Agenda - Council - 10/23/2007 - Laserfiche WebLink

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Blue Cross Blue Shield of Minnesota Contractor Terms and Conditions e. The books, records, documents, and accounting procedures and practices of Contractor relevant to this agreement shall be retained and made available and subject to examination -by BCBSM for a minimum of three years. . 12. ALLOWABLE COSTS AND DOCUMENTATION To be allowed under this Contract, costs must meet the following criteria: a. Be necessary and reasonable for the performance of the contract. b. Be determined in accordance with generally accepted accounting principles. c. Be adequately documented. 13. REASONABLE COSTS A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. Consideration will be given to: a. Whether the cost is of a type generally recognized as ordinary and necessary for the performance of the Contract. b. The restraints or requirements imposed by such factors as generally accepted sound business practices, arms length bargaining, federal and state laws and regulations and the terms and conditions of the Contract. c. Whether the individuals concerned acted with prudence in the circumstances, considering their responsibilities to the organization, its members, employees, clients, and the public at large. d. Significant deviations from the established practices of the organ ization that may unjustifiably increase Contract costs. 14. REIMBURSEMENT LIMITED TO NET COSTS All costs charged against the Contract shall be net of all applicable credits. The term "applicable credits" refers to those receipts or reductions of expenditures that operate to offset or reduce expense items that are reimbursable under this Contract. Applicable credits may include, but are not necessarily limited to, rebates or allowances, discounts, credits toward subsequent purchases, and refunds. Contractor shall, where possible, deduct the amount of the credit from the amount billed as reimbursement for the cost, or shall deduct the amount of the credit from the total billed under a future invoice. 15. AUDITS The Contractor agrees that BCBSM and its representatives shall have an absolute right of access to, and right to review and copy, all of the Contractor's records pertaining to this Contract and to conduct reviews andfor audits related to this Contract. Contractor shall, for the purpose of any such review or audit, retain and provide access to all records related to the Contract including, but not necessarily limited to, those records specified in Clauses ( #10, # #12, #13, and #14) above. Contractor shall also provide access to and allow interview of any employee who might reasonably have information related to such records. Such access to employees and records shall be provided during normal business hours throughout the Contract term and for at least three years after the final payment is disbursed pursuant to this Contract, or until completion of any action and resolution of all issues which may arise as a result of any audit or review of such records, whichever is later. 16. DOCUMENTATION OF TIME SPENT Contractor shall maintain. reports or other detailed records (e.g. activity logs or timesheets) documenting time spent by each employee, agent, contractor or volunteer whose work in support of the Contract is billed under the Contract or used as match. Records used to meet this requirement shall identify the individual performing the work, the date on which the work was performed, the specific Contract-related activities or objectives to which the individual's time was devoted, and the Page 4 of 7 _194_