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<br />5. Accountim!:. At all times from thative date of this Conb3ct until completion of this Project. antractor shall maintain properly segregated
<br />books of State funds, matChing fundS, and other funds associated with this Project. All receipts and expenditures associated with said Project shall be documented in
<br />a detailed and specific ~ner, and. shall accord with the "Budget" set forth in Exhibit A. Contractor may adjust budgeted expenditure amounts up to ten percent
<br />(10%) within said Budget without approval of the State. Adjustments of budget expenditure amounts in excess often percent (10%) must be authorized by the State
<br />in an amendment to this Contract properly executed and approved pursuant to the State Fiscal Rules. In no event shall the State's total consideration exceed the
<br />amount shown in Parngraph 4 above.
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<br />a. Unless otherwise provided in this Contract, if Exhibit A provides for more than one pa~ment by the State, the
<br />initial payment set forth in the Payment Schedule shall be made as soon as practicable after proper execution of
<br />this Contract The Contractor shall initiate all subsequent payment requests by submitting documented proof of
<br />proper expenditure of State funds thus far received to a contract monitor designated by the State.
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<br />b. The Contractor shall request the final payment, which is the amount withheld by the State until the Project is
<br />accepted for completion, for the Project by submitting to the State a detailed costs accounting of all State funds
<br />received and expended towards completion of the Project which shall be included in a final project report. Upon
<br />determining to its satisfaction that all funds received by the Contractor have been properly spent towards the goals
<br />of the Project, the State shall promptly make final payment to the Contractor.
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<br />c. Within ninety (90) days of completion of the Project. the Contractor shall submit to the State a detailed cost
<br />accounting of expenditures or' the final payment received from the State as well as a full and final project
<br />expenditure report Any State funds not expended in connection with the Project shall be remitted to the State at
<br />that time.
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<br />6. ~ The State or its authorized representative shall have the right to inspect, examine, and audit Contractor's records, books and accounts,
<br />including the right to hire an independent Certified Public Accountant of the State's choosing and at the State's expense to do so. Such discretionary audit may
<br />be called for at any time and for any reason from the effective date of this Contract until five (5) y~ after the date final payment for this Project is received by
<br />the contractor, provided that the audit is perfonned at a time convenient to the Contractor and during regular business hours. \\7ftether or not the State cans for a
<br />discretionary audit as provided for in this parngraph, if the Project is accomplished within a single fiscal year of the Contract. the Contractor shall, at the
<br />conclusion of the Project. and in addition to any other reports required, submit a report and auditor's statement of the Project aCCOlmt to the Colorado Water
<br />Conservation Board. Such report shall be prepared in conjunction with Contractor's regular yearly audit, and must be submitted within six (6) months after the
<br />close of the then current Contractor's fiscal year.
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<br />7 .lndeoendent Contractor.
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<br />a. Contractor is a grantee and shall be an independent contractor and shall have no authorization, express or implied, to bind the State to any
<br />agreements, settlements, liability or understanding except as expressly set forth herein.
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<br />b. The Contractor represents that the Contractor has, or win secure at its own expense all personnel, as employees of the Contractor,
<br />necessary to perform the work and services required to be performed by the Contractor under this Contract Such personnel may not be
<br />employees of or have any contractual relationship with the State and no such personnel are eligible for any employee benefits,
<br />lmemployment compensation or any other benefits accorded to State employees and Contractor agrees to indenmify the State for any
<br />costs for which the State may be found liable in these regards. Contractor shall pay when due an required employment taxes and income
<br />tax withholding. All of the services required hereunder will be performed by the Contractor or under its supervision, and all personnel
<br />engaged in the work shall be fully qualified and shall be authorized under State and local Jaw to perform such services.
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<br />8. Termination of Contract for Cause. If, through any cause, the Contractor shan fail to fulfill in a timely and proper manner his obligations under
<br />this Contract, or if the Contractor shall violate any of the covenants, agreements, or stipulations of this Contract, the State shall thereupon have the right to
<br />terminate this Contract for cause by giving v.'fitten notice to the Contractor of such tennination and specifying the effective date thereof, at least five (5) days
<br />before the effective date of such tennination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs,
<br />and reports or other material prepared by the Contractor under this Contract shall, at the option of the State, become its property, and the Contractor shaH be
<br />entitled to receive just and equitable compensation for any satisfactory work completed on such documents and oL1er materials.
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<br />NO\V.1thstanding the above, the Contractor shall not be relieved of liability to the State for any damages sustained by the State by virtue of any
<br />breach of the Contract by the Contractor, and the State may withhold any payments to the Contractor for the purpose of setoff until such time as the exact
<br />amount of damages due the State from the Contractor is determined.
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