Nimitz Motel Operating Subsidy Agreement_executed

Home

5 (b) Operator shall be in compliance with all of its obligations under the Ground Lease. (c) No Event of Default, or event that with notice or the passage of time or both could constitute an Event of Default, shall exist and remain uncured as of the date of such Subsidy Payment is to be disbursed hereunder. ARTICLE 5 REPORTING REQUIREMENTS; AUDITS; PENALTIES FOR FALSE CLAIMS 5.1 Regular Reports; Operating Statements. Operator shall submit electronically with the City no later than one hundred eighty (180) days after the end of each Fiscal Year annual report forms (the "Annual Monitoring Report") that include audited financial statements including any management letters; an income and expense statement for the Project covering the applicable reporting period "Operating Statement"; a statement of balances, deposits and withdrawals from all accounts; and evidence of required insurance. Such Annual Monitoring Report shall include a list of the Operating Costs paid by Operator during such applicable prior Fiscal Year and Operator's certifications that (a) the total Grant Funds received by Operator as of the end date of the applicable Fiscal Year have been used only to pay Operating Costs, (b) all of Operator's representations and warranties in this Agreement remain true and correct in all material respects as if made on the end date of such the applicable Fiscal Year, (c) there is no Event of Default by Operator as of the end date of the applicable Fiscal Year, and (d) the party signing the Annual Monitoring Report is an officer of Operator authorized to do so on Operator's behalf. 5.2 Notification of Defaults or Changes in Circumstances. Operator shall notify City immediately of any Event of Default or event that, with the passage of time, would constitute an Event of Default. 5.3 Financial Statements. As set forth in Section 5.1, Operator shall deliver to City, no later than one hundred eighty (180) days following the end of any Fiscal Year, an audited balance sheet and the related statement of income and cash flows for such Fiscal Year, certified by a reputable accounting firm as accurately presenting the financial position of Operator, including any management letters supplied by the auditors. 5.4 Books and Records. Operator shall establish and maintain accurate files and records of all aspects of Operating Expenses and Project Income and the matters funded in whole or in part with Grant Funds during the term of this Agreement. Without limiting the scope of the foregoing, Operator shall establish and maintain accurate financial books and accounting records relating to Operating Costs incurred and paid and Grant Funds received and expended under this Agreement, together with all invoices, documents, payrolls, time records and other data related to the matters covered by this Agreement, whether funded in whole or in part with Grant Funds. Operator shall maintain all of the files, records, books, invoices, documents, payrolls and other data required to be maintained under this Section in a readily accessible location and condition DocuSign Envelope ID: FD5B6EFC-4700-4210-9102-207694C552B7