Common use of Contractor's accounting records Clause in Contracts

Contractor's accounting records. Contractor shall maintain accurate and complete accounting records containing the underlying financial and operating data relating to, and showing the basis for computation of, all costs associated with providing services under this agreement. The accounting records shall be prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied. Chief among these accounting records shall be the Contractor’s Annual Compiled Financial Statement and Trienniel Audited Financial Statement. These reports, prepared at Contractor’s cost by a third-party accountancy firm, shall: 1. Clearly identify the methods used to allocate revenue and expense line items among the County franchise and the company’s other divisions. 2. Illustrate the methodologies used to allocate revenues and expenses among Related Party Entities. 3. Report any changes to the methodologies used to allocate revenues and expenses in the allocation percentages from the prior year.