Orange County NC Website
Browse       Search
the allowability .and eligibility of-any cost until an audit of the Project has <br />been completed. If the Federal/State Govemment determines that the <br />Contractor is not entitled to receive any portion of the Federal/State <br />assistance the Contractor has requested or provided, the Department will <br />notify the Contractor in writing, stating its reasons. The Contractor agrees <br />that Project closeout will not alter the Contractor 's responsibility to return <br />any funds due the Federal/State Government as a result of later refunds, <br />corrections, or other transactions; nor will Project closeout alter the <br />Federal/State Government's right to disallow costs and recover funds on the <br />basis of a later audit or other review. Unless prohibited by Federal/State law <br />or regulation, the Federal/State Government may recover any Federal/State <br />assistance funds made available for the Project as necessary to satisfy any <br />outstanding monetary claims that the Federal/State Government may have <br />against the Contractor. <br />(d) State Claims Excess Payments Disallowed Costs, including <br />Interest. <br />Contractor's Responsibility to Pay. Upon notification to the Contractor <br />that specific amounts are owed to the State Government, whether for <br />excess payments of State assistance, disallowed costs, or funds recovered <br />from third parties or elsewhere, -the Contractor agrees to remit to the <br />Department promptly the amounts owed, including applicable interest and <br />any penalties and administrative charges. <br />(1) Amount of Interest. The Contractor agrees to remit to the Department <br />interest owed as determined in accordance with N.C.G.S. 147-86.23. <br />(e) De-obligation of Funds. The Contractor agrees that the <br />Department may de-obligate unexpended State funds before Project <br />closeout. <br />Section 8. Accounting Records. <br />a. Establishment and Maintenance of Accounting Records. The Contractor <br />shall establish and maintain separate accounts for the public transportation program, <br />either independently or within the existing accounting system. All costs charged to the <br />program shall be in accordance with most current approved budget and shall be <br />reported to the Department in accordance with UPTAS. <br />b. Documentation of Project Costs. All costs charged to the Project, including <br />any approved services performed by the Contractor or others, shall be supported by <br />properly executed payrolls, time records, invoices, contracts, or vouchers evidencing in <br />detail the nature and propriety of the charges, as referenced in 49 C.F.R. 18, the Office <br />of Management and Budget Circulars A-87, "Costs Principles for State, Local, and <br />Indian Tribal Governments" and A-102 "Grants and Cooperative Agreements with State <br />and Local Governments." <br />c. Allowable Costs. Expenditures made by the Contractor shall be reimbursed <br />as allowable costs to the extent they meet all of the requirements set forth below. They <br />must be: <br />(1) Consistent with the Project .Description, plans, specifications, and <br />Project Budget and all other provisions of this Agreement; <br />(2) Necessary in order to accomplish the project; <br />(3) Reasonable in amount for the goods or services purchased; <br />(4) Actual net costs to the Contractor, i.e., the price paid minus any <br />Updated 07/26/10 10 <br />