TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES
CHAPTER XXXIII: OFFICE OF THE LT. GOVERNOR
PART 1600 OFFICE OF THE LT. GOVERNOR'S PROCUREMENT RULES
SECTION 1600.7020 RECORDS AND AUDITS
Section 1600.7020 Records and Audits
a) Retention of Books and Records
Books and records that relate to performance of a contract, including subcontracts, and that support amounts charged to the OLG, shall be maintained:
1) by a vendor, for three years from the date of final payment under the prime contract;
2) by a subcontractor, for at least three years from the date of final payment under the subcontract; and
3) by a vendor and subcontractor for such longer period of time as is necessary to complete ongoing or announced audits.
b) Contract Audit
1) Types of Contracts Audited. The type of contract under which books and records should be audited is that in which price is based on costs or is subject to adjustment based on costs, or that in which auditing would be appropriate to assure satisfactory performance, such as a time and materials contract.
2) Situations in which an audit may be warranted include, but are not limited to, when a question arises in connection with:
A) the financial condition, integrity, and reliability of the vendor or subcontractor;
B) any prior audit experience;
C) the adequacy of the vendor's or subcontractor's accounting system;
D) the number or nature of invoices or reimbursement vouchers submitted by the vendor or subcontractor for payment;
E) the use of federal assistance funds;
F) the fluctuation of market prices affecting the contract; or
G) any other situation in which the Procurement Officer finds that such an audit is necessary for the protection of the State's best interest.