Common use of Financial Systems Clause in Contracts

Financial Systems. The Grantee shall have financial systems in place to maintain internal controls, ensure proper management of federal and state funds, maximize non-federal resources, and maintain solvency. The Grantee’s accounting and internal control systems must meet the following requirements: A. The systems must be appropriate to the size of the organization. B. The accounting system must consist of source documents, a chart of accounts, journals, ledgers, and routine financial reports.