dollar liability is less than payments made by the Owner to the Contractor, the Contractor agrees that the difference shall be either: (a) repaid immediately by the Contractor to the Owner or (b) at the Owner’s option, credited against any future xxxxxxxx due the Contractor.