HB-5158, As Passed House, June 14, 2012

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5158

     A bill to amend 1984 PA 431, entitled

"The management and budget act,"

(MCL 18.1101 to 18.1594) by adding section 470.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 470. (1) Beginning January 1, 2013, if a state agency

enters into a procurement contract for services, the contract shall

provide that the department or its designee may audit the vendor to

verify compliance with the contract. The financial and accounting

records associated with the contract shall be made available to the

department or its designee and the auditor general, upon request,

during the term of the contract and any extension of the contract

and for 3 years after the later of the expiration date or final

payment under the contract. The department and its designee shall

not audit any matters outside the scope of the individual contract

unless there is a separate constitutional or statutory basis for

that audit.

     (2) Beginning January 1, 2013, if a person receives a grant of

state funds, the person shall agree to allow the department or its

designee to audit the person to verify compliance with the terms of

the grant. The person shall also agree that the financial and

accounting records associated with the grant shall be made

available to the department or its designee and the auditor

general, upon request, during the term of the grant and any

extension of the grant and for 3 years after the later of the

expiration date or final payment under the grant. The department

and its designee shall not audit any matters outside the scope of

the individual grant unless there is a separate constitutional or

statutory basis for that audit.

     (3) Proprietary financial and accounting data and records

associated with the contract or grant shall be exempt from

disclosure under the freedom of information act, 1976 PA 442, MCL

15.231 to 15.246.

     (4) Nothing in this section shall limit the constitutional or

statutory authority of the auditor general.

     (5) As used in this section, "auditor general" means the

auditor general or a certified public accounting firm selected by

the auditor general to conduct the audit.