Audits/Collections Clause Samples
The Audits/Collections clause grants one party the right to review and examine the financial records or relevant documentation of the other party to ensure compliance with the terms of the agreement. Typically, this clause outlines the procedures for conducting audits, such as advance notice requirements, the scope of records subject to review, and the frequency or timing of such audits. Its core practical function is to provide transparency and accountability, enabling the auditing party to verify payments, detect discrepancies, and address potential issues related to financial obligations or reporting.
Audits/Collections. The Trustees are hereby authorized to institute periodic audits of Employer’s contributions to ascertain whether such contributions have been and are being made, fully and accurately. If any such audit should disclose either an under-reporting or nonreporting of required contributions, the Trustees, at their sole discretion, may assess all or a portion of the audit expenses against such Employer, which the Employer hereby agrees to pay. The Trustees may add reasonable interest charges to any unpaid contributions and the Employer also shall pay such interest charges. If it should become necessary to institute legal action against a contributing Employer to collect unpaid contributions, the Trustees, in their sole discretion, may assess all or a portion of attorneys’ fees and court costs against the Employer, in addition to any audit expenses. The Employer hereby agrees to pay such attorneys’ fees and court costs. The Trustees are authorized and directed to establish a method to encourage regular and prompt payment by instituting the imposition of liquidated damages to those Employers who are delinquent in their payments. The Employer agrees to make all pertinent books and payroll records available to the Trustees, or their agents, for their inspection in the conduct of any audit performed pursuant to this Article.