Common use of Right to Audit and Inspect Clause in Contracts

Right to Audit and Inspect. The Authority or its authorized representatives shall have the right to examine, review, and audit any records and books of accounts and financial documentation upon reasonable notice to the Contractor for any contract year which ended no more than three (3) years prior to the date of commencement of such audit. The Authority’s right to inspect and audit extends to the books and records of all subcontractors under this agreement as they relate to this agreement. Additionally, the Authority representatives may conduct interviews with Contractor personnel, contact financial institutions and make copies of records as necessary. The Authority and its auditors also shall have the right to conclude that the documents provided in support of the audit are the contractor’s complete records; that transactions lacking source documents may be subjected to additional scrutiny and a recommendation for recovery of any additional amounts associated with the missing documents or a decision to exclude any amount normally included as an allowable deduction. If the audit discloses substantial inaccuracies or omissions, this agreement, at the option of the Authority, may be terminated. The Contractor shall provide records and retrievals requested, no later than ten (10) business days after receipt of written notice from the Authority.