Who has the right to audit the Contractor's records?

The City, State of California, or any Federal agency having an interest in the subject matter of the Agreement has the right to audit the Contractor's records due to regulatory and oversight responsibilities. This right is typically established in agreements to ensure compliance with applicable laws, regulations, and contractual obligations.

Auditing allows these entities not only to verify that funds are being used appropriately but also to ensure that the work being carried out aligns with the terms of the agreement. This oversight is crucial for protecting public interests and ensuring accountability within contractual relationships involving government entities.

The other choices involve entities that either have limited or no authority to audit records. Only the Contractor would not have the authority to audit themselves; citizens generally do not possess the right unless specifically granted under certain circumstances; and while the State of California has significant regulatory authority, it does not act alone in this context. Hence, the specified groups in the correct answer encompass a broader range of authorities which are vested with the right to audit under specific agreements.