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b. Record Retention. The Contractor and its third party contractors shall retain all
<br /> records pertaining to this Project for a period of five (5) years from the date of final payment to the
<br /> Contractor, or until all audit exceptions have been resolved, whichever is longer.
<br /> C. Access to Records of Contractor and Subcontractors. The Contractor shall permit
<br /> and shall require its third party contractors to permit the Department, the North Carolina State Auditor,
<br /> the Comptroller 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 other
<br /> data and records with regard to the Project, and to audit the books, records, and accounts of the
<br /> Contractor pertaining to the Project in accordance with the Title 19A N.C.A.0 Subchapter 5B and
<br /> N.C.G.S. 147-64.7. The Department shall reserve the right to reject any and all materials and
<br /> workmanship for defects and incompatibility with Project Description or excessive cost. The Department
<br /> shall notify the Contractor, in writing, if materials and/or workmanship are found to be unacceptable.
<br /> The Contractor shall have ninety (90) days from notification to correct defects or to provide acceptable
<br /> materials and/or workmanship. Failure by the Contractor to provide acceptable materials and/or
<br /> workmanship, or to correct noted defects, shall constitute a breach of contract.
<br /> d. Project Closeout. The Contractor agrees that Project closeout does not alter the
<br /> reporting and record retention requirements of this Section 6 of this Agreement.
<br /> Section 10.Proiect Completion, Audit, Settlement, and Closeout.
<br /> a. Protect Completion. Within ninety (90) calendar days following Project completion,
<br /> the end of the Project's period of performance, or termination by the Department, the Contractor agrees
<br /> to submit a final reimbursement request to the Department for eligible Project expenses.
<br /> b. Financial Reporting and Audit Requirements. In accordance with OMB Circular A-
<br /> 133, "Audits of State, Local Governments and Non-Profit Organizations," revised on June 27, 2003 and
<br /> June 26, 2007 (www.whitehouse.gov/omb.circulars), N.C.G.S. 143C-6, "Non-State Entities Receiving
<br /> State Funds", and Title 9 North Carolina Administrative Code (N.C.A.C.) Subchapter 3M, "Uniform
<br /> Administration of State Grants" (www.ncgrants.gov), the Contractor shall comply with all rules and
<br /> reporting requirements established by statute or administrative rules. Financial reporting and audit
<br /> requirements shall be based on the following reporting thresholds:
<br /> (1) Less than $25,000 -A grantee that receives, uses, or expends State (including
<br /> federal funds' passed through) funds in an amount less than twenty-five thousand dollars ($25,000)
<br /> within its fiscal year must comply with the reporting requirements established by 9 N.C.A.C. Subchapter
<br /> 3M including:
<br /> (a) A certification completed by the grantee Board and management stating
<br /> that the State (including federal funds passed through) funds.were received, used, or expended for the
<br /> purposes for which they were granted; and
<br /> (b) An accounting of the State (including federal funds passed through)
<br /> funds received, used, or expended.
<br /> All reporting requirements shall be filed with the funding agency within six months after the end of the
<br /> grantee's fiscal year in which the State (including federal funds passed through)funds were received.
<br /> (2) $25,000 up to $500,000 - A grantee that receives, uses, or expends State
<br /> (including federal funds passed through) funds in an amount of at least twenty-five thousand ($25,000)
<br /> but less than five- hundred thousand dollars ($500,000) within its fiscal year must comply with the
<br /> reporting requirements established by 9 N.C.A.C. Subchapter 3M including:
<br /> (a) A certification completed by the grantee Board and management stating
<br /> that the State (including federal funds passed through) funds were received, used, or expended for the
<br /> purposes for which they were granted;
<br /> (b) An accounting of the State funds received, used, or expended; and
<br /> (c) A description of activities and accomplishments undertaken by the
<br /> grantee with the State (including federal funds passed through)funds.
<br /> All reporting requirements shall be filed with the funding agency within six months after the end of the
<br /> grantee's fiscal year in which the State (including federal funds passed through)funds were received.
<br /> (3) $500,000 or more - A grantee that receives, uses, or expends State (including
<br /> federal funds passed through) funds and in the amount five hundred thousand dollars ($500,000) or
<br /> Revised 4/22/14 Page 11 of 36
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