4.9D: Right to Audit Records
The Town and its authorized representatives shall have the right to audit, to examine, and to make copies or extracts from all financial and related records (in whatever form they may be kept, whether written, electronic, or other) relating to or pertaining to the contract or agreement with the Town kept by or under the control of the contractor, its employees, agents, assignors, successors, and subcontractors. Such records shall include, but not be limited to, accounting records, written policies and procedures; subcontract files (including proposals of successful and unsuccessful bidders, bid recaps, etc.); all paid vouchers including those for out-of-pocket expenses; other reimbursement supported by invoices; ledgers; cancelled checks; deposit slips; bank statements; journals; original estimates; estimating work sheets; contract amendments and change order files; back charge logs and supporting documentation; insurance documents; payroll documents; timesheets; memoranda; cost of pricing data, testing reports, submittal requirements; records pertaining to the performance of work; and correspondence.
The contractor shall at any time requested by the Town, whether during or after completion of the agreement, and at the contractor’s own expense, make such records available for inspection and audit (including copies and extracts of records as required) by the Town. Such records shall be made available to the Town during normal business hours at the contractor's office or place of business. In the event that no such location is available, then the financial records, together with the supporting or underlying documents and records, shall be made available for audit at a time and location that is convenient for the Town.
Costs of any audits conducted under the authority of this right to audit and not addressed elsewhere will be borne by the Town unless certain exemption criteria are met. If the audit identifies overpricing or overcharges (of any nature) by the contractor to the Town, in excess of one-half one percent (0.5%) of the total contract billings, the contractor shall reimburse the Town for the total costs of the audit. If the audit discovers substantive findings related to fraud, misrepresentation, or non-performance, the Town may recoup the costs of the audit work from the contractor. Any adjustments and/or payments that must be made as a result of any such audit or inspection of the contractor's invoices and/or records shall be made within a reasonable amount of time (not to exceed 90 days) from the presentation of the Town’s findings to the contractor.