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(6) Satisfactorily documented;
<br />(7) Treated uniformly and consistently under accounting principles and
<br />procedures approved or prescribed by the Department; and
<br />(8) In compliance with U.S. DOT regulations pertaining to allowable costs
<br />at 49 C.F.R. § 18.22(b) or 49 C.F.R. § 19.27, which regulations specify
<br />the applicability of U.S. Office of Management and Budget (U.S. OMB)
<br />circulars and Federal Acquisition Regulation (FAR) provisions are
<br />follows:
<br />(a1) U.S. OMB Guidance for Grants and Agreements, "Cost
<br />Principles for State, Local, and Indian Tribal Governments
<br />(OMB Circular A -87) ", 2 C.F.R. Part 225, applies to Project
<br />costs incurred by a Contractor that is a State, local, or
<br />Indian tribal government.
<br />(b1) U.S. OMB Guidance for Grants and Agreements, "Cost
<br />Principles for Educational Institutions
<br />(OMB Circular A -21), "2 C.F.R. Part 220,
<br />applies to Project costs incurred by a Contractor
<br />that is an institution of higher education.
<br />(c1) U.S. OMB Guidance for Grants and Agreements "Cost
<br />Principles for Non - profit Organizations (OMB Circular
<br />A- 122)," 2 C.F.R. Part 230, applies to Project costs
<br />incurred by a Contractor that is a private nonprofit
<br />organization.
<br />(d1) FAR, at 48 C.F.R., Subpart 31.2, "Contracts with
<br />Commercial Organizations" applies to Project costs
<br />incurred by a Contractor that is a for - profit organization.
<br />Section 6. Reporting, Record Retention, and Access.
<br />a. Reports. The Contractor shall advise the Department regarding the progress
<br />of the Project at a minimum quarterly and at such time and in such a manner as the
<br />Department may require. Such reporting and documentation may include, but not be
<br />limited to: operating statistics, equipment usage, meetings, progress reports, and monthly
<br />performance reports. The Contractor shall collect and submit to the Department such financial
<br />statements, data, records, contracts, and other documents related to the Project as may be
<br />deemed necessary by the Department. Such reports shall include narrative and financial
<br />statements of sufficient substance to be in conformance with the reporting requirements of the
<br />Department. Progress reports throughout the useful life of the project equipment shall be used,
<br />in part, to document utilization of the project equipment. Failure to fully utilize the project
<br />equipment in the manner directed by the Department shall constitute a breach of contract, and
<br />after written notification by the Department, may result in termination of the Agreement or any
<br />such remedy as the Department deems appropriate.
<br />b. Record Retention. The Contractor and its third party contractors shall retain
<br />all records pertaining to this Project for a period of five (5) years from the date of final payment
<br />to the Contractor, or until all audit exceptions have been resolved, whichever is longer, in
<br />accordance with "Records Retention and Disposition Schedule — Public Transportation Systems
<br />and Authorities, April 1, 2006," at (http: / /www.ah.dcr.state.nc.us /records /local /).
<br />C. Access to Records of Contractor and Subcontractors. The Contractor shall
<br />permit and shall require its third party contractors to permit the Department, the Comptroller
<br />General of the United States, and the Secretary of the United States Department of
<br />Transportation, or their authorized representatives, to inspect all work, materials, payrolls, and
<br />other data and records with regard to the Project, and to audit the books, records, and accounts
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