Common use of AUDIT REQUIREMENTS AND AUDIT EXCEPTIONS Clause in Contracts

AUDIT REQUIREMENTS AND AUDIT EXCEPTIONS. 3.1 Contractor warrants that it shall comply with all audit requirements established by County and will provide a copy of Contractor’s Annual Independent Audit Report, if applicable. 3.2 County may conduct periodic audits of Contractor’s financial records, notifying Contractor no less than 48 hours prior to scheduled audit. Said notice shall include a detailed listing of the records required for review. Contractor shall allow County, or other appropriate entities designated by County, access to all financial records pertinent to this Agreement. 3.3 If DHCS, CMS, or HHH Inspector General determines that there is a reasonable possibility of fraud or similar risk, CHCS, CMS or HHS Inspector General may inspect, evaluate and audit the Contractor or subcontractor at any time per 42 CFR 438.230(iv). 3.4 DHCS, CMS, HHS Inspector General, Comptroller General or their designees have the right to audit, evaluate and inspect any books, records, contracts, computer or other electronic systems of the contractor or subcontractor that pertain to any aspects of services and activities performed on Medi-Cal beneficiaries per 42 CFR 438.230(i). 3.5 Contractor shall reimburse County for audit exceptions within 30 days of written demand or shall make other repayment arrangements subject to the approval of County. 3.6 The contracting parties shall be subject to the examination and audit of the Department of Health Care Services (DHCS) or Auditor General for any contract in excess of $10,000 which utilizes state funds for a period of ten (10) years from the final date of the contract period or from the date of completion of any audit, whichever is later per 42 CFR 438.230(iii). 3.7 If DHCS or County determines Contractor has not performed satisfactorily, the Contract shall still be subject to examination and audit for the period of ten (10) years from the final date of the contract period or from the date of completion of any audit, whichever is later.

AUDIT REQUIREMENTS AND AUDIT EXCEPTIONS. 3.1 Contractor warrants that it shall comply with all audit requirements established by County and will provide a copy of Contractor’s Annual Independent Audit Report, if applicable. 3.2 County may conduct periodic audits of Contractor’s financial records, notifying Contractor Contractor no less than 48 hours prior to scheduled audit. Said notice shall include a detailed listing of the records required for review. Contractor shall allow County, or other appropriate entities designated by County, access to all financial records pertinent to this Agreement. 3.3 If DHCS, CMS, or HHH Inspector General determines that there is a reasonable possibility of fraud or similar risk, CHCS, CMS or HHS Inspector General may inspect, evaluate and audit the Contractor or subcontractor at any time per 42 CFR 438.230(iv). 3.4 DHCS, CMS, HHS Inspector General, Comptroller General or their designees have the right to audit, evaluate and inspect any books, records, contracts, computer or other electronic systems of the contractor Contractor or subcontractor that pertain to any aspects of services and activities performed on Medi-Cal beneficiaries per 42 CFR 438.230(i). 3.5 Contractor shall reimburse County for audit exceptions within 30 days of written demand or shall make other repayment arrangements subject to the approval of County. 3.6 The contracting parties shall be subject to the examination and audit of the Department of Health Care Services (DHCS) or Auditor General for any contract in excess of $10,000 which utilizes state funds for a period of ten (10) years from the final date of the contract period or from the date of completion of any audit, whichever is later per 42 CFR 438.230(iii). 3.7 If DHCS or County determines Contractor has not performed satisfactorily, the Contract shall still be subject to examination and audit for the period of ten (10) years from the final date of the contract period or from the date of completion of any audit, whichever is later.