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<br />"uL>:ilhSlanding any ,J'ni';e llY IkpM'tment (, its r'i~"t of suspension
<br />.ndcr Seclion II or thi<; (OnlrilcL, or' of early termination pursuant to this
<br />.section 10, COlltr,lctor ,;lla11 nolbe relieved of any lidbility to Department
<br />of damage, due to Department by virtue of any breach of this contract by
<br />Contractor, Department OldY cause payments to Contractor to be withheld until
<br />such time dS the exact amount of damages due to Department from Contractor is
<br />agreed upon or is otll(~rwi5e determined.
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<br />SEC1!DN 19,
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<br />ilUQH
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<br />A, Unless otherwise directed by Department, Contractor shall arrange for the
<br />pedor'mance of a financial and compliance audit of funds received under this
<br />contract, subject to the following conditions and limitations:
<br />
<br />1, Contractor shall have an audit made in accordance with the Single Audit
<br />Act of 1984, P,l, 98-502 (hereinafter referred to as "Audit Act"), and OM8's
<br />Circular No. A-12&, "Audit Requirements for State and Local Governments," 49
<br />Fed,Reg, 50134 (Dec, 26, 1984), for any of its Fiscal years in which
<br />Contractor receives more than $100,000 in Federal Financial assistance. For
<br />purposes of this Section 19, "Federal financial assistance" means assistance
<br />provided by a federal agency in the form of grants, contracts, cooperative
<br />agreements, loans, loan guarantees, property, interest subsidies, insurance,
<br />or direct appropriations, but does not include direct Federal cash assistance
<br />to individuals. It includes awards received directly From Federal agencies,
<br />or indirectly through other units of State arid local governments.
<br />
<br />2. Contractor shall have an audit made in accordance with the Audit Act and
<br />OMB's Circular A-12&, or in accordance with the audit requirements specified
<br />in Attdchment P of OMB Circular A-102, as reflected in 24 CFR Part 44 and as
<br />supplemented by Section 5,1&7 of the Management Standards, for any fiscal
<br />year in which Contractor receives between $25.000 and $100,000 in Federal
<br />Financial as,istance,
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<br />3, Contractor' shall have an audi t made in accordance with Attachment P of
<br />OND Circular A~102, as supplemented by Section 5.1&7 of the Management
<br />Standards, for any fiscal year in which Contractor receives less than $25,000
<br />in reeleral fianancial assistance,
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<br />4. Nothing in this Section 19 exempts Contractor from maintaining records of
<br />assistance provided under this contract or from providing access to such
<br />records to a Federal agency or Department, as provided For in Section 7 of
<br />this contract:.
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<br />5, Where contract, are awareled for audit services, the contracts shall
<br />include a reference to the Audit Act and OMS Circular A-126,
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<br />S, Unless otherwise specifically authorized by Department in writing.
<br />Contractor shall NOT utilize funds provided under this contract to pay for
<br />the cost of audit services required under subsection A of this Section 19,
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<br />C, Unless otherwise specifically authorized by Department in writing,
<br />Contractor shall submit the report of such audit to Department no later than
<br />one hundred twenty (120) days after the end of the audit period, Audits
<br />performed under this Section 19 are subject to review and resolution by
<br />Department or its authorized representative, Resolution of findings shall be
<br />made within ,ix (&) months aFter rcceipt'of the auelit report by Department,
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<br />"AGL 9 OF 11
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