09 NCAC 03M .0703         REQUIRED CONTRACT PROVISIONS

Prior to receiving State financial assistance, the recipient shall sign a contract with the agency that shall contain the obligations of both parties. Prior to disbursing any State financial assistance, each agency shall sign a contract with the recipient requiring compliance with the rules in this Subchapter. The requirements of this Rule shall also be applicable to all subrecipient relationships. Each contract agreement shall contain:

(1)           A specification of the purpose of the award, services to be provided, objectives to be achieved, and expected results;

(2)           The source of funds (such as federal or state) must be identified, including the CFDA number and percentages of each source where applicable.

(3)           Account coding information sufficient to provide for tracking of the disbursement through the disbursing agency's accounting system.

(4)           Agreement to maintain all pertinent records for a period of five years or until all audit exceptions have been resolved, whichever is longer.

(5)           Names of all parties to the terms of the contract. For the recipient or subrecipient, each contract shall contain the employer/tax identification number, address, contact information, and the recipient's or subrecipient's fiscal year end date.

(6)           Signatures binding all parties to the terms of the contract.

(7)           Duration of the contract, including the effective and termination dates.

(8)           Amount of the contract and schedule of payment(s).

(9)           Particular duties of the recipient.

(10)         Required reports and reporting deadlines.

(11)         Provisions for termination by mutual consent with 60 days written notice to the other party, or as otherwise provided by law.

(12)         A provision that the awarding of State financial assistance is subject to allocation and appropriation of funds to the agency for the purposes set forth in the contract.

(13)         Provision that requires reversion of unexpended State financial assistance to the agency upon termination of the contract.

(14)         A provision that requires compliance with the requirements set forth in this Subchapter, including audit oversight by the Office of the State Auditor, access to the accounting records by both the funding entity and the Office of the State Auditor, and availability of audit work papers in the possession of any auditor of any recipient of State funding.

(15)         A clause addressing assignability and subcontracting, including the following:

(a)           The recipient or subrecipient is not relieved of any of the duties and responsibilities of the original contract.

(b)           The subrecipient agrees to abide by the standards contained in this Subchapter and to provide information in its possession that is needed by the recipient to comply with these standards.

History Note:        Authority G.S. 143C-6-22; 143C-6-23;

Eff. July 1, 2005;

Readopted Eff. July 1, 2016.