2004/07/21 Council Agenda Packet

6 5. Property Records: The Contractor shall maintain real property inventory records which clearly identify properties purchased, improved or sold. Properties retained shall continue to meet eligibility criteria. 6. Close -Outs: The Contractor's obligation to the City shall not end until all close-out requirements are completed, notwithstanding any expiration or termination of this Agreement. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the City), and determining the custodianship of records. In the event that this Agreement is terminated in whole or part for any reason, the following provisions shall apply: a. Upon written request by the Contractor, the City shall make or arrange for payment to the Contractor of allowable reimbursable costs not covered by previous payments. b. The Contractor shall submit within thirty (30) days after the date of expiration of this Agreement all financial, performance and other reports required by this Agreement, and in addition, will cooperate in a program audit by the City of Everett or its designee. C. In the event a financial audit has not been performed prior to close-out of this Agreement, the City retains the right to withhold a just and reasonable sum from the final payment to the Contractor after fully considering the recommendation on disallowed costs resulting from the final audit. 7. Audits & Inspections: All Contractor records with respect to any matters covered by this Agreement shall be made available to the City, or its designees at any time during normal business hours, as often as the City deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Contractor within 30 days after receipt by the Contractor. Failure of the Contractor to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. The Contractor hereby agrees to have an annual agency audit conducted in accordance with current City policy concerning Contractor audits and, as applicable, OMB Circulars A-128 or A-133. C. Reporting and Payment Procedures Program Income: The Contractor shall report quarterly all program income as defined at generated by activities carried out with Washington State Affordable Housing Trust Funds made available under this Agreement. By way of further limitations, the Contractor may use such income during the contract period for activities permitted under this Agreement and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the City at the end of the contract period.