Audit of costs shall assure that costs reimbursed are allowable under the terms of the project agreement;
The Center, a Party represented on the Board with regard to projects it finances, or audit organizations as specified by the Board, may perform such audits, or engage others to do so.
Accounting systems used by project recipients must be acceptable to the Center or the Party represented on the Board in regard to projects it finances and shall be subject to review and audit.
Audit reports pertaining to a project shall be available to the entities audited, to the Center, and to all Parties represented on the Board.
Allowable costs based on the results of an audit shall be determined by the entity performing the audit or engaging others to do so. Any disputes shall be settled in accordance with resolution of dispute procedures contained in the project agreement.
Provisions for each Party which wholly or partly finances a project and for the Center to have the right of full ISTC Agreement access, after notice of not less than 20 days or as specified in the project agreement, to carry out on-site monitoring and audit of all activities of the project; specifications of the portions of the facilities, equipment, documentation, information, data systems, materials, supplies, personnel, and services which will concern the project and so will be accessible for the monitoring and audit; such specification shall permit the recipient entity the right to protect those portions of facilities that are not related to the project. After completion or termination of a Center project the recipient entity may utilize the facility or portion of the facility previously used for the Center project for other work; however, all documentation and records including those associated with equipment, data systems, materials, supplies, and services utilized on the Center project must be maintained for up to two years following such completion or termination and such documents and records and personnel must be available to the auditor for up to two years following such completion or termination.
Approved projects funded other than through the Center shall be subject to audit by the financing Party and/ or their representatives, taking into account the principles set forth in paragraph A of this Article.
Each Party may conclude supplementary written agreements with the Center as approved by the Board consistent with the ISTC Agreement in order to comply with its national laws, rules, and regulations applicable to the Center.
This Statute may be amended by unanimous consent of the Board.
Statement of the United States, European Community, and Japan:
“Any element of profit” in Article X.B.(vii) is recognized to include contributions to pension funds, social insurance, and other social funds.
The Russian Federation, as part of its in-kind contribution, has agreed to indicate on each project proposal transmitted to the Board its contribution of the costs listed above.”
Statement of the Russian Federation:
“The Russian Federation interprets ‘fair and reasonable terms', referred to in Article XIII.D.(iii). as terms established at the moment on the international license market.”