Audits by Owner. Owner shall have the right to audit, conducted either by Owner's internal personnel or by a third party auditor retained by Owner at its expense, all items of expense and revenue under this Agreement including, but not limited to, Total Operating Revenues, Gross Operating Expenses, depreciation, the Management Fee and Reserve. Manager shall cooperate and assist with such audit. In the event that an audit reflects an underpayment to Owner or Manager or an overpayment to Manager or Owner, Manager shall correct same by a corrective payment to Owner or Manager, as appropriate, within ten (10) days following notice of the audit results to Manager, subject to Owner’s and Manager’s right to challenge the audit results in accordance with the provisions of Article 30 of this Agreement.
Audits by Owner. Owner shall have the right or on such more or less frequent basis as Owner shall desire, to perform a complete audit of the Hotel (including inventories) either by Owner’s internal personnel or by a third party auditor retained by Owner. The audit may cover all items of expense and revenue under this Agreement including, but not limited to, Gross Operating Revenues, Gross Operating Expenses, depreciation, and the Management Fee. The cost of one such audit during each Fiscal Year shall be a Gross Operating Expense, provided such cost is reasonable and customary for such audits within the City of San Francisco. If, as a result of such audit, it is ultimately determined that amounts paid or reimbursed to Operator exceeded the amounts required to be paid or reimbursed pursuant to this Agreement, Operator shall within ten (10) after delivery of Owner’s demand, pay to Owner the amount of the excess payment, together with interest thereon from the date paid to Operator until the date payment is made to Owner at the rate set forth in Section 31.15. In the absence of manifest error, any audit conducted by a qualified third party auditor retained by Owner shall be binding upon the parties, and if the audit shows a difference of more than 3% between the Gross Operating Revenues or Gross Operating Expenses reported by Operator and the Gross Operating Revenues or Gross Operating Expenses determined by the qualified third party auditor, in addition to any other rights and remedies of Owner, Operator shall pay the cost of the audit, and it shall not be entitled to charge the cost as a Gross Operating Expense or recover it as an Operator’s Expense.
Audits by Owner. Owner shall have the right to audit, conducted either by Owner’s internal personnel or by a third party auditor retained by Owner, at its expense and not as an Operating Expense of the Hotel, all items of expense and revenue under this Agreement including, but not limited to, Gross Revenues, Operating Expenses, depreciation, the Management Fee and the Reserve. Operator shall cooperate and assist with such audit, at no cost to Operator. In the event that an audit reflects an underpayment to Owner or Operator or an overpayment to Operator or Owner, Operator shall correct same by a corrective payment to Owner or Operator, as appropriate, within ten (10) days following notice of the audit results to Operator, subject to Owner’s and Operator right to challenge the audit results in accordance with the provisions of ARTICLE 29 of this Agreement.
Audits by Owner. Owner shall have the right to audit, either by Owner's internal personnel or by a third party auditor retained by Owner, all items of expense and revenue under this Agreement including, but not limited to, Gross Operating Revenues, Gross Operating Expenses, depreciation, and the Management Fee. Owner and its agents shall conduct such audits at Owner's expense, provided, that if such audit discloses a discrepancy of five percent (5%) or more between any of Gross Operating Revenues or the Management Fee reported by Operator and those in the annual audited report, then Operator shall payor reimburse Owner for the costs of such audit. In the event of such a discrepancy, Operator shall correct same by payment to Owner with ten (10) days following notice thereof to Operator. Upon request from Owner, Operator shall provide Owner with satisfactory evidence that Operator has internal control procedures in effect to 9wner's satisfaction, in its sole discretion, and that Operator is following such internal control procedures. If the audit dete1mines weaknesses or need for reasonable changes in internal control system pertaining to the safeguarding of Owner's assets, Operator will make all necessary changes.
Audits by Owner. Owner shall have the right to audit, conducted either by Owner's internal personnel or by a third party auditor retained by Owner at its expense, all items of expense and revenue under this Agreement including, but not limited to, Total Operating Revenues, Gross Operating Expenses, depreciation, the Management Fee and Reserve. Manager shall cooperate and assist with such audit. At Owner’s election, the costs of such audit shall be paid from the Operating Account (provided that Owner makes the necessary funds available therefor), but shall not be treated as a Gross Operating Expense for purposes of determining the Incentive Fee. In the event that an audit reflects an underpayment to Owner or Manager or an overpayment to Manager or Owner, Manager shall correct same by a corrective payment to Owner or Manager, as appropriate, within ten (10) days following notice of the audit results to Manager, subject to Owner’s and Manager’s right to challenge the audit results in accordance with the provisions of Article 30 of this Agreement. If an audit determines any weaknesses or need for reasonable changes in the internal control systems pertaining to the safeguarding of Owner's assets, Manager will promptly make all necessary changes.
Audits by Owner
