Md. Code Regs. 16.04.02.10

Current through Register Vol. 51, No. 24, December 2, 2024

Section 16.04.02.10 - Responsibilities of Contractor

A. Disclosure of Records. Each contractor shall provide the Audit Division, during the contractor's regular business hours, full disclosure of all accounting, financial, and other records, as requested from time to time by the Audit Division.

B. Retention of Records. Each contractor shall retain all accounts and records relating to the contract for a period of 5 years following the close of each fiscal year.

C. Audit of Subcontractors. Each contractor is responsible for auditing its subcontractors in accordance with this chapter.

D. Receipts and Expenditures. Each contractor shall maintain detailed accounting records that include all receipts and expenditures of contract funds.

E. Revenues.

(1) All revenues received in connection with the contract shall be credited to the contract program and applied to the gross allowable expenditures of the program.

(2) These revenues include:

(a) All proceeds from the provision of services, including fee collections and third-party payments;

(b) All proceeds from the sale of goods, including all goods obtained or manufactured with labor and materials paid for with contract funds; and

(c) All interest earned on deposited contract funds or proceeds.

(3) This section does not apply to:

(a) Undesignated contributions to the contractor; or

(b) Contributions designated to a specific purpose not contemplated in the contract.

Md. Code Regs. 16.04.02.10