Common use of Cooperation with Audits and Inquiries, Confidentiality Clause in Contracts

Cooperation with Audits and Inquiries, Confidentiality. Beneficiary is subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 USC 7501-7507) and is obligated to cooperate with the Department and other legal authorities in any audit or inquiry related to the Program. The Department or any other governmental authority conducting an audit or inquiry may require the beneficiary to keep confidential any audit or inquiry and to limit internal disclosure of the audit or inquiry to those beneficiary personnel who are necessary to support the beneficiary’s response to the audit or inquiry. This confidentiality requirement shall not limit beneficiary’s right to discuss an audit or inquiry with its legal counsel. If a third party seeks to require the beneficiary, pursuant to any law, regulation, or legal process, to disclose an audit or inquiry that has been deemed confidential by the Department or other governmental authority, the beneficiary shall promptly notify the entity that is conducting the audit or inquiry of such effort so that the entity that is conducting the audit or inquiry may seek a protective order, take other appropriate action, or waive compliance by the beneficiary with the confidentiality requirement.