Common use of FINANCIAL AND PERFORMANCE AUDIT Clause in Contracts

FINANCIAL AND PERFORMANCE AUDIT. 12.1 Right and Purpose (a) COMPANY will have the right to audit: (i) at-cost rates (including formulae and make-up of rates, overhead, and payroll burden factors, uplifts, direct cost, and other cost reimbursable items under the CONTRACT), but not the basis or make-up of lump sums or fixed rates that are not at-cost; (ii) invoiced charges and proper invoicing; (iii) other BOOKS AND RECORDS; and (iv) the performance of any other of CONTRACTOR’s obligations under the CONTRACT, where capable of being verified by audit. (b) Based on the findings of the audit: (i) COMPANY may make a prospective and retroactive adjustment of the applicable at-cost rates as referred to above; (ii) the parties will settle any amounts charged incorrectly within 45 days of any audit finding; and (iii) CONTRACTOR will provide any SCOPE, or refund, repair, replace, or re-perform any SCOPE where the requirement to do so is identified by any audit within 45 days of any audit finding, except where it is not reasonably practical to accomplish the foregoing in 45 days, in which case the remedial actions must be performed as soon as reasonably practicable with exercise of all diligence.