Common use of Management and Control Systems Clause in Contracts

Management and Control Systems. a) Contractor shall maintain an appropriate contract administration system to ensure that all terms, conditions, and specifications are met during the term of the contract through the completion of the closeout procedures. b) Contractor shall develop, implement, and maintain financial management and control systems that meet or exceed the requirements of UGMS and applicable OMB circulars. If a conflict arises between the provisions of this Contract and the UGMS and/or OMB circulars, the provisions of the UGMS and/or OMB circulars will prevail, unless expressly stated otherwise. Those requirements and procedures include, at a minimum, the following: 1) Financial planning, including the development of budgets that adequately reflect all functions and resources necessary to carry out authorized activities and the adequate determination of costs within an internal control framework to assure compliance with federal and state laws and regulations.; 2) Financial management systems that include accurate, correct, and complete payroll, accounting, and financial reporting records, financial statements presented fairly in accordance with generally accepted accounting principles (“GAAP”), effective internal and budgetary controls, determination of reasonable and allowable costs, timely and appropriate monitoring, resolution of any findings., and original source documentation substantiating that costs are specifically and solely allocable to a Contract and are traceable from the transaction to the general ledger; 3) Effective internal and budgetary controls; 4) Comparison of actual costs to budget; determination of reasonableness, allowableness, and allocability of costs; 5) Timely and appropriate audits and resolution of any findings; 6) Billing and collection policies; and 7) Mechanism capable of billing and making reasonable efforts to collect from clients and third parties.