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SECTION 15. USE AND ACCOUNTING OF FUNDS <br /> District shall be the custodian of all funds generated by the <br /> provisions of this Agreement. All funds, including accrued interest, <br /> generated under this Agreement by either party are restricted to uses <br /> directly relating to the operation and maintenance, and capital expense <br /> needs of District's Plant. Separate bookkeeping accounts shall be <br /> maintained by the District segregating receipts and expenses into two <br /> separate categories; operations and maintenance; and capital expansion. <br /> Transfers between the above categories can only be done by mutual <br /> agreement of both parties. Operations and maintenance may include a <br /> reasonable portion of District's overhead related directly to the <br /> operation and maintenance of District's Plant. <br /> District shall keep proper books and records which shall incorpor- <br /> ate general principles for enterprise accounting and shall comply with <br /> any applicable State and Federal Clean Water Grant Program Regulations. <br /> Said books and records shall, upon written request, be subject to in- <br /> spection by any duly authorized representative of City. <br /> District shall make a written annual report to City of plant <br /> operations and of all receipts and disbursements received and made in <br /> accordance with this contract. An annual audit of District's books <br /> and accounts required by this Agreement shall be performed in accord- <br /> ance with enterprise accounting guidelines by an independent certified <br /> public accountant appointed by District, in the regular course of the <br /> conduct of District's annual audit. <br /> SECTION 16. SETTLEMENT OF DISPUTES. <br /> All claims and disputes relating to this Agreement shall be <br /> subject to settlement under the following two -step process. <br /> -24- <br />