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<br />6. Accountine. At all times from the effective date of this Contract until completion of this Project, the Contractor shall maintain properly
<br />s..;gregated books of State funds, matching funds, and other funds associated with this Project. All receipts and expenditures associated with said Project shall
<br />h.: documented in a detailed and specific manner, and shall accord with the "Budget" set forth in Exhibit A. Contractor may adjust budgeted expenditure amounts
<br />up to ten percent (10%) within said Budget without approval of the State. Adjustments of budget expenditure amounts in excess often percent (10%) must he
<br />authorized by the State in an amendment to this Contract properly executed and approved pursuant to the State Fiscal Rules. In no event shall the State's total
<br />consideration exceed the amount shown in Paragraph 5 above.
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<br />a. Unless otherwise provided in this Contract, if Exhibit A provides for more than one payment by the State, the
<br />initial payment set f0l1h in the Payment Schedule shall be made as soon as practicable after proper execution
<br />of this Contract. The Contractor shall initiate all subsequent payment requests by submitting documented proof
<br />of proper expenditure of State funds thus far received to a contract monitor designated by th.: 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 contract monitor a detailed costs accounting of
<br />all State funds received and expended towards completion of the Project which shall be included in a final
<br />project report. Upon determining to its satisfaction that all funds received by the Contractor have been properly
<br />spent towards the goals 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 contract monitor a
<br />detailed cost accounting of expenditun:s of the linal payment received from the State as well as a full and final
<br />projecl expenditure report. Any Slate funds not expended in connection with the Project shall be remitted to
<br />the State at that time.
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<br />7. Audit. The State or its authoriZed repn:sentative shal1 hav~ the right to inspect, examine, and audit Contractor's records, books and
<br />accounts, including the right to hire an independent Certified Public Accountant of the Slate's choosing and at the State's expense to do so. Such
<br />discretionary audit may be called for at any time and for any reason from the effective date of this Contract until five (5) years after the date final payment
<br />for this Project is received by the contractor, provided that the audit is performed at a time convenient to the Contractor and during regular business hours.
<br />Whether or not the State calls for a discretionary audit as provided for in this paragraph, if the Project is accomplished within a single fiscal year of the
<br />Contract, the Contractor shall, at the conclusion of lhe Project, and in addition to any other reports required, submit a report and auditor's statement of
<br />the Project account to the Colorado Water Conservation Board. Such report shall be prepared in conjunction with Contractor's regular yearly audit, and
<br />must be submitted within six (6) months after the close of the then current Contractor's fiscal year.
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<br />8. Independent 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 Slate
<br />to any 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 will 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
<br />not be employees of or have any contractual relationship with the State and no such personnel are eligible for any employee benefits,
<br />unemployment compensation or any other benefits accorded 10 State employees and Contractor agrees to indemnify the State for any
<br />costs for which the State may be found liable in these regards. Contractor shall pay when due all required employment taxes and
<br />income tax withholding. All of the services required hereunder will be perfonned by the Contractor or under its supervision, and
<br />all personnel engaged in the work shall be fully qualified and shall be authorized under State and local law to perform such services.
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<br />9. Termination of Contract for Cause. If, through any cause, the Contractor shall fail to fulfill in a timely and proper manner his obligations
<br />under this Contract, or if the Contractor shall violate any of the covenants, agreements, or stipulations of this Contract, the State shall thereupon have the
<br />right to terminate this Contract for cause by giving wrinen notice 10 the Contractor of such termination and specifying the effective date thereof, at least
<br />live (5) days b.:fore the .:erective dale of such termination. In thaI cwnt. all tini~h.:d or unfinished documents. data, studies, surveys, drawings, maps,
<br />models, photographs, and reports or other material prepared by the Contractor under this Contract shall, at the option of the State, become its property,
<br />and the Contractor shall be .:ntitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials.
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<br />Notwithstanding 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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