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<br />6. Accountin~. At all times from the effective .date of this Contract until completion of this Project, the Contractor shall maintain properly
<br />. segregated books of State. funds, matching funds, and other funds associated with this Project. All receipts and expenditures associated with said Project shaH
<br />be dccumented 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 of ten percent (10%) must be
<br />authorized by tbe 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 forth in the Payment Schedule shall be made as soon as practicable after proper execution
<br />of this Contract. The Contractor sban 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 the State.
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<br />b.
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<br />The Contractor shall request the final payment, which is the arp;ount 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 all
<br />State funds received and expended towards completion of the Project which shall be included in a final pt'oject
<br />report. Upon determining to its satisfactioll that aU funds received by the Contractor have been properly spent
<br />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 shan submit to the contract monitor a
<br />detailed cost accounting of expenditures of the fjnal payment received from the State as well as a full and final
<br />project expenditure report. Any State funds not expended in connection with the Project shall be remitted to
<br />the State at that time.
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<br />7. ~. 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 SQ. Such discretionary audit
<br />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 for this Project is
<br />received by the contractor, provided that the audit is performed at a time convenient to the Contractor and during regular business hours. Whether or not
<br />the State cans for a discretionary audit as provided for in 'this paragraph, if the Project is accomplished within a single fiscal year of the Contract, the
<br />Contractor shall, at the conclusion of the Project. and in addition to any other reportS required, submit a report and auditor's statement of the Project account
<br />to the Colorado Water Conservation Board. Such report shall be prepared in conjunction with Contractor's regular yearly audit. and must be submitted within
<br />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 he an. independent contractor and shall have no authorization, express or implied, to bind the State
<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 not
<br />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 to 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 performed by the Contractor or under its supervision, and all
<br />personnel engaged in the work shan be fully qualified and shall be authorized under State and loca11aw 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 shan thereupon have the
<br />right to terminate this Contract for cause by giving written notice to the Contractor of such termination and specifying the effective date thereof, at least five
<br />(5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, mcx1els,
<br />photographs, and reports or other material prepared by the Contractor under this Contract shall, at the option of the State, become its property, and the
<br />Contractor shall be entitled. 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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