07-F DSHS Contract No. 2007-020428

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this Contract, Department will pay Contractor. Payments are contingent upon a signed Contract and will not exceed the total of authorized funds under this Contract. Contractor is entitled to payment only if the service, work, and/or product has been authorized by the Department and performed or provided pursuant to the Contract. If those conditions are met, Department will make payment in accordance with the Texas prompt payment law (TEX. GOy'T. CODE, Chapter 2251). Contractor must comply with TEX. GOy'T. CODE, Chapter 2251 regarding its prompt payment obligations to subcontractors. Payment of invoices by the Department shall not constitute acceptance or approval of Contractor's performance, and all invoices and Contractor's performance shall be subject to audit or review by the Department. Section 5.02 Withholding Payments. Department may withhold all or part of any payments to Contractor to offset reimbursement for any ineligible expenditures or overpayments that Contractor has not refunded to Department, or if financial status report(s) required by the Department are not submitted by the date(s) due. Department may take repayment from funds available under this Contract, active or expired, in amounts necessary to fulfill Contractor's repayment obligations. Section 5.03 Condition Precedent to Requesting Payment. Contractor shall disburse program income, rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds before requesting cash payments including any advance payments from Department. Section 5.04 Acceptance as Payment in Full. Contractor shall accept reimbursement or payment from DSHS as payment in full for services or goods provided to clients. Contractor agrees to not seek additional reimbursement or payment for services or goods from clients. ARTICLE VI ALLOWABLE COSTS AND AUDIT REQUIREMENTS Section 6.01 Independent Audit. If Contractor within Contractor's fiscal year expends a total amount of at least $500,000 in state funds awarded or at least $500,000 in federal funds awarded, Contractor must have a single audit or program-specific audit in accordance with the Office of Management and Budget (OMB) Circ. No. A-133, the Single Audit Act of 1984, Pub. L. 98-502, 98 Stat. 2327, and the Single Audit Act Amendments of 1996, Pub. L. 104- 156, 110 Stat. 1396. The $500,000 federal threshold amount includes federal funds passed through by way of state agency awards. The audit shall be conducted by an independent certified public accountant and in accordance with applicable OMB Circulars, Government Auditing Standards, and Uniform Grant Management Standards (UGMS) located on the Internet at http://www.governor.state.tx.us/divisions/stategrants/guidelines/view. Contractor shall procure audit services in compliance with state procurement procedures, as well as with the provisions ofUGMS. Contractor shall not use the same accountant or accounting firm to conduct the independent audit for more than five consecutive years. Section 6.02 Allowable Costs. For services satisfactorily performed pursuant to this Contract, DSHS will reimburse Contractor for allowable costs. Reimbursements are contingent on a signed contract and will not exceed the total amount of the Contract. Contractor is entitled to payment only if the service, work, and/or product has been authorized and satisfactorily performed. Contractor must have incurred a cost within the applicable term to be eligible for reimbursement under this Contract and prior to claiming EF29-12425 General Provisions (Core Subrecipient 2007) Rev. 07/20/2006 Page 9 r'.'